LLOG explores sale at $3 billion valuation, sources say

LLOG Exploration Co. is exploring a potential sale, and the possible deal would represent one of the most significant potential asset transactions in the US offshore upstream sector in 2025.

The development was first reported by Reuters on Oct. 31, citing sources familiar with the matter. The possible deal would value one of the largest privately held oil and gas producers in the US Gulf at more than $3 billion including debt.

The Covington, Louisiana-based company is reportedly working with investment bankers at Guggenheim Securities on the effort, with a limited number of parties contacted in recent weeks to gauge buyer interest, said the sources. 

According to these sources, the discussions are still preliminary and there is no certainty a deal will materialize. However, should a sale be completed, it could reshape the ownership landscape in the US Gulf of Mexico, particularly for strategic investors looking to expand deepwater portfolios at a time when offshore assets are gaining renewed attention for their long-term production stability.

While overall deal activity in US upstream oil and gas has been subdued this year after reaching historic highs in the previous two years, US Gulf operations have continued to attract attention as energy firms value the region’s long-term production potential.

Apart from new investments in the basin, production from sites developed in recent years is also coming online. LLOG reported last month first oil from its Salamanca floating production unit, which is supporting drilling in the Leon-Castille fields. 

The company was particularly active in 2023 and 2024, having acquired rights to 41 deepwater blocks in a federal lease sale. Its operated and non-operated assets span areas such as the Mississippi Canyon, Green Canyon, and Walker Ridge.

Given LLOG’s scale, the sources said that an energy major would be a logical buyer, but it would also be a desirable acquisition for an international oil and gas operator with offshore experience seeking entry into the US Gulf.

Gerald Boelte, who founded LLOG in 1977, passed away last year, and his family remains the controlling owner. Any deal would include provisions to cement his legacy, such as commitments by any buyer to retain the LLOG name and keep its Covington headquarters and company staff, the sources added.

Should the deal proceed, it would represent one of the most significant US Gulf upstream sales involving a non-publicly traded operator since the mid-2010s, analysts have said. It could also set a valuation benchmark for similar deepwater-focused independents.