US shale oil producer HighPeak Energy exploring sale, sources say

Since the Iran war began in February, the conflict has throttled the movement of crude through the Strait of Hormuz, roiling global oil markets. The latest tensions spiked prices this week above $100 per barrel again.

Crude assets in stable jurisdictions such as the United States have become more desirable for buyers as a result, energy dealmakers say.

HighPeak has more than 140,000 acres (57,000 hectares) in the Midland, part of the shale formation considered the heart of the U.S. shale industry. It produced around 45,500 barrels of oil equivalent per day in the first half of this year, according to an August company presentation.

HighPeak previously explored a sale in 2023, when it announced plans to pursue strategic alternatives. The company has been publicly traded since 2020, following a merger with blank-check firm Pure Acquisition Corporation.

HighPeak Energy is exploring a sale after receiving acquisition interest, as the U.S. oil and gas exploration and production company focused on the Permian Basin weighs its options, three people familiar with the matter said.

The Fort Worth, Texas-headquartered producer is working with investment bankers at Evercore and Texas Capital Securities to engage potential buyers, with talks held in recent weeks, the sources said.

The move comes after HighPeak, which operates in the Midland portion of the Permian Basin, received an acquisition offer from an international party, the sources added, declining to identify the bidder.

HighPeak has a market value of around $1 billion, and carried $1.1 billion of long-term debt as of June 30, according to data provider LSEG.

The sources cautioned there was no certainty the sale effort would lead to a transaction, and spoke on condition of anonymity to discuss confidential matters.