Midland-based Permian Resources said Monday it reached agreement with Occidental Petroleum to purchase a large, contiguous acreage position in Delaware Basin for $817.5 million. The acquisition is comprised of 29,500 net acres, 9,900 net royalty acres and 15,000 boed near Permian Resources’ existing position in Reeves County. The deal adds about 200 gross operated locations (laterals of about 10,000 feet) with high NRIs (net revenue interests) that immediately compete for capital. Closing is expected in 2024Q3.
Will Hickey, co-CEO, said, “This acquisition is a natural fit for us given its high-return inventory and proximity to our current operated position… We are highly confident that our team will be able to leverage its operational expertise … to significantly reduce costs and drive meaningful synergies – maximizing value for our shareholders.”
James Walter, co-CEO, added, “This bolt-on acquisition adds core inventory which immediately competes for capital and is accretive to key metrics over both the short and long term.”
Permian Resources expects to begin developing the acquired properties in 2024Q4 on 27,500 net acres in Barilla Draw field in Texas and 2,000 acres in New Mexico. Total production for 4Q is forecast at about 15,000 boed (55 percent oil). The assets also include a midstream system, including 100 miles of oil and gas pipelines and water infrastructure.
Occidental is preparing to pay down debt after is multi-billion purchase of CrownRock.