(Bloomberg) -- Private equity firm EnCap Investments is planning a sale of two bundles of oil and gas assets in Texas that could fetch more than $6 billion, according to people familiar with the matter.
The company is looking to sell positions in the Delaware Basin, which are made of up of Advance Energy Partners and Ameredev II, and the Midland Basin, which includes assets from Black Swan Oil & Gas, Piedra Resources and Petrolegacy Energy, said the people, who asked not to be identified because they weren’t authorized to speak publicly.
The assets, which are being sold by different advisers, are expected to attract large corporate buyers, the people said. They are expected to be sold next year, they said.
EnCap hasn’t made a final decision on its sale plans, which could still change, they added.
Without confirming specifics of any potential future sales, EnCap 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.”
A sale would add to the wave of closely held assets brought to market in the past year as owners look to take advantage of rising oil prices and corporate acquirers’ stronger balance sheets. This month, EQT Corp. reached a deal to buy THQ Appalachia for about $5 billion, while Earthstone Energy Inc. agreed to buy Bighorn Permian Resources in January, according to data compiled by Bloomberg.
EnCap, which was founded by David Miller, Gary Peterson, Martin Philips and Robert Zorich, invests in oil and gas, pipelines and energy transition projects, including wind and solar. The firm closed its first energy transition fund in May 2021 with $1.2 billion, according to the company’s website.
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