Vinson & Elkins, Latham power mineral royalty owners' $1.9 bln union

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Latham & Watkins offices in New York, REUTERS/Andrew Kelly

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  • Vinson & Elkins is representing Desert Peak Minerals
  • Latham & Watkins is leading the deal for Falcon Minerals
  • Both companies own royalties in oil and gas-rich Permian Basin

(Reuters) - Vinson & Elkins was tapped to guide mineral rights and royalties owner Desert Peak Minerals Inc's $1.9 billion merger with rival Falcon Minerals Corp, whose lead counsel is Latham & Watkins.

Prior to Wednesday’s deal, both law firms worked on Desert Peak’s now-shelved initial public offering plans, according to an October U.S. Securities and Exchange Commission filing.

Desert Peak's merger will take the company public. The combined company will own more than 139,000 net royalty acres in the Permian Basin in Texas and New Mexico.

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Royalty owners generally generate income by leasing out properties to oil and gas producers and taking a share of the profits once the resources are sold.

Vinson & Elkins corporate partners Douglas McWilliams, Scott Rubinsky and Benji Barron are advising Desert Peak, the firm said in a statement.

Falcon Minerals has turned to a Latham team led by corporate partners Nick Dhesi, Ryan Lynch and William Finnegan. White & Case is advising Falcon’s transaction committee.

Both Vinson & Elkins' and Latham's mergers and acquisitions practices were bolstered by deals in the energy sector last year.

In October, both firms said they worked on oil refiner Phillips 66’s deal to buy a stake in Phillips 66 Partners pipeline developer and operator for $3.4 billion.

Read more:

Desert Peak Minerals, Falcon Minerals to combine in $1.9 bln deal

Oil rally to continue in 2022 as demand outstrips supply, analysts say

Latham, Vinson & Elkins drive Phillips 66’s partnership buyout

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Sierra Jackson reports on legal matters in major mergers and acquisitions, including deal work, litigation and regulatory changes.