Global commodities trader Vitol is reportedly exploring the sale of its U.S. shale oil and gas producer, VTX Energy Partners, in a deal that could be valued at as much as $3 billion, including debt. Sources familiar with the matter indicate that private equity firms Carnelian Energy Capital and EnCap Investments are among the parties in discussions to acquire VTX. The deliberations are currently in their early stages, and there is no guarantee that a deal will be finalized, with Vitol retaining the option to keep the business.
VTX Energy Partners, Vitol's second U.S. shale venture, was established by Vitol in 2022 with a $1 billion pledge to fund its management team. The company currently produces around 46,000 barrels of oil equivalent per day from approximately 46,000 net acres across two counties in the Permian Basin's southern Delaware region of Texas. In addition to its oil and gas assets, the sale effort also includes a water treatment business owned by VTX.
Vitol is working with investment bankers at Jefferies to solicit interest from potential buyers for VTX's assets. This move by Vitol is strategically timed to capitalize on VTX being one of the few remaining privately-owned operators of scale in the Permian basin, following a period of significant consolidation in the U.S. oilfield. Vitol has a history of successful divestments in the U.S. shale sector, including the sale of Vencer Energy to Civitas Resources for $2.1 billion in 2023. Additionally, VTX itself sold its surface acres to LandBridge for $245 million last year.
