FourPoint Resources, Quantum Capital Group and Kayne Anderson to Acquire Ovintiv Uinta Basin Assets for $2 Billion
DENVER and HOUSTON, Nov. 14, 2024 (GLOBE NEWSWIRE) — FourPoint Resources, LLC (“FourPoint”), together with their partners Quantum Capital Group (“Quantum”) and Kayne Anderson, announced today the signing of a purchase and sale agreement to acquire Ovintiv Inc.’s (NYSE, TSX: OVV) Uinta Basin assets for a purchase price of $2.0 billion in cash. The asset includes 126,000 net acres and production of 29 Mbbls/d.
“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 Chief Executive Officer of FourPoint.
Eric Eichler, Chief Operating Officer of FourPoint, said, “The Uinta Basin boasts 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. Coupled with FourPoint’s commitment to operational excellence and responsible stewardship, this asset presents a remarkable opportunity to generate long-term value for our investors, employees, and the broader community.”
“We are excited to build on our longstanding partnership with George and the FourPoint team and to collaborate with like-minded investors at Kayne Anderson,” said Ajay Khurana, Co-President of Quantum. “With the maturation of unconventional resource plays in the United States, assets possessing multiple decades of high-returning, undrilled inventory, like these, are exceedingly 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.”
Mark Teshoian, Managing Partner & Co-Head, Energy Private Equity at Kayne Anderson, commented, “We are excited to partner with FourPoint and Quantum in acquiring Ovintiv’s Uinta Basin assets. This collaboration unites a team with a proven track record of operational excellence and strategic vision. The Uinta Basin assets are truly exceptional, offering a robust production base and a large portfolio of highly economic drilling locations. We are confident that, together, we will drive significant growth and value creation for all stakeholders.”
Wells Fargo Securities, LLC served as Exclusive Financial Advisor to FourPoint Resources. Wells Fargo Bank, N.A. provided committed financing and Wells Fargo Securities, LLC served as Sole Bookrunner and Lead Arranger for the transaction.
Vinson & Elkins L.L.P. served as legal counsel to FourPoint and Quantum. Latham & Watkins LLP acted as legal advisor to Kayne Anderson in connection with this transaction.
About FourPoint Resources
FourPoint Resources is a privately held acquisition, exploration and production company headquartered in Denver, CO managed and operated by FourPoint Energy. Join our team at FourPointEnergy.com.
About Quantum Capital Group
Founded in 1998, Quantum is a leading provider of private capital to the global energy and energy transition industry, having managed together with its affiliates more than $28 billion in equity commitments since inception. For more information on Quantum, please visit www.quantumcap.com.
About Kayne Anderson
Kayne Anderson, founded in 1984, is a leading alternative investment management firm focused on energy, real estate, credit, and infrastructure. With a team defined by an entrepreneurial and resilient culture, Kayne Anderson’s investment philosophy is to pursue cash flow-oriented niche strategies where knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. As responsible stewards of capital, Kayne Anderson’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for our investors. Kayne manages $36 billion in assets (as of 9/30/2024) for institutional investors, family offices, high net worth and retail clients and employs 350 professionals. For more information, please visit www.kaynecapital.com.
Media Contacts
FourPoint Resources
Emily Hantge
303-945-8307
Kayne Anderson Capital Advisors, L.P.
investorrelations@kaynecapital.com
Quantum Capital Group
Kate Thompson / Erik Carlson / Madeline Jones
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
