Double Eagle Energy Holdings III and FourPoint Energy have created DoublePoint Energy, a new pure-play Midland Basin company with more than 70,000 acres in the Permian Basin in 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.
Double Eagle and DoublePoint Co-CEO John Sellers said: “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.”
Double Eagle and DoublePoint Co-CEO Cody Campbell said: “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.”
FourPoint Energy president and CEO and DoublePoint executive chairman George Solich said: “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.”
Source: Company Press Release