Texas producer Ranger Oil explores sale -sources

Ranger Oil

18/11/2022 21:06

(Adds share move, analyst comment, further context)
    By Shariq Khan
       Nov 18 (Reuters) - Ranger Oil Corp  ROCC.O  is exploring
a potential sale as the south Texas oil and gas producer looks
to capitalize on high energy prices to pursue strategic options,
people familiar with the matter said on Friday.
    Ranger is working with an advisor and has actively started
marketing itself to potential buyers, the sources said,
requesting anonymity as these discussions are confidential.
    Shares in Ranger, which operates in the Eagle Ford shale
basin, jumped over 5% on Friday after Reuters reported the
company's sale efforts. This gave the company a market value of
around $1.9 billion.
        The company also holds long-term debt worth $603 million
as of Sept. 30, according to its latest earnings statement.
  
        Ranger Oil did not immediately respond to a request for
comment.
  
    Elevated oil and gas prices have encouraged many private
equity-backed or public energy companies to consider selling
themselves, as their valuations have swelled in recent months.
Ranger had gained around 58% this year, prior to news of its
sale efforts. 
    The Eagle Ford has witnessed a flurry of deal activity in
recent months. Its proximity to other major energy hubs,
including the U.S. Gulf coast, makes it an attractive location,
while the basin is home to a number of smaller producers, which
makes it easier for them to be absorbed by strategic players.
    Marathon Oil Corp  MRO.N  struck a deal earlier this month
to buy natural gas-focused assets from private equity-backed
Ensign Natural Resources for $3 billion, while in September,
Devon Energy Corp  DVN.N  closed its deal to buy Validus Energy
for $1.8 billion.
        Based on recent comparable transactions, Ranger Oil's
upstream assets are estimated to be worth between $2 billion and
$2.2 billion, according to Dhriti Bafna, M&A analyst at Rystad
Energy.
  
    Last year, Penn Virginia Corp bought Lonestar Resources US
Inc in an all-stock deal valued at $370 million, and later
rebranded the combined company as Ranger Oil. 
 (Reporting by Shariq Khan in Bengaluru; additional reporting by
Arunima Kumar and David French
Editing by Nick Zieminski)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))