People familiar Friday with the situation said that Caerus Oil and Gas (a private equity-owned natural resources producer in the United States) is looking into a sale. The sale could be worth more than $2.5 billion, including the debt.
According to sources, the company received an offer for acquisition at the end last year. Within the next few days, the company will launch a sale process. They stated that there is no guarantee of a sale and requested anonymity in order to share sensitive information.
Caerus is owned by Oaktree Capital Management, Anschutz Investment Company and Anschutz Investment Company. Caerus is also owned by Old Ironsides Energy. This Denver-based company owns exploration and production assets, as well as pipelines. Its operations are located in Colorado’s Piceance Basin and Utah’s Uinta Basin.
Anschutz and Old Ironsides declined comment. Oaktree and Caerus didn’t respond to comments requests.
U.S. natural gas futures were traded at $5.45 for a million British thermounits on Friday. This is a more than 45% increase since the invasion in Ukraine by Russia. The multi-year record highs of crude oil prices are also a sign of a rising trend.
Private equity firms have been encouraged to sell long-term energy investments due to rising commodity prices.
Oaktree, Anschutz and other founding sponsors founded Caerus in 2009. Old Ironsides, one of the company’s backers, helped to purchase assets from Encana Corp. in Colorado for $735 millions.
Caerus also acquired the Uinta assets in 2020 from Occidental Petroleum Corporation. Caerus says it produces natural gas in 680,000 net acres.