PureWest Completes Follow-on Upstream Energy Securitization

DENVER, Aug. 11, 2022 /PRNewswire/ -- PureWest Energy, LLC ("PureWest"), Wyoming's largest natural gas producer, has successfully closed on a second asset-backed securitization. The offering was comprised of $365 million of asset-backed notes collateralized by a portion of PureWest's producing natural gas assets. The offering featured a combination of $210 million of 144A Class A1 Notes and $155 million of Class A2 Notes offered and sold as a 4(a)(2) private placement (the "Notes"). The Class A1 Notes obtained an "A-" rating and the Class A2 Notes were rated "BBB+" by Fitch.

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This transaction follows PureWest's initial $600 million securitization in November 2021, with the assets collateralized in this securitization representing PureWest's retained interest in the same 1,800+ wells included in the initial securitized financing. Guggenheim Securities, LLC ("Guggenheim Securities") served as sole structuring advisor, sole book-running manager, and sole placement agent in connection with the offering.

"The successful closing of our follow-on securitization reflects the recognition in the capital markets that PureWest has a highly attractive asset base that is paired with an industry-leading environmental stewardship profile," said Ty Harrison, PureWest's President and Chief Financial Officer. "We continue to enjoy partnering with the securitization investors and with Guggenheim Securities, which successfully managed a tremendous process in a challenging market environment." The proceeds from the Notes offering, together with excess cash on PureWest's balance sheet, are expected to be distributed to its equity holders in the third quarter of 2022.

"Guggenheim Securities congratulates PureWest on the closing of its follow-on upstream energy securitization, which will support its mission of producing natural gas in a safe, environmentally responsible, and cost-conscious manner," said Joel Foote, Senior Managing Director in Guggenheim's Energy Investment Banking team. "This ABS transaction, which featured the second 144A that Guggenheim Securities structured for PureWest and for the energy sector overall, reflects the conviction of industry leaders and market participants in the overall direction and commitment to ever-higher ESG performance."

The Class A1 Notes were offered in a private offering to qualified institutional buyers ("QIBs") pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to non-U.S. persons in accordance with Regulation S under the Securities Act and the Class A2 Notes were offered in a private offering to certain accredited investors and QIBs under Section 4(a)(2) of the Securities Act. The Notes have not been, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.

About PureWest

PureWest Energy, LLC is a private energy company focused on developing its long-life gas reserves in Wyoming's Green River Basin where the company controls more than 114,000 net acres in and around the prolific Pinedale and Jonah Fields. PureWest is focused on achieving ever-higher ESG performance as part of its commitment to stakeholders and has an industry-leading methane intensity rate of 0.05%, more than two years with zero motor vehicle incidents, and PureWest's employee-led community investment program. Additional information is available at PureWest.com.

Media Contact: Anthony Odem, VP – Finance [email protected]

SOURCE PureWest