XM does not provide services to residents of the United States of America.

Double Eagle explores $6.5 billion sale of shale oil producer, sources say

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>EXCLUSIVE-Double Eagle explores $6.5 billion sale of shale oil producer, sources say</title></head><body>

By David French

May 29 (Reuters) -Prolific oil and gas developer Double Eagle is exploring a sale of its latest Permian Basin-based producer in a deal that could be worth more than $6.5 billion, including debt, according to people familiar with the matter.

The Double Eagle team is expected to launch a sale process for the producer in the second half of this year, the sources said, requesting anonymity as the matter is confidential.

Publicly listed oil and gas producers, including those already operating in the Midland portion of the Permian where Double Eagle Energy Holdings IV is located, are expected to be potential acquirers, the sources added, cautioning a deal is not guaranteed.

If the deal talks are successful, Double Eagle IV's sale would mark one of the largest transactions involving a privately-held U.S. energy producer during the past year.

Recent notable deals involving privately-owned producers include Diamondback Energy's FANG.O $26 billion tie-up with Endeavor Energy and Occidental Petroleum's OXY.N $12 billion cash-and-stock deal for CrownRock.

A deal would generate another huge payday for the team led by oil entrepreneurs Cody Campbell and John Sellers, who sold their third iteration of Double Eagle to Pioneer Natural Resources for $6.4 billion in 2021.

Double Eagle IV, which counts EnCap Investments as its biggest investor, has raised $2.3 billion in total funding since it was launched from investors including Apollo Global Management APO.N, Elda River Capital, and members of its management team.

Double Eagle, EnCap and Elda River declined comment. Apollo did not immediately respond to a request for comment.

The fourth Double Eagle covers around 55,000 net acres in Texas and is expected to generate more than 90,000 barrels of oil equivalent of net production by the end of this year, the sources said.

Merger and acquisition activity in the U.S. shale patch has hit record levels over the past year due to a flurry of megadeals, as exploration and production companies are seeking to boost scale and add premium drilling locations as part of a once-in-a-generation consolidation wave.

Notable deals include Exxon Mobil's XOM.N $60 billion takeover of Pioneer; Chevron's CVX.N $53 billion pending acquisition of Hess HES.N; and ConocoPhillips' COP.N $22.5 billion deal for Marathon Oil MRO.N that was announced earlier on Wednesday.

Reporting by David French in New York; Editing by Anirban Sen and David Gregorio


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.