FourPoint Secures $2 Billion Deal for Ovintiv's Uinta Assets
Deal News | Nov 14, 2024 | Globenewswire
FourPoint Resources, in collaboration with Quantum Capital Group and Kayne Anderson, has signed a $2 billion acquisition agreement to purchase Ovintiv Inc.'s Uinta Basin assets. This transaction involves 126,000 net acres and a production capability of 29 Mbbls/d. This acquisition is expected to leverage the energy expertise and strategic vision of the partnership, aiming at operational excellence to boost production and generate value. Quantum Capital highlights the rarity of such high-return, undrilled inventories, underscoring the strategic importance of this acquisition. The transaction will be supported by committed financing from Wells Fargo, with financial advisory provided by Wells Fargo Securities and legal counsel from Vinson & Elkins and Latham & Watkins LLP.
Sectors
- Energy
- Private Equity
Geography
- United States – Both the acquiring companies and the assets being acquired are located within the United States, particularly focusing on the Uinta Basin.
- Canada – Ovintiv Inc., the target company selling the assets, is listed on both NYSE and TSX, implying Canadian ties.
Industry
- Energy – The article discusses the acquisition of energy assets, specifically oil production capabilities within the Uinta Basin.
- Private Equity – The transaction involves private equity firms Quantum Capital Group and Kayne Anderson, indicating a significant investment move in the sector.
Financials
- 2,000,000,000 – The acquisition of Ovintiv's Uinta Basin assets involves a purchase price of $2 billion.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| FourPoint Resources | Acquiring Company | Company | A privately held acquisition and production company partnering to acquire Ovintiv's assets. |
| Quantum Capital Group | Acquiring Partner | Company | A leading private equity firm in the energy sector, working alongside FourPoint in this acquisition. |
| Kayne Anderson | Acquiring Partner | Company | An alternative investment firm focusing on energy, playing a crucial role in acquiring the Uinta Basin assets. |
| Ovintiv Inc. | Target Company | Company | The company selling its Uinta Basin assets as part of this $2 billion transaction. |
| Wells Fargo Securities, LLC | Financial Advisor and Lead Arranger | Company | Provided financial advisory services and arranged committed financing for this transaction. |
| Vinson & Elkins L.L.P. | Legal Advisor | Company | Acted as legal counsel to FourPoint and Quantum in this transaction. |
| Latham & Watkins LLP | Legal Advisor | Company | Provided legal advisory services to Kayne Anderson. |