US-based exploration and production company Endeavor Energy Resources is reportedly exploring a possible sale.
The potential deal was first reported by the Wall Street Journal, citing unnamed sources. According to the report, the sale could result in proceeds between $10bn and $15bn to Endeavor Energy.
The company has appointed JP Morgan Chase & Co and Goldman Sachs Group to pursue the sale.
A source told Bloomberg that the company started considering the sale after receiving inquiries from multiple potential buyers in the last six months. People familiar with the matter also told the news agency that the acquisition could draw interest from Chevron and BP.
Endeavor Energy holds more than 300,000 net acres in the Midland Basin of the Permian Basin, which is a key source of shale production contributing to the growing US output, which stands at record levels.
The Permian Basin covers West Texas and the eastern part of New Mexico.
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By GlobalDataOther major deals in the basin agreed earlier this year include the acquisition of RSP Permian by Concho Resources for $8bn, and Energen by Diamondback Energy for $9.2bn. The Concho-RSP Permian deal was completed in July, while the other transaction is pending.
BP also reached an agreement to purchase BHP Billiton’s onshore operations in the US. The acquisition comprises significant position in the Permian.
For the quarter ended 20 June this year, Endeavor Energy reported a 64% year-over-year increase in net production, which rose to 64.3MBoe per day.
