Caerus Oil and Gas, a US-based natural gas producer in the Rocky Mountain region, is reportedly exploring a sale that could value it at over $2.5bn, inclusive of the company’s debt.
In late 2021, the Denver-based firm received an acquisition offer and is now planning to begin a sale process in the next few weeks, reported Reuters, citing undisclosed sources having knowledge of the matter.
The sources advised that there is no certainty of a sale taking place.
Founded in 2009, Caerus Oil and Gas is owned by Anschutz Investment, Oaktree Capital Management, and Old Ironsides Energy.
Currently, Caerus Oil and Gas’ operations are concentrated on the Piceance and Uinta basins. The company is claimed to operate more than 7,400 producing wells in the two basins, while owning a significant undeveloped acreage position with more than 5,300 future drilling locations.
Its 1P reserves are said to be nearly 2.5 trillion cubic feet equivalent (Tcfe) of natural gas, while its daily production is nearly 600 million cubic feet.
Caerus Oil and Gas owns nearly 680,000 net acres of leasehold within the Piceance and Uinta basins, with an additional 36,000 net mineral fee acres as well as 10,000 net royalty interest acres.
The company also has 3,862km long gas and water gathering and distribution pipelines and 3.5 million barrels of water storage capacity along with six water treatment facilities and 12 water storage facilities.
In 2020, the company acquired the Uinta basin natural gas assets of Occidental Petroleum in Utah. Prior to that, in 2017, Caerus Oil and Gas acquired the Piceance natural gas assets of Encana Oil & Gas (USA) for a sum of nearly $735m.
