Centennial Resource Development Inc., a shale oil producer in the Permian Basin, agreed to acquire private equity-backed rival Colgate Energy in a cash-and-stock deal valued at about $2.5 billion.
Colgate, which started in 2015 with backing from Pearl Energy Investments and Natural Gas Partners, has been one of the most active private drillers in the basin, operating on roughly 105,000 net acres. It grew aggressively last year with its purchase of assets from Occidental Petroleum Corp. and Luxe Energy LLC.
Colgate was preparing to go public, but began considering a sale after receiving takeover interest, Bloomberg previously reported.
Read more: BNN Bloomberg
