Sources: US shale producer HighPeak Energy is exploring a sale

Three people with knowledge of the situation said that HighPeak Energy is exploring the possibility of selling after receiving interest from an acquisition company. The U.S. oil exploration and production firm focused on the Permian basin weighs its options.

Sources say that the Fort Worth, Texas-based producer has been in contact with Evercore and Texas Capital Securities, two investment banks, to find potential buyers. They have held talks with them recently.

Sources said that HighPeak operates in the Midland area of the Permian basin and received an acquisition offer from a foreign party. They declined to name the bidder.

According to LSEG, HighPeak had a market capitalization of $1?billion and $1.1 billion in long-term debt at the end of June.

Sources?advised that there was no guarantee the sale effort would result in a transaction and spoke under condition of anonymity for confidential matters.

HighPeak and Evercore have not responded to requests for comments. Texas Capital has declined to comment.

The conflict that began with the Iran War in February has slowed down the flow of crude oil through the Strait of Hormuz and enraged global oil markets. This week, the latest tensions pushed prices above $100 per barrel.

Energy dealmakers claim that stable jurisdictions like the United States are now more attractive to buyers.

HighPeak owns more than 140,000 acres (57,000 ha) of land in the Midland. This is part of the shale formation, which is considered to be the heart of U.S. shale industries. According to a company presentation in August, it produced 'around 45,500 barrels equivalent of oil per day during the first half this year.

HighPeak had previously considered a sale in 2023 when it announced its plans to explore strategic alternatives. Since 2020, the company has been listed on the stock exchange after a merger between Pure Acquisition Corporation and blank-check firm Pure Acquisition Corporation.

(source: Reuters)