The deal follows Validus’ earlier purchase of assets from Continental Resources for approximately $450m. Credit: Corona Borealis Studio/Shutterstock

Validus Energy, a privately held oil and gas producer in the US, has agreed to acquire Citizen Energy for more than $2bn, including debt, Reuters reported, citing people familiar with the matter.

This move comes amid a significant consolidation wave within the US shale industry, driven by a post-Covid surge in oil prices that has increased cash flow and intensified competition for prime drilling locations.

Related Company Profiles

View all

The acquisition of Tulsa-based Citizen Energy is expected to position Validus as a prominent player in the Mid-Continent oil and gas basin.

The deal follows Validus’ earlier purchase of assets from Continental Resources for approximately $450m, further expanding its footprint in the region.

Citizen Energy, which is backed by private equity firm Warburg Pincus, began considering a sale following an initial offer from Validus.

See Also:

The company, which received a $300m equity commitment from Warburg in 2018, has grown through strategic acquisitions, becoming one of the largest private oil and gas producers in the Mid-Continent basin.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Mid-Continent basin, covering parts of Oklahoma, Kansas, Texas and Arkansas, attracted investors in the mid-2010s but failed to meet production expectations. This led to a downturn, with many companies selling at significantly reduced values. Citizen Energy’s acquisition strategy included purchasing Roan Resources for $1.52 per share in 2019, a stark contrast to Roan’s peak share price of $16 a year prior.

Validus, which sold a venture in south Texas to Devon Energy for $1.8bn in 2022, is supported by institutional investors and a management team comprising former investment banker Cameron Brown and Felix Energy founder Skye Callantine.

Warburg Pincus and Citizen Energy have declined to comment on the acquisition, while Validus did not respond to requests for comment by Reuters.

Continental Resources also did not provide a statement regarding the earlier asset sale to Validus, Reuters‘ report said.