Denver-based Civitas Resources said Wednesday it signed an agreement with Vencer Energy, upstream unit of Vitol, to acquire oil-producing assets in Midland Basin in a cash-and-stock deal valued at $2.15 billion ($1.55 billion cash). Closing is expected in January 2024. The acquisition will add about 44,000 net acres in five counties in west Texas with current production of 62,000 boed (50 percent oil). It will grow Civitas’ 2024 estimated Permian Basin production to 170,000 boed (50 percent oil).
The acquisition also will add about 400 gross development locations primarily in Spraberry and Wolfcamp. Civitas expects to now hold more than 1,200 high-quality oil development locations in Permian Basin. Civitas also will move forward with sale of non-core assets.
Chris Doyle, president and CEO, said, “Upon closing our portfolio will be balanced between the Permian and DJ basins, which reduces operational risk and makes us a stronger and more sustainable enterprise. This was a unique opportunity to capture high-qualify oil assets at a very attractive price… We have created a quality, scaled position in the heart of the Permian Basin.”