- Rice Energy (NYSE:RICE-OLD) agrees to acquire Vantage Energy for ~$2.7B, including debt, in a deal that will strengthen its position in the Marcellus Shale.
- In connection with the Vantage deal, Rice Midstream Partners (RMP) will buy the acquired midstream assets from Rice Energy for $600M.
- Vantage, whose investors include Quantum Energy Partners, Riverstone Holdings and Lime Rock Partners, postponed a planned IPO in September 2014.
- Following the deal, RICE will control 231K net acres in the Marcellus and Ohio Utica cores with an inventory of 1,164 drilling locations; RMP will control one of the largest and most concentrated core dry gas acreage dedications in the Marcellus Shale, covering 199K acres.
- To help fund the acquisition, RICE announces a 40M-share public offering of common stock, with an underwriters option to purchase up to an additional 6M shares.