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Winds of Change: Admiral Sold Its Assets in Delaware Basin03/17/2022
In the Delaware Basin, Petro-Hunt Permian, LLC, a wholly-owned subsidiary of Petro-Hunt, L.L.C., has acquired oil and gas production and leasehold properties in northwest Reeves and northeast Culberson counties from APR Operating LLC. The terms of the transaction weren’t disclosed as of yet.
The company on the other side of the deal is a privately held E&P. It specializes in the acquisition and development of oil and gas properties in the Permian Basin. Its majority owners are funds managed by private equity firms Ares Management LP and Pine Brook. Admiral Permian Resources is headquartered in Midland, Texas.
APR's acquired assets include predominantly operated oil and gas production along with 21,430 net acres of leasehold located in the Delaware Basin. Oil and gas production from those assets amounted to 7,000 barrels/day (bbl/d) and 100 million cubic feet (MMcf/d) last year respectively. To take advantage of it, Petro-Hunt plans to begin an active development drilling program on these assets in the coming months.
When it comes to Petro-Hunt’s own circumstances, its origins date to the first quarter of the 20th century. They are also a privately owned E&P company. In addition to operating 775 oil wells and contributing to over 8,100 non-operated wells, it is ranked among the nation's top 10 private liquids (oil) producers. And with the acquisition of APR assets, Petro-Hunt now has approximately 57,000 bbl/d of oil production and 220 MMcf/d of gas production.
Kirkland & Ellis advised APR Operating LLC (Admiral) in its definitive agreements to sell its oil and gas in the Permian Basin to Petro-Hunt LLC (Petrohunt). The purchase and sale agreement was executed on Jan. 11, 2022, and closed on March 9, 2022.
And as always, if you are interested in learning more about oil and gas production properties, their locations, and hidden opportunities, please, contact our Houston sales office or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
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Great Western Petroleum's assets will be acquired by PDC Energy for $1.3 billion. Via this deal, PDC Energy’s position in the D-J basin increases roughly to 230,000 net acres. Denver-based Great Western has core operations in Weld and Adams counties in Colorado with 54,000 net acres and about 55,000 boe/d (42% oil / 67% liquids) of PDP. As part of the agreement, the acquisition will be financed by issuing 4 million shares of common stock to existing Great Western shareholders and by providing $543 million in cash to the company. All in all, PDC expects to increase its total production by 25% and its oil production by 35% as a result of the deal. The deal should also result in some synergies including a 15% reduction in overall cost per BOE.
Looks like Pine pulled the plug on its properties in Caddo Parish, Louisiana, and Harrison and Panola counties, Texas. Which includes a total of 12,500 acres and ownership interests in 10 operated wells with a production capacity of 100 million cubic feet per day along with 18 miles of naturalgas gathering pipelines. Did Pine just give up on Haynesville?
Shareholder’s payout target was increased by 50% after the largest U.S. independent oil producer surpassed Wall Street’s earnings estimates on growing energy prices, said Houston-based Conoco Phillips Co. on Aug. 4. Due to Western sanctions on major producer Russia throttling energy supply amid a rebound in demand from pandemic lows, oil and gas #prices have soared. Crude has been trading more than 25% higher since the start of the year and results also benefited from high natural gas prices. Meanwhile, shares were down a fraction, to $91.03, in early trading but are up about 26% year to date. Conoco Phillips stated, that the average price obtained for a barrel of oil and gas accelerated 77% from a year earlier to $88.57. The company acknowledges that it has not hedged any of its oil and gas sales to make the most of higher market prices. The capacity of 1.69 million boe/d was in line with Wall Street estimates, however, the company expected the current quarter’s output would be between 1.71 million and 1.76 million boe/d.
California oil joint venture, Aera Energy, of Exxon Mobil Corp. and ShellPlc is being sold to German asset manager IKAV, according to the agreement of Sept. 1. Shell noted that the sale of its 51.8% membership interest in Aera Energy is for a total consideration of about $2 billion in cash with additional contingent payments based on future oil prices, subject to regulatory approval. However, the total transaction value was not disclosed. Being one of California’s largest oil and gas producers, Aera Energy accounts for nearly 25% of the state’s production. The sale by Exxon Mobil and Shell ends a 25-year-long partnership in California, meanwhile, it persists a streak of divestments of mature oil and gas properties by the two supermajors. Aera Energy LLC operates about 13,000 wells in the San Joaquin Valley in California, producing oil and associated gas. In 2021, Aera took out about 95,000 boe/d. Exxon Mobil’s interests in the Aera oil-production operation in California contained a 48.2% share of Aera Energy LLC and a 50% share of Aera Energy Services Co. held by Mobil California Exploration & Producing Co. Moreover, Exxon Mobil affiliates have signed a separate agreement for the sale of an associated loading facility and pipeline system. The sale effectively ends Shell’s upstream position in California. The company reported that the divestiture is valued to result in a post-tax impairment of $300 million to $400 million, subject to adjustments.
The completion of the merger between Centennial Resource Development Inc. and Colgate Energy Partners II LLC happened on Sept. 1, sealing the debut of Permian Resources Corp., which is considered the largest pure-play E&P company in the Delaware Basin. Permian Resources’ idea was to combine two successful E&P companies, creating a better, stronger, and more strategically compelling company. Centennial and Colgate announced an agreement to merge in May, denying rumors that Colgate, a privately held independent Midland-based company, had been seeking an IPO. The merger estimated Colgate at about $3.9 billion and consists of 269.3 million shares of Centennial stock, $525 million of cash, and the assumption of approximately $1.4 billion of Colgate’s outstanding net debt. Permian Resources, being the combined company, has a deep inventory of “high-quality” drilling locations on around 180,000 net acres the companies anticipate will provide more than $1 billion of free cash flow in 2023 at current strip prices, in accordance with the company release on Sept. 1.