Citadel Pursues US Shale Oil Assets Amid Global Energy Market Turmoil
Citadel, the hedge fund giant founded by Ken Griffin, is seeking to buy US shale oil production assets, according to five people familiar with the matter. The firm has held talks to acquire WildFire Energy, which was put up for sale earlier this year by buyout firms Warburg Pincus and Kayne Anderson.
Magnolia Oil & Gas ultimately won the auction, agreeing to buy WildFire in South Texas for $4.06 billion. However, Citadel's bid was part of a handful of engagements that the firm has had with private equity firms owning exploration and production companies about buying oil-weighted assets.
The move comes as crude prices spike and tensions in the Middle East disrupt global energy markets. US oil and natural gas assets have drawn heightened buyer interest because they can deliver oil without passing through chokepoints such as the Strait of Hormuz.