HTS’s Acquisition of Continental Energy’s Cap Rock

On December 17, 2009, Continental Energy Systems LLC (“Continental Energy”) announced that it has agreed to sell Cap Rock Energy Corporation (“Cap Rock Energy”) and its subsidiary, NewCorp Resources Electric Cooperative, Inc., to Hunt Transmission Services (“HTS”). Cravath represented Continental Energy and Lindsay Goldberg in this transaction. Continental Energy is a portfolio company of Lindsay Goldberg.

Under the terms of the agreement, HTS will acquire Cap Rock Energy, including all its electric transmission and distribution assets located in West Texas, Central Texas and an area northeast of Dallas. Regulatory filings are expected to be completed in early 2010, with all approvals expected to be received by the summer of 2010.

The Cravath team includes partners Richard Hall and Andrew R. Thompson, senior attorney Kimberly A. Grousset and associates Rene Paula-Molina, Brandon R. DeFrehn, R. Elliott Tapp, and Danton J. Hill on corporate matters; partner Michael L. Schler and associate J. Leonard Teti II on tax matters; associates Lynne A. Lacoursiere and Melissa Moszkowski on executive compensation and benefits matters; and associate Annmarie M. Terraciano on environmental matters.