Carnelian Energy Capital, the private equity owner of Ridgemar Energy, is exploring the sale of the US-based oil and gas producer, aiming for a valuation exceeding $1bn, including debt, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as indicating on Wednesday that Ridgemar has enlisted RBC Capital Markets to manage the sale process for its Eagle Ford Basin operations in South Texas. The discussions are currently confidential, and both publicly traded and privately held energy producers are considered potential buyers, though a sale is not guaranteed.
Neither Carnelian, Ridgemar, nor RBC responded to requests for comment.
In recent years, private equity firms have increasingly divested from energy assets, leveraging higher commodity prices to profitably exit oil and gas investments. Earlier in 2023, EnCap Investments sold XCL Resources to SM Energy and Grayson Mill Energy to Devon Energy. Likewise, Point Energy Partners, supported by Vortus Investments, sold assets to Vital Energy and Northern Oil and Gas.
Houston-based Ridgemar is one of the largest private oil producers in the Eagle Ford region. In 2023, it acquired Callon Petroleum’s Eagle Ford assets for $655m in cash and an additional $45m in potential contingent payments, and has since grown its holdings through smaller acquisitions, adding around 17,000 net acres to reach over 70,000 net acres in the western Eagle Ford.
