Part of the growing excitement around A&D opportunities centers on corporate divestitures. At least $1.8 billion in such transactions have taken place already in 2024.
Occidental Petroleum announced in July an agreement to sell Delaware Basin assets in Texas and New Mexico for approximately $818 million to Permian Resources. Separately, Oxy announced the completion of multiple undisclosed sales totaling $152 million. The $970 million in transactions are part of the major’s previously announced program to raise $4.5 billion to $6 billion through divestitures within 18 months of closing the acquisition of CrownRock in August.
The Delaware assets include around 27,500 net acres in the Barilla Draw Field of the Texas Delaware Basin and approximately 2,000 net acres in the New Mexico Delaware Basin, with combined net production of 15,000 boe/d. Advisers on the transaction included RBC Capital Markets and White & Case.
In May, Apache announced two separate divestitures of 13,000 boe/d (30% oil) of production for $700 million. One of the divestitures included 24,000 net royalty aces and 2,000 boe/d of non-operated production in the Midland Basin sold to Post Oak Minerals V, backed by Post Oak Energy Capital.
Post Oak said the acquisition was the largest of 10 acquisitions it has conducted in 2024, valued at $475 million.
The other package sold by APA was in the East Texas Austin Chalk / Eagle Ford that included 237,000 net acres with 11,000 boe/d of net production. WildFire Energy I disclosed it had purchased the package, which included 465 wells.
Also in May, Civitas Resources signed an agreement to sell 82,400 net acres with 7,000 boe/d of production in the Denver-Julesburg Basin to IOG Resources II for $215 million. The deal supported Civitas’ goal to divest $300 million in assets, which was announced in June 2023.
Exxon Mobil’s acquisition of Pioneer Natural Resources closed in May and is expected to provide another source of potential divestitures.
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