Flywheel Bakken Closes on Sale of Williston Basin Assets

OKLAHOMA CITY, July 2, 2019 /PRNewswire/ -- Flywheel Bakken, LLC, and certain wholly-owned subsidiaries ("Flywheel" or the "Company"), an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma and backed by the Kayne Private Energy Income Funds platform, announced that it has closed the previously announced sale of their Williston basin assets to Northern Oil & Gas, Inc. (the "buyer" or "NOG") for a purchase price of $165 million in cash, a $130 million 6% 3-year senior unsecured note due 2022, and approximately 5.6 million shares of Northern common stock (as adjusted for customary purchase price adjustments).

The divested assets include non-operated working interests in approximately 18,000 net acres containing 87.8 net producing wells, and 4.1 net wells in process. 

"The divestiture of our non-operated Williston basin asset will allow us to focus our resources on our core operated asset in the Fayetteville shale and continue to create value for our shareholders.  We have enjoyed working with the Northern team on this transaction, and we wish them continued success with these great assets," commented Justin Cope, Chief Executive Officer of Flywheel.

Vinson & Elkins acted as legal advisor, and RBC Richardson Barr, LLC served as exclusive financial advisor to Flywheel Bakken.

ABOUT FLYWHEEL BAKKEN

Flywheel Bakken began as Valorem Energy in early 2017 with backing from the Kayne Private Energy Income Fund. In 2017, Valorem acquired interests in the Williston Basin for $285 million. In August 2018, the platform committed a second time to the management team with $700 million of equity in the form of the newly-formed Flywheel Energy. Flywheel Energy is a private exploration and production company formed to acquire and operate large, producing onshore U.S. oil and gas assets with an emphasis on the Rockies and Mid-Continent. Flywheel entities have made over $2.1 billion of acquisitions since 2017.  For more information please visit www.flywheelenergy.com.

ABOUT KAYNE ANDERSON CAPITAL ADVISORS

Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on niche investing in upstream oil and gas companies, energy and infrastructure, specialized real estate, growth equity and both private credit and diversified liquid credit. Kayne Anderson's investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. Kayne manages $30 billion in assets for institutional investors, family offices, high net worth and retail clients and employs 350+ professionals in eight offices across the U.S.

The Kayne Private Energy Income Funds platform is part of Kayne Anderson's successful energy private equity practice that has raised over $10 billion since 1998. The strategy was formed in late 2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America.

Kayne Anderson is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta, and Boca Raton. For more information, please visit www.kaynecapital.com

SOURCE Flywheel Bakken