Quantum Capital reportedly closes $1.8 billion deal for Caerus Oil

(Bloomberg) — Quantum Capital Group has agreed to acquire Caerus Oil and Gas, valuing the Rocky Mountain energy explorer at $1.8 billion, people familiar with the matter said, as private equity firms ramp up their purchases in the oil industry.

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Energy-focused company Quantum is buying Caerus from its backers Oaktree Capital Management, Anschutz Investment Co. and Old Ironsides Energy, said the people, who asked not to be identified and spoke on confidential information.

A representative for Quantum declined to comment. Representatives for Caerus, Oaktree, Anschutz and Old Ironsides did not respond to requests for comment.

The deal underscores that buyout firms are increasingly eager to put their money into the oil and gas sector, which is booming after the post-Covid recovery in energy prices. Last month, Crescent Energy Inc., the company backed by KKR & Co., agreed to pay $2.1 billion for SilverBow Resources Inc.

The deal is also a relatively rare example of a so-called secondary buyout in the U.S. oil and gas sector, as corporate buyers have typically been the purchasers of energy assets with private equity financing. Matador Resources Co. agreed earlier this month to buy assets in the Permian Basin from a portfolio company of EnCap Investments LP for $1.9 billion in cash.

Caerus aims to be “the most efficient producer in the Rockies,” according to its website. The company operates more than 7,400 wells in Colorado’s Piceance Basin and Utah’s Uinta Basin. It also has infrastructure assets, including 3,800 kilometers of gas and water pipelines and a number of water treatment and storage facilities.

Founded by CEO Wil VanLoh, Quantum is one of a handful of Texas-based private equity firms specializing in investments in the oil and gas industry.

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