Kirkland & Ellis Advises Franklin Mountain Energy and Avant Natural Resources on $3.95 Billion Acquisition Deal with Coterra Energy.
Kirkland & Ellis advised Franklin Mountain Energy and Avant Natural Resources on two agreements with Coterra Energy Inc. (NYSE: CTRA) for the acquisition of select assets totaling $3.95 billion. The deal includes $2.95 billion in cash and $1 billion in Coterra stock, subject to purchase price adjustments.
The transactions are set to close in the first quarter of 2025, with an effective date of October 1, 2024. Both acquisitions are contingent on standard terms and conditions.
In commenting on the acquisition, Tom Jorden, Chairman, CEO, and President of Coterra, expressed enthusiasm about the deal, stating, “We are thrilled to announce the pending acquisition of two high-quality Permian Basin asset packages. These highly accretive acquisitions create an expanded core area in New Mexico that plays to Coterra’s organizational strengths. In addition to adding significant oil volumes in 2025, the acquired assets provide inventory upside to established and emerging oil-weighted formations. We have been drilling horizontal wells in Lea County, New Mexico, since 2010 and are extremely excited with the recent results and future opportunity across the area. The newly scaled platform provides a long runway for capital-efficient development and substantial free cash flow generation. Importantly, we are maintaining an industry-leading balance sheet.”
Kirkland & Ellis assembled a diverse legal team to handle both transactions. For Franklin Mountain Energy, the team was led by real asset lawyers Chris Heasley and Will Eiland, along with corporate lawyer John Kaercher. Other key contributors included real asset lawyers Luke Strother, Matt Gibson, Mitch Holliman, Trent Tucker, and Jake Johnson, as well as Hayley Hollander, a transactional liability insurance lawyer, Michael Rigdon, a capital markets lawyer, Jordan Roberts, a debt finance lawyer, David Wheat, a tax lawyer, and Chuck Boyars, an antitrust & competition lawyer.
For Avant Natural Resources, Kirkland’s team was led by corporate lawyer John Kaercher, along with real asset lawyers Chris Heasley and Albert Jou. The team also included corporate lawyer Paul Milani, tax lawyers David Wheat and Rebecca Fine, environmental transactions lawyers Jonathan Kidwell and Courtney Tibbetts, antitrust & competition lawyers Chuck Boyars, Sarah Lonvick, and Miguel Suarez Medina, transactional liability insurance lawyer Hayley Hollander, and employment & labor lawyer Christie Alcala.
Coterra Energy Inc. is a leading oil and natural gas company formed in 2021 through the merger of Cabot Oil & Gas and Cimarex Energy. Headquartered in Dallas, Texas, Coterra operates primarily in the Permian Basin and Eagle Ford Shale, focusing on capital-efficient production and sustainable practices. The company is committed to creating long-term value for shareholders while maintaining an industry-leading balance sheet.
Kirkland & Ellis is an international law firm with more than 3,500 attorneys who provide legal representation to clients in areas such as private equity, mergers and acquisitions, complex corporate transactions, litigation, dispute resolution and arbitration, restructuring, and intellectual property issues.
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