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Permian Driller Colgate Explores $5 Billion Sale

  • Company could opt for merger of equals with neighbor
  • Backers Pearl Energy, NGP exploring exit via IPO too

Colgate Energy, a private equity-backed energy explorer in the Permian Basin that’s been preparing to go public, is also considering a sale after getting takeover interest, according to people familiar with the matter. 

The company could fetch about $5 billion in a sale, said one of the people, who asked to not be identified because the matter isn’t public. It could sell to a larger rival or do a merger of equals with companies operating nearby, the people said. The company and its backers Pearl Energy Investments and NGP Energy Capital are working with advisers to evaluate a sale as well as an initial public offering, they said.