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Crescent Energy buys EP Energy’s Uinta oil and gas assets for $815 million -Breaking

by Mike Robinson

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© Reuters.

(Reuters] – Crescent Energy is an oil and natural gas producer. It announced on Wednesday that Crescent Energy would purchase approximately 145,000 net acres in Utah from Verdun Oil Co, a privately held company for $815 Million.

EnCap Investments LP (the buyout company that owns Verdun) had reached an agreement to purchase rival EP Energy assets in Uinta and Eagle Ford basins in August 2013 in a $1.5billion deal.

Reuters reports that the U.S. antitrust regulators threatened Tuesday to stop EnCap from taking over the EP Energy assets. They did so citing concerns regarding the dominant position of EnCap in Uinta’s shale plays.

EP Energy, in order to address the concerns raised by the regulators and avoid any legal challenges, put the oil-producing areas of Utah up for sale once again. According to the report.

Crescent announced Wednesday that the acquisition of assets would immediately increase its cash flow. After the transaction closes, Crescent plans to continue operating two oil rigs within the basin throughout the remainder of the year. This is anticipated in the first quarter of 2022.

Houston, Texas-based Crescent Energy was formed last year by a merger between buyout firm KKR’s Independence Energy and Contango Oil & Gas Co.

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