Fundare Resources Announces Financing with Valor Upstream Credit Partners
May 21 2024 - 10:45AM
Business Wire
Fundare Resources Company, LLC (“Fundare” or the “Company”)
announced that it has entered into a new $250 million credit
facility (the “Credit Facility”) with Valor Upstream Credit
Partners, L.P., a dedicated upstream credit fund managed by
Breakwall Capital LP. In conjunction with the closing of the Credit
Facility, Fundare has merged all businesses under Fundare’s
management, including Fundare Redtail, LLC, Rangeview Green River,
LLC, and Moonrise Midstream, LLC as well as their wholly-owned
subsidiaries, under one entity. The Credit Facility will be used to
retire all existing debt held by the merged entities and to fund
future development of Fundare’s oil and gas properties and Moonrise
Midstream’s growth projects.
Cody Truitt, President & Chief Executive Officer of Fundare,
commented, “We’re excited to partner with the Breakwall team. This
new relationship and the corporate merger provide significantly
greater opportunities for Fundare to grow our business both
organically and inorganically in the Rockies.”
Daniel Flannery, Managing Partner and President of Breakwall,
commented, “We are thrilled to partner with Fundare and its
talented executive team with a proven track record of operating
across the Rockies.”
Walt Hughes, Managing Director of Breakwall, added, “Breakwall
has a deep track record of lending to Rockies focused energy
companies. This financing allows Fundare to capitalize on
opportunities to grow its diversified upstream and integrated
midstream footprint.”
Development activities at Fundare Redtail, the Company’s
upstream oil and gas operations in Weld County, Colorado, have
exceeded expectations. The Company’s initial drilling program
included a seven-well pad that was brought online in the summer of
2023. Fundare has 43 permits to drill with the expectation of
receiving an additional 58 by the end of the year.
Moonrise Midstream provides gas gathering, compression,
processing, and crude oil gathering to customers in the DJ Basin,
including Fundare Redtail. Moonrise continues to add new customers
and business partnerships that add value to both the upstream and
midstream business. Third-party volumes consistently represent the
majority of gas processing volumes on the gas system and the crude
gathering system; a trend that is expected to continue into
2025.
Rangeview Resources, the Company’s upstream oil and gas asset in
the Green River Basin of Wyoming, benefits from liquids-rich gas,
access to western market pricing, and a strong hedging program. The
Company is permitting a midstream solution at Rangeview to expand
access for its volumes to western markets, which have historically
received a premium to NYMEX Henry Hub.
Houlihan Lokey acted as Financial Advisor to Fundare on the
transaction. Davis Graham & Stubbs LLP acted as legal counsel
to Fundare. Vinson & Elkins LLP acted as legal counsel to
Breakwall.
About Fundare Resources Company, LLC:
Fundare Resources Company, LLC is a private oil and gas company
pursuing low risk, yield driven, producing properties that maximize
shareholder returns through the implementation of advanced
completion technologies and prudent, low-cost operatorship.
Fundare, Latin for “laying a foundation”, is built around the
principle of establishing a foundation of assets managed with
integrity, teamwork and transparency; proven values that have
resulted in repeated success for its investors. Companies under
Fundare’s management include Fundare Redtail, LLC, Rangeview Green
River, LLC, and Moonrise Midstream, LLC.
Further information can be found at
www.fundareresources.com.
About Valor Upstream Credit Partners, L.P.
Valor Upstream Credit Partners, L.P. seeks to make structured
credit investments in North American upstream oil and gas
companies. VCP is managed by Breakwall Capital in partnership with
Vitol, the largest independent energy trading company globally.
About Breakwall Capital LP:
Breakwall Capital LP is an independent asset manager and
employee-owned firm focused on facilitating the growth and
improvement of conventional, renewable and next generation energy
companies. The firm provides innovative capital solutions across
the entire energy value chain. Breakwall operates out of three
offices in Texas, New York and Rhode Island. For more information,
please visit breakwallcap.com.
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Scott Landreth Chief Financial Officer info@fundareresources.com
720-868-1300