Constellation Energy Partners Settles Lawsuit With Former Sponsor; Acquires Class C and Class D Interests
June 26 2014 - 4:15PM
Business Wire
Constellation Energy Partners LLC (NYSE MKT: CEP) today
announced that it has settled the lawsuit brought by Constellation
Energy Partners Holdings, LLC ("CEPH"), a subsidiary of Exelon
Corporation (NYSE: EXC), against CEP in the Court of Chancery of
the State of Delaware (the “Exelon Litigation”).
In conjunction with the settlement, CEP has paid CEPH $1.65
million in exchange for all of the Class C member interests, also
referred to as the “management incentive interests,” and Class D
interests held by CEPH. Together these account for all of the Class
C and Class D interests issued by CEP. Effective with the
acquisition from CEPH, CEP cancelled the Class C and Class D
interests.
As a result of the settlement, the settling parties agree to
file a stipulation in the Court of Chancery of the State of
Delaware seeking dismissal of the Exelon Litigation with prejudice.
The settlement agreement includes mutual releases among the
settling parties.
"The acquisition of the Class C and Class D member interests
through settlement of the Exelon Litigation represents a favorable
outcome for CEP's unitholders," said Stephen R. Brunner, President
and Chief Executive Officer of Constellation Energy Partners. "With
these interests cancelled, CEP will be able to meaningfully
consider and potentially propose a more typical MLP structure. We
look to continue building on the successes which have been realized
since our involvement with Sanchez Oil & Gas Corporation and
its affiliates."
About Constellation Energy Partners LLC
Constellation Energy Partners LLC (“CEP”) is a limited liability
company focused on the acquisition, development and production of
oil and natural gas properties, as well as related midstream
assets. The company’s proved reserves are located in the Cherokee
Basin in Oklahoma and Kansas, the Woodford Shale in the Arkoma
Basin in Oklahoma, the Central Kansas Uplift in Kansas, and in
Texas and Louisiana.
Additional information concerning CEP can be found on the
company's Web site
(http://www.constellationenergypartners.com).
Forward-Looking Statements
This news release contains statements that are considered
forward-looking statements within the meaning of the Securities Act
of 1933, as amended, and the Securities Exchange Act of 1934, as
amended. These forward-looking statements are largely based on the
company’s expectations, which reflect estimates and assumptions
made by the company’s management. These estimates and assumptions
reflect the company’s best judgment based on currently known market
conditions and other factors. Although the company believes such
estimates and assumptions to be reasonable, they are inherently
uncertain and involve a number of risks and uncertainties that are
beyond the company’s control. In addition, management's assumptions
about future events may prove to be inaccurate. Management cautions
all readers that the forward-looking statements contained in this
news release are not guarantees of future performance, and the
reader cannot be assured that such statements will be realized or
the forward-looking events and circumstances will occur. Actual
results may differ materially from those anticipated or implied in
the forward-looking statements due to factors listed in the "Risk
Factors" section of each company’s SEC filings and elsewhere in
those filings. All forward-looking statements speak only as of the
date of this news release. The company does not intend to publicly
update or revise any forward-looking statements as a result of new
information, future events or otherwise. These cautionary
statements qualify all forward-looking statements attributable to
the companies or persons acting on the company’s behalf.
Constellation Energy Partners LLCInvestor Contact:Charles C.
Ward, (877) 847-0009
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