Yates Petroleum Corp., one of the largest closely held U.S. oil producers, is seeking a buyer in a transaction that may generate billions of dollars, said three people with knowledge of the matter.
The company, controlled by members of New Mexico’s Yates family, has solicited bids in recent days from some of the world’s biggest oil companies, said the people, who spoke on condition of anonymity because the matter is private. The company is working with JPMorgan Chase & Co. (JPM), the people said.
Yates’s finances aren’t public, making it difficult for outsiders to estimate how much the company might be worth. Oil & Gas Financial Journal estimated in 2009 that Artesia, New Mexico-based Yates was the fourth-largest private oil and natural-gas company in the U.S., producing the equivalent of 8.77 million barrels of oil....MORE