FourPoint Energy CEO Visits TPH

Casey ColelloLatest News

TPH welcomed Mr. Solich for an encore appearance – he first sat down with us in 2014, shortly after FourPoint’s formation. George, who started his career as an industry land, business development and A&D executive, has been a highly successful E&P entrepreneur since the formation in 2000 of the first generation Cordillera Energy Partners, LLC, which was sold to Patina Oil & Gas in late 2003. Two more Cordillera successes followed, the last of which culminated in a sale to Apache Corp for more than $3 billion in 2012. Mr. Solich’s fourth and current enterprise, FourPoint Energy, LLC, was launched in late 2013 and has rapidly become the second largest private E&P in the U.S. and the largest player (in terms of production and leasehold) in the western Anadarko Basin. The bedrock of FourPoint’s acquire & exploit strategy is understanding and using massive amounts of data and, more importantly, knowing how to “clean” inherently flawed data to develop a more accurate picture of the rock and its reserve potential. Applying a deep and detailed technical process to clean, holistic datasets uncovers reserve potential opportunities in target acquisitions that others cannot see, a concept we think of as value creation via “technical arbitrage”. As George put it, FourPoint doesn’t seek to merely acquire acreage and leases, they endeavor to acquire reserves. Leading private equity returns, which Mr. Solich has consistently delivered over almost two decades, are driven by capturing upside reserve opportunities at low to no basis. The western Anadarko Basin’s comparatively low leasehold costs and forced pooling rules provide a platform to scale this value creation process. The complex and vast multi-zone nature of the basin also align very well with FourPoint’s rigorous and intensive data- and technical/technology-led strategy.

Dave Pursell, George Solich, Mark Meyer