FourPoint is primarily focused on acquiring and developing oil and natural gas assets in the Western Anadarko and Permian Basins. Founded by the leadership team of Cordillera Energy Partners following the sale to Apache Corporation in 2012, FourPoint Energy is proud to boast an exceptional team of professionals with decades of industry-leading experience.
FourPoint Energy is a private exploration and production company founded by the leadership team of Cordillera Energy Partners following the sale to Apache Corporation in 2012. FourPoint is headquartered in Denver, Colorado with four field offices located throughout Western Oklahoma and the Texas Panhandle. With over decades of industry leading experience, the team at FourPoint is dedicated to creating value that makes a difference. FourPoint has fostered a culture of a dedicated and technically advanced team of professionals who are hard-working and committed to excellence.
Focused on organic growth and creating value through its development program, FourPoint began 2018 operating six rigs and transitioned to a four rig program by year end. Following the closing of its strategic upstream and midstream acquisition in December 2017, the company formally launched MidPoint Midstream in early 2018. This wholly owned subsidiary of FourPoint, provides midstream services for crude oil and natural gas in the Western Anadarko Basin. On June 1st FourPoint announced a partnership with Double Eagle Energy to form a new Permian Basin company, DoublePoint Energy. This joint venture is a pure-play Permian company with one of the largest private land positions in the core areas of the Midland Basin. FourPoint also formed a strategic partnership with RS Energy, an industry-leading data analytics company focused specifically in oil and gas. This highly coveted collaborative partnership will provide a unique opportunity to leverage and integrate proprietary data and further optimize industry-wide research and data into strategic efficiencies.
- In February, FourPoint announced the acquisition of all of the remaining Chesapeake Exploration, L.L.C. assets in the Western Anadarko Basin for $385 million. These assets included interest in 3,500 wells producing a combined 260 Mmcfed and 473,000 net acres with a significant inventory of undeveloped locations. To finance this acquisition, FourPoint issued $600 million of equity and expanded its borrowing base with its commercial bank group.
- In August 2015, FourPoint closed on another sizeable and well-positioned acquisition in the Western Anadarko Basin. FourPoint, exclusive of participation with its Joint Venture partner, EnerVest, purchased certain assets in Oklahoma from Chesapeake Exploration L.L.C. and CHK Cleveland Tonkawa, L.L.C for a purchase price of $840 million. The acquisition added just under 130 Mmcfed in production from 1,509 wells, 684 Bcfe in proved reserves and nearly 250,000 net acres. To fund these acquisitions, FourPoint grew its balance sheet to over 2.5 billion in capitalization, approximately half of which was equity from 81 private shareholders. In order to operationally manage and develop this asset FourPoint opened up its first field office located in Woodward, Oklahoma.
On January 30, 2014, FourPoint Energy announced the closing of an acquisition to acquire assets in the Western Anadarko Basin from EnerVest, Ltd. FourPoint purchased for $269 million, an ownership stake in both the Laredo and SM Energy acquisitions closed by EnerVest in the fourth quarter of 2013. The acquisition included interest in 1500 producing wells with net production to FourPoint of 30 Mmcfed.
FourPoint and EnerVest also entered into a Joint Development Agreement and Area of Mutual Interest to own, operate and develop oil and gas properties in the Western Anadarko Basin. The partnership combined the extensive technical, operational and transactional expertise of both companies while launching a well-capitalized venture to capture future opportunities through acquisitions and the drill bit.
Simultaneous with the negotiation of the asset purchase and Joint Development Agreement, FourPoint closed on the funding of its initial equity and debt capitalization totaling over $200 million in direct private equity and $800 million in term debt from EIG Global Energy Partners and GSO Capital Partners. In November 2014, the capital structure of FourPoint was subsequently increased to approximately $660 million in equity and over $1.25 billion in debt capacity. FourPoint also entered into a $250 million credit facility led by J.P. Morgan and Wells Fargo with 10 participating banks.
In December 2014, FourPoint and EnerVest closed on their largest Joint Venture acquisition with a purchase of assets from Linn Energy for $1.95 billion. This acquisition added 195 Mmcfed in production from 1,358 producing wells, 922 Bcfe in proved reserves and 145,000 net acres.
- In October of 2013, the core leadership from Cordillera formed a new venture under the name of FourPoint Energy. This fourth enterprise was the first company funded by direct equity investments and term debt rather than from a private equity fund. The company directed its initial geographic focus to both the Western Anadarko and Permian Basins.
- In January of 2012, CEP III agreed to merge with Apache Corporation of Houston, Texas. CEP III’s producing property and acreage acquisitions combined with its active drilling program in the Texas Panhandle and Western Oklahoma enabled the company to grow production and cash flow at a compound annual growth rate of 70%. CEP III held one of the leading acreage positions in the Western Anadarko Basin with an inventory of over 14,000 engineered locations. The merger closed on April 1, 2012, incorporating closing adjustments as well as additional acreage and drilling, Apache paid $3.1 billion. At closing, CEP III delivered close to 330,000 net acres with production approaching 24,000 Boe/d from over 600 producing wells.
- Through a combination of focused acquisitions and vertical and horizontal drilling, CEP II grew quickly in both size and value. By mid-2008, CEP II was producing close to 50 Mmcfed from 600 wells (97% operated with annual cash flow exceeding $200 million and proved reserves of 725 Bcfe.) These high-quality natural gas assets were concentrated in the Texas Panhandle (Douglas, Cleveland, Granite Wash, Atoka, and Morrow), West Central Anadarko Basin, and the East Texas Basin (Cotton Valley Sand, Cotton Valley Lime, Hosston, Pettet, and Travis Peak). In September of 2008, CEP II sold all the assets of the company in three separate transactions for total consideration in cash and stock valued at $1.023 billion. The Texas Panhandle and East Texas assets were sold to Forest Oil, the Oklahoma assets to Merit Energy, and the Deep Woodford assets to Devon Energy.
- Upon completion of the CEP I sale, the core management team formed CEP II, again with EnCap Investments, along-side institutional investors and management. In March of 2004, the company was capitalized with a $200 million private equity investment and a $300 million credit facility from six banks led by JP Morgan Chase. CEP II added to its management team ranks and set out to chart the same “acquire/exploit” strategy that had been so successful in CEP I.
- The core areas for Cordillera Energy Partners I (CEP I) were the Anadarko Basin, the Delaware Basin and the San Juan Basin. Through a combination of acquisitions and drilling, CEP I grew its production to 30 Mmcfed, annual cash flow to $35 million, and proved reserves to 250 Bcfe by mid-2003. In October 2003, CEP I sold its assets to Patina Oil & Gas for cash and warrants to purchase Patina stock valued at $247 million.
- Cordillera Energy Partners was founded in February 2000 and incorporated as a Limited Liability Company formed in the state of Texas. The Company formed by George Solich, President and CEO, and his management team, employed the “acquire/exploit” strategy—buying producing assets and undeveloped assets in three core areas. They enhanced production, cash flow, and reserves through a combination of drilling and lowering the cost structure, while adding additional “bolt-on” acquisitions.
BUSINESS OPPORTUNITIES
- We pay at or above market based terms and are experienced to move quickly on simple or complex trades.
- Our leasing is focused on areas where FourPoint actively drills and operates.
- We are not an asset warehouse. Our business strategy employs an acquisition development model that accelerates the pace of value creation.
- As a privately funded company, we have a strong balance sheet with over $3 billion of committed capital and backing from some of the largest funds in private equity.
- Our team of engineers, geologists, landman and other professionals have a strong experience base. We are committed to capturing valuable opportunities through adaptability, innovative thinking, and strategic relationships. This translates to being able to execute on leasing, drilling and acquisitions in the most efficient and effective manner.
- We have a dedicated team of drilling and completion engineers as well as development geologists that have drilled and completed over 500 operated wells in the last 19 years with nearly 300 of those in the modern horizontal environment.
- With over decades of demonstrated acquisition experience to evaluate and pay for producing and undeveloped reserves, FourPoint has closed dozens of acquisition transactions ranging in size from less than $1 million to $1 billion.
- We are a prudent, responsible, low cost operator. We have a disciplined approach to efficiency and cost reduction. Our technical team is highly experienced in drilling and completions in both horizontal and vertical wells. We are committed to the safe and environmentally responsible development of our energy resources and invest time and resources to improve the communities in which we live and work.
- Our acquisition strategy incorporates a win-win philosophy to deal making. We strive to build long-term relationships and partnerships that lead to additional transactions down the road. We walk the talk by doing what we say we’re going to do.
- We encourage owners to provide us the opportunity to accelerate the development of their acreage via farmout or joint-venture agreements.
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