Endeavor Energy Partners is exploring the possibility of selling the largest oil and gas producer in the Permian Basin, the largest oil field in the United States, for a price ranging between $25 billion and $30 billion, according to sources familiar with the matter.
Company History and Sale Decision
Endeavor was founded nearly 45 years ago by Texas oilman Aubrey Stevens, who has decided to take advantage of the wave of large deals sweeping through the sector currently. This 85-year-old investor is looking to capitalize on this trend.
Potential Sale Process
Stevens has instructed JPMorgan Chase to prepare for the launch of the sale process for Endeavor in the first quarter of 2024, but the confirmation of the transaction’s occurrence cannot be guaranteed, and sources have requested anonymity due to the confidentiality of the discussions.
Potential Buyers
Reports indicate that there is a limited number of potential buyers for Endeavor due to the company’s large size. However, the consolidation wave hitting the industry suggests that there is interest among a few in acquiring the company.
Previous and Future Offers
Stevens has received offers to purchase Endeavor in the past and has now decided to settle the company’s future rather than allow his heirs to dictate its fate after his passing. Neither Endeavor nor JPMorgan has commented on this matter.
Endeavor’s Performance
Endeavor’s operations span a net area of 350,000 acres in the Midland region of the Permian Basin, which stretches across west Texas and eastern New Mexico. Fitch Ratings estimates that Endeavor will generate about $1 billion in free cash flow in 2024.
Source: Reuters
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