Maverick Natural Resources LLC said Dec. 2 it had acquired FourPoint Energy LLC, the largest producer in the Western Anadarko Basin. In conjunction with the all-equity merger, FourPoint became a subsidiary of Maverick and was renamed Unbridled Resources LLC. Both Maverick and FourPoint are majority controlled by EIG Global Energy Partners managed funds.
The acquired assets produce approximately 50,000 net boe/d (47% liquids) from Western Oklahoma and Northern Texas. The Unbridled position spans 700,000 acres across the core of the Granite Wash and Cleveland Sand plays. The acquisition also included MidPoint Midstream LLC and Wheeler Midstream LLC, which provide midstream services in the Western Anadarko Basin.
Chris Heinson, Maverick’s CEO, commented, “The acquisition of FourPoint demonstrates Maverick’s ability to translate its best-in-class operational proficiency into significant growth.”
Heinson continued, “Over the last several years, Maverick has become a leader in reducing costs in mature assets. Maverick’s transformation process allows us to rapidly deploy technology and analytics to drive reductions in G&A and lease operating expense. By renaming FourPoint Energy to Unbridled Resources, we are signaling a shift from the traditional shale model to Maverick’s margin-focused operational strategy. These assets add to Maverick’s substantial portfolio of long-lived assets. Further, the all-equity transaction ensures the combined Company will retain a healthy financial position with a 2020 pro forma debt to EBITDA ratio of approximately 0.5x.”
Heinson concluded, “With our proven track record of safe, environmentally responsible operations and significant operational scale, we are exceptionally well-positioned to acquire additional producing assets.”
As part of the merger, EIG is adjusting the board composition to support the increased scale of the company and the plans for continued growth and strategic development. Linda Z. Cook, managing director of EIG and CEO and board member of Harbour Energy, will join the Maverick board as chairman. Jim Blackwell, an industry veteran who is also a board member of Harbour Energy, will join as well.
Gibson, Dunn & Crutcher LLP advised Houlihan Lokey as financial adviser in Maverick Natural Resources’ acquisition. The Gibson Dunn team was led by Houston partner Hillary Holmes.
The appointment of Daniel E. “Danny” Brown as CEO fills a role left vacant since last December when Oasis Petroleum Co-founder Thomas Nusz retired.
M. Chris Doyle joins Primexx Energy Partners, a privately held, independent oil and gas company operating in the Southern Delaware Basin, within the Permian from Olympus Energy.
The upsized commitment results in $525 million of total equity commitments from Kayne Anderson, which has backed Kraken Resources and its predecessor entities since its formation in 2012.