$20 Billion Worth of Oil and Gas Assets Up for Grabs as Crude Prices Soar

US private equity firms are taking advantage of high oil prices to sell their stakes in oil and gas companies, with more than $20 billion worth of assets on the market. The surge in crude prices above $100 a barrel has created a rare exit opportunity for buyout shops, which have been struggling to sell or take public their holdings in recent years.

EnCap Investments, one of the busiest oil and gas-focused private equity firms in Houston, is seeking $2 billion for Ridge Runner, an operator in the Permian Basin of West Texas and New Mexico. Quantum Capital Group is also looking to sell Bison Oil and Gas, a Denver-Julesburg Basin operator, with a valuation target of over $3 billion.

The activity underscores one potential bright spot for US private equity, which has been struggling in recent years to sell or take public their holdings after paying top-of-the-market prices during the post-Covid M&A boom. The industry is sitting on 32,000 unsold companies worth $3.8 trillion while the average holding period for assets has stretched to around seven years.