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.