CrownRock holds about 86,000 net acres in the northern part of the Midland basin. Credit: Anita starzycka from Pixabay.

CrownRock, a US-based oil and gas producing joint venture of CrownQuest Operating and Lime Rock Partners, is considering potential sale of the business, reported Reuters citing people familiar with the matter.

A potential sale could value the private equity-backed company oil and gas producer at more than $10bn including debt.

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CrownRock has started talks with undisclosed investment banks for hiring advisers to run a potential sale process, which is expected to start by early 2024.

Currently, CrownRock holds about 86,000 net acres in the northern part of the Midland basin, which is part of the Permian basin in Texas, US.

The potential sale may become the largest deal in the US oil and gas producing market since 2020 when ConocoPhillips bought Concho Resources in an all-stock deal that took the latter’s value to $13.3bn, including debt.

The sale decision by CrownRock comes due to rebound in oil prices this year. This is due to tighter supply forecast and investor optimism about the energy demand robustness in major nations.

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The US oil industry also recently witnessed Chesapeake Energy’s $700m deal to divest its remaining oil and gas assets in the Eagle Ford area in South Texas, to SilverBow Resources.

According to the sources, oil majors such as Exxon Mobil and Chevron are expected to be contacted to gauge their interest in the CrownRock’s sale process.

The sources said there is no certainty that a deal will be signed.

In April 2023, The Wall Street Journal reported that Exxon Mobil initiated talks to buy US shale oil giant Pioneer Natural Resources.

However, the talks between Exxon and Pioneer for a potential deal have been informal, according to sources.