Exponent Energy (Exponent), a Tulsa, Oklahoma-based energy investment firm, is pleased to announce that it has purchased the Oklahoma production assets of Sanchez Midstream Partners LP (NYSE American: SNMP). These assets will be integrated into Exponent’s existing asset base of shallow, low cost, conventional production in the Mid-Continent Region.
Exponent, which now has more than 400 operated wells in Texas and Oklahoma, recognized the transaction as an opportunity to acquire immediately accretive operations in a market they know well and have been successful in. SNMP realized the opportunity to further their strategic focus on mid-stream activities in South Texas by monetizing their remaining Oklahoma production assets.
“We are excited to have come to a mutually-beneficial agreement with the Sanchez team,” said Exponent Managing Member Chris Bird. “As we integrate these assets into our existing position in the Mid-Continent Region, Exponent will benefit from the extensive operational and logistical synergies that are created. This asset has a mix of oil and gas production that insulates us from volatility within either market. The stable cash flow from the base production, along with the significant upside opportunities that exist on the property, will allow us to weather current conditions and take advantage of these opportunities as commodity pricing improves.”
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