Formation of DoublePoint Energy, LLC

Vinson & Elkins advised Double Eagle Energy Holdings III LLC (“Double Eagle”) in connection with the formation of a new company named DoublePoint Energy, LLC (“DoublePoint”) with FourPoint Permian, LLC.

Double Eagle Energy Holdings III LLC of Ft. Worth, Texas and FourPoint Energy of Denver, Colorado finalized the formation of a new company 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. 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 V&E team was led by Jim Fox (Picture), Shay Kuperman, Shamus Crosby, Tan Lu and Michael Marek, with assistance from Matt Falcone, Dan Komarek, Brittany Smith, Brett Santoli, Carter Olson, David Peck, Brian Russell, Stephen Jacobson, Kristy Fields and Sean Becker.

V&E also advised DoublePoint in connection with its acquisition of assets from undisclosed sellers.

The V&E team was led by Jim Fox, David Cohen, Thomas Laughlin and Patrick Whelan, with assistance from Matt Hortenstine, Larry Nettles, David Peck, Brian Russell, Stephen Jacobson, Kristy Fields, Sean Becker and Matt Stammel.

Involved fees earner: James Fox – Vinson & Elkins LLP; Dan Komarek – Vinson & Elkins LLP; Brittany Smith – Vinson & Elkins LLP; David Cohen – Vinson & Elkins LLP; Thomas Laughlin – Vinson & Elkins LLP; Patrick Whelan – Vinson & Elkins LLP; Shamus Crosby – Vinson & Elkins LLP; Matthew Falcone – Vinson & Elkins LLP; Matthew Stammel – Vinson & Elkins LLP; Shay Kuperman – Vinson & Elkins LLP; Tan Lu – Vinson & Elkins LLP; Brett Santoli – Vinson & Elkins LLP; Carter Olson – Vinson & Elkins LLP; David Peck – Vinson & Elkins LLP; Brian Russell – Vinson & Elkins LLP; Stephen Jacobson – Vinson & Elkins LLP; Kristy Fields – Vinson & Elkins LLP; Sean Becker – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: Double Eagle Energy Holdings LLC;

Author: Ambrogio Visconti