Establishes QB Energy to Own and Operate the Piceance Assets
Existing Quantum Portfolio Company KODA Resources to Own and Operate the Uinta Assets
HOUSTON, Aug. 19, 2024 (GLOBE NEWSWIRE) — Quantum Capital Group (“Quantum”) and Caerus Oil and Gas (“Caerus”) today announced the closing of a transaction under which Quantum, via two separate portfolio companies, has acquired Caerus’ oil and gas operations for approximately $1.8 billion, including the assumption of asset-backed securities and other liabilities. Caerus is owned by a private investor group including Oaktree Capital Management (“Oaktree”), The Anschutz Corporation, and Old Ironsides Energy (collectively, the “Caerus Investor Group”).
QB Energy is acquiring the producing upstream assets, gathering and compression midstream assets, approximately 600,000 acres, and all other assets owned by Caerus in the Piceance Basin (the “Piceance Assets”). QB Energy is a newly formed Quantum portfolio company established in partnership with Roger Biemans, a seasoned energy entrepreneur who has built and sold multiple portfolio companies with Quantum over the past 18 years. Mr. Biemans will serve as President and CEO of QB Energy. KODA Resources (“KODA”) is acquiring the producing upstream assets, gathering and compression midstream assets, approximately 160,000 acres, and all other assets owned by Caerus in the Uinta Basin (the “Uinta Assets”, and together with the Piceance Assets, the “Assets”). KODA is an existing Quantum portfolio company led by President and CEO Osman Apaydin and Executive Chairman Kurt Doerr.
“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,” said Tom Field, Partner at Quantum. “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 U.S. while generating attractive returns for our investors.”
“Natural gas plays an increasingly important role in our energy grid, offering a rare combination of sustainability, reliability, and affordability that can allow us to meet rising power needs,” said Chuck Davidson, Partner at Quantum. “The Caerus assets provide access to some of the largest natural gas resources in the western markets, which have experienced repeated, localized energy shortages in recent years. Alongside our partners at KODA and QB Energy, we expect to continue optimizing these operations, driving significant value for our investors while helping bring reliable, affordable, low-carbon energy to more end users.”
Roger Biemans, CEO of QB Energy, stated: “The Piceance Assets represent the largest single asset base atop the second largest gas resource in the continental U.S. QB Energy is acquiring a shallow-decline production base with several decades of repeatable drilling inventory and intends to employ a number of Caerus’ existing capable workforce to ensure continuity in both the field and local communities.”
As a long-time investor and operator in Colorado’s energy sector, I am honored to have the opportunity to lead QB Energy as we launch this platform during a pivotal time for the U.S. energy economy,” continued Mr. Biemans. “These strategically located, world-class assets provide tremendous development potential in a natural gas market experiencing both significant demand growth and supply constraints. I look forward to working with the Quantum and Caerus teams to support a seamless transition and unlock new value for our customers, employees, partners, and Quantum’s investors.”
“KODA has spent years decoding subsurface intricacies of the Uinta gas window, and we believe we are uniquely qualified to assume operatorship and further develop this high-quality production base adjacent to our existing acreage,” said Osman Apaydin, CEO of KODA Resources. “This transaction ushers in the next chapter of the KODA/Quantum partnership, and we are thrilled to be joined by many members of the existing Caerus team.”
Dave Keyte, Founder and CEO of Caerus, added: “It has been an honor to lead this team and work with our investment partners for the past 15 years to establish Caerus as one of the country’s premier natural gas suppliers. 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 U.S 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 maximize their output over the long term. We wish them well.”
“On behalf of the Caerus Investor Group, we are very pleased to complete the sale of Caerus to Quantum,” said Jordon Kruse, Co-Portfolio Manager of Oaktree’s Special Situations Strategy. “We want to thank Dave Keyte and his tremendous team for their tireless work and operational discipline in consolidating a world-class basin at deep value. We wish that entire team continued success as they work with QB Energy, KODA, and Quantum to build upon Caerus’ track record as a leading supplier of natural gas to the western U.S.”
Vinson & Elkins LLP provided legal advice to Quantum, QB Energy, and KODA. Caerus retained Jefferies and Evercore as financial advisors, Davis Graham & Stubbs and Latham & Watkins as legal counsel, and Bank of America as capital markets advisor.
About Quantum Capital Group
Founded in 1998, Quantum is a leading provider of private equity, credit, and venture capital to the global energy and energy transition industry, having managed together with its affiliates more than $27 billion in equity commitments since inception. For more information on Quantum, please visit www.quantumcap.com.
Contacts
Quantum Capital Group
Kate Thompson / Erik Carlson / Madeline Jones
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
