FourPoint Energy has acquired oil and gas properties and related midstream assets in the Western Anadarko Basin from EnerVest. As part of the deal, the firm has bought for $268 million a stake in Laredo Petroleum and SM Energy acquisitions closed by EnerVest in the second half of 2013, including interest in more than 1,200 producing wells. Also, FourPoint has raised more than $1 billion including $200 million in direct private equity and $800 million in term debt from EIG Global Energy Partners and GSO Capital Partners.
FourPoint Energy, LLC announced today the acquisition of certain producing and undeveloped oil and gas properties and related midstream assets in the Western Anadarko Basin from affiliates of EnerVest, Ltd. Under the terms of the agreement, FourPoint Energy has purchased for $268 million an ownership stake in both the Laredo Petroleum and SM Energy acquisitions closed by EnerVest in the second half of 2013. The acquisition includes interest in over 1,200 producing wells with net production to FourPoint Energy of over 35 MMcfed.
FourPoint Energy and EnerVest have also entered into a Joint Development Agreement and Area of Mutual Interest Agreement to own, operate and develop oil and gas properties in the Western Anadarko Basin. Each company will hold a 50% interest in the AMI and EnerVest is designated as operator.
The companies hold a strong acreage position with over 90,000 net acres in one of the most prolific multi-pay regions of the country. The companies will share all future lease and producing property acquisitions within the joint development area, encompassing 14 counties in Texas and Oklahoma and will work together as partners to advance an aggressive acquisition and development plan.
The partnership combines the extensive technical, operational, and transactional expertise of both companies while launching a well-capitalized venture to capture future opportunities through acquisitions and the drill bit. “This is a strategic partnership that marries the strengths of both companies and the FourPoint team couldn’t be more excited to be working with such a quality team of professionals at EnerVest,” said George Solich, President and CEO of FourPoint Energy.
This will be the first entry back into the Western Anadarko Basin for FourPoint Energy since the sale of their previous company, Cordillera Energy Partners to Apache Corporation in 2012. “Launching this new venture and simultaneously returning to this area provides an advantage for optimal value creation for our investors,” said Tad Herz, Executive Vice President and CFO.
This fourth enterprise led by George Solich and the core leadership team from Cordillera will possess the same performance driven, opportunistic, goal-oriented culture. Building on the experience of three successful companies in 12 years, FourPoint Energy will direct its initial focus to the core areas of the Western Anadarko and Permian Basins. “The Permian Basin offers multi-stacked pays with extensive vertical well control with industry transitioning to a more robust horizontal development model,” said Kamil Tazi, Executive Vice President and COO.
Simultaneous with the EnerVest transactions, FourPoint Energy raised over $1 billion of committed capital including $200 million in direct private equity and $800 million in term debt from EIG Global Energy Partners, LLC and funds advised by GSO Capital Partners, LP. In addition, FourPoint Energy also entered into a $250 million credit facility with JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A.
The debt and equity securities have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
FourPoint Energy is a privately held acquisition, exploration and production company headquartered in Denver, CO. Join our team at FourPointEnergy.com.
Jefferies LLC acted as sole financial advisor, JPMorgan Securities, LLC acted as sole lead arranger and book runner on the credit facility and Andrews Kurth LLP acted as legal advisor to FourPoint Energy in connection with this transaction.