Private equity firm Warburg Pincus has placed its portfolio company RimRock Oil & Gas up for sale, three people familiar with the matter said, aiming to take advantage of the upswing in commodity prices to offload the Bakken gas producer.
It is Warburg's second attempt to sell the gas producer in just over a year, the sources noted. A 2021 auction process failed to secure a buyer at the valuation which Warburg sought.
While current commodity price volatility makes it more challenging to appraise energy assets, RimRock is now expected to achieve a valuation in the high hundreds of millions of dollars, up from the target price last year of upwards of $500 million, the sources added.
Warburg has retained an investment bank for the sale of RimRock, which owns assets spread over 29,500 net acres in the Bakken shale play of North Dakota.
On a net acre valuation seeking about $17,000 / acre.
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