Midland-based Diamondback Energy will trade certain of its Delaware Basin assets and pay about $238 million in cash to TRP Energy in exchange for TRP’s Midland Basin assets. TRP’s Midland Basin assets are comprised of 15,000 net acres in Reagan and Upton countries with 55 remaining undeveloped operated locations – the majority of which immediately compete for capital – and 18 DUC wells. The deal agreed to Sunday is expected to close in December.
In a letter to stockholders, Diamondback chairman and CEO Travis D. Stice said Monday the agreement with Houston-based TRP “allows us to play offense in our backyard by swapping a PDP-heavy asset in the Delaware Basin (Vermejo) for a Midland Basin asset with more near-term development potential… We will also continue to look for ways to improve our asset base, whether it be through traditional trades to be able to drill longer laterals and increase operated working interests or ‘out-of-the-box’ ideas such as TRP.”