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Denver-based FourPoint Resources partners on $2 billion acquisition
Uinta Basin asset includes 126,000 net acres and production of 29,000 barrels of crude oil per day
ColoradoBiz staff //November 14, 2024//
AP Photo by David Zalubowski.
AP Photo by David Zalubowski.
Denver-based FourPoint Resources partners on $2 billion acquisition
Uinta Basin asset includes 126,000 net acres and production of 29,000 barrels of crude oil per day
ColoradoBiz staff //November 14, 2024//
Denver-based FourPoint Resources LLC, with partners Quantum Capital Group and Kayne Anderson, announced Thursday the signing of a purchase and sale agreement to acquire Ovintiv Inc.’s Uinta Basin assets in northeast Utah for $2 billion in cash. The asset includes 126,000 net acres and production of 29,000 barrels of crude oil per day.
“The opportunity to partner with Quantum and Kayne Anderson, two of the premier private equity firms in energy, will allow our team to immediately begin the work to grow production, cash flow and create value on one of the highest quality, inventory-rich assets in the Lower 48,” said George Solich, chairman and CEO of FourPoint.
FourPoint Resources is a privately held acquisition, exploration and production company.
Eric Eichler, chief operating officer of FourPoint, described the Uinta Basin as “a unique combination of attributes that make it an exceptional asset including several thousand feet of hydrocarbon-rich reservoirs, premium quality crude oil and a long history of stakeholder alignment.”
Ajay Khurana, co-president of Quantum, said that with the maturation of unconventional resource plays in the U.S., assets possessing multiple decades of high-returning, undrilled inventory are rare. “We look forward to working closely with FourPoint and believe their proven execution capabilities will drive economic production growth on this asset and maximize value for the local community, as well as Quantum’s investors,” Khurana said.
Wells Fargo Securities LLC served as exclusive financial adviser to FourPoint Resources. Wells Fargo Bank N.A. provided financing, and Wells Fargo Securities LLC served as sole bookrunner and lead arranger for the transaction.
Vinson & Elkins LLP served as legal counsel to FourPoint and Quantum. Latham & Watkins LLP acted as legal adviser to Kayne Anderson.
