The following information is provided by Detring Energy Advisors. All inquiries on the following listings should be directed to Detring. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Merced Capital has retained Detring Energy Advisors to market for sale its diversified non-operated wellbore-only producing assets located across six of the most prominent basins across the Lower 48. The assets offer an attractive opportunity to acquire a balanced revenue stream (46% liquids) with established, proven production (4,070 Boed) generating meaningful cash flow ($42MM NTM). The assets are operated by premier basin-focused operators, which ensures continued superior well performance and operating efficiencies that translate to healthy, high-margin returns.

Asset highlights:

  • Substantial Production Base of ~4,100 Net Boed (46% Liquids)
    • Production generated by 87 horizontal producers
      • PV10 of $142MM
      • Net reserves of 9.0 MMBoe
    • Assets operated by premier, well-capitalized, and basin-focused E&P’s offering high-quality stewardship and cost-efficient operations
      • Includes Oxy, Mewbourne, Comstock, Shell, and Marathon
  • Robust, Stable Cash Flow Generates Substantial Yield
    • NTM cash flow of $42MM from established, reliable production base
      • Average historical production of 30 months per wellbore
      • Meaningful well count eliminates concentration risk
    • The assets generate healthy returns with an operating cash margin of ~$41/Boe (LTM) underpinned by low lifting costs of ~$5/Boe
    • High interests avg. 25% WI / 20% NRI
Merced Capital offering

Bids are due Feb. 15. Upon execution of a confidentiality agreement, Detring will provide access to the Virtual Data Room, which opens on Jan. 17.

For more information, visit detring.com or contact Melinda Faust, managing director at Detring Energy Advisors, at mel@detring.com or 713-595-1004.

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