Quantum said to strike US$1.8bil deal for Caerus

The deal underscores how buyout firms are increasingly eager to put money work in the oil and gas sector. — Bloomberg

NEW YORK: Quantum Capital Group has agreed to buy Caerus Oil and Gas in a deal that values the Rocky Mountain energy explorer at US$1.8bil, people familiar with the matter say, 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 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 US$2.1bil for SilverBow Resources Inc.

This deal is also a relatively rare example of a so-called secondary buyout in the American oil and gas industries, as corporate buyers have typically been the acquirers of private equity-backed energy assets. — Bloomberg