Oil and gas producer Validus Energy has struck a deal to acquire rival 89 Energy III, which was formed by private equity firm Kayne Anderson in May 2021 through the merger of three Mid-Continent oil and gas producers, for approximately $850m, including debt, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as highlighting that the deal significantly enhances Validus’s presence in the Anadarko shale basin, solidifying its position as one of the largest private players in the US Mid-Continent oil region.
The acquisition adds more than 25,000 barrels of oil equivalent per day (boepd) to Validus’s production portfolio, with 89 Energy III’s output being 70% natural gas, according to its website. This aligns with growing investor interest in the region’s natural gas assets, driven by expectations of increased demand from power generation and data centres.
The deal underscores private equity’s critical role in the ongoing consolidation of the US energy sector and comes on the heels of Validus’s $2bn purchase of Citizen Energy from private equity giant Warburg Pincus last year.
