DoublePoint Energy’s Formation


Kirkland & Ellis LLP advised FourPoint Energy and its investors, Quantum Energy Partners and GSO Capital Partners, in the formation of a new company with Double Eagle Energy Holdings III LLC named DoublePoint Energy, LLC, which will be a pure-play Midland Basin company with over 70,000 acres in the core areas of the oil-rich, multi-pay zones in Midland, Glasscock, Martin, Howard, Upton and Reagan Counties, Texas. Kirkland also represented Magnetar Capital in connection with its investment in Double Eagle.

Double Eagle Energy Holdings III LLC (“Double Eagle”) of Ft. Worth, Texas and FourPoint Energy (“FourPoint”) of Denver, Colorado announced today the formation of a new company named DoublePoint Energy, LLC (“DoublePoint”) which will be a pure-play Midland Basin company with over 70,000 acres in the core areas of the oil-rich, multi-pay zones in Midland, Glasscock, Martin, Howard, Upton and Reagan Counties, 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.

The Kirkland team that advised FourPoint in its investment in DoublePoint consisted of corporate partners John Pitts (Picture) and Andrew Calder and associates Kyle Watson, Sanjay Bapat and JP Lopez; oil and gas partner Anthony Speier and associates Chris Heasley and Hannah Craft; and debt finance partner Mary Kogut and associate Roxanne Walton.

The Kirkland team that advised Quantum on its investment in FourPoint in connection with this transaction consisted of corporate partners Doug Bacon and Jhett Nelson and associates Erik Shoemaker and Hannah Marshall.

The Kirkland team that represented GSO on its debt financing in DoublePoint consisted of debt finance partners Will Bos and Andy Veit and associate Scott Reid.

The Kirkland team that represented Magnetar on its investment in Double Eagle consisted of capital markets partner Matt Pacey; and corporate partners Bill Benitez and Samuel Peca.

Involved fees earner: John Pitts – Kirkland & Ellis; Andrew Calder – Kirkland & Ellis; Kyle Watson – Kirkland & Ellis; Sanjay Bapat – Kirkland & Ellis; Juan Pablo Lopez – Kirkland & Ellis; Anthony Speier – Kirkland & Ellis; Chris Heasley – Kirkland & Ellis; Hannah Craft – Kirkland & Ellis; Mary Kogut – Kirkland & Ellis; Roxanne Walton – Kirkland & Ellis; Doug Bacon – Kirkland & Ellis; Jhett Nelson – Kirkland & Ellis; Erik Shoemaker – Kirkland & Ellis; Hannah Marshall – Kirkland & Ellis; William Bos – Kirkland & Ellis; Andy Veit – Kirkland & Ellis; Scott Reid – Kirkland & Ellis; Matthew Pacey – Kirkland & Ellis; William Benitez – Kirkland & Ellis; Samuel Peca – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: GSO Capital Partners LP; Quantum Energy Partners; Magnetar Capital; FourPoint Energy, LLC;

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Author: Ambrogio Visconti