EnCap Teases Permian Sales
Permian producers (or those looking to add some prime Permian assets), get ready for a seismic sale next year in the Delaware and Midland hosted by Houston-based Encap Investments. In all fairness, this statement comes with a few disclaimers like *maybe, *might, *possibly, and *potentially. Nevertheless, the energy-focused private equity firm wants you to know that (1) Encap is currently weighing its options to sell; (2) has named the assets it looks to divest; (3) has announced a price expectation for a coupling; and (4) anticipates a buttload of interest. Reese Energy Consulting today is following the latest news from EnCap, which has plucked five of the 21 upstream companies it currently backs deemed ripe to sell in the Permian. Here’s the big-ticket package: Ameredev plus Advance Energy Partners. Ameredev operates the largest privately held contiguous land position in the Delaware and manages Advance. Encap in March announced exploring a sale of Ameredev with a then $4 billion price tag. Now, with Advance to sweeten the pot, Encap is eyeing $6 billion. Also on the chopping block are Black Swan Oil & Gas, Piedra Resources, and Petrolegacy Energy—all of which operate in the Midland.