Case Study

Bagby Energy


Transaction Structure – $16.3MM for all of Bagby’s assets.

Transaction Timeline

July 2009 – ECS was engaged by Bagby Energy Holdings, LP (“Bagby” or the “Company”) as its exclusive financial advisor on a dual track process to either raise capital or sell substantially all of the Company’s assets.

August – October 2009 – ECS conducted a broad marketing effort, contacting institutional capital providers as well as strategic and financial buyers.

November – December 2009 – ECS received initial proposals from five groups. Bagby entered into negotiations for a $30MM mezzanine facility as commodity prices continued to decline.

February 2010 – Bagby restarted discussions with both financial and strategic groups.

July 2010 – ECS closed the $16.3MM sale of Bagby to Fort Worth Energy.

Transaction Highlights

Extensive Marketing Effort – ECS contacted more than 250 institutional capital providers and potential strategic and financial buyers.

Strong Interest in a Difficult Commodity Environment – In spite of natural gas prices declining to a low of $2.51/Mcf during the initial marketing efforts, twelve strategic and nine financial groups actively participated in the process.


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