Carnelian Energy Capital is reportedly considering selling Ridgemar Energy, a US oil and gas producer, which could be valued at more than $1bn, including debt, reported Reuters, citing sources.
Ridgemar Energy, based in Houston, Texas, operates in the Eagle Ford Basin of South Texas. The sale process is being managed by RBC Capital Markets, according to sources familiar with the matter.
According to the report, potential buyers for Ridgemar Energy include both publicly listed and privately owned energy producers.
However, sources have indicated that a deal is not guaranteed and Carnelian, Ridgemar and RBC have not commented on the situation.
Ridgemar Energy acquired the Eagle Ford assets of Callon Petroleum in 2023 for $655m in cash and $45m in potential contingent payments.
The company has since expanded its operations, adding approximately 17,000 net acres, bringing its total holdings to more than 70,000 net acres.
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By GlobalDataRidgemar Energy expects its production to average around 27,000 barrels of oil equivalent per day (boepd) by 2025, with core earnings exceeding $450m. This projection underscores the company’s growth trajectory and potential appeal to prospective buyers.
The potential sale of Ridgemar Energy follows a trend of private equity firms selling energy assets as higher commodity prices have facilitated profitable exits, the report stated.
Earlier this year, EnCap Investments sold XCL Resources and Grayson Mill Energy to SM Energy and Devon Energy, respectively.
In July, Point Energy Partners, backed by Vortus Investments, sold its assets to Vital Energy and Northern Oil and Gas.
These transactions highlight the active role of private equity firms in the energy sector.
In a related development, US oil company APA recently signed an agreement for the sale of non-core producing properties in the Permian Basin for $950m.
An undisclosed buyer is set to purchase assets in the Central Basin Platform, Texas and New Mexico Shelf, and Northwest Shelf, with current net production estimated at 21,000boepd, of which around 57% is oil.
