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.

The sources spoke on condition of anonymity to discuss private information. EnCap declined to comment. Ameredev II did not respond to a comment request.

Ameredev II operates the “largest privately held contiguous land position in the northern Delaware,” according to its website. The Delaware is part of the Permian Basin, the heart of the U.S. shale industry which stretches across parts of Texas and New Mexico.

EnCap originally invested $400 million in Ameredev II in 2017 after closing the sale of its predecessor, Ameredev I, to Callon Petroleum Co. that same year.

Other deals under way in the sector include investment firm Aethon Energy Management exploring a $6 billion sale of its acreage in North Louisiana and private equity duo Pearl Energy Investments and NGP seeking to cash out of Colgate Energy Partners III for $5 billion or more.

Onshore