Civitas Resources (NYSE:CIVI) is near an agreement to acquire oil and gas operations in the Permian basin from private equity firm NGP Energy Capital Management LLC for about $5 billion, including debt.
Civitas (CIVI) is in advanced talks with NGP to buy Hibernia Resources as well as much of Tap Rock Resources, according to a Reuters report on Monday, which cited people familiar with the matter. An agreement may be announced as soon as Tuesday.
Civitas (CIVI) plans to fund the acquisition with a mixture of cash and newly-issued Civitas shares, although the precise ratio wasn’t known, according to the Reuters report.
The acquisition is set to transform Civitas, which has market cap of $5.6 billion, as it will expand its operations beyond Colorado’s Denver-Julesburg basin into the Permian basin in Texas and New Mexico.
More on Civitas Resources and Permian M&A
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