Sanchez Production Partners LP (AMEX:SPP) signed a definitive agreement to acquire 50% stake in Carnero Processing, LLC from Sanchez Energy Corporation (NYSE:SN) for $47.7 million in cash on October 6, 2016. As per the agreement Sanchez Production Partners LP will also assume remaining capital commitments to Carnero Processing by Sanchez Energy Corporation, amounts equal to $32.3 million. The transaction will be announced from public offering by Sanchez Production in the amount of $80 million. The completion of the transaction is subject to satisfaction of customary closing conditions, including Sanchez Production Partner’s arrangement of financing to pay the purchase price under each transaction agreement. As of October 6, 2016 the Board of directors of Sanchez Production Partners LP approved the deal. The transaction may be terminated if not completed by March 31, 2017. The transaction is expected to close in the fourth quarter 2016. Stifel, Nicolaus & Company, Incorporated acted as financial advisor and Potter Anderson & Corroon LLP and Andrews Kurth, LLP acted as legal advisor to Sanchez Production Partners LP in the transaction. David Elder, Patrick Hurley, Shubi Arora, Gabe Procaccinni and David Bartz of Akin Gump Strauss Hauer & Feld LLP and Mark Gentile and Jacob Hasler of Richards, Layton & Finger acted as legal advisors to Sanchez Energy. Peter Bowden, Brian Conner, Diggs Gully and Seth Kidd of Jefferies LLC acted as financial advisors for audit committee of Board of Directors of Sanchez Energy.