American Energy Partners announced Monday it will merge its affiliates American Energy – Utica (AEU) and American Energy – Marcellus (AEM) into a new company in an all stock transaction.
The deal will make the newly merged company, called American Energy Appalachia Holdings, “one of the largest pure-play Appalachian E&P companies in the U.S.,” Oklahoma-based American Energy Partners said.
Current AEU and AEM shareholders will own all of the common equity in the newly formed company.
AEU and AEM will remain wholly owned subsidiaries of American Energy Appalachia Holdings.
Their existing debt and convertible debt securities will not be affected by the merger.
After the deal closes, American Energy Appalachia Holdings will operate over 300,000 net acres in the Utica and Marcellus shale plays in eastern Ohio and northern West Virginia.
The merged company will have estimated proved reserves of 1.5 trillion cubic feet equivalent and estimated daily production of 167 million cubic feet equivalent for the quarter ending on September 30, 2014.