Warburg Pincus and Kayne Anderson are exploring a sale of WildFire Energy that could value the company at over $4 billion including debt.
WildFire Energy produces about 50,000 net barrels of oil equivalent daily from Eagle Ford shale in South Texas, among the largest operators.
Jefferies appointed to run the auction, with formal marketing to start in coming weeks, though market volatility could affect valuation.
U.S. benchmark oil prices rose above $100 per barrel this week amid Middle East conflict, boosting energy asset values.