Private equity firm Warburg Pincus has placed its portfolio company RimRock Oil & Gas up for sale, three people familiar with the matter said, aiming to take advantage of the upswing in commodity prices to offload the Bakken gas producer.
While current commodity price volatility makes it more challenging to appraise energy assets, RimRock is now expected to achieve a valuation in the high hundreds of millions of dollars, up from the target price last year of upwards of $500 million, the sources added.
That surge has encouraged private equity firms to eye the sale of long-standing oil and gas investments. Warburg first invested in RimRock in 2016, pledging up to $500 million to acquire oil and gas acreage.
Warburg sold natural gas pipeline operator Navitas Midstream for $3.25 billion in January, just a month after it sold Permian basin-focused oil and gas producer Chisholm Energy.
Read more: Reuters
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