Permian Resources is getting deeper in New Mexico with an acquisition from APA Corp. (Source: Shutterstock.com)
Permian Resources is growing in the northern Delaware Basin through an acquisition from Apache parent APA Corp.
The deal includes 13,320 net acres and 8,700 net royalty acres in New Mexico, near some of Permian Resources’ core operating areas, the company said after markets closed May 7. Consideration for the deal is $608 million.
Production from the assets is expected to average 12,400 boe/d (46% oil) in 2025, APA said.
Permian Resources has identified over 100 gross operated, 2-mile drilling locations on the assets.
“This acquisition is a natural fit for us and has material upside that Permian Resources is uniquely positioned to realize,” said James Walter, co-CEO of Permian Resources. “We continue to grow our high return inventory, our net royalty acre portfolio and our acreage footprint in a cost-efficient manner that reflects the current environment.”
The company said the acquired inventory is scheduled for development in the near term and features an average breakeven of $30/bbl WTI.
The deal also increases Permian Resources’ working interest in over 100 existing operated locations and adds non-operated acreage.
Permian Resources plans to leverage the new non-op acreage to trade for incremental interests in existing operated units, or to establish new operating units.
The transaction is expected to close in the second quarter.
APA Corp. has worked to reduce debt since closing a $4.5 billion acquisition of Permian producer Callon Petroleum last year. APA also sold conventional assets in the Permian to Hilcorp for $1 billion.
Permian Resources has been an active consolidator in the Permian’s Delaware Basin. It acquired Earthstone Energy for $4.5 billion in late 2023.
Last year, Permian Resources acquired a large, divested package in the southern Delaware from Occidental for $818 million. The company has also closed several smaller, ground game transactions around the basin in recent quarters.
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