TPG Pace Energy Holdings Corp. has entered into definitive agreements with certain funds managed by EnerVest, Ltd to acquire the oil and gas assets within EnerVest’s South Texas Division for approximately USD 2.66B in cash and stock. As part of the transaction, TPGE and EnerVest are partnering to create Magnolia Oil & Gas Corporation. EnerVest will retain a significant ownership stake in Magnolia.
The formation of Magnolia creates a large-scale, pure-play South Texas operator with top-tier Eagle Ford and Austin Chalk asset positions with more than 40,000 boe per day of production. Magnolia will acquire EnerVest’s approximately 360,000 total net acres in South Texas, which consists of approximately 14,000 net acres in one of the most prolific sections of Karnes County and 345,000 net acres in the emerging, high-growth potential Giddings Field. The acreage position is almost entirely held by production, and the production from the combined asset base is heavily weighted toward oil.