McClendon Affiliate Files IPO, Intends to Raise $2B
YOUNGSTOWN, Ohio -- American Energy Capital Partners LP, a newly formed entity related to Aubrey McClendon, seeks to raise $2 billion to acquire and explore oil and gas properties. AECP filed documents late Friday with the U.S. Securities and Exchange Commission for an initial public offering.
According to the prospectus, 100 million units will be offered for sale at a price of $20 apiece. The new partnership will be managed exclusively by the company McClendon established six months ago, AECP Management LLC.
States the IPO filing that seeks to raise $2 billion: “We intend to target for acquisition producing and non-producing oil and gas properties that we expect will require additional drilling and other development activities to fully develop their potential. When we acquire a property, we will estimate the capital required to develop the property and plan to reserve a portion of our capital contributions, or a portion of any borrowing capacity available to us, to fund all or a portion of these estimated costs of development. We also plan to use our cash flow after the payment of targeted distributions to our Unitholders to further develop our properties during our first five to seven years of operation after the initial closing date.”
Another McClendon entity, American Energy-Utica LLC announced Oct. 9 that it had raised $1.7 billion to fund oil and gas exploration across the Utica shale formation in eastern Ohio. At that time, the company said proceeds would be used to acquire 110,000 leasehold acres in the southern tier of the Utica shale, finance drilling operations there, and to acquire and develop additional acreage across the play.
On Nov. 26 the Ohio Department of Natural Resources awarded this company five horizontal well permits to drill wells in Harrison County.
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