Buying into existing assets can move an energy company forward faster than building everything from scratch. A 2020 review of Gulf Coast Western highlights two 2016 transactions that widened the Dallas producer’s footprint and added drilling capacity.

The Orbit Energy Partners Purchase

The first deal ran through a subsidiary, Orbit Gulf Coast Exploration LLC. That subsidiary had already taken over production activity from Orbit Energy Partners LLC in October 2015. Then, in January 2016, it announced the purchase of all of Orbit Energy Partners’ assets.

One notable piece of that package was proprietary rights to 100 square miles of 3D seismic data covering Lafayette, Louisiana. Seismic data of this kind helps geologists map underground formations before a well is drilled, which can guide decisions about where new wells should go. Visit this page on LinkedIn, for more information.

A Stake in Northcote Energy

Also in 2016, Gulf Coast Western LLC acquired a 50 percent working interest in Northcote Energy Ltd. The review says the transaction expanded and accelerated Northcote’s drilling operations. Its terms gave the Dallas company half of the working interest in the Lutcher Moore well and in related saltwater disposal assets. The company also took a 50 percent working interest in four wells drilled in the Cockfield and Oligocene Frio formations, along with a 25 percent interest in all wells drilled in the Wilcox formation.

These purchases fit a long pattern. Since its founding in 1970, the company has grown through joint ventures and partnerships, acquiring thousands of acres of productive land across the United States. The review says it uses stringent criteria to select properties with high growth potential rather than buying indiscriminately.

CEO Matthew Fleeger, who previously negotiated the roughly $59 million sale of his medical waste company to Stericycle, brought deal-making experience to these efforts. The review cites his background in acquisitions and corporate structuring as what made him suited to lead the family business.

Gulf Coast Western now operates in six states, and the 2016 acquisitions show how targeted purchases helped build that reach.

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