Private equity-backed DoublePoint Energy LLC, formed by two big onshore operators, plans to use its combined 70,000-plus acres in West Texas to build a Permian Basin powerhouse focused on the Midland formation.
Fort Worth, TX-based Double Eagle Energy Holdings III LLC and Denver-based FourPoint Energy created the exploration and production (E&P) company by combining Double Eagle’s existing Midland sub-basin acreage and production, as well as assets from undisclosed sellers.
Initially, DoublePoint is training its talents in the West Texas counties of Midland, Glasscock, Martin, Howard, Upton and Reagan. The E&P also plans to consolidate its position through bolt-ons and trades, while investing additional capital in an active drilling program.
"Pulling from the strengths of both companies, we believe DoublePoint will be a dynamic player in the Midland Basin focused on acreage acquisitions, acreage trades, and the development of our low risk, multi-pay resource," said Co-CEO John Sellers, who with Cody Campbell also is co-CEO of Double Eagle.
The E&P’s “unique structure and the strong capitalization from our equity partners have provided the foundation for DoublePoint to consolidate and develop one of the top acreage positions in the Midland Basin," said Campbell.
FourPoint CEO George Solich is serving as executive chairman of DoublePoint.
"By augmenting Double Eagle's best-in-class Midland Basin expertise with FourPoint's strong technical and operational proficiencies, we are confident this partnership will yield an unprecedented opportunity to quickly and efficiently grow production and cash flow,” Solich said.
Double Eagle now has one rig running in the Midland. As field and drilling operations are transitioned, DoublePoint plans to ramp up activity over its footprint, which is mostly undeveloped to date.
Double Eagle was formed last year with backing from Apollo Global Management LLC, Magnetar Capital and management. Sellers and Campbell helmed the same team that led predecessor Double Eagle companies. FourPoint Permian LLC, also created last year, has equity backing from Quantum Energy Partners, FourPoint Energy, GSO Capital Partners LP funds and other investors.