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Breaking Barriers FireBird II, Empowered by Quantum Technology, Surpasses $500MM Funding Milestone for Permian Ventures
05/01/2023
Following the success of FireBird Energy's $1.75 billion sale to Diamondback last year, the emergence of FireBird II signals a new chapter in the Permian Basin.
Get ready for some exciting news from the energy industry. FireBird Energy II, the new player in the Permian Basin, has just secured $500 million in equity funding to fuel their acquisitions. With backing from the esteemed private equity firm Quantum Energy Partners, FireBird Energy II is poised to make waves in the industry.
This Fort Worth-based company is the successor to FireBird Energy LLC, which made a name for itself in the Permian Basin. They're focused on acquiring and growing oil and gas assets in the Permian Basin, with a particular interest in the Midland Basin.
According to Travis Thompson, the co-founder, and CEO of this hot new company, they're ready to partner with Quantum Energy Partners and build on the success of FireBird I's recent sale. This partnership puts FireBird Energy II in a prime position to seize a host of exciting acquisition and development opportunities in the booming Permian Basin.
The deal included 75,000 gross (68,000 net) acres in the Midland Basin, over 450 vertical and horizontal wells
The company, which Thompson founded in 2019, quickly established itself as a major player in the Midland Basin.
Last year, FireBird made headlines again, this time for being acquired by E&P Diamondback Energy Inc. in a cash-and-stock deal worth an impressive $1.75 billion. As part of the transaction, Diamondback gained control of approximately 75,000 acres in the Midland Basin - a highly coveted asset in the industry - as well as over 450 vertical and horizontal wells.
After selling FireBird I to Diamondback, the company wasted no time in launching FireBird II, according to reports. And it seems that Quantum Partner Blake Webster is optimistic about the new venture's prospects, especially given the strategic importance of the Permian region. Webster believes that FireBird II has what it takes to create a platform of significant scale in the basin, setting the stage for even greater success in the future.
Quantum's investment is already bearing fruit
At the start of this year, Quantum made a bold move by pledging over $500 million in equity capital to Bison Oil & Gas IV LLC. Bison's sights were set on acquiring and developing a presence in the Denver-Julesburg Basin, spanning both Colorado and Wyoming.
The company has already closed several high-value acquisitions, snapping up over 75,000 net acres with an impressive current production rate of over 25,000 boe/d. Quantum's investment is already bearing fruit, and it looks like there's plenty of potential for even greater success in the future.
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Multi-Billion Dollar Deal: Ovintiv to Expand Midland Basin Portfolio with EnCap Acquisition and Exit Bakken
Ovintiv Strikes Billion-Dollar Oil Deal, Doubling Production in Permian Basin with EnCap's Black Swan, PetroLegacy, and Piedra Resources. The deal, which was approved unanimously by Ovintiv's board, is slated to close on June 30. With over $5 billion in transactions announced on April 3, Ovintiv is set to expand its oil production by snatching up 65,000 net acres in the core of the Midland Basin. The deal with EnCap will give them a strategic edge in Martin and Andrews counties, Texas, with approximately 1,050 net, 10,000-ft well locations added to their inventory.
Civitas Makes $4.7B Entry into Permian Basin
Civitas Resources Expands into Denver-Julesburg Basin through $4.7B Cash and Stock Deals for NGP's Tap Rock and Hibernia. Civitas Resources has recently secured two definitive agreements to expand its presence in the Permian Basin's Midland and Delaware basins. The company will achieve this expansion through the acquisition of two private exploration and production companies, namely Hibernia Energy III LLC and Tap Rock Resources LLC. The total value of the deal, paid in both cash and stock, amounts to $4.7 billion. Both Hibernia Energy III LLC and Tap Rock Resources LLC are supported by NGP Energy Capital Management LLC. These acquisitions reflect the increasing demand for oil and gas reserves in the Permian Basin, with companies specializing in the region actively seeking new opportunities. Currently, Civitas Resources' primary production operations are focused in the Denver-Julesburg Basin (D-J Basin).
In Wyoming during 2023, the oil and gas industry experienced various trends and developments. Wyoming ranked 8th nationally in both crude oil and natural gas production, significantly contributing to the economy through property and severance taxes. The state had a peak of 27,951 producing wells in 2022, including oil and gas wells, with 33 operating gas plants processing nearly 97% of the state's gas production. Notably, 21 of Wyoming's 23 counties produce oil and/or natural gas, with Converse County leading in crude oil production and Sublette County in natural gas production. U.S. Energy Information Administration (EIA) predicted that crude oil production across the United States would increase to 12.8 million b/d in 2024. Throughout 2023, oil production in Wyoming showed an upward trend, with more than 95 million barrels expected to be produced, an increase of about 3 million barrels from 2022. This rise in oil production was partly attributed to the completion of 110 newly drilled oil wells in the first half of the year, mainly in the Powder River Basin. However, natural gas production faced a decline due to the aging of wells and a low number of new gas wells being completed. Only 18 new gas wells were finished in the first half of 2023, with a noted interest in drilling applications, suggesting potential future developments.
XCL Resources is seeking approval from the Federal Trade Commission (FTC) for its proposed acquisition of Altamont Energy LLC, another Utah-based oil producer. This initiative is backed by XCL's parent entity, EnCap Investments LP, a notable private equity firm. Discussions about purchasing Colorado-based Altamont Energy began in the previous summer, as highlighted in FTC documentation.
Tallgrass Energy has started a new open season for the Pony Express Pipeline, and this is the second time they're doing it in 2024. They're looking for companies that want to move their crude oil from the Williston Basin and are offering special rates as an incentive. This 30-day event kicked off on March 11. To get the full details, companies need to sign a confidentiality agreement with Tallgrass.