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☆ US oil M&A jumps as private equity unloads shale assets
▼ + stars: | 2023-07-25 | by ( Gary Mcwilliams | ) www.reuters.com time to read: +2 min

HOUSTON, July 25 (Reuters) - U.S. oil and gas deals rebounded in the second quarter as private equity firms shed shale portfolio investments and publicly traded oil firms grabbed smaller rivals. The surge was due in part to energy focused private equity firms EnCap Investments and NGP Energy Capital selling off a combined six portfolio companies. In total, $14 billion in private equity-owned assets have changed hands this year, Enverus said. Private equity firms have moved away from oil deals, with only 10 new exploration and production firm investments this year compared to 100 per year last decade, Enverus said. Most M&A was in the top U.S. shale field as companies looked to add oil acreage, Enverus' Dittmar said.

Persons: Enverus, Andrew Dittmar, Jon Platt, Baker Botts, Dittmar, Gary McWilliams, Nick Zieminski Organizations: EnCap Investments, NGP Energy Capital, Civitas Resources, PDC Energy, Thomson Locations: U.S, Dittmar . U.S

June 20 (Reuters) - Civitas Resources (CIVI.N) said on Tuesday it would acquire oil and gas operations in the Permian basin managed by private equity firm NGP Energy Capital Management for $4.7 billion, expanding its operations into the lucrative shale patch. The deal is transformative for Civitas, which until now operated solely in Colorado's Denver-Julesburg (DJ) basin. Under the terms, Civitas has agreed to purchase a portion of Tap Rock Resources' assets and all of Hibernia Energy III's operations. "Simply put, these transactions make Civitas a better company, and we see tremendous opportunity to add value in the Permian that will complement our leading oil position in the DJ basin," Civitas Chief Executive Chris Doyle told analysts. News of the deal, which Reuters was first to report on Monday, sent Civitas' shares 8% lower.

Persons: Civitas, Chris Doyle, Ben Dell, David French, Mrinalika Roy, Shilpi Majumdar, Emelia Organizations: Civitas Resources, NGP Energy Capital Management, Rock Resources, Hibernia Energy, Reuters, Thomson Locations: Colorado's Denver, U.S, Rock, DJ, Texas, New Mexico, Denver, New York, Bengaluru

☆ Civitas Resources shells out $4.7 billion for Permian assets
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +2 min

June 20 (Reuters) - Civitas Resources (CIVI.N) said on Tuesday it would acquire oil and gas operations in the Permian Basin managed by private equity firm NGP Energy Capital Management for $4.7 billion, expanding its operations into the lucrative shale patch. Under the terms of the transactions, Civitas has agreed to purchase a portion of Tap Rock Resources' Delaware Basin assets and all of Hibernia Energy III's Midland Basin assets. Both Tap Rock and Hibernia are portfolio companies of funds managed by NGP. Reuters was the first to report that Civitas was in advanced talks with NGP to buy the Permian Basin-focused assets. Plenty of tier-1 acreage still available, indicating shale oil production will grow through to the end of this decade, HSBC analysts wrote in a June 20 note.

Persons: Civitas, NGP, Chris Doyle, Mrinalika Roy, Shilpi Majumdar Organizations: Civitas Resources, NGP Energy Capital Management, Rock Resources, Hibernia Energy, Midland, NGP, Reuters, Civitas, HSBC, Thomson Locations: Rock, Delaware, Hibernia, Texas, New Mexico, Denver, Bengaluru

☆ Exclusive: Civitas Resources nears $5 bln deal to expand into Permian-sources
▼ + stars: | 2023-06-19 | by ( David French | ) www.reuters.com time to read: +2 min

The deal would transform Civitas, currently valued at $5.6 billion, expanding its operations beyond Colorado's Denver-Julesburg (DJ) basin into the lucrative Permian basin in Texas and New Mexico, considered the heart of the U.S. shale industry. Civitas is in advanced discussions with NGP to buy Hibernia Resources as well as much of Tap Rock Resources, the sources said. Civitas, NGP, Tap Rock and Hibernia did not respond to requests for comment. Hibernia, which does not disclose the level of its production, operates in the Midland part of the Permian basin in Texas. Cashing out on Tap Rock and Hibernia would help NGP with its bid to raise its 13th natural resources fund - the first flagship fund from the firm since 2018.

Persons: NGP, David French, Sonali Paul Organizations: Civitas Resources Inc, NGP Energy Capital Management, Civitas, Hibernia Resources, Rock Resources, Hibernia, Reuters, Thomson Locations: Colorado's Denver, Texas, New Mexico, U.S, Hibernia, Denver, Delaware, Midland, New York

Dallas-based NGP is working with investment banks to sell the oil producers, Tap Rock Resources and Hibernia Resources, in auction processes that are expected to kick off in the coming weeks, the sources said. Efforts to cash out on the assets come as higher energy prices boost valuations of oil producers. The oil firm could fetch NGP around $5 billion, according to the sources. Hibernia, which operates in the Midland part of the Permian basin in Texas, could be worth upwards of $2 billion, the sources added. The buyout firm, which has deployed more than $20 billion in energy investments, began raising its NGP Natural Resources XIII fund late in 2022.

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