Oaktree to Invest up to $900 Million in FourPass Energy
Denver-based FourPass Energy LLC has secured an equity commitment of up to US$900 million from funds managed by Oaktree Capital Management LP, a global investment management firm.
FourPass Energy was formed earlier this year to acquire and operate large-scale, oil-weighted, producing oil and gas assets in the United States. The company is led by Ben Jackson and Andrew Dunleavy, who previously worked together at Felix Energy LLC, a Permian-focused company that was backed by EnCap Investments LP.
Under the terms of the partnership, FourPass and Oaktree will form an operating company to acquire and operate assets in the United States. Oaktree’s US$900 million pledge includes an initial equity investment of US$600 million, with an option to upsize the commitment by US$300 million.
“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,” said Mr. Jackson, FourPass Energy’s CEO.
“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,” said Brook Hinchman, Co-Head of North America for the Oaktree Opportunities Funds.
Los Angeles-headquartered Oaktree currently has approximately US$125 billion worth of assets under management, and manages funds for a wide variety of institutional clients, investing in private equity, real assets, credit strategies, and listed equities worldwide.
Vinson & Elkins LLP advised Oaktree on the deal.