Gulf of Mexico oil driller on sale


QuarterNorth Energy is exploring a potential sale that could value the oil and gas producer in the deepwater U.S. Gulf of Mexico at more than $2 billion, including debt, according to people familiar with the matter.

The privately held company has been working with an investment bank on its strategic options in recent weeks and is soliciting bids from potential buyers, the sources said.

The company is expected to generate this year around $850 million of earnings before interest, tax, depreciation, and amortization (EBITDA), added the sources, who requested anonymity because the matter is confidential.

QuarterNorth did not respond to a request for comment.

The Houston-headquartered company is the successor of Fieldwood Energy, which filed for bankruptcy in 2020. Some of Fieldwood’s creditors formed QuarterNorth last year when they acquired most of Fieldwood’s assets for $1 billion.

The attempt to offload QuarterNorth is the latest in a string of sale efforts in the U.S. Gulf of Mexico, as elevated energy prices tempt asset owners to try to cash out.

Shell Plc and ConocoPhillips are seeking to divest assets in the basin, while Talos Energy Inc (TALO.N) is in talks to acquire privately owned EnVen Energy, which also operates in the region, Reuters reported in July.

Source: Reuters

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