Blackstone considers sale of Beacon Offshore Energy for $5bn

Core Viewpoint - Blackstone is contemplating the sale of Beacon Offshore Energy, with a potential valuation exceeding $5 billion, and discussions with investment banks may commence soon [1][2] Group 1: Company Overview - Beacon Offshore Energy operates in the Gulf of Mexico and holds some of the most productive wells in the US, utilizing advanced technology to access challenging crude reserves [3][4] - The company was established by Blackstone in 2016 to develop an offshore drilling entity in the deepwater Gulf and currently maintains interests in 68 deep-water leases covering nearly 400,000 gross acres [4] Group 2: Recent Developments - Beacon Offshore Energy has recently initiated oil and natural gas production at the Zephyrus field in Mississippi Canyon Block 759, located approximately 130 miles (209 km) southeast of New Orleans, with water depths ranging from 3,100 ft (945 m) to 3,600 ft [5] - In July 2025, the company began production from the Shenandoah field off the coast of Louisiana [5] Group 3: Market Context - The potential sale of Beacon Offshore Energy comes amid a trend of consolidation in the US upstream sector, primarily focused on shale operators due to declining crude prices and fewer premier drilling locations on land, which has revitalized offshore drilling activities [2] - The recent acquisition of LLOG Exploration by Harbour Energy for $3.2 billion highlights ongoing interest in offshore drilling assets [3]