Legacy Reserves seeks buyers for shale oil and gas assets – sources

Jan. 7 (Reuters) – Private shale producer Legacy Reserves is seeking a buyer for its oil and gas assets in the Permian and Haynesville basins, two people familiar with the matter told Reuters on Friday.

Legacy, which is among the largest producers of natural gas in the United States, has hired an investment bank to handle the process of selling the assets and values ​​them at around $ 800 million at current commodity prices, said the sources.

The company did not respond to phone calls seeking comment and the sources requested anonymity because the sale talks are confidential.

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Crude oil and natural gas prices hit multi-year records last year as the easing of pandemic restrictions boosted demand for fuel. US crude oil was trading around $ 79 a barrel on Friday, up 5% for the week.

High prices have spurred negotiations in the sector, particularly in the Permian Basin, the region of Texas and New Mexico considered to be the heart of America’s shale industry, where production is expected to exceed a record 5 million. barrels a day this month.

Midland, Texas-based Legacy, which went private after coming out of bankruptcy in 2019, estimates production from its Permian assets would total around 11,000 barrels of oil equivalent per day (bepd) in January, said one of the sources.

Buyers also demanded assets in Louisiana’s gas-rich Haynesville area and eastern Texas, betting on the basin’s proximity to the growing US Gulf Coast export hub.

It is estimated that Legacy’s assets in Haynesville would produce about 108 million cubic feet of natural gas equivalent per day in January, the sources said.

Last year, the company had a total production of 38,200 bepd, according to its website.

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Reporting by Shariq Khan; Editing by Devika Syamnath

Our Standards: Thomson Reuters Trust Principles.

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