(Bloomberg) — Quantum Capital Group has agreed to buy Caerus Oil and Gas in a deal that values the Rocky Mountain energy explorer at $1.8 billion, people familiar with the matter said, as private equity firms ramp up buying in the oil patch.
Energy-focused Quantum is buying Caerus from backers Oaktree Capital Management, Anschutz Investment Co., and Old Ironsides Energy, according to the people who asked not to be identified discussing confidential information.
A Quantum representative declined to comment, and representatives for Caerus, Oaktree, Anschutz, and Old Ironsides didn’t respond to requests for comment.
The deal underscores how buyout firms are increasingly eager to invest in the oil and gas sector, which has been experiencing a deal boom following a post-COVID rebound in energy prices. Last month, KKR & Co.-backed Crescent Energy Inc. agreed to pay $2.1 billion for SilverBow Resources Inc.
This deal is also a relatively rare example of a so-called secondary buyout in US oil and gas, as corporate buyers have typically been the acquirers of private equity-backed energy assets. Matador Resources Co. agreed to buy assets in the Permian Basin from a portfolio company of EnCap Investments LP for $1.9 billion cash earlier this month.
Caerus aims to be “the Rocky Mountain region’s most efficient producer,” according to its website. The company operates more than 7,400 wells in the Piceance Basin in Colorado and Uinta Basin in Utah. It also has infrastructure assets including 2,400 miles of gas and water pipelines and a number of water treatment and storage facilities.
Founded by Chief Executive Officer Wil VanLoh, Quantum is among a handful of Texas-based private equity firms specializing in oil and gas investing.
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Caerus Oil and Gas – Operations Area: Piceance and Uinta Basin
Caerus’ current operations are focused on the Piceance and Uinta Basins, where we operate over 7,400 producing wells and hold a substantial undeveloped acreage position with over 5,300 future drilling locations. Caerus has 1P Reserves (SEC) of approximately 2.5 Tcfe of natural gas and daily production of approximately 600 million cubic feet.
Caerus owns approximately 680,000 net acres of leasehold within the Piceance and Uinta Basins, with an additional 36,000 net mineral fee acres and 10,000 net royalty interest acres.
Caerus employs approximately 298 employees in its offices in Denver, Parachute, Colorado and Vernal, Utah.
