A bidding war for prime acreage in the Permian Basin is shaping up as Noble Energy (NBL), Marathon Oil (MRO), and Occidental Petroleum (OXY) are reportedly considering offers for Silver Hill Energy Partners.
Silver Hill could be worth over $2 billion, according to a Bloomberg report, and Jefferies is reportedly working with Sliver Hill to find a buyer for the privately held company.
Last year Noble bought Rosetta Resources for $3.9 billion to gain access to the Permian's Delaware basin.
Noble Energy shares fell 0.35% on the stock market today, consolidating in a first stage flat base. Marathon shares retreated 0.1%. Occidental shares were off 1.7%.
U.S. crude tumbled 2% to $43.03 per barrel, losing 6.2% for the week. Brent fell 1.8% to $45.77, part of a 4.7% weekly slide.
The Permian in West Texas and southeastern New Mexico is the epicenter of low-cost production of U.S. shale oil and companies have been keeping an eye on deals to gain acreage in the prolific basin.