LongPoint Minerals II LLC announced its formation on Oct. 2 following its successful capital raise with a subsidiary of Canada Pension Plan Investment Board (CPPIB) totaling over $846 million.
LongPoint II is the second company launched by Denver-based FourPoint Energy LLC to focus exclusively on the acquisition of oil and gas mineral interests.
The first LongPoint Minerals entity was launched in 2016, with over $830 million in total capital commitments, including a lead commitment from an affiliate of CPPIB Credit Investments Inc.
From 2016 to early 2018, LongPoint I successfully deployed all committed capital invested in the company and controls a premier position under some of the most active E&P operators in the core of two of the most prolific unconventional U.S. basins, the Anadarko and the Permian, according to the company press release.
The second LongPoint venture will continue to acquire high-growth, long-life mineral interests in the top U.S. resource plays, primarily focusing on acquiring assets in the Scoop/Stack/Merge play in the eastern Anadarko Basin and the Midland and Delaware basins in the greater Permian Basin.
“We continue to see attractive opportunities to acquire minerals in the core of the best plays in North America,” Will Cullen, vice president of LongPoint, said in a statement. “LongPoint has developed an efficient and streamlined approach to the capture and assimilation of mineral interests, allowing our team to be in the market at all times.”
To date, LongPoint II has already completed more than 200 transactions that yield over 13,400 net mineral acres. The company aims to acquire assets with both current cash flow and undeveloped locations, the release said.
George Solich, president and CEO of LongPoint and FourPoint, said he is “confident we are creating a leading franchise in the industry.”
LongPoint II’s capital raise closed with an anchor equity commitment of $375 million from an affiliate of CPPIB Credit alongside other institutional investors.
“We are excited to have the strong financial partnership with CPPIB Credit once again in this second LongPoint venture,” Solich said in a statement. “Their continued trust in our organization and support of our business is meaningful as we look forward to building on the success of our first company.”
Jefferies LLC was financial adviser and Hunton Andrews Kurth LLP was legal adviser to LongPoint II in connection with the capital raise.
RELATED:
LongPoint Minerals’ A&D Prowess, Origin Story And Secret Identity
Recommended Reading
Eversource to Sell Sunrise Wind Stake to Ørsted
2024-04-19 - Eversource Energy said it will provide service to Ørsted and remain contracted to lead the onshore construction of Sunrise following the closing of the transaction.
Exclusive: Building Battery Value Chain is "Vital" to Energy Transition
2024-04-18 - Srini Godavarthy, the CEO of Li-Metal, breaks down the importance of scaling up battery production in North America and the traditional process of producing lithium anodes, in this Hart Energy Exclusive interview.
High Interest Rates a Headwind for the Energy Transition
2024-04-18 - Persistent high interest rates will make transitioning to a net zero global economy much harder and more costly, according to Wood Mackenzie Head of Economics Peter Martin.
Scotland Ditches 2030 Climate Target to Cut Emissions by 75%
2024-04-18 - Scotland was constrained by cuts to the capital funding it receives from the British government and an overall weakening of climate ambition by British Prime Minister Rishi Sunak, said Mairi McAllan, the net zero secretary for Scotland's devolved government.
Exclusive: Mitsubishi Power Plans Hydrogen for the Long Haul
2024-04-17 - Mitsubishi Power is looking at a "realistic timeline" as the company scales projects centered around the "versatile molecule," Kai Guo, the vice president of hydrogen infrastructure development for Mitsubishi Power, told Hart Energy's Jordan Blum at CERAWeek by S&P Global.