Oklahoma City-based Mach Natural Resources said recently it is acquiring assets in Permian Basin to mark its entry into the basin. The acquisition for $500 million from Sabinal Energy includes about 130,000 net acres with first quarter production of 11,000 boed (98 percent liquids).
The deal diversifies the Mach portfolio with 55 percent in Mid Continent and 45 percent in Permian and San Juan basins and increases its total acreage by 33 percent to 2.8 million acres. And it will nearly double Mach’s production from 81,000 boed to about 152,000 boed. Mach also announced purchase of assets of 570,000 net acres in San Juan Basin from IKAV for $787 million (1Q production 60,000 boed).
Tom L. Ward, CEO, said July 10, “With this step, we significantly enhance our scale and gain strategic multi-basin positioning… The transactions are expected to be immediately accretive to our cash available for distribution….”
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