Daily News: January 31, 2014

JPMorgan, Wells Provide FourPoint Energy Debt Financing

FourPoint Energy announced its acquisition of certain producing and undeveloped oil and gas properties and related midstream assets in the Western Anadarko Basin from affiliates of EnerVest.

Under the terms of the agreement, FourPoint Energy has purchased for $268 million an ownership stake in both the Laredo Petroleum and SM Energy acquisitions closed by EnerVest in the second half of 2013. The acquisition includes interest in over 1,200 producing wells with net production to FourPoint Energy of over 35 MMcfed.

FourPoint Energy and EnerVest have also entered into a Joint Development Agreement and Area of Mutual Interest Agreement to own, operate and develop oil and gas properties in the Western Anadarko Basin.

Simultaneous with the EnerVest transactions, FourPoint Energy raised over $1 billion of committed capital including $200 million in direct private equity and $800 million in term debt from EIG Global Energy Partners and funds advised by GSO Capital Partners. In addition, FourPoint Energy also entered into a $250 million credit facility with JPMorgan Chase Bank and Wells Fargo Bank.

Jefferies acted as sole financial advisor, JPMorgan Securities acted as sole lead arranger and bookrunner on the credit facility and Andrews Kurth acted as legal advisor to FourPoint Energy in connection with this transaction.

To read the entire press release, click here.