Permian Resources Announces Closing of Bolt-On Acquisition of Core Delaware Basin Assets

Rhea-AI Summary

Permian Resources (NYSE: PR) has successfully closed its previously announced acquisition of assets from Occidental (NYSE: OXY). The acquired assets include:

• ~29,500 net acres of leasehold interests
• ~9,900 net royalty acres
• Substantial midstream infrastructure

These assets are primarily located adjacent to the Company's existing position in Reeves County, Texas. This strategic bolt-on acquisition strengthens Permian Resources' footprint in the core Delaware Basin, potentially enhancing its operational efficiency and production capabilities in the region.

Positive

• Acquisition of ~29,500 net acres of leasehold interests
• Addition of ~9,900 net royalty acres
• Acquisition includes substantial midstream infrastructure
• Assets are adjacent to existing Permian Resources position, allowing for operational synergies
• Strengthens company's footprint in the core Delaware Basin

Negative

• None.

Insights

Financial Analyst

The closing of Permian Resources' acquisition of 29,500 net acres and 9,900 net royalty acres from Occidental is a significant move that strengthens the company's position in the Delaware Basin. This bolt-on acquisition is likely to enhance PR's production capacity and reserves, potentially leading to improved cash flows and profitability.

The addition of substantial midstream infrastructure is particularly noteworthy, as it could reduce operating costs and provide greater control over the production process. Investors should watch for updates on how quickly Permian Resources can integrate these assets and realize synergies. The strategic location of the acquired assets, offset to PR's existing position, suggests potential for operational efficiencies and economies of scale.

Oil & Gas Industry Expert

This acquisition significantly expands Permian Resources' footprint in the prolific Delaware Basin, a sub-basin of the larger Permian Basin known for its high-quality oil reserves. The additional acreage could substantially boost PR's drilling inventory, potentially extending the company's growth runway for years to come.

The inclusion of midstream assets is a strategic move that could provide PR with greater vertical integration and operational flexibility. This may allow the company to better control costs and optimize its production flow. Given the current volatile oil price environment, such operational advantages could prove important in maintaining profitability and competitiveness. Investors should monitor how this acquisition impacts PR's production guidance and capital efficiency metrics in upcoming quarters.

MIDLAND, Texas--(BUSINESS WIRE)-- Permian Resources Corporation (“Permian Resources” or the “Company”) (NYSE: PR) today announced the closing of its previously announced acquisition of certain leasehold and royalty interests and related midstream infrastructure from Occidental (NYSE: OXY). The acquired assets consist of ~29,500 net acres, ~9,900 net royalty acres and substantial midstream infrastructure primarily located offset the Company’s existing position in Reeves County, Texas.

About Permian Resources

Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on the responsible 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. For more information, please visit www.permianres.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240917919879/en/

Hays Mabry – Vice President, Investor Relations

(432) 315-0114

ir@permianres.com

Source: Permian Resources Corporation

FAQ

What assets did Permian Resources (PR) acquire from Occidental?

Permian Resources acquired ~29,500 net acres of leasehold interests, ~9,900 net royalty acres, and substantial midstream infrastructure from Occidental, primarily located in Reeves County, Texas.

Where are the newly acquired assets of Permian Resources (PR) located?

The newly acquired assets are primarily located adjacent to Permian Resources' existing position in Reeves County, Texas, in the Delaware Basin.

How does this acquisition impact Permian Resources' (PR) position in the Delaware Basin?

This acquisition strengthens Permian Resources' footprint in the core Delaware Basin, potentially enhancing its operational efficiency and production capabilities in the region.

What type of midstream assets did Permian Resources (PR) acquire in this transaction?

The press release mentions 'substantial midstream infrastructure' was acquired, but doesn't provide specific details about the type of midstream assets.