NGP Energy Capital Management Explores Sale of Camino Natural Resources for $2 Billion
Private equity firm NGP Energy Capital Management is exploring the potential sale of natural gas producer Camino Natural Resources, targeting a valuation of approximately $2 billion, including debt. The sale would involve Camino's substantial acreage in the Anadarko basin of Oklahoma.
Investment bankers RBC Capital Markets are assisting NGP in the auction process, which commenced this month. Sources familiar with the matter emphasize that a sale is not certain, and NGP may choose to retain ownership of Camino. The sources request anonymity due to the confidentiality of the negotiations.
NGP, Camino, and RBC have not yet responded to requests for comment. Despite a slowdown in the pace of acquisitions, the energy industry consolidation trend is expected to persist this year. Potential buyers are anticipated to expand their focus beyond the Permian basin to other energy plays, including the Anadarko basin.
The Anadarko basin is experiencing renewed interest as a mature play with significant oil and gas potential. Its reputation has improved in recent years due to the adoption of cost-effective drilling techniques by experienced operators. This trend has led to increased deal activity in the region.
Camino's estimated core earnings for 2025 are approximately $700 million, with a daily output of 81,000 barrels of oil equivalent, including a substantial portion of natural gas. This emphasis on gas production is likely to attract bidders in anticipation of increased demand for natural gas from power generation and data center operations.