Quintana Capital Group, a Houston-based, energy-focused private-equity firm, acquired all membership interests of Genesis Energy LP’s general partner from Denbury Resources Inc. for roughly $85 million in cash.
The cash consideration marks a considerable jump in the asset value as Denbury first acquired the general partner in 2002 for $2.2 million.
Once the transaction closes, Quintana and its co-investors will control the general partner. Members of the Davison family and Genesis Energy LP’s management team will become minority investors.
Certain members of the Davison family currently own roughly 30% of Genesis’ outstanding common units and Denbury currently owns roughly 10% of the outstanding common units.
The transaction comes on the heels of Dallas-based Denbury's plans to use roughly $400 million from its Senior Subordinated Notes offering to help finance a portion of its pending merger with Encore Acquisition Co.
Genesis Energy LP is a midstream energy master limited partnership with four business segments: the pipeline transportation division, the refinery services division, the supply and logistics division, and the industrial gases division. Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, and Florida.
Quintana Capital Group, through its affiliated investment funds, currently manages roughly $900 million in capital for various US and international investors. With offices in Houston, Dallas, Midland, and Beijing, the firm focuses on control-oriented investments across a wide range of sectors in the energy industry.
Denbury Resources Inc. is an independent oil and natural gas company and the largest oil and natural gas operator in Mississippi.