HOUSTON (The Deal) -- FourPoint Energy LLC and EnerVest Ltd. said late Thursday they agreed to partner in the Anadarko Basin of western Oklahoma and the Texas Panhandle, with FourPoint buying interests in properties from EnerVest and attracting equity and debt financing in a total arrangement valued at almost $1.52 billion.
Denver-based FourPoint is buying producing and undeveloped oil and gas properties and related midstream assets in the western part of the basin from affiliates of Houston-based EnerVest for $268 million, including stakes in the property acquisitions EnerVest made in the second half of last year from Laredo Petroleum Holdings Inc. and SM Energy Co. The deal included interests in more than 1,200 producing wells with net production to FourPoint of 33 million cubic feet equivalent per day.
FourPoint raised $200 million in direct private equity and $800 million in term debt from EIG Global Energy Partners LLC and funds advised by the Blackstone Group's GSO Capital Partners LP. It entered into a $250 million credit facility with JPMorgan Chase Bank and Wells Fargo & Co.
FourPoint and EnerVest inked joint development and area of mutual interest agreements to own, operate and develop oil and gas properties in the area, with each owning half and EnerVest operating the properties. The deal covers 90,000 net acres over 14 counties in Texas and Oklahoma. The two will also work together to acquire and develop more properties.
The deal represents a return to the area by FourPoint president and CEO George Solich, who used to work at Apache Corp. and who sold EnCap Investments LLC-backed Cordillera Energy Partners III LLC to them in 2012 for $2.85 billion. "This is a strategic partnership that marries the strengths of both companies," he said in a statement.