FourPoint Energy LLC closed a $188 million acquisition of Texas Panhandle upstream and midstream assets and secured additional equity investments of $525 million, the private E&P said Dec. 14, as it continues to expand its holdings in the Anadarko and Permian basins.

Denver-based FourPoint said it completed the acquisition of jointly owned properties in Wheeler and Hemphill counties, Texas, from an undisclosed seller for $188 million, after customary closing adjustments. The assets, located in the Texas Panhandle along Oklahoma’s western border, include more than 800 wells, 610 of which will be operated by FourPoint.

The purchase adds production, upside acreage as well as control of a fully integrated midstream system in the Western Anadarko, the company said.

Pro forma, FourPoint will operate a position that averages more than 530 million cubic feet equivalent per day (MMcfe/d) and control 300 miles of pipe. The company estimates about 10,000 upside locations over the predominantly HBP acreage.

In September, FourPoint said its production averaged about 400 MMcfe/d and, at the time, it had an estimated 18,000 gross locations.

“Once we integrate these upstream and midstream assets into our already robust Anadarko position, FourPoint is poised to accelerate its drilling program exploiting 21 separate targets over more than 6,000 feet of column on our over 2 million gross acre footprint,” said Kamil Tazi, FourPoint’s COO and executive vice president.

FourPoint held about 755,000 net acres in the Western Anadarko as of September, according to a presentation made by George Solich, FourPoint’s president and CEO, at Hart Energy’s DUG Midcontinent conference.

FourPoint also said on Dec. 14 that it has secured additional equity backing from Quantum Energy Partners, which agreed to invest $489 million in common equity in FourPoint. Quantum’s contribution will make the private-equity provider one of the company’s largest unitholders.

Previous backer GSO Capital Partners LP also will invest $36 million into the company and, with Quantum, will become controlling members of the company.

“This new equity provides significant liquidity for the company to continue to grow through strategic acquisitions in the Anadarko and Permian Basins while executing on our active drilling program in the Anadarko Basin,” Solich said.

With the closing of the new equity and the company’s existing debt capacity, FourPoint has more than $900 million in liquidity for future growth, said Tad Herz, FourPoint’s CFO and executive vice president.

FourPoint said it is running five rigs in the basin as standard length lateral wells.

A new Oklahoma law will allow the company to drill long lateral horizontal wells in non-shale formations, which “will make the basin’s drilling economics among the best in the Lower 48,” FourPoint said. Planned drilling will also employ advanced drilling and completion technologies that have lagged behind basins employing more stages and bigger fracks.

Dheeraj Verma, president of Quantum Energy Partners, said FourPoint has built an impressive company during the past few years and demonstrated “increased profitability and potential of the Western Anadarko Basin through their strong emphasis on technical and operating excellence.”

Dwight Scott, GSO’s senior managing director and president, said FourPoint used the market downturn to build a world-class team and the market-leading position in the Western Anadarko.

“We are thrilled to have Quantum as a partner in the business and look forward to working together in the years ahead,” he said.

Jefferies LLC acted as financial adviser to FourPoint Energy and Andrews Kurth LLP was its legal adviser in connection with the transaction.

Darren Barbee can be reached at dbarbee@hartenergy.com.

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