EnCap Investments has reportedly merged two of its Permian basin-focused companies to create a new entity worth over $4bn.
The private equity firm intends to list the combined entity as early as next year, people familiar with the matter told Reuters.
Advance Energy Partners and Ameredev II have been merged by EnCap Investments to create a new oil producer. The two companies has operations in the Delaware portion of the Permian.
As of October last year, Advance Energy Partners owned nearly 18,000 acres in Tier One oily areas of the Delaware Basin. Its current production stands at approximately 20,000 barrels of oil equivalent per day (boepd).
With operations in northern Delaware basin, Ameredev II is an independent exploration and production company engaged in the acquisition and development of oil and gas properties.
The deal is expected to result in establishing one of the largest privately-owned oil producers in the Delaware Basin, the publication said.
Currently, the merged entity has eight rigs in operations.
In June this year, Reuters reported that EnCap was looking to sell Advance for nearly $2bn, including debt.
The company had invested $400m in Ameredev II in 2017, following the sale of Ameredev I to Callon Petroleum in the same year.
In September this year, Moda Midstream and its financial sponsor EnCap Flatrock Midstream have signed an agreement to sell the Moda Ingleside Energy Center (MIEC) and other Moda assets to Enbridge in a deal worth approximately $3bn.
Located in Ingleside, Texas, MIEC is said to be the largest crude export terminal in the US by volume. The facility has an aggregate storage capacity of over 15 million barrels and an export capacity of 1.6 million barrels per day.
