Enduring Resources II LLC, the oil and natural gas company backed by EnCap Investments LP, is seeking a buyer and may fetch $2 billion in a sale, people familiar with the matter said.
Enduring, which operates in the Permian Basin formation in west Texas, is working with Jefferies Group LLC to find potential suitors, with initial bids due shortly, said two of the people, who asked not to be identified because the process is private.
Enduring, based in Denver, is at least the second investment that Houston-based buyout firm EnCap is seeking to monetize a year after closing its latest $5 billion fund. Eclipse Resources LP, an EnCap portfolio company that develops oil and gas properties in the Appalachian Basin, is working with Citigroup Inc. to go public this year, people familiar with the matter told Bloomberg News in March.
Richard Khaleel, a spokesman for Jefferies, declined to comment. Representatives for EnCap and Enduring didn’t respond to requests for comment.
Enduring is the second partnership between EnCap and energy industry veteran Barth Whitham, who started the first Enduring Resources in 2004 and sold its assets in 2010 to Talisman Energy Inc. and Statoil ASA.
EnCap has invested in about 200 exploration and pipeline companies since it was founded in 1988, according to a presentation last year. It typically invests $200 million to $300 million in startup companies it aims to sell in three to five years.