Private Equity Group Inks Deal for CDX

A private equity group that includes TCW and others recently signed an agreement to buy Dallas-based CDX for $835 million in cash and other considerations. The purchase of the onshore natural gas exploration and production company is expected to close at the end of this month.

"CDX owns an impressive portfolio of producing and non-producing mineral leases in coal bed methane and other unconventional natural gas areas, has developed specialized technologies to extract the methane locked in these reservoirs, and has assembled an exceptional, world class team of technical, managerial and support professionals," said Glen Kinder, CDX's president and CEO. Kinder added that the transaction with TCW will "robustly capitalize" CDX, allowing it to develop its property holdings in various areas of the US and Canada as well expand its international operations.

"The company was attractive to us for many different reasons, including its substantial acreage position in every major resource play in North America, its inventory of thousands of drillable locations, its proprietary and environmentally-friendly drilling technology, its fleet of 17 drilling rigs and in-house directional drilling company, and its highly experienced management team and technical staff," commented Kurt A. Talbot, managing director of TCW.