Quantum Capital Group acquires Caerus Oil and Gas assets for $1.8bn

Quantum Capital Group and Caerus Oil and Gas have finalized a monumental deal valued at approximately $1.8 billion, marking a significant expansion in Quantum Capital Group’s energy sector investments. This acquisition, which includes Caerus Oil and Gas‘s upstream and midstream assets, highlights Quantum Capital Group’s strategic move into natural gas production and infrastructure.

Quantum Capital Group Expands Energy Portfolio

Quantum Capital Group has significantly bolstered its presence in the energy market through this acquisition. The deal involves two separate portfolio companies under Quantum Capital Group: QB Energy and KODA Resources. The transaction includes the purchase of Caerus Oil and Gas’s operations, encompassing critical assets in both the Piceance and Uinta Basins.

Acquisition of Piceance Basin Assets

QB Energy, a new portfolio company established by Quantum Capital Group in collaboration with energy entrepreneur Roger Biemans, will manage the Piceance Basin assets. This acquisition covers producing upstream assets, gathering and compression midstream assets, and approximately 600,000 acres of land. Roger Biemans, who will serve as President and CEO of QB Energy, described the Piceance Assets as a substantial opportunity due to their significant resource base and potential for long-term development.

Acquisition of Uinta Basin Assets

KODA Resources, an existing Quantum Capital Group portfolio company, is set to take over the assets in the Uinta Basin. This includes producing upstream assets, gathering and compression midstream assets, and around 160,000 acres of land. Osman Apaydin, President and CEO of KODA Resources, expressed enthusiasm about the acquisition, emphasizing the company’s expertise in the Uinta gas window and its capability to maximize the value of these new assets.

Key Statements from Quantum Capital Group Executives

Tom Field, Partner at Quantum Capital Group, highlighted the strategic importance of this acquisition. Field noted that it provides a unique opportunity for substantial investment in natural gas resources, aligning with Quantum Capital Group’s goal of expanding access to clean and reliable energy across key U.S. markets.

Chuck Davidson, another Partner at Quantum Capital Group, emphasized the critical role of natural gas in the U.S. energy grid. Davidson pointed out that the Caerus Oil and Gas assets offer access to some of the largest natural gas resources in the western markets, which have faced energy shortages in recent years. He expressed confidence that this acquisition will address these challenges while delivering attractive returns for investors.

Roger Biemans, CEO of QB Energy, spoke about the value of the Piceance Assets, describing them as the largest single asset base atop the second-largest gas resource in the continental U.S. Biemans highlighted the development potential of these assets and the plan to employ Caerus Oil and Gas’s existing workforce to ensure operational continuity.

Osman Apaydin, CEO of KODA Resources, praised the company’s expertise in the Uinta Basin and its readiness to assume control of the new assets. Apaydin noted KODA’s previous work in decoding subsurface details of the Uinta gas window and its commitment to developing this high-quality production base.

Dave Keyte, Founder and CEO of Caerus Oil and Gas, reflected on the company’s achievements, including pioneering sandless fracks and constructing the largest water treatment facility in the western U.S. Keyte expressed pride in transitioning the assets to a new group of owners capable of maximizing their potential.

Jordon Kruse, Co-Portfolio Manager of Oaktree Capital Management, commended the successful sale as a consolidation of valuable assets. Kruse thanked Dave Keyte and the Caerus Oil and Gas team for their efforts and wished success to Quantum Capital Group, QB Energy, and KODA Resources in their new ventures.

Advisory and Legal Support

The transaction was supported by a comprehensive team of legal and financial advisors. Quantum Capital Group, QB Energy, and KODA Resources were advised by Vinson & Elkins LLP. Caerus Oil and Gas engaged Jefferies and Evercore as financial advisors and retained Davis Graham & Stubbs and Latham & Watkins as legal counsel. Bank of America served as capital markets advisor, facilitating the smooth execution of the deal.