Private Equity Firms Back Four Point’s $2B Uinta Basin Acquisition

FourPoint Resources, LLC, in partnership with its private equity partner Quantum Capital Group, and Kayne Anderson, announced the acquisition of Ovintiv Inc.’s Uinta Basin assets for $2 billion in cash. The assets include 126,000 net acres and production of 29,000 barrels per day.

The companies have been collaborating since 2017, when Quantum Capital’s parent company, Quantum Energy Partners, invested $489 million in Denver-based FourPoint, an acquisition, exploration, and production company. This investment facilitated the acquisition of a controlling position alongside funds managed by GSO Capital Partners.

“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,” said Eric Eichler, COO of FourPoint.

The deal follows Quantum’s latest fundraising efforts announced in October. The firm amassed $5.25 billion for the firm’s private equity flagship, Quantum Energy Partners VIII, $2.8 billion for the firm’s structured capital fund, Quantum Capital Solutions II, and approximately $2 billion for other associated funds on the platform.

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.