EnCap Investments is looking to divest two oil and gas producers with assets in Permian basin, US, to raise nearly $3bn in total, reported Reuters citing people familiar with the matter.
With Ovintiv Inc. scooping up three EnCap-backed drillers in the core Midland Basin, public E&Ps have fewer places to look to add quality inventory runway, analysts say.
Ovintiv (CA:OVV) announced on April 3 that it would acquire 65,000 acres of undeveloped land in the Permian Basin. The transaction will have the company pay $4.3 billion, including the assumption of debt, or approximately 2.8x the next 12 months (NTM) adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). The cash-and-stock deal sees Ovintiv […]