Two privately backed energy companies plan to combine resources in the Permian to form a pure-play Midland Basin company with a 70,000-acre position.
Double Eagle Energy Holdings III LLC and FourPoint Energy LLC formed a new company to develop what they believe is one of the top acreage positions in the hottest oil play in North America, according to a June 5 release. The new company, called DoublePoint Energy LLC, would have assets in the core areas in Midland, Glasscock, Martin, Howard, Upton and Reagan counties in Texas. Midland is the top oil producing county in Texas.
DoublePoint plans to grow its acreage position through bolt-on acquisitions and trades, and invest additional money in its drilling program. At closing, DoublePoint would increase drilling and development activity in its mostly undeveloped acreage position, as Double Eagle has only one rig running in the area.
DoublePoint would be led by John Sellers and Cody Campbell as co-CEOs, while George Solich would be the company's executive chairman.
Double Eagle, formed in 2017 and based in Fort Worth, Texas, is sponsored by funds managed by affiliates of Apollo Global Management LLC, Magnetar Capital and company management. Its oil and gas operations are focused in the Permian Basin. FourPoint Permian LLC is backed by equity commitments from FourPoint, Quantum Energy Partners LLC, funds managed by GSO Capital Partners LP and other investors.
