People familiar with the matter Friday said that Caerus Oil and Gas, a private equity-owned natural resource producer in the United States, is considering a sale. The potential value of the sale would exceed $2.5 billion including debt.
According to sources, the company was offered an acquisition deal at the end of last year. The company plans to launch a sale process within the next few weeks. They warned that no sale is guaranteed and requested anonymity to discuss sensitive information.
Oaktree Capital Management and Anschutz Investment Company own Caerus. Old Ironsides Energy also owns Caerus. The Denver-based company is home to exploration and production assets as well as pipelines and mineral rights. Its operations are centered in the Piceance Basin of Colorado and the Uinta Basin of Utah.
Anschutz and Old Ironsides declined to comment. Oaktree and Caerus did not respond to comment requests.
U.S. natural-gas futures traded at $5.45 per million British thermo units on Friday. This was an increase of over 45% since the invasion by Russia in Ukraine. Crude oil prices have also reached multi-year highs.
The rising commodity prices have encouraged private equity firms to exit long-standing energy investments.
Caerus was founded in 2009 by Oaktree, Anschutz, and other founding sponsors. Old Ironsides was one of its backers and helped the company to acquire assets from Encana Corp in Colorado for $735 million.
Caerus also purchased the Uinta assets from Occidental Petroleum Corporation in 2020. According to its website, Caerus produces natural gas on approximately 680,000 net acres.
from lawyers.buzz https://lawyers.buzz/caerus-explores-2-5-billion-sale/222/
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