[Context: On November 19, FourPass Energy announced backing from Oaktree Capital of $600m with an additional $300m upsizing option. The company is led by former Felix Energy executives. Further details and related links are below.]
FourPass Energy and Oaktree Partner to Launch Oil and Gas Operating Company With $900 Million Commitment
Former Felix Energy executives team up to pursue large-scale, oil-weighted, producing assets; Certain funds managed by Oaktree pledge $600 million in initial equity withan option to invest an additional $300 million
November 19, 2020 08:30 AM Eastern Standard Time DENVER–(BUSINESS WIRE)–FourPass Energy, LLC (“FourPass”), an oil and gas operating company, along with funds managed by Oaktree Capital Management, L.P. (collectively, “Oaktree”) today announced a partnership to acquire and operate large-scale, oil-weighted, producing oil and gas assets. Oaktree’s $900 million pledge includes $600 million in initial equity, with an option to upsize the commitment by $300 million.
FourPass is led by former Felix Energy executives Ben Jackson and Andrew Dunleavy, alongside a team of operations and subsurface leaders with extensive experience across the sector. In a challenging market cycle from 2013 to 2020, Felix Energy assembled, operated, and sold over $6 billion in assets, including upstream, midstream, and mineral assets. FourPass intends to build from these experiences by applying its team’s collective expertise to the current market opportunity.
The company launches with a rigorous and responsible underwriting process, prioritizing certainty of close, efficient asset integration and a low-cost operating model. As it acquires and begins operating assets, FourPass will apply this model safely and responsibly in the communities and environments where it operates.
Ben Jackson, FourPass Energy CEO, said: “Having participated in the A&D market over the past seven years, we understand the opportunity set requires a sizable equity commitment as well as flexibility and creativity when structuring transactions. Our partnership with Oaktree fulfills each of these requirements, which will be a key differentiator for us. We’ve built a strong acquisition and operations team with this opportunity in mind, and we’re proud to have Oaktree partner with us in this endeavor.”
Brook Hinchman, Co-Head of North America for the Oaktree Opportunities Funds, said: “We are excited to partner with the FourPass management team. Amidst an evolving energy landscape, the FourPass team has unparalleled experience in pursuing its strategy of acquiring producing, cash-flowing assets and delivering investor returns through excellent execution. Oaktree’s equity commitment will allow FourPass to apply its proven framework to larger acquisition opportunities, which we believe will generate attractive returns to our investors over the long-term.”
About FourPass Energy
Founded in 2020, FourPass Energy is a privately held upstream oil and gas operator headquartered in Denver, Colo. FourPass was formed to acquire and operate large-scale, oil-weighted, producing oil and gas assets from operators who are experiencing generational turnover, optimizing their portfolio, cleaning up their balance sheet, or other special circumstances.
Founded in 1995, Oaktree is a leading global investment management firm focused on alternative markets with assets under management of $124.7 billion in contrarian, value-oriented, risk-controlled investment strategies. Oaktree manages assets for a wide variety of clients, including many of the most significant investors in the world, including: 71 of the 100 largest U.S. pension plans, the main pension fund of 39 states in the United States, over 400 corporations, over 320 university, charitable and other endowments and foundations, over 400 non-U.S. institutional investors and over 15 sovereign wealth funds.