Vantage Energy Inc., the oil and gas explorer that postponed an IPO last year, is now exploring a sale, people with knowledge of the matter said, Bloomberg said June 22.
The Englewood, Colorado-based company is working with Barclays Plc to find a buyer, said the people, who asked not to be identified because the information is private. Vantage, which primarily drills for gas in the southwestern Pennsylvania portion of the Marcellus Shale basin, has contacted potential suitors that operate in that region including EQT Corp. (EQT) and Antero Resources Corp. (AR), the people said.
Vantage, which also operates in the Barnett Shale basin outside of Dallas, could consider breaking up to appeal to more potential buyers, one of the people said. The company filed for an IPO almost a year ago that would have valued the company at as much as $1.95 billion. It postponed the offering in September, citing “unfavorable equity market conditions.”
Spokesmen for Barclays and EQT declined to comment. Representatives for Vantage and Antero didn’t immediately respond to requests for comment.
Last year’s slide in oil prices has thrown the U.S. oil and gas industry into turmoil, sending energy shares tumbling and forcing companies to sideline drilling rigs to conserve cash. Noble Energy Inc. (NBL) agreed last month to acquire Rosetta Resources Inc. (ROSE) for $2.1 billion in stock, a move analysts called the precursor of a potential takeover wave of small and midsize explorers.
Pennsylvania’s Department of Environmental Protection fined Vantage energy almost $1 million in December, citing violations related to a landslide and illegal waste disposal at one of its well sites.
Recommended Reading
Chesapeake Slashing Drilling Activity, Output Amid Low NatGas Prices
2024-02-20 - With natural gas markets still oversupplied and commodity prices low, gas producer Chesapeake Energy plans to start cutting rigs and frac crews in March.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
CEO: Magnolia Hunting Giddings Bolt-ons that ‘Pack a Punch’ in ‘24
2024-02-16 - Magnolia Oil & Gas plans to boost production volumes in the single digits this year, with the majority of the growth coming from the Giddings Field.
Endeavor Integration Brings Capital Efficiency, Durability to Diamondback
2024-02-22 - The combined Diamondback-Endeavor deal is expected to realize $3 billion in synergies and have 12 years of sub-$40/bbl breakeven inventory.
Patterson-UTI Braces for Activity ‘Pause’ After E&P Consolidations
2024-02-19 - Patterson-UTI saw net income rebound from 2022 and CEO Andy Hendricks says the company is well positioned following a wave of E&P consolidations that may slow activity.