Midland-based Permian Resources said last week it will focus on its New Mexico operations in 2024 in the follow-up to its $4.5 billion purchase last year of Earthstone Energy. Permian Resources will dedicate 70 percent of 2024 capital spending (about $2 billion) to northern Delaware Basin, 25 percent to southern Delaware Basin in Texas and 5 percent to Midland Basin. The company plans to turn in line about 250 gross wells in 2024 (150 in 2023) with an average length of 9,300 feet.
Of the Earthstone acquisition, company officials said Feb. 27, “The acquisition enhances Permian Resources’ position as a leading Delaware Basin independent… Integration of Earthstone has been underway since closing (Nov. 1), and both integration and synergy capture are ahead of schedule.” Co-CEO Will Hickey said Permian Resources has lowered its two-mile well costs by about 12 percent since November and limited downtime. Crude oil production grew to 137,000 b/d in 4Q (285,000 boed). This year production is forecast at 145,000-to-150,000 b/d of crude oil (300,000-to-325,000 boed).
Permian Resources continues to pursue and complete smaller land deals in Delaware Basin. Since Nov. 1 the company has added about 14,000 net acres.