CPP Investments, a Canadian pension fund, is contemplating strategic alternatives for Encino Acquisition Partners, the U.S. oil and gas producer, according to a Tuesday report by Reuters. These options could include a sale or an initial public offering (IPO). The valuation of Encino, including debt, could reach up to $7 billion.

Encino Acquisition Partners, based in Houston, Texas, is primarily owned by CPP Investments. The company is in the preliminary phase of analyzing options. In this regard, it is in the process of choosing investment banks to guide the review process.

Reuters also stated that a deal is anticipated to occur later in the year. However, they emphasized that the plans of Encino are dependent on market conditions.