American Energy Appalachia Holdings, LLC formed

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OKLAHOMA CITY — Creating one of the largest pure-play Appalachian E&P companies in the U.S., American Energy Partners, LP (AELP) affiliates American Energy – Utica, LLC (AEU) and American Energy – Marcellus, LLC (AEM) will combine in an all-stock transaction.

Upon completion of the transaction, current AEU and AEM shareholders will own all of the common equity of newly formed American Energy Appalachia Holdings, LLC (AEA).

AEU and AEM will remain wholly-owned subsidiaries of AEA and their existing debt and convertible debt securities remain unaffected.

American Energy Partners, LP was founded by Aubrey K. McClendon in April 2013. As a result of the transaction, AEA will operate a strong position of more than 300,000 net acres in the prolific Utica and Marcellus shale plays located in eastern Ohio and northern West Virginia.

AEA had estimated proved reserves of 1.5 trillion cubic feet equivalent (77 percent gas) and estimated daily production of approximately 167 million cubic feet equivalent (79 percent gas) for the quarter ended Sept. 30, 2014.

AEA’s equity owners are The Energy & Minerals Group, First Reserve, other institutional investors and management. EMG is the management company for a series of specialized private equity funds. First Reserve is the largest global private equity firm exclusively focused on energy.

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