Quantum Capital to acquire Rocky Mountain-based Caerus Oil and Gas for $1.8 billion

(Bloomberg) – Quantum Capital Group has agreed to buy Caerus Oil and Gas in a deal that values the Rocky Mountain energy operator at $1.8 billion, people familiar with the matter said, as private equity firms ramp up buying in the oil patch.

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

A representative for Quantum declined to comment. Representatives for Caerus, Oaktree, Anschutz and Old Ironsides didn’t respond to requests for comment.

The deal underscores how buyout firms are increasingly eager to put money to work in the oil and gas sector, which has been undergoing a deals boom following a post-Covid rebound in energy prices. Last month, KKR & Co.-backed Crescent Energy Inc. agreed to pay $2.1 billion for SilverBow Resources Inc.

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

Caerus aims to be “the Rocky Mountain region’s most efficient producer,” according to its website. The company operates more than 7,400 wells in the Piceance basin in Colorado and Uinta basin in Utah. It also has infrastructure assets including 2,400 miles of gas and water pipelines and a number of water treatment and storage facilities.

Founded by Chief Executive Officer Wil VanLoh, Quantum is among a handful of Texas-based private equity firms that specialize in oil and gas investing.