Investment firm Quantum Capital has invested in the oil and gas producer Caerus Oil
Texas-based Quantum Capital has struck a deal with investors to buy Caerus Oil. Oaktree Capital, Old Ironsides Energy and Anschutz Investment participated in the agreement.
The acquisition of the oil producer totalled US$1.8 billion. This highlights a trend that analysts are noticing among investment firms. Many are taking an active interest in the oil and gas sector. The latter is recovering from the downturn during the pandemic. The trend is visible in the growing number of deals, especially in the M&A sector.
In addition, energy prices are rising, making for attractive investment opportunities for their suppliers. The Quantum deal is one of several that have taken place in the 2024 market. Among the most significant, analysts highlight two acquisitions:
1. The purchase of assets located in the Permian Basin. The US$1.9 billion acquisition of Matador Resources from EnCap Investments.
2. Crescent Energy’s acquisition of the business of SilverBow Resources cost more than US$2 billion.
The latter deal is attractive in terms of its focus. It belongs to the US market’s secondary oil and gas buyouts category, and most of these deals involve privately financed energy assets.
About Caerus
The miner has good growth prospects. Management has announced ambitious plans to become a leader in the region. We are talking about the Rocky Mountain region, which covers the eastern part of the US. Caerus is currently producing from fields in Colorado and Utah. There are 7,400 wells in production. The company also owns various infrastructure facilities. These include:
– water and gas pipelines totalling 2,400 miles;
– water treatment plants;
– storage facilities.
Caerus also owns 680,000 acres in the Piceance and Uinta basins. The company also benefits from 36,000 acres where other producers are mining. Furthermore, the company receives royalties from 10,000 acres.
Overview of Quantum’s business
Quantum is a Texas-based investment company that has been in the market since 1998. Its business focus is on investments in the oil and gas sector. Quantum also makes direct, credit, and venture capital investments in the global energy market and finances projects in this sector in various countries.
It also actively supports the transformation of energy processes and facilities through investments in infrastructure and renewable energy and is involved in the challenges of decarbonisation. The firm has US$21 billion of capital under management.
