FT. WORTH, Texas and DENVER, Colo., June 5, 2018 /PRNewswire/ -- Double Eagle Energy Holdings III LLC ("Double Eagle") of Ft. Worth, Texas and FourPoint Energy ("FourPoint") of Denver, Colorado announced today the formation of a new company named DoublePoint Energy, LLC ("DoublePoint") which will be a pure-play Midland Basin company with over 70,000 acres in the core areas of the oil-rich, multi-pay zones in Midland, Glasscock, Martin, Howard, Upton and Reagan Counties, Texas. The assets of the new company are a combination of Double Eagle's existing Midland Basin acreage and production, along with additional assets that were recently acquired from undisclosed sellers. DoublePoint will continue to consolidate its position in its core areas through bolt-on acreage acquisitions and acreage trades while investing additional capital in an active drilling program. Currently, Double Eagle has one rig running, and as field and drilling operations are transitioned to the combined company, DoublePoint plans to ramp up drilling and development activity over its footprint, which has been largely undeveloped to date.
Double Eagle was formed in 2017 with backing from funds managed by certain affiliates of Apollo Global Management, LLC (NYSE: APO), Magnetar Capital and management. FourPoint Permian, LLC was formed with equity from Quantum Energy Partners, FourPoint Energy, funds managed by GSO Capital Partners LP, and other investors. John Sellers and Cody Campbell will serve as Co-CEOs of DoublePoint and George Solich will serve as the Executive Chairman. The teams of both companies will come together to utilize the best of the Double Eagle and FourPoint organizations to continue to build and develop one of the last largely undeveloped positions in the core Midland Basin.
"Pulling from the strengths of both companies, we believe DoublePoint will be a dynamic player in the Midland Basin focused on acreage acquisitions, acreage trades, and the development of our low risk, multi-pay resource," remarked John Sellers, Co-CEO of Double Eagle and DoublePoint.
"We believe this unique structure and the strong capitalization from our equity partners have provided the foundation for DoublePoint to consolidate and develop one of the top acreage positions in the Midland Basin," said Cody Campbell, Co-CEO of Double Eagle and DoublePoint.
George Solich, President and CEO of FourPoint Energy and Executive Chairman of DoublePoint remarked, "We are excited to be partnering with one of the top management teams in the Permian Basin. John, Cody and their team are the best in the business when it comes to putting together what is often a complex land picture to ultimately maximize long-lateral drillable units. By augmenting Double Eagle's best-in-class Midland Basin expertise with FourPoint's strong technical and operational proficiencies, we are confident this partnership will yield an unprecedented opportunity to quickly and efficiently grow production and cash flow."
About Double Eagle Energy Holdings III LLC
Double Eagle is a Fort Worth, Texas-based energy company focused on acquiring and developing oil and gas assets throughout the Permian Basin.
About FourPoint Energy
FourPoint Energy is a privately held acquisition, exploration and production company headquartered in Denver, Colorado. Join our team at FourPointEnergy.com.
About Apollo Global Management, LLC
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Apollo had assets under management of approximately $247 billion as of March 31, 2018 in private equity, credit and real assets funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.apollo.com.
About Magnetar Capital
Founded in 2005, Magnetar is a leading alternative asset manager with assets under management of $13.4 billion as of April 1, 2018. Magnetar's energy group has actively invested in the North American energy sector for over 10-years and has completed over 40 private investments during that time. The firm is headquartered in Evanston, Illinois, and operates satellite offices in Houston, New York, London and Minneapolis.
About Quantum Energy Partners
Founded in 1998, Quantum Energy Partners is a leading provider of private equity capital to the global energy industry, having managed together with its affiliates more than $15 billion in equity commitments since inception. For more information on Quantum, please visit www.quantumep.com. For investor relations, please contact Michael Dalton at (713) 452-2000.
About GSO Capital Partners LP
GSO Capital Partners LP is the global credit investment platform of Blackstone. GSO is one of the largest alternative managers in the world focused on the leveraged-finance, or non-investment grade related, marketplace. GSO seeks to generate attractive risk-adjusted returns in its business by investing in a broad array of strategies including mezzanine debt, leveraged loans and other special-situation strategies. Its funds are major providers of credit for small and middle-market companies and they also advance rescue financing to help distressed companies. Overall, Blackstone's credit platform, which also includes Blackstone Insurance Solutions and Harvest Fund Advisors LLC's energy MLP business, has assets under management of approximately $138 billion.
This Press Release contains forward-looking statements based on FourPoint Energy and Double Eagle's current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words such as "believes," "will," "expects," "anticipates," "intends" or similar words or phrases. Forward-looking statements in this press release include, but are not limited to, statements regarding expectations (i) that the acquisition will close on the anticipated closing date or at all, (ii) as to the productivity of the acquired assets, and (iii) with respect to the realization of operating efficiencies and synergies from the combined assets. No forward-looking statement can be guaranteed. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statement.
SOURCE DoublePoint Energy, LLC