Investment firms Warburg Pincus and Kayne Anderson are exploring a potential sale of WildFire Energy, with any deal expected to value the U.S. shale operator at more than $4 billion including debt, people familiar with the matter said. The move comes at a time when crude prices have surged, with U.S. benchmark oil back above $100 per barrel this week, due to the conflict in the Middle East. While the disruption to energy markets, and the wider global economy, is substantial, the value of energy production assets has also been boosted significantly by these higher commodity prices, making it an attractive time for owners of such companies to consider selling.
WildFire Energy is among the largest privately owned operators in South Texas’ Eagle Ford shale basin, producing around 50,000 net barrels of oil equivalent per day, according to its website.