CPP Investments, a global investment management organisation based in Canada, is considering strategic options including a sale or initial public offering (IPO) for Encino Acquisition Partners, a US oil and natural gas acquisition company managed by Encino Energy.

Encino operates in the Utica shale basin of Ohio and the company could be valued at up to $7bn, including debt, reported Reuters, citing sources.

The deliberations are taking place amid expectations of industry tailwinds from the administration of President Donald Trump, which aims to boost fossil fuel production.

This includes speeding up permits for energy projects and rolling back environmental protections.

Additionally, demand for AI and data centres is expected to drive the need for power in the US, increasing the need for natural gas.

Encino, based in Houston, Texas, is majority-owned by CPP and has begun evaluating options.

The company is in the process of evaluating investment banks to head the review process, potentially awarding a deal later this year, the report said.

However, plans are subject to market conditions. Both CPP and Encino declined to comment on the matter.

Formed in 2017, Encino was established as a partnership to acquire and develop oil and gas assets in the US. CPP Investments initially invested $1bn in the venture, while Encino Energy agreed to operate the acquired assets, as per the deal.

In 2018, Encino Acquisition Partners acquired Chesapeake Energy's Ohio assets for $2bn.

In April 2024, CPP Investments announced an additional $300m investment to speed up the development of Encino's assets.

Last month, Infinity Natural Resources secured $265m through its IPO, with shares seeing an increase on their entry in New York.

The favourable market reaction to Infinity's stock market debut played a role in Encino's decision to consider its strategic options.