CrownRock owns about 86,000 net acres in the northern part of the Midland basin in Texas, which is part of the Permian, the largest U.S. oil producing region. The company is led by Texas billionaire businessman Timothy Dunn and backed by private equity firm Lime Rock Partners.
Story By Jerry Bohnen| OK Energy Today |Devon Energy and Continental Resources might have more competition in their reported consideration of bidding for CrownRock LP, a Texas-based energy producer in the Permian Basin.
ConocoPhillips is reported to be considering an expansion of its holdings in the Permian Basin and adding to its operations in Oklahoma and across the U.S.
The company might make an offer for CrownRock LP, an energy producer in the Permian. Reports issued last week indicated Devon Energy was among a handful of other firms expressing an interest in a possible acquisition of the privately held company. It was followed by a report that Continental Resources, led by Harold Hamm was also interested.
The same reports indicated Devon had been in summer talks with Marathon but the talks ended after the two firms could not reach an agreement on terms.
Read More: Devon Energy Considering M&A Options
Others interested in CrownRock include Exxon Mobil Corp, Chevron Corp, Marathon Oil, and Diamondback Energy, all expressing an interest in the company valued between $10 billion and $15 billion.
No deal with any of these companies is certain and other bidders could emerge, the sources added, asking not to be identified because the matter is confidential.
Reuters reported Conoco, Devon, and Marathon Oil declined to comment while CrownRock, Continental and Diamondback did not respond to requests for comment.
Conoco was the largest producer in the Permian behind Pioneer and EOG Resources in the second quarter, with Diamondback and Devon finishing sixth and seventh, respectively.
Why CrownRock? It owns about 86,000 net acres in the northern part of the Midland Basin which is part of the Permian. Texas billionaire businessman Timothy Dunn leads the company that has backing from private equity firm Lime Rock Partners.
Reuters reported that CrownRock’s investment bankers have asked interested parties to submit initial offers next week, two of the sources added.