ConocoPhillips is considering an offer for CrownRock LP, an energy producer in the west Texas area of the Permian Basin, people familiar with the matter said, as consolidation in the sector picks up pace.
Houston-based Conoco, the largest U.S. oil and gas producer after Exxon Mobil Corp. and Chevron Corp. has expressed interest in participating in the sale process for privately held CrownRock, which is valued at between $10 billion and $15 billion, the sources said.
CrownRock's investment bankers have asked interested parties to submit initial offers next week, two of the sources added.
Diamondback Energy, Devon Energy, Marathon Oil and Continental Resources are also studying potential bids for CrownRock, the sources said.
No deal with any of these companies is certain and other bidders could emerge, the sources added, asking not to be identified because the matter is confidential.
Conoco, Devon, and Marathon Oil declined to comment. CrownRock, Continental and Diamondback did not respond to requests for comment.
Pressure on oil and gas producers to increase their size through purchases intensified this month after Exxon clinched a $60 billion deal to buy Pioneer Natural Resources and Chevron inked a $53 billion agreement to buy Hess Corp.
CrownRock owns about 86,000 net acres in the northern part of the Midland basin in Texas, which is part of the Permian, the largest U.S. oil producing region. The company is led by Texas billionaire businessman Timothy Dunn and backed by private equity firm Lime Rock Partners.
Conoco was the largest producer in the Permian behind Pioneer and EOG Resources in the second quarter, with Diamondback sixth and Devon seventh.
Bloomberg News reported last week that Devon was considering a bid for CrownRock, and that Devon has also held preliminary talks about a tie-up with Marathon.
Devon and Marathon engaged in deal negotiations in the summer, the sources that spoke to Reuters said. The companies ended talks in August because they could not agree on terms, the sources added.
Recommended Reading
VTX Energy Quickly Ramps to 42,000 bbl/d in Southern Delaware Basin
2024-09-24 - VTX Energy’s founder was previously among the leadership that built and sold an adjacent southern Delaware operator, Brigham Resources, for $2.6 billion.
Avant Natural Resources Steps Out with North Delaware Avalon Tests
2024-08-21 - With the core of the Delaware Basin in full manufacturing mode, Avant Natural Resources is pushing an operated portfolio into the northern reaches of the New Mexico Delaware.
Matador’s U-lateral Delaware Tests Outproduce 2-mile Straight Holes
2024-10-30 - Matador Resources' results from eight Loving County, Texas, tests include two 2-mile U-turn laterals, five 2-mile straight laterals and one 1-mile straight lateral, according to state data.
Now, the Uinta: Drillers are Taking Utah’s Oily Stacked Pay Horizontal, at Last
2024-10-04 - Recently unconstrained by new rail capacity, operators are now putting laterals into the oily, western side of this long-producing basin that comes with little associated gas and little water, making it compete with the Permian Basin.
With Montney Production Set to Grow, US E&Ps Seize Opportunities
2024-10-02 - Canada’s Montney Shale play has already attracted U.S. companies Ovintiv, Murphy and ConocoPhillips while others, including private equity firms, continue to weigh their options.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.