KEY POINTS
- NGP explores a $2 billion sale of Camino Natural Resources.
- Energy investors shift focus from the Permian to the Anadarko Basin.
- Natural gas demand is rising, making Camino an attractive target.
NGP Energy Capital Management is exploring a sale of Camino Natural Resources, one of the largest privately held producers in the Anadarko Basin of Oklahoma.
The estimated $2 billion purchase with debt would interest investors searching to increase their natural gas production operations.
According to sources familiar with the matter, NGP has engaged RBC Capital Markets to manage the auction, which formally began earlier this month. The recent information from insiders suggests NGP retains the possibility of keeping Camino under its ownership instead of finalizing the proposed deal.
If completed, the sale would be part of a record-breaking wave of mergers and acquisitions in the energy industry. While activity in the sector slowed in late 2024, industry analysts expect consolidation to continue, though at a more measured pace.
Anadarko Basin gains interest amid Permian shift
Historically, most energy acquisitions have focused on the Permian Basin, the top U.S. oilfield spanning Texas and New Mexico. However, as competition has driven acreage prices higher, potential buyers are shifting their focus to other basins, including the Anadarko.
According to Reuters, the Anadarko Basin, which has been producing oil and gas for over a century, lost its appeal in the late 2010s due to failed investments and volatile markets. Moreover, companies that operate in mature plays revived interest in the area through better drilling methods combined with reduced production expenses.
The industry transformation powers fresh transaction activities in the sector. The gas company, Diversified Energy, executed a $1.3 billion purchase of assets within Anadarko and Permian Basins from Maverick Natural Resources in this current week.
Growing demand for natural gas may drive bids
For 2025, Camino is expected to generate approximately $700 million in core earnings, with an output averaging around 81,000 barrels of oil equivalent per day, roughly half of which is natural gas.
The combination of natural gas production at Camino makes industry experts predict that it will attract companies seeking to grow their natural gas enterprise.
Analysts indicate that the possible sale of Camino may serve as a significant point in the ongoing process of energy industry mergers.
