Double Eagle, an oil and gas developer, is considering the sale of its Permian Basin-based producer, reported Reuters, citing sources.
The potential deal for Double Eagle Energy Holdings IV could be valued at more than $6.5bn, including debt.
According to sources with knowledge of the matter, the sale process for the oil and gas producer is expected to commence in the second half of this year.
Publicly listed oil and gas producers, particularly those with operations in the Midland area of the Permian Basin where Double Eagle Energy Holdings IV operates, are seen as likely buyers.
However, sources have cautioned that the sale is not certain.
If successful, this transaction would represent one of the most significant sales of a privately-held US energy producer in the past year.
It would follow other notable deals in the sector, such as Diamondback Energy's $26bn merger with Endeavor Energy and Occidental Petroleum's $12bn acquisition of CrownRock.
The potential sale could result in a substantial financial gain for founders Cody Campbell and John Sellers.
They previously sold their third Double Eagle iteration to Pioneer Natural Resources for $6.4bn in 2021.
Double Eagle IV, with EnCap Investments as its principal investor, has garnered $2.3bn in funding since its inception in 2022, with contributions from Apollo Global Management, Elda River Capital, and the Double Eagle management team.
Representatives from Double Eagle, EnCap, and Elda River declined to comment on the news, the publication said, adding that Apollo did not immediately respond to requests for comment.
Double Eagle IV holds approximately 55,000 net acres in Texas and is on track to produce over 90,000 barrels of oil equivalent of net production by the end of this year.
The US oil and gas sector has experienced a surge in merger and acquisition activity, reaching record levels due to a series of large-scale deals.
Companies in the exploration and production space are consolidating to increase their scale and secure prime drilling locations.
Among the significant transactions are Exxon Mobil's $60bn acquisition of Pioneer and Chevron's $53bn pending purchase of Hess.
