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Quantum Capital Group, a private equity firm, has completed the acquisition of Caerus Oil & Gas and is dividing Caerus' assets in Colorado and Utah between two of its portfolio companies. This deal highlights the growing interest of buyout firms in the oil and gas sector, which has seen a surge in deals following the post-Covid recovery in energy prices. Notably, this transaction is a rare instance of a secondary buyout in the U.S. oil and gas industry, as corporate buyers have traditionally been the ones acquiring private equity-backed energy assets.

Here we go. Smaller Ops eating each other up. Will the shake out of all these Mergers and Acquisitions result in wave of “new” smaller E&P’s or will these result in a complete crash/consolidation of OFS?? #oil #gas #oilgas #permian #energy #ma

The energy sector continues to be a dynamic field for M&A activity, with recent deals highlighting the industry's ongoing transformation. In June 2024, EnCap Investments made headlines with a $1.9 billion sale of Ameredev II, showcasing significant investor interest in oil and gas assets. https://lnkd.in/g7PsEptg Additionally, the passing of the Inflation Reduction Act and a strong focus on sustainability have driven a wave of investments in renewable energy, further solidifying the sector's appeal to a broad pool of investors. https://lnkd.in/gTGNzpdr https://lnkd.in/gvn_T-45 In this vibrant landscape, the energy sector's robust M&A activity contrasts sharply with the slowdown seen in other industries. With major deals like ExxonMobil's $60 billion acquisition of Pioneer Natural Resources Company and Chevron's $53 billion acquisition of Hess Corporation last year, the trend of consolidation and strategic acquisitions is set to continue, driven by high crude prices and a focus on energy transition. https://lnkd.in/g7PsEptg Let's connect and discuss how these trends might impact your strategies! #Energy #MergersAndAcquisitions #InvestmentBanking #Sustainability #OilAndGas #RenewableEnergy #BankofAmerica

Quantum Capital Group, a private equity company, agreed to acquire oil and gas operations from Oaktree Capital Management, L.P.-backed Caerus Oil and Gas LLC, a company that invest in conventional oil and gas properties, for $1.8bn. “As an active private energy investor, we recognize 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. We believe that KODA and QB Energy are well positioned to steward the next phase of development and operation of the Assets to serve responsibly natural gas demand centers in the western US while generating attractive returns for our investors," Tom Field, Quantum Partner. Quantum is advised by Vinson & Elkins and Joele Frank (led by Katherine Thompson). Caerus is advised by Bank of America, Evercore, Jefferies, Davis Graham & Stubbs LLP and Latham & Watkins. #MergersAcquisitionsDivestitures #OilAndGas #Energy

Following a trend of consolidation across the oil and gas sector, one prominent energy investor points to key differences between the U.S. and Canadian industries.

Did you know? 5: MLPs continue to perform ahead of 5 other sectors YTD* 13.2 Million barrels per day: U.S. crude production at record levels¹ 111: Years of U.S. natural gas supply¹ $60 Billion: Price paid by Exxon to acquire Pioneer² 3x: C-Corp’s multiple valuation discount vs. historical levels³ To learn more about these Notable Numbers, read our insight Notable Numbers: The Case for US Energy Infrastructure here: https://bit.ly/3v06GGo #EnergyInfrastructure *Source: Bloomberg, TCA ¹Source: U.S. Energy Information Administration (EIA) ²Source: Company SEC filings ³Source: Bloomberg, TCA estimates

Did you know? 5: MLPs continue to perform ahead of 5 other sectors YTD* 13.2 Million barrels per day: U.S. crude production at record levels¹ 111: Years of U.S. natural gas supply¹ $60 Billion: Price paid by Exxon to acquire Pioneer² 3x: C-Corp’s multiple valuation discount vs. historical levels³ To learn more about these Notable Numbers, read our insight Notable Numbers: The Case for US Energy Infrastructure here: https://bit.ly/3v06GGo #EnergyInfrastructure *Source: Bloomberg, TCA ¹Source: U.S. Energy Information Administration (EIA) ²Source: Company SEC filings ³Source: Bloomberg, TCA estimates

Working interest in oil and gas investments offers a direct avenue to participating in the exploration, development, and production of oil and natural gas projects. It's a hands-on investment opportunity that allows investors to share in a project's potential profits and losses. With Vistia Capital, you gain access to our expertise in identifying promising oil and gas projects, ensuring informed decisions in this high-stakes field. Explore how a working interest can diversify your portfolio and potentially yield returns. https://bit.ly/3HE9NXZ #VistiaCapital #oilandgasinvestments #propertyinvesting #investmenthelp #propertyinvestor #investing

Talos Energy, an oil and gas company, agreed to acquire QuarterNorth Energy, an oil and gas company, for $1.29bn. “Today’s announcement marks one of Talos’s most significant milestones as we build a large-scale offshore exploration and production company. The addition of QuarterNorth’s overlapping deepwater portfolio with valuable operated infrastructure will increase Talos’s operational breadth and production profile while enhancing our margins and cash flow,“ Timothy S. Duncan, Talos President and CEO. Talos Energy (led by Timothy S. Duncan) is advised by Intrepid Financial Partners, J.P. Morgan, Mizuho, PJT Partners and Akin Gump Strauss Hauer & Feld LLP. QuarterNorth is advised by Barclays and Holland & Knight LLP. #MergersAcquisitionsDivestitures #OilandGas #Energy

Williams, an energy infrastructure company that provides transport, storage, and delivery solutions, agreed to acquire a portfolio of natural gas storage assets from Hartree Partners, a global merchant commodities firm, for $1.95bn. “This premier natural gas storage platform on the Gulf Coast fits squarely within our strategy to own and operate the best assets connected to the best markets to serve growing demand driven by LNG exports and power generation. These assets better position Williams’ natural gas storage operations to serve Gulf Coast LNG demand and growing electrification loads from data centers along the Transco corridor. Importantly, this storage will also allow us to provide value to customers in markets with growing renewables adoption as daily peaks for natural gas increases the need for storage. Since 2010, U.S. demand for natural gas has grown by 56% while gas storage capacity has only increased 12%. We expect the increasing demand for high deliverability storage to drive significant earnings growth across these assets," Alan Armstrong, Williams President and CEO. Williams (led by Alan Armstrong) is advised by Bank of America and Davis Polk & Wardwell LLP. Hartree Partners are advised by Evercore, Wells Fargo, and Milbank LLP. #MergersAcquisitionsDivestitures #OilandGas #Energy