FourPoint Resources, alongside its partners Quantum Capital Group and Kayne Anderson, has agreed to acquire Ovintiv Inc.’s assets in the Uinta Basin for $2 billion in cash. This major acquisition includes 126,000 net acres and current production of about 29,000 barrels of oil per day. The deal represents a significant step forward for FourPoint as it looks to bolster its footprint in one of the most promising oil and gas regions in the United States.
George Solich, Chairman and CEO of FourPoint Resources, expressed his excitement about the partnership with Quantum and Kayne Anderson, two renowned private equity firms in the energy sector. “This collaboration allows our team to get right to work on growing production, cash flow, and creating value with one of the highest-quality, inventory-rich assets in the Lower 48,” Solich said.
The Uinta Basin, located in Utah, is known for its rich deposits of hydrocarbons and high-quality crude oil, making it an attractive target for investment. FourPoint’s Chief Operating Officer, Eric Eichler, highlighted the unique qualities of the region, including the numerous hydrocarbon-rich reservoirs and the area’s long history of positive relationships with stakeholders. “With our commitment to operational excellence and responsible stewardship, this asset offers a remarkable opportunity to generate long-term value for our investors, employees, and the broader community,” Eichler said.
Quantum’s Co-President, Ajay Khurana, echoed this optimism, noting the rarity of such high-quality, long-life assets in today’s maturing U.S. unconventional plays. “We’re thrilled to partner with FourPoint and continue working with Kayne Anderson,” Khurana said. “With multiple decades of high-returning, undrilled inventory, we believe the asset has significant potential for growth that will benefit both the local community and our investors.”
Mark Teshoian, Managing Partner at Kayne Anderson, added that their partnership with FourPoint and Quantum brings together a team with a proven track record of operational excellence. “The Uinta Basin assets are truly exceptional, offering a strong production base and a wealth of economic drilling opportunities,” Teshoian stated. “Together, we’re confident in our ability to drive growth and create value for all stakeholders.”
The transaction was facilitated by Wells Fargo Securities, LLC, which served as FourPoint’s exclusive financial advisor. Wells Fargo also provided committed financing, with Wells Fargo Securities, LLC acting as the sole bookrunner and lead arranger for the deal. Legal counsel for FourPoint and Quantum was provided by Vinson & Elkins L.L.P., while Latham & Watkins LLP served as legal advisors for Kayne Anderson.
With this acquisition, FourPoint, Quantum, and Kayne Anderson are positioning themselves to capitalize on the Uinta Basin’s potential, aiming to drive significant growth while maintaining responsible operational practices that benefit both investors and the local community.
