LongPoint Minerals II LLC announced its formation on Oct. 2 following its successful capital raise with a subsidiary of Canada Pension Plan Investment Board (CPPIB) totaling over $846 million.
LongPoint II is the second company launched by Denver-based FourPoint Energy LLC to focus exclusively on the acquisition of oil and gas mineral interests.
The first LongPoint Minerals entity was launched in 2016, with over $830 million in total capital commitments, including a lead commitment from an affiliate of CPPIB Credit Investments Inc.
From 2016 to early 2018, LongPoint I successfully deployed all committed capital invested in the company and controls a premier position under some of the most active E&P operators in the core of two of the most prolific unconventional U.S. basins, the Anadarko and the Permian, according to the company press release.
The second LongPoint venture will continue to acquire high-growth, long-life mineral interests in the top U.S. resource plays, primarily focusing on acquiring assets in the Scoop/Stack/Merge play in the eastern Anadarko Basin and the Midland and Delaware basins in the greater Permian Basin.
“We continue to see attractive opportunities to acquire minerals in the core of the best plays in North America,” Will Cullen, vice president of LongPoint, said in a statement. “LongPoint has developed an efficient and streamlined approach to the capture and assimilation of mineral interests, allowing our team to be in the market at all times.”
To date, LongPoint II has already completed more than 200 transactions that yield over 13,400 net mineral acres. The company aims to acquire assets with both current cash flow and undeveloped locations, the release said.
George Solich, president and CEO of LongPoint and FourPoint, said he is “confident we are creating a leading franchise in the industry.”
LongPoint II’s capital raise closed with an anchor equity commitment of $375 million from an affiliate of CPPIB Credit alongside other institutional investors.
“We are excited to have the strong financial partnership with CPPIB Credit once again in this second LongPoint venture,” Solich said in a statement. “Their continued trust in our organization and support of our business is meaningful as we look forward to building on the success of our first company.”
Jefferies LLC was financial adviser and Hunton Andrews Kurth LLP was legal adviser to LongPoint II in connection with the capital raise.
In a two-hitter, Mid-Con Energy agreed to sell substantially all of its Texas properties while also picking up producing Oklahoma properties.
Revere Resources, which describes itself as an innovative royalty acquisition firm, formed with the mission of challenging the traditional approach to royalty acquisitions.
This relationship will allow FourPoint and LongPoint to leverage RS Energy’s solutions, extending the depth and breadth of their technical evaluations while collaborating on innovative future projects.