BP is the winner on BHP assets.
Thanks for the heads up @Wade_Caldwell. It’s clear that the global integrateds have convinced themselves that shale hydrocarbons are a viable, long-term money-making endeavor.
Yep…and the multinational conglomerates have over 2 Trillion bucks to invest anywhere they wish in the world at large or in the USA. Let’s hope they invest in the USA and a lot of that in the Delaware and Permian basins.
ol’ Lawrence in Verhalen
Oil and Gas Investor Hart Energy
Tuesday, February 7, 2017 - 4:05pm
Parsley Energy, Double Eagle Energy, Permian Basin, Midland Basin, acquisition, $2.8 billion, consolidate, oil natural gas, shale, deal, purchase, Wolfcamp, Spraberry, Apollo Global Mangement, Post Oak Energy Capital, Magnetar Capital, John Sellers, Bryan
Source: Hart Energy
After Parsley Energy Inc.’s (NYSE: PE) $1.8 billion deal binge in the past 12 months, clearly, the company still has an appetite for Permian treats.
Parsley said Feb. 7 it has an agreement to acquire 71,000 net acres from Midland E&P Double Eagle Energy Permian LLC for $2.8 billion. The acquisition, if closed, will raise Parsley’s Permian profile to 227,000 acres—a footprint large enough to support 20 horizontal rigs.
The deal represents a large-scale consolidation effort in the Midland and Parsley stands to become the second-largest leaseholder in the basin. The deal is also a departure for the company, which typically adds bolt-on or modestly-sized deals, according to Capital One Securities.
“This acquisition is a hefty, transformational deal that will vault PE to the second largest acreage holder in the Midland Basin among publicly traded companies, trailing only Pioneer Natural Resources, which is about 4x the size,” Capital One said in a Feb. 8 report.
The company currently holds 109,000 Midland Basin acres and 48,000 Delaware Basin acres, according to a January presentation.
Analysts estimated the transaction ranged from about $36,000/ acre to $37,000/ acre, in line or modestly more expensive than Midland deals
ol’ Lawrence says: The 48,000 acres Parsley owns in the Delaware basin are in Reeves and Pecos
counties on the west side of the Pecos River and west along IH-10. They are acquiring more leases
in that area to the west towards the Big Chief lease of COG and the Hovey area lease of Apache.
Thought that might be of some interest to the land/mineral owners of that area.
ol’Lawrence in Verhalen