Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Vista Projects
Copper Tip Energy Services
Hazloc Heaters
Copper Tip Energy
Vista Projects
Hazloc Heaters


Texas producer Ranger Oil explores sale


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate
Ranger Oil Corp (ROCC.O) is exploring a potential sale as the south Texas oil and gas producer looks to capitalize on high energy prices to pursue strategic options, people familiar with the matter said on Friday.

Ranger is working with an advisor and has actively started marketing itself to potential buyers, the sources said, requesting anonymity as these discussions are confidential.

Shares in Ranger, which operates in the Eagle Ford shale basin, jumped over 5% on Friday after Reuters reported the company’s sale efforts. This gave the company a market value of around $1.9 billion.

The company also holds long-term debt worth $603 million as of Sept. 30, according to its latest earnings statement.

Ranger Oil did not immediately respond to a request for comment.

Elevated oil and gas prices have encouraged many private equity-backed or public energy companies to consider selling themselves, as their valuations have swelled in recent months. Ranger had gained around 58% this year, prior to news of its sale efforts.

GLJ
All Business Marketing - Teledyne FLIR

The Eagle Ford has witnessed a flurry of deal activity in recent months. Its proximity to other major energy hubs, including the U.S. Gulf coast, makes it an attractive location, while the basin is home to a number of smaller producers, which makes it easier for them to be absorbed by strategic players.

GLJ
All Business Marketing - Teledyne FLIR

Marathon Oil Corp (MRO.N) struck a deal earlier this month to buy natural gas-focused assets from private equity-backed Ensign Natural Resources for $3 billion, while in September, Devon Energy Corp (DVN.N) closed its deal to buy Validus Energy for $1.8 billion.

Based on recent comparable transactions, Ranger Oil’s upstream assets are estimated to be worth between $2 billion and $2.2 billion, according to Dhriti Bafna, M&A analyst at Rystad Energy.

Last year, Penn Virginia Corp bought Lonestar Resources US Inc in an all-stock deal valued at $370 million, and later rebranded the combined company as Ranger Oil.



Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE