Thu Sep 26 15:03:16 UTC 2024: ## Validus Energy Acquires Citizen Energy for Over $2 Billion in Latest Shale Consolidation
**[City, State] -** Private oil and gas producer Validus Energy has purchased rival Citizen Energy in a deal valued at over $2 billion, including debt. The acquisition marks another significant consolidation in the U.S. shale industry, driven by a post-COVID surge in oil prices and a desire to secure the best drilling sites.
Validus emerged victorious in an auction for Tulsa-based Citizen Energy, besting other bidders. Citizen, backed by private equity firm Warburg Pincus, had been exploring a sale in recent months after receiving an offer from Validus.
This is Validus’ second major acquisition in the Mid-Continent region this year, following their purchase of assets from Continental Resources for roughly $450 million. The region, which covers Oklahoma and parts of Kansas, Texas, and Arkansas, initially attracted investors in the mid-2010s but failed to meet production expectations. This led to numerous company failures and discounted sales, with Citizen’s own acquisition of Roan Resources in 2019 being a prime example.
The consolidation of the region’s privately-owned producers has created sizable companies, making them attractive acquisition targets for cash-rich energy firms.
Validus, whose previous venture in south Texas was sold to Devon Energy for $1.8 billion in 2022, is backed by institutional investors and boasts a leadership team that includes former investment banker Cameron Brown and Felix Energy founder Skye Callantine.
First Piper 