The deal will add around 44,000 net acres and about 62,000 boe/d (50% oil) in the basin, Civitas said. (Source: Shutterstock)
Civitas Resources closed its $2.1 billion acquisition of oil and gas assets in the Midland Basin from Vitol-backed Vencer Energy LLC., according to a Jan. 2 press release.
The deal, announced in October, will add around 44,000 net acres and about 62,000 boe/d (50% oil) in the basin, Civitas said. Civitas said its Permian production would average approximately 170,000 boe/d with the addition of Vencer.
Under the terms of the agreement, Civitas issued Vencer 7.1 million shares of common stock and paid $1 billion of cash. A $550 million deferred cash payment is due to Vencer on Jan. 3, 2025. Civitas said it plans to use cash on hand and/or borrowings on the credit facility to fund the deferred cash payment.
Chris Doyle, Civitas’ president and CEO, said the company now holds “high-quality, scaled asset positions in both the Permian and D-J [Denver-Julesburg] basins.”
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