Leading oil and gas giants Exxon Mobil Corporation and Chevron Corporation are reportedly among the companies considering first-round bids to acquire oil producer Endeavor Energy Resources LP. As per trusted sources, Endeavor is currently valued at around USD 15 billion including debt. Reportedly, Royal Dutch Shell Plc and ConocoPhillips have also been contacted and might participate in the bid. According to sources familiar with the development, a USD 15 billion deal would rank among the top 10 buyouts ever for a private energy firm. The value highlights the size of Endeavor that has drilling rights across 329,000 acres, of which merely 2 percent has been developed. An analyst at RBC Capital Markets, Biraj Borkhataria was reportedly quoted stating that owing to the positioning of Endeavor Energy in the core of the basin and overall acreage continuity, the asset base of the company is likely to be attractive to the buyers. However, the transaction would be limited to large independent firms given the size and scale of the deal, Borkhataria further added. For the record, Exxon Mobil has already inked a seven-year joint venture deal with Endeavor Energy in 2014 to boost its work in the Permian Basin in New Mexico and Texas. As per analysts, the oil major is the most logical buyer of Endeavor as it is keen to grow its position in the basin and has the financial capacity to back its future growth plans. Owned by the family of founder Autry C Stephens, Endeavor Energy Resources LP is based in Midland, Texas. It is being said that the family has been preparing for an initial public offering in 2019 which would assist it to retain control over the company. However, it agreed to explore a sale after its advisors received proposals from prospective bidders. Reportedly, representatives of Shell, ConocoPhillips, ExxonMobil, Chevron, and Endeavor declined to comment.
ExxonMobil, Chevron consider mulling bids for Endeavor Energy
November 15, 2018
Energy & Power