El Paso billionaire Paul Foster and his partners at Franklin Mountain Energy (FME), a company he helped establish six years ago, have sold all of their oil and gas assets in New Mexico’s oil-rich Permian Basin to Houston-based Coterra Energy Inc. for roughly $2.5 billion. In the deal, Coterra is handing over $1.5 billion in cash along with nearly 40.9 million shares of its stock—valued at about $1 billion—according to a Nov. 12 announcement. Although the sale officially closed on Jan. 27, the final price could shift slightly due to post-closing adjustments, as noted by Coterra officials.
Most of Foster’s fortune comes from Western Refining, the El Paso oil company he founded. That business was sold for billions of dollars several years ago and is now part of Marathon Petroleum Corp., which still runs the old El Paso refinery. On Forbes Magazine’s 2024 billionaires list, Foster was ranked No. 1,945 among 2,781 billionaires, with an estimated net worth of $1.6 billion as of March 8, 2024.
Foster isn’t just about accumulating wealth—he’s also a dedicated philanthropist. In 2007, he donated $50 million to Texas Tech University, which helped establish the medical school that now bears his name at the Texas Tech Health Sciences Center in El Paso. He’s also contributed millions to support athletic projects at the University of Texas at El Paso.
Franklin Mountain Energy’s Rise in the Permian Basin
Formed in 2018 by Foster and several former executives of Western Refining, Franklin Mountain Energy quickly became one of the largest privately held oil and gas producers in the Permian Basin. At its peak, FME managed 32,000 acres of oil and gas leases, operated 170 wells, and maintained 100 miles of pipelines in Lea County, New Mexico, one of the region’s top oil-producing areas.
The Permian Basin, which stretches across 66 counties in southeastern New Mexico and West Texas, is the biggest oil-producing region in the United States. For Foster, the deal also has a personal twist. Growing up in Lovington, New Mexico—the county seat of Lea County and located about 240 miles northeast of El Paso—Foster always had one eye on his roots. “His father was in the oil-field service business,” said Craig Walters, FME’s CEO, at a recent investor conference in Denver. “He always wanted to have an upstream oil company and eventually come back to his home roots.” Walters also pointed out that FME’s founders recognized early on the growing significance of the Permian Basin, especially on the New Mexico side.
Initially headquartered in El Paso, FME has shifted operations to Denver in recent years, growing to a team of 34 employees. Last summer, the company put its oil and gas assets on the market, aiming for a deal around $3 billion—a target that has now been reached with the Coterra transaction.
What Does This Mean for Foster and FME?
Questions remain about the future of Franklin Mountain Energy now that its assets have been sold. FME’s website now notes that its operating entities have been acquired by Coterra, and many of the company’s other details have been removed. It’s also unclear how much money and Coterra stock Foster personally received from the deal, and whether this move signals the end of FME’s operations.
For Foster, the new windfall could mean even greater opportunities to support his many ventures and philanthropic projects in El Paso. Beyond oil, Foster is deeply involved in the local community. He’s a partner in the development of Campo Del Sol, a major new housing community in El Paso, and plays active roles in real estate, construction (as a board member of Jordan Foster Construction), and sports—he’s part owner of the El Paso Chihuahuas minor league baseball team as well as soccer teams in El Paso and in Juárez, Mexico.
Foster’s impact on downtown El Paso is also significant. He’s helped revive the area by renovating historic buildings like the Plaza Hotel Pioneer Park, and he holds major stakes in landmark properties such as the 21-story Wells Fargo building and One San Jacinto Plaza, which bears the Sunflower Bank logo. His longstanding connections to the oil industry, including his earlier involvement with Western Refining—which ultimately became part of Andeavor and later Marathon Petroleum—continue to bolster his influence in both business and philanthropy.
A Broader Industry Move
The Coterra deal isn’t happening in isolation. In a related transaction, Coterra also acquired Permian Basin assets from Denver-based Avant Natural Resources for $1.45 million, underscoring the company’s broader strategy to expand its footprint in the region.
As the dust settles on this major deal, the ripple effects will be watched closely—not only for what they mean for Foster and FME but also for their implications in the wider energy market. With new financial clout and a rich history of reinvesting in his community, Paul Foster seems poised to continue shaping both the oil industry and the future of El Paso.
