US oil and gas company Endeavor is weighing a sale of its operations, reported Reuters, citing sources.

A potential deal could value Endeavor, which operates in the prolific Permian basin, at between $25bn and $30bn.

According to sources, Autry Stephens, who founded Endeavor some 45 years ago, is looking to profit from a flurry of massive acquisitions that are taking place in the oil and gas sector.

Stephens has hired bankers at JPMorgan Chase to prepare for the sale process of the company in the first quarter of 2024, the sources said, adding that no deal is certain.

JPMorgan and Endeavour declined to comment on the development, the media outlet reported.

Endeavor operates in the Midland area of the Permian shale basin, which crosses over into East Texas and West Texas, spanning 350,000 net acres.

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By GlobalData

For a business the size of Endeavour, the list of possible deep-pocketed buyers is small.

The industry’s current wave of consolidation, however, indicates that there is demand among a select few as producers compete to increase scale and secure the greatest acreage, the report said.

In October this year, Exxon Mobil signed a $59.5bn deal to acquire Pioneer Natural Resources.

Shortly after the Exxon-Pioneer deal announcement, Chevron brokered a $53bn deal to acquire oil and gas producer Hess.

Instead of using their vast cash reserves, Exxon and Chevron are using their shares as payment for the acquisitions.

The all-stock deal gives them the financial strength to compete for Endeavour as they work to integrate and finalise their acquisitions.

It is uncertain if Exxon and Chevron will try to acquire Endeavour. Both Chevron and Exxon declined to comment on the news, reported the news agency.

According to the sources, the decision to look into a possible Endeavour sale was influenced by recent outreach from a number of interested parties.

Last week, Australian oil and gas companies Woodside and Santos said they were holding preliminary talks for a potential multi-billion-dollar merger.