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Blackstone to sell PRI Operating for $2bn

Blackstone is looking to further its withdrawal from fossil fuel investments with a unit of the global alternative investment firm said to be exploring the sale of oil and gas producer PRI Operating for around $2 billion including debt.

Blackstone is looking to further its withdrawal from fossil fuel investments with a unit of the global alternative investment firm said to be exploring the sale of oil and gas producer PRI Operating for around $2 billion including debt.

The report cites unnamed sources as saying a sale of PRI Operating, which is also known as Patriot Resources and is owned by Blackstone’s credit investment arm, will be the next step-in the group’s ongoing strategy to ditch oil exploration  investments due to environmental concerns and many years of poor returns.

Blackstone Credit has reportedly engaged an investment bank to explore options for the business as commodity prices continue to trade elevated levels partly die to Russia’s invasion of neighbouring Ukraine eerie this year.

PRI Operating owns around 35,000 net acres in the southern Delaware basin, which forms part of the wider Permian basin which stretches across Texas and New Mexico, as well as pipeline infrastructure used to transport the water used to help extract shale oil and gas.

Last year Blackstone sold GEP Haynesville to Southwestern Energy for $1.85 billion and Primexx Energy Partners to Callon Petroleum for $788 million, while the company, in partnership with Apollo Global Management, is also reportedly looking to sell Canadian oil and gas producer Ridgeback Resources.

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