Sanchez Energy Corp (SN.N) is in talks to partner with Blackstone Group LP (BX.N) on a deal to buy Anadarko Petroleum Corp‘s (APC.N) assets in South Texas, the Wall Street Journal reported.
The deal is expected to value Anadarko’s assets at between $3 billion and $3.5 billion, the Journal reported, citing people familiar with the matter.
Blackstone and its credit arm, GSO Capital Partners, would likely fund or participate in the purchase, according to the newspaper.
Sanchez had also been in talks with Apollo Global Management LLC (APO.N) and energy-focused private equity firm EIG Global Energy Partners to participate in the offer, the Journal reported.
Intrepid Partners, Citigroup Inc and J.P. Morgan Chase & Co are working with Sanchez on the deal, the report said.
Anadarko in July increased the high end of its asset monetization target range to $3.5 billion, expected by year-end.
Sanchez, Blackstone, Apollo Global and EIG were not immediately available for comment. Anadarko declined to comment