Constellation Energy Partners Closes Acquisition of Coalbed Methane Properties in Kansas and Oklahoma
BALTIMORE, April 23 -- Constellation Energy Partners LLC (NYSE Arca: CEP) today announced that it has closed its previously announced acquisition of certain coalbed methane properties from EnergyQuest Resources LP, a Quantum Energy Partners III LP, portfolio company, for an aggregate purchase price of approximately $115 million.
"This acquisition is immediately accretive to distributable cash flow per unit, an excellent fit with our existing portfolio and expands our presence in coalbed methane," said Felix Dawson, chief executive officer of Constellation Energy Partners. "The successful close illustrates our capability in identifying and efficiently executing acquisitions of this kind, which is key to our strategy of developing a portfolio of long-lived and low-risk properties."
Constellation Energy Partners completed this acquisition simultaneously with the closing of a $60 million private placement of common and Class E units to third party investors. The proceeds of the equity private placement, together with funds available under the company's revolving credit facility, fully funded the purchase price of the acquisition from EnergyQuest Resources LP.
Constellation Energy Partners was formed -- and is partly owned -- by Constellation Energy (NYSE:CEG), a Fortune 200 energy company with 2006 annual revenues of $19.3 billion.
Constellation Energy Partners LLC (www.constellationenergypartners.com) is a limited liability company focused on the acquisition, development and production of oil and natural gas properties, as well as related midstream assets.
Source: Constellation Energy Partners
CONTACT:
media
Lawrence McDonnell,
Constellation Energy Partners LLC,
+1-410-470-7433
investors
Tonya Cultice,
+1-410-783-3383
Web site:
http://www.constellation.com/
http://www.constellationenergypartners.com/
