By: Greg Avery – Denver Business Journal – FourPoint Energy is getting out of oil and gas operations in Oklahoma after a debt restructuring gave a financial backer control of thousands of wells it owned there, and they are being merged into another business.
The Denver-based company retains the name FourPoint Energy and still is based with some related businesses at its headquarters office in the Cherry Creek North neighborhood.
FourPoint Energy revealed Wednesday that it, over several months, negotiated a balance sheet restructuring with its stakeholders.
EIG Global Energy Partners, holder of FourPoint Energy’s senior secured debt notes, became the controlling equity owner of the company and its oil operations in the Western Anadarko Basin of Oklahoma, the company said. Renamed Unbridled Resources, the Oklahoma operations are being merged with a subsidiary of Maverick Natural Resources, a Houston-based oil, and gas company.
The FourPoint Energy management team will work on transitioning the assets to the new company through the end of the year, the company said.
FourPoint’s core executives and some key employees will continue to work from the Denver office, and they retained the FourPoint Energy name.
“We are taking our core team of top oil and gas professionals we assembled in the franchise to prioritize building value in our two mineral companies, LongPoint Minerals, and LongPoint Minerals II,” said George Solich, co-founder, president and CEO of FourPoint, in a statement. “We continue to see the mineral space as a durable and sustainable sector of long-term value and near-term yield generation.”
The FourPoint Energy team will also look for new producing oil and gas assets and exploration opportunities, emphasizing low-cost and environmentally responsible operations, he said.
A related business, FourPoint Permian LLC, continues to be part of a joint venture developing oil and gas wells in the Permian Basin of West Texas. That joint venture, formed in 2018, is called DoublePoint Energy.
FourPoint Energy formed in 2012 by founding executives who had sold Cordillera Energy Partners and Apache Corp.
The company raised more than $2.3 billion in funding.