Valorem Energy, LLC Closes on $285 Million Acquisition of Williston Basin Interests

OKLAHOMA CITY–(BUSINESS WIRE)–Valorem Energy, LLC, and certain wholly-owned subsidiaries (“Valorem” or
the “Company”), an independent oil and natural gas company headquartered
in Oklahoma City, Oklahoma and backed by the Kayne Private Energy Income
Fund, L.P., announced that it has closed on its acquisition of LINN
Energy, Inc.’s (“LINN” or the “Seller”) Williston Basin interests for a
purchase price of $285 million, subject to customary purchase price
adjustments.

The acquired assets consist of approximately 20,000 net acres in North
Dakota, South Dakota and Montana with estimated third quarter net
production of 8,750 barrels of oil equivalent per day. The sale has an
effective date of March 1, 2017.

“We are excited to announce our first acquisition since forming Valorem
earlier this year. I am very proud of the team’s accomplishments thus
far, and we are thrilled to own such high-quality assets. We believe
this acquisition provides us with an initial building block to our
long-term strategy of operating large oil and gas assets and achieving
superior returns for our investors,” commented Justin Cope, Chief
Executive Officer of Valorem.

Danny Weingeist, Managing Partner at Kayne Anderson, said, “We are proud
of the Valorem team and believe the assets are a great fit for both
Valorem’s and the Fund’s strategies. We look forward to working with
Valorem to deploy additional capital.”

JP Morgan Chase Bank, N.A., Citigroup Global Markets, Inc. and Wells
Fargo Securities, LLC acted as joint lead arrangers on Valorem’s debt
financing for the acquisition. In addition, Vinson & Elkins L.P.
provided legal counsel, Mobius Risk Group served as marketing and
derivatives advisor and Opportune LLP provided due diligence and
integration assistance to Valorem.

ABOUT VALOREM ENERGY, LLC

Founded in 2017, Valorem is a private exploration and production company
formed to deploy over $1 billion of capital to acquire and operate
large, producing onshore U.S. oil and gas assets, with an emphasis on
the Rockies and Mid-Continent.

For more information, please visit www.valorem-energy.com.

ABOUT KAYNE ANDERSON CAPITAL ADVISORS

Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson” or the Firm”),
founded in 1984, is a leading alternative investment management firm
focused on niche investing in upstream oil and gas companies, energy and
infrastructure, specialized real estate, growth equity and both private
credit and diversified liquid credit. Kayne Anderson manages
approximately $25 billion in assets and employs over 300 professionals
in eight offices across the U.S.

The Kayne Private Energy Income Fund, L.P. (the “Fund”) is part of Kayne
Anderson’s successful energy private equity practice that has raised
over $8 billion since 1998. The Fund was formed in mid-2014 to take
advantage of the market opportunity to acquire and develop large,
long-life producing oil and gas assets in North America.

The Firm is headquartered in Los Angeles with offices in Houston, New
York City, Chicago, Denver, Dallas, Atlanta and Boca Raton.

For more information, please visit www.kaynecapital.com.

Contacts

Kayne Anderson Capital Advisors, L.P.
Mark Teshoian
(713)
493-2001
www.kaynecapital.com
or
Valorem
Energy, LLC
Justin Cope
(405) 702-6991
www.valorem-energy.com