(WO) – Permian Resources Corporation announced a series of recent portfolio optimization transactions consisting of two bolt-on acquisitions, a sizeable acreage swap, a divestiture of non-core assets and additional grassroots acquisitions.
Recent acquisitions. Permian Resources recently executed two separate transactions to acquire a total of approximately 11,500 net leasehold acres and 4,000 net royalty acres located in Eddy County, New Mexico, from undisclosed third-parties for a total consideration of approximately $175 million.
Together, the acquired properties consist of predominately undeveloped acreage, contiguous to legacy Earthstone’s position and offset Permian Resources’ highly capital efficient Parkway asset. Permian Resources has identified over 100 gross operated, two-mile locations with high NRIs on the acquired properties which immediately compete for capital.
“The quality of the acquired acreage is consistent with our core Parkway position, which represents one of the highest returning assets within our portfolio. We are excited to begin development on the recently acquired acreage later this year,” said Will Hickey, Co-CEO of Permian Resources.
Additionally, Permian Resources continues to be highly successful executing upon its ground game, consisting of smaller grassroots acquisitions. During the fourth quarter of 2023, the company added approximately 500 net acres through over 35 grassroots leasing and working interest acquisitions. Notably, most of these acquisitions are executed ahead of the drill-bit, making them highly accretive.
Recent acreage trade. During the first quarter of 2024, the company executed an acreage trade that added high-return, operated inventory with advantaged NRIs and further bolstered its position in Lea County, New Mexico. Permian Resources traded into approximately 2,000 net acres with increased working interest adjacent to its current position.
As part of the transaction, the company traded out of approximately 2,000 net acres of non-operated acreage and lower working interest operated acreage, which consisted of shorter lateral development that was not on the Company’s near-term drill schedule. The company expects to begin development on the newly acquired acreage in 2024.
Recent non-core divestiture. In the fourth quarter of 2023, Permian Resources closed the previously announced divestiture of legacy Earthstone’s Eagle Ford assets for a purchase price of $67 million, which included approximately 1,000 boed of net production.
Full year 2023 acquisition & divestiture review. Since the beginning of 2023, Permian Resources remained active in high-grading its portfolio through a series of bolt-on acquisitions (3), acreage swaps (2), grassroots acquisitions (>140) and non-core divestitures (2).
Overall, Permian Resources’ portfolio optimization efforts added approximately 17,000 Permian net acres, 7,300 Permian net royalty acres and over 200 high-quality, gross operated locations in the core of the Delaware basin. The cumulative effect of these transactions resulted in the company replacing over 100% of its developed inventory during 2023 on a standalone basis for less than $100 million net of divestitures.
Additionally, the combined net production impact is expected to be immaterial to the cimpany’s 2024 production.
Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on the acquisition, optimization and development of high-return oil and natural gas properties. The company’s assets and operations are concentrated in the core of the Delaware basin, making it the second largest Permian Basin pure-play E&P.
