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Civitas Resources (NYSE:CIVI) is near an agreement to acquire oil and gas operations in the Permian basin from private equity firm NGP Energy Capital Management LLC for about $5 billion, including debt.
Civitas (CIVI) is in advanced talks with NGP to buy Hibernia Resources as well as much of Tap Rock Resources, according to a Reuters report on Monday, which cited people familiar with the matter. An agreement may be announced as soon as Tuesday.
Civitas (CIVI) plans to fund the acquisition with a mixture of cash and newly-issued Civitas shares, although the precise ratio wasn’t known, according to the Reuters report.
The acquisition is set to transform Civitas, which has market cap of $5.6 billion, as it will expand its operations beyond Colorado’s Denver-Julesburg basin into the Permian basin in Texas and New Mexico.
The Civitas (CIVI) potential deal comes after after the WSJ reported in April that Exxon Mobil (XOM) held preliminary talks over a potential acquisition of Pioneer Natural (PXD).
