Diversified Energy is in advanced talks to buy private equity-owned Maverick Natural Resources, the Wall Street Journal reported on Sunday.
A deal would value Maverick at about $1.3 billion including debt, the report said, adding that it could be announced as soon as early Monday.
Energy-focused investment firm EIG Global Energy Partners, which owns Maverick, is expected to remain a big shareholder of the combined company, the report said, adding that Diversified Energy CEO Rusty Hutson Jr. will remain at the helm.
The combined company would be valued at around $3.8 billion, the report said, adding that Diversified Energy is expected to take on about $700 million of Maverick’s outstanding debt.
Diversified Energy and Maverick did not immediately respond to requests by Reuters for comment.
Reuters reported in August that EIG was exploring a potential sale of Maverick that could value the U.S. oil and gas producer at nearly $3 billion, including debt.
(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Richard Chang and Diane Craft)