DENVER, Dec. 14, 2017 /PRNewswire/ -- FourPoint
Energy, LLC announced today a new equity financing and the closing
of a strategic upstream and midstream acquisition in the Anadarko
Basin. Quantum Energy Partners has agreed to invest
$489 million in common equity in
FourPoint making it one of the largest unit holders. Existing
equity holders have also invested an additional $36 million bringing the total of new equity
raised to $525 million. Funds
managed by GSO Capital Partners LP ("GSO") together with Quantum
are now controlling members. "This new equity provides
significant liquidity for the company to continue to grow through
strategic acquisitions in the Anadarko and Permian Basins while
executing on our active drilling program in the Anadarko Basin,"
said George Solich, President and
CEO of FourPoint.
"Pro forma with the closing of this new equity and existing debt
capacity, FourPoint has in excess of $900
million in liquidity for future growth," remarked
Tad Herz, Executive Vice President
and CFO of FourPoint.
"We are excited about partnering with George Solich and the FourPoint management team.
We believe they have built an impressive company over the last few
years and demonstrated the increased profitability and potential of
the Western Anadarko Basin through their strong emphasis on
technical and operating excellence. We look forward to partnering
with the existing investors to help the company execute on its
strategic objectives," said Dheeraj
Verma, President of Quantum Energy Partners.
"FourPoint has used the market downturn to build a world class
team and the market leading position in the Western Anadarko
Basin. We are thrilled to have Quantum as a partner in the
business and look forward to working together in the years ahead,"
said Dwight Scott, Senior Managing
Director and President of GSO.
Simultaneous with this new financing, FourPoint has closed the
acquisition of jointly owned properties in Wheeler and Hemphill Counties, Texas from an undisclosed seller for
$188 million after customary closing
adjustments. These assets include over 800 wells of which 610 will
be operated by FourPoint. "Once we integrate these upstream
and midstream assets into our already robust Anadarko position,
FourPoint is poised to accelerate its drilling program exploiting
21 separate targets over more than 6,000 feet of column on our over
2 million gross acre footprint," said Kamil
Tazi, Executive Vice President and COO.
This acquisition adds existing production, upside acreage, and
control of a fully integrated midstream system to FourPoint's
leading position in the Western Anadarko Basin. Pro forma,
FourPoint will operate over 530 Mmcfed, control 300 miles of pipe,
and have over 10,000 upside locations over its predominantly HBP
acreage. Fueled by a prolific inventory of diverse stacked targets,
FourPoint remains active in the Western Anadarko Basin with five
rigs drilling standard length lateral wells. With the recent
passage of the Oklahoma Energy Jobs Act of 2017 that allows for
drilling long lateral horizontal wells in non-shale formations,
FourPoint anticipates the use of long lateral development will make
the basin's drilling economics among the best in the lower 48. The
planned drilling will also employ the use of the latest drilling
and completion technologies that have somewhat lagged in comparison
to other basins employing more stages and bigger fracs.
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.
About FourPoint Energy
FourPoint Energy is a privately
held acquisition, exploration and production company headquartered
in Denver, Colorado. Join our team
at FourPointEnergy.com.
About Quantum Energy Partners
Founded in 1998, Quantum
Energy Partners is a leading provider of private equity capital to
the global energy industry, having managed together with its
affiliates more than $15 billion in
equity commitments since inception. For more information on
Quantum, please visit www.quantumep.com. For investor relations,
please contact Michael Dalton at
(713) 452-2000.
Jefferies LLC acted as financial advisor and Andrews Kurth LLP
acted as legal advisor to FourPoint Energy in connection with the
transaction.
Forward-Looking Statements
This Press Release contains forward-looking statements based on
FourPoint Energy's current expectations that involve a number of
risks and uncertainties. Generally, forward-looking statements do
not relate strictly to historical or current facts and may include
words such as "believes," "will," "expects," "anticipates,"
"intends" or similar words or phrases. Forward-looking statements
in this press release include, but are not limited to, statements
regarding expectations (i) that the acquisition will close on
the anticipated closing date or at all, (ii) as to the
productivity of the acquired assets, and (iii) with respect to the
realization of operating efficiencies and synergies from the
combined assets. No forward-looking statement can be
guaranteed. Numerous risks, uncertainties and other factors
may cause actual results to differ materially from those expressed
in any forward-looking statement.
CONTACT:
Emily Rundles FourPoint Energy, LLC
303.945.8307
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SOURCE FourPoint Energy, LLC