Deals
No Fast Exit From Permian Oil for Private Equity, RS Energy Says
- Selling after 3 to 5 years will be ‘increasingly rare’: RS
- Listed companies show diminished appetite for acquisitions
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Private equity has been ramping up its investment in Permian Basin oil and natural gas production, but the old strategy of selling out after a few years is no more, according to RS Energy Group.
Simply tapping a team of oil executives to find a good spot in the Permian of West Texas and New Mexico is no longer enough to attract buyers, the Calgary-based researcher said. Investors want proof that companies can generate reliable cash flow.