Warburg Pincus Weighs Sale of Explorer Hawkwood Energy

Private equity firm Warburg Pincus is working on a sale of an oil and gas portfolio company Hawkwood Energy, according to people familiar with the matter.

The firm is working with an adviser to find a buyer for the Denver-based oil and gas exploration and production company, said the people, who asked not to be identified because they weren’t authorized to speak publicly.

A deal is likely to value Hawkwood at less than $1 billion, the people said.

Warburg’s plans aren’t final and it could opt to keep the asset.

A representative for New York-based Warburg declined to comment. A spokesperson for Hawkwood didn’t respond to requests for comment.

The move comes after Warburg made the strategic decision to reduce its commitments to the oil and gas sector, Dow Jones reported last year.

Warburg told investors in July that its future flagship fund wouldn’t invest in fossil fuels, although some of its others funds may still invest in the sector, the report added.

The firm also suspended plans last year to raise a second energy fund.

Hawkwood was founded in 2012 with a $500 million line-of-equity commitment from investors including Warburg. The company has completed more than 30 transactions, accumulating more than 170,000 net acres in the Eagle Ford basin, according to its website.

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