Case Studies

Short summaries of case studies are listed below.  Clicking on the case study title will provide a more detailed description.

Arranging the Financing for a Complex Energy Deal

Guggenheim Investment Management, a private equity firm with more than $10 billion in investments across a diverse group of industries, including more than $1.5 billion in energy-related investments.
Milagro Exploration, LLC, is a privately held energy exploration and production company formed in 2005 by former senior managers of Mission Resources, Inc., after selling that company to publicly traded Petrohawk Energy Corporation. In June of 2007, Petrohawk decided to divest a number of Gulf Coast natural gas producing properties that were part of the Mission Resources acquisition, and because the management of Milagro was familiar with them the company sought to bid on the properties. However, Milagro’s asset base was $40 million compared to the more than $800 million that would be required to make the purchase.   Haynes and Boone lawyers worked on structuring a financial package that eventually involved 11 commercial lenders on the senior credit facility alone, as well as a number of private investment funds in other parts of the financing. >>

Not for Hollywood

As early as the 1920s, our client - a multinational energy company - had leased land for oil and gas production in Hobbs, NM in the southeast corner of the state. According to prevailing standards, the saltwater byproduct of the production operations was placed into unlined earthen pits. These were filled in during the 1950s and 60s, again conforming to industry procedures and government regulations. >>

Strategic Disposition

Our client, Mirant, wanted to sell a group of utilities and power generation facilities in Jamaica, Trinidad, the Bahamas and Curaçao.  We designed prototype purchase and sale agreements, allowing the businesses to be sold either as a group or on a modular basis, broken up into constituent parts.  This enabled Mirant to put the Caribbean businesses out for competitive bid in an orderly way and to maximize revenues from the sale, as well as to defer their decision on how to consummate the sale or sales until they had the most complete and accurate information possible.  Commonalities in the prototype agreements, and the ability to proceed with either a group or modular sale, allowed the client to make "apples to apples" comparisons regarding price and terms being offered by potential purchasers. >>

The Client in the Driver's Seat

Our client, InterOil Corporation, was positioned to use its very substantial natural gas discoveries to develop an LNG liquefaction facility in Papua New Guinea.  It was clear from the start that, while InterOil had the resources, vision and expertise to drive the project, some very large U.S. and European financial players needed to be brought into the project to provide additional development stage financing to allow the project to move ahead.  The fact that negotiations needed to transpire across several time zones (Papua New Guinea is in the vicinity of Australia) was a complicating factor.  Through tough negotiation and creative structuring, we were able to assist InterOil in securing the development funding InterOil needed, while keeping them where they belonged - in the driver's seat of this complex project. >>

Using Haynes and Boone’s Full Resources

A refining company entered into a transaction to purchase a refinery, fuel terminal and undeveloped acreage located on a major U.S. waterway from an oil and gas major. In the midst of that transaction, our client approached the refining company with a proposal to acquire the fuel terminal and adjacent undeveloped acreage immediately following the overall acquisition from the oil and gas major, leaving the refining company with its desired acquisition target – the refinery. The client desired that both transactions close simultaneously as part of a single transaction, resulting in a complex three-way division of assets and obligations. As part of the transaction, our client also entered into a long-term lease of the refinery site to the refining company, and levered the facility with secured debt financing. A number of resources of Haynes and Boone were required to complete this project, including corporate, finance, tax, real estate, employee and employee benefits, environmental and regulatory. >>