Some Shale Deals Stall After Russian Ban Whipsaws Oil Prices
- Sequitur Energy, Sundance Energy opt to hold onto assets
- Crude prices rebounded Thursday after earlier retreat
A natural gas well being drilled in the Eagle Ford shale formation in Karnes County, Texas.
Photographer: Eddie Seal/Bloomberg
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Some oil and gas dealmakers are hitting the pause button as prices whipsaw following the ban on Russian oil imports. Companies are concerned about overpaying for assets while focused on cutting debt and rewarding shareholders.
For example, the owners of Sequitur Energy Resources are holding onto 83,000 net acres in part of the Permian Basin the company began marketing about six months ago, according to people familiar with the matter. The closely held company sought a higher valuation than what the market gave, said the people, who asked to not be identified because the matter isn’t public.