EnCap Reportedly Exploring $4 Billion-plus Sale of Ameredev II

Sources say EnCap has hired a bank to launch an auction in the coming weeks for Ameredev II, which operates the “largest privately held contiguous land position in the northern Delaware” Basin in the Permian.

David French and Shariq Khan, Reuters

Private equity firm EnCap Investments is exploring a sale of U.S. oil producer Ameredev II, seeking more than $4 billion including debt for the Delaware Basin operator, people familiar with the matter said.

It is the latest indication that buyout firms are rushing to capitalize on U.S. crude prices reaching their highest level since 2008 amid concerns over the conflict in Ukraine, bolstering the value of their assets.

EnCap bulked up Ameredev II in December by merging it with another of its portfolio companies, Advance Energy Partners. It has hired a bank to launch an auction for the combined company in the coming weeks, the sources said.

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