DoublePoint Energy LLC’s private-equity owners are exploring a potential sale of the Permian Basin oil producer later this year, Reuters reported Feb. 21 citing sources familiar with the matter.
DoublePoint’s owners have been interviewing investment banks in recent days, according to four sources aware of the matter, who Reuters said spoke on condition of anonymity as the information is not public.
Reuters reported the potential sale could value DoublePoint Energy at as much as $5 billion, including debt.
DoublePoint Energy formed in June 2018 through the combination of Double Eagle Energy Holdings III LLC and FourPoint Energy LLC’s Permian subsidiary.
Today, the E&P has a 95,000-net-acre position in the core of the Midland Basin, which co-CEOs Cody Campbell and John Sellers told Hart Energy’s Oil and Gas Investor is among the best basins, if not the best basin, in the world.
The Texas footprint encompasses parts of northeastern Midland County, a large position in north-central Reagan and Upton counties, and sizable blocks in Glasscock and Martin counties. The position had been cobbled together through deal after deal with ranchers, farmers, major oil and gas companies, and everything between, according to Campbell and Sellers.
DoublePoint’s owners include Apollo Global Management, Blackstone Group’s GSO Capital Partners, Magnetar Capital, and Quantum Energy Partners.
Apollo, Blackstone and Magnetar all declined to comment on the Reuters report. Quantum did not immediately respond to a request for comment from Reuters.
Reuters contributed to this report.
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