Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Permian Resources Secures a Major Deal in the Thriving Delaware Basin
05/25/2023![Permian-Resources-Secures-a-Major-Deal-in-the-Thriving-Delaware-Basin](https://images2.rextag.com/public/blog/150Blog_Permian Resources Secures a Major Deal in the Thriving Delaware Basin.png)
Permian Resources bolsters dominance in the Delaware Basin with strategic land acquisitions, expanding its portfolio by over 5,000 net leasehold acres and 3,000 royalty acres.
In a stunning display of growth and strategic maneuvering, Permian Resources Corp., based in Midland, Texas, has made waves in the first quarter by securing a series of deals worth over $200 million in the highly sought-after Delaware Basin. This move solidifies their position as a player in the region.
One of the highlights of Permian Resources' quarter was the acquisition of a substantial 4,000 net acres, comprising 3,300 net royalty acres with an average net production of 1,100 barrels of oil equivalent per day (boe/d). This bold move cements its foothold in the energy landscape, bolstering its portfolio with promising assets and strengthening its overall market position.
What we already know
Permian Resources recently announced a major transaction, adding to its already substantial acreage in Lea County. The company successfully executed a strategic acreage trade during the first quarter 2023. This trade involved:
- Approximately 3,400 net acres in Eddy County, New Mexico.
- About 3,200 net acres of lower working interest acreage.
- Among these transactions were grassroots acquisitions that resulted in an impressive addition of approximately 530 net acres to Permian Resources' portfolio. The company secured around 20 net royalty acres, further strengthening its position in the market.
- Permian Resources didn't limit its transactions solely to upstream activities and made divestments in its saltwater disposal wells and the corresponding produced water infrastructure located in Reeves County, Texas.
Co-CEO James Walter enthusiastically shared the impact of this trade during a recent analyst call, stating, "This trade significantly enhances our working interest in high-return locations and paves the way for the creation of several newly operated drilling units." He further revealed that development activity is expected to commence in about half of the inbound acres over the next 12 months. Such a transaction promises remarkable growth and value for shareholders, making it a highly accretive move.
Permian Resources demonstrated its commitment to expansion by executing over 45 transactions in the first quarter alone.
Path to A&D Success
Permian Resources, the result of a successful merger between Colgate Energy Partners II LLC and Centennial Resource Development Inc., has emerged as the pure-play E&P company in the Delaware Basin. With a strategic focus on efficiency and cost reduction, the company has achieved remarkable progress since its inception a year ago.
Permian Resources portfolio of mineral and royalty interests in the Permian’s Delaware Basin.
Co-CEO Will Hickey highlighted the achievements resulting from the combination and integration process, emphasizing significant operating cost reductions, improvements in drilling and completion costs, and overall operational efficiencies. This commitment to excellence is a testament to the talented team driving Permian Resources' success.
Looking ahead, Hickey expressed the company's determination to enhance capital efficiency further and reduce costs, enabling incremental free cash flow that can be returned to shareholders. Permian Resources recognizes the importance of maximizing value for its investors and remains dedicated to identifying new opportunities for growth.
Notably, the company's royalty-focused entity is currently generating over $50 million of annual free cash flow, solidifying Permian Resources' position as a formidable player in the industry.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Riley Permian Secures $330 Million Acquisition in Thriving New Mexico: A Strategic Move with Promising Returns
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/144Blog_Riley Permian $330 Million Acquisition.png)
In a big move for Riley Permian, the company has just closed a deal to acquire top-of-the-line oil and gas assets in the heart of New Mexico. The acquisition, which was made in February, saw Riley Permian snapping up these highly sought-after resources from none other than Pecos Oil & Gas LLC for $330 million.
Matador Acquires Additional Land in Delaware from Advance Energy for $1.6 Billion
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/148Blog_Matador Acquires Additional Land in Delaware from Advance Energy.png)
Matador Resources Co. is making a big move in the oil and gas industry by acquiring Advance Energy Partners Holdings LLC, a major player in the northern Delaware Basin. The acquisition, which comes with a hefty price tag of at least $1.6 billion in cash, includes valuable assets in Lea County, N.M., and Ward County, Texas, as well as key midstream infrastructure.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/297_Blog_Keystone XL Pipeline Controversy and Wildlife Disaster From Trump's Green Light to Biden's Red Light on the 15 Billion Project.jpg)
The pipeline industry in the USA faced and still faces a range of regulatory challenges, including permitting delays, environmental requirements, and public opposition to pipeline projects. In recent years, pipeline projects like the Keystone XL and Dakota Access pipelines had legal and regulatory obstacles that delayed or canceled their construction. Keystone XL Pipeline, proposed by TransCanada in 2008, aimed to transport crude oil from Canada (around Calgary and Edmonton) to refineries on the Gulf Coast (Port Arthur). The project faced opposition from environmental groups and indigenous communities, who argued that it would contribute to climate change and pose a risk to water resources. In 2015, President Obama rejected the project, citing concerns about its environmental impact. However, in 2017, President Trump revived the project, leading to further legal challenges. In June 2021, U.S. President Joe Biden officially canceled the project on his first day in office.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/282_Blog_Renewable Natural Gas How RNG Changes the Industry.jpg)
The renewable natural gas (RNG) industry in the United States is showing promising signs of growth. As of 2019, the U.S. consumed 261 billion cubic feet (BCF) of RNG, primarily utilized by independent power producers, electric utilities, and various commercial and industrial entities. However, this figure represents only a small fraction of its potential. Research indicates that the U.S. could theoretically produce up to 2,200 BCF of RNG through anaerobic digestion alone, which would equate to about 11% of daily national natural gas consumption.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/295_Blog_Renewable Efforts Lag as Global Oil and Gas Demand Continues to Rise.jpg)
Recently, the progress toward an energy transition is hitting a snag. Sales of electric vehicles are decelerating, and the growth in wind and solar power needs to be keeping pace with expectations. To make matters more challenging, electricity prices are climbing when they were expected to fall. Amidst these setbacks, the oil and gas sectors are proving resilient. According to BP's latest energy outlook, not only are these energy mainstays here to stay, but their demand is expected to remain relatively high even after reaching a peak. Interestingly, BP forecasts that oil demand will reach its zenith next year, marking a critical moment in energy consumption trends. This isn't the first time BP has projected a peak in oil demand. Back in 2019, their review anticipated a decline in demand growth, but the prediction fell flat. Instead, oil demand surged to unprecedented levels following the end of the global pandemic lockdowns, defying previous forecasts and underscoring the enduring dominance of traditional energy sources in the global market.