Ranger Oil Corp. is exploring a potential sale as the south Texas oil and gas producer looks to capitalize on high energy prices to pursue strategic options, people familiar with the matter said on Nov. 18.
Ranger is working with an adviser and has actively started marketing itself to potential buyers, the sources said, requesting anonymity as these discussions are confidential.
Shares in Ranger, which operates in the Eagle Ford Shale, jumped over 5% on Nov. 18 after Reuters reported the company’s sale efforts. This gave the company a market value of around $1.9 billion.
The company also holds long-term debt worth $603 million as of Sept. 30, according to its latest earnings statement.
Ranger Oil did not immediately respond to a request for comment.
Elevated oil and gas prices have encouraged many private equity-backed or public energy companies to consider selling themselves, as their valuations have swelled in recent months. Ranger had gained around 58% this year, prior to news of its sale efforts.
The Eagle Ford has witnessed a flurry of deal activity in recent months. Its proximity to other major energy hubs, including the U.S. Gulf coast, makes it an attractive location, while the basin is home to a number of smaller producers, which makes it easier for them to be absorbed by strategic players.
Marathon Oil Corp. struck a deal earlier this month to buy natural gas-focused assets from private equity-backed Ensign Natural Resources for $3 billion, while in September, Devon Energy Corp. closed its deal to buy Validus Energy for $1.8 billion.
Based on recent comparable transactions, Ranger Oil’s upstream assets are estimated to be worth between $2 billion and $2.2 billion, according to Dhriti Bafna, M&A analyst at Rystad Energy.
2022-12-06 - Hyundai Heavy Industries agreed to add autonomous navigation, maintenance and detection software to ABS ships.
2022-11-02 - The transaction offer between ProPetro and Silvertip included 10.1 million shares of ProPetro common stock, $30 million in cash and $7 million in assumed debt.
2022-10-27 - SOECHI Lines hopes to operate in a safer and more sustainable manner through the implementation of Kongsberg Digital's Vessel Insight system.
2022-10-27 - SLB, formerly Schlumberger, said in an Oct. 26 release it plans to integrate Gyrodata’s wellbore placement and surveying technologies within SLB’s well construction business.
2022-09-29 - After establishing a working relationship through the development of the ECG system in 2020, Proserv acquired a stake in Synaptec and will add its CEO to Synaptec's board of directors.