Quantum Capital Group has acquired the oil and gas operations of US-based Caerus Oil and Gas, through two separate portfolio companies for approximately $1.8bn.
This amount includes the assumption of asset-backed securities and other liabilities.
Founded in 2009, Caerus Oil and Gas is owned by a consortium of private investors, including Oaktree Capital Management, Anschutz, and Old Ironsides Energy. Based in Colorado, Caerus Oil and Gas operates in the Rocky Mountain region and has been exploring a sale since 2022.
Quantum Capital Group partner Tom Field said: “As an active private energy investor, we recognise the important role of expanding access to clean and reliable energy in key markets across the United States.
“This transaction represents a unique opportunity for Quantum to invest in substantial natural gas production alongside large, contiguous acreage positions containing sizable hydrocarbon resources with significant value creation potential.”
Under the deal, QB Energy acquires the producing upstream assets, gathering and compression midstream assets, approximately 600,000 acres, and all other assets owned by Caerus Oil and Gas in the Piceance Basin.
QB Energy is a newly established Quantum Capital Group portfolio company, created in partnership with Roger Biemans, an energy entrepreneur. Biemans, who has previously built and sold several portfolio companies with Quantum Capital Group over the past 18 years, will serve as president and CEO of QB Energy.
Meanwhile, KODA Resources will take on the producing upstream assets, gathering and compression midstream assets, approximately 160,000 acres, and all other assets held by Caerus Oil and Gas in the Uinta Basin. KODA Resources is an existing portfolio company of Quantum Capital Group.
As per the terms of the deal, KODA Resources is acquiring the producing upstream assets, gathering and compression midstream assets, approximately 160,000 acres, and all other assets owned by Caerus Oil and Gas in the Uinta Basin in the US.
KODA Resources is an existing Quantum Capital Group portfolio company.
Caerus Oil and Gas founder and CEO Dave Keyte said: “Caerus was the first company to fully adopt sandless fracks in the basin. We used that technique in more than 500 wells across Colorado and Utah to significantly reduce truck and rail traffic and improve well results to reach record productivity levels in the basin.
“We also completed the largest water treatment facility in the western US in order to recycle 100% of our produced water for fracking purposes, greatly reducing the need for fresh water and further reducing truck traffic.
“I am proud to transition Caerus’ entire team and these assets to a new group of owners who I know bring the right development and management capabilities to responsibly maximise their output over the long term.”
Vinson & Elkins provided legal advice to Quantum Capital Group, QB Energy, and KODA Resources. Caerus Oil and Gas retained Jefferies and Evercore as financial advisers, Davis Graham & Stubbs and Latham & Watkins as legal counsel, and Bank of America as capital markets adviser.
