Chemicals

Colgate Energy is selling to a larger competitor for $ 5 billion

US-based Colgate Energy Partners estimates sales after acquiring shares from an undisclosed firm BNN Bloombergwith reference to people familiar with the development.

It is estimated that the sale could bring up to $ 5 billion for the company Energy Explorer, which is preparing to go public.

The exploration and production company could either sell to a larger competitor or merge equals with nearby companies, the report added.

Colgate Energy and its proponents, NGP Energy Capital and Pearl Energy Investments, are working with undisclosed advisors to launch an initial public offering (IPO) and assess a potential sale.

Sources told the publication that Colgate Energy is expected to earn more than $ 1 billion in interest before taxes, taxes, depreciation and amortization (EBITDA) this year.

Colgate Energy, which has not made a final decision, may also consider self-employment.

The main interest of the company is the acquisition and development of traditional and unconventional properties of oil in the Permian Basin, in the United States.

Focused on developing more than 100,000 clean acres in the Delaware Basin, the company owns real estate in Reeves and Ward counties, Texas, and Eddie County, New Mexico.

Several U.S. oil and gas exploration companies have struck deals to benefit from rising commodity prices.

In November 2021, Colgate Energy agreed to buy about 22,000 acres of net space in New Mexico from an unspecified seller.

The assets have an estimated average net daily production capacity of approximately 750 barrels of oil equivalent per day.

Last year Colgate also acquired Occidental Petroleum’s 25,000 acres in the South Delaware Basin, Texas, for $ 508 million.

The area has about 360 operating wells that produce 10,000 barrels of oil equivalent per day.

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https://www.offshore-technology.com/news/colgate-energy-sale/ Colgate Energy is selling to a larger competitor for $ 5 billion

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