US private equity firm EnCap Investments is considering options to sell two bundles of oil and gas assets in Texas, Bloomberg reported, citing people familiar with the development.
Through the sale of assets in the Delaware basin, the investment firm is expected to raise more than $6bn.
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The positions in the Delaware basin comprises Advance Energy Partners, Ameredev II, and the Midland basin, which covers assets from Black Swan Oil & Gas, Piedra Resources, and Petrolegacy Energy.
The sources privy to the development told Bloomberg that the assets would be sold by different advisers next year.
The divestment process is expected to draw many corporate buyers.
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The sources added that the company is yet to make a final decision on the matter and it may even change.
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By GlobalDataEnCap managing director Jason DeLorenzo said: “EnCap has no plans to combine or sell any of its portfolio companies at this time. Depending on the strength of the market, EnCap may be in a position to sell select portfolio companies in 2023.”
In December 2021, EnCap combined two of its portfolio companies, Advance Energy Partners, and Ameredev II, to create one of the largest privately-owned oil producers in the Delaware basin, a part of the larger Permian basin.
Ameredev II currently operates what it claims to be largest privately held contiguous land position in northern Delaware. It also manages the assets owned by Advance Energy Partners.
The latest move by EnCap comes as several buyout firms look to capitalise on surging US crude prices, following Russia’s invasion of Ukraine.
Last month, reports emerged that US-based natural gas producer EQT is in advanced talks to purchase exploration and production company THQ Appalachia I (THQA) for approximately $4bn, including debt. In February this year, Earthstone Energy agreed to acquire Bighorn Permian Resources in a cash and stock deal worth approximately $860m.
