Citadel pursues more US shale deals after losing $4 billion auction
Citadel is pursuing U.S. oil-production assets as the hedge fund and commodities trader expands its ownership of physical energy resources. The firm was among bidders for WildFire Energy, a South Texas Eagle Ford producer, but Magnolia Oil & Gas won the auction for about $4.06 billion. Citadel has also approached several private-equity firms about acquiring oil-weighted exploration and production companies, according to people familiar with the discussions. Owning domestic production would complement Citadel’s oil, gas and power trading operations by providing a hedge against losses during supply disruptions and geopolitical shocks. U.S. shale assets have become more attractive as Middle East tensions raise concerns about overseas shipping chokepoints, while Citadel has already built a natural-gas production business.
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