NEW YORK, Nov 13 (Reuters) - The private equity owner of

Ridgemar Energy is exploring a sale of the U.S. oil and gas

producer that could value the company at more than $1 billion,

including debt, people familiar with the matter told Reuters on

Wednesday.

Ridgemar, which is backed by Carnelian Energy Capital, is

working with investment bankers at RBC Capital Markets on a sale

process for its operations in the Eagle Ford Basin of South

Texas, the sources said, requesting anonymity as the discussions

are confidential.

Potential buyers include publicly listed and privately owned

energy producers, the sources added, cautioning that a deal is

not guaranteed.

Carnelian, Ridgemar and RBC did not respond to requests for

comment.

Private equity firms have been active sellers of energy

assets in recent years, as higher commodity prices have helped

them exit oil and gas investments profitably.

Earlier this year, energy-focused private equity firm EnCap

Investments sold XCL Resources and Grayson Mill Energy to SM

Energy ( SM ) and Devon Energy ( DVN ) respectively. In July,

Point Energy Partners, which is backed by Vortus Investments,

sold its assets to Vital Energy ( VTLE ) and Northern Oil and

Gas ( NOG ).

Houston, Texas-based Ridgemar is one of the top remaining

private oil producers in the Eagle Ford. In 2023, Ridgemar

acquired the Eagle Ford assets of Callon Petroleum for $655

million in cash and $45 million in potential contingent

payments.

The company has since expanded its operations through

smaller deals, adding about 17,000 net acres to boost its total

holdings to more than 70,000 net acres in the western portion of

the Eagle Ford, the sources said.

Ridgemar expects in 2025 production to average around 27,000

barrels of oil equivalent per day, with core earnings of more

than $450 million, the sources added.