
Ring Energy Inc. has completed its previously announced Central Basin Platform acquisition of Founders Oil & Gas IV LLC assets for about $75 million in cash, according to an Aug. 16 news release. (Source: Shutterstock.com)
Ring Energy Inc. has completed its previously announced Central Basin Platform acquisition of Founders Oil & Gas IV LLC assets for about $75 million in cash, according to an Aug. 16 news release.
The deal—which was announced in July—adds Founders’ operations in the Permian Basin’s Ector County, Texas, and is focused on the development of approximately 3,600 net acres. Ring said the assets are similar to Ring's CBP assets acquired in 2022 from Stronghold Energy Operating II LLC.
Ring described the transaction as “immediately accretive to Ring's production, reserves and adjusted free cash flow.” The deal will also accelerate Ring’s ability to pay down debt, the company said.
Paul D. McKinney, Ring’s board chairman and CEO, said the acquisition closed on Aug. 15.
“This Transaction complements our conventional-focused CBP asset position in the Permian Basin with assets that are similar to the CBP assets we acquired in the third quarter of last year,” he said. “Our near-term focus is to quickly integrate these operations into our business, while at the same time formalizing detailed development plans for the acquired assets.”
McKinney said the assets are similar to the company’s existing inventory in the area and feature stacked pay zones of high-quality rock.
“We intend to leverage our extensive expertise applying the newest conventional and unconventional technologies to optimally develop the acquired inventory of undeveloped drilling locations,” he said.
Raymond James acted as exclusive financial adviser and Jones & Keller PC provided legal counsel to Ring. TenOaks Energy Advisors served as exclusive financial and technical adviser and O'Melveny & Myers LLP provided legal counsel to Founders.
Recommended Reading
Maximum Extraction: Shale Development Enters a New Era
2023-07-12 - Digitization, electrification and refined chemistry shape the future of hydraulic fracturing.
E&P Highlights: Sept. 11, 2023
2023-09-11 - Here’s a roundup of the latest E&P headlines, including an update on the Anning and Somerville project offshore the U.K. and new contract awards.
Squeezing Oil from Stone: The Quest to Improve Shale Recovery
2023-07-25 - Frac design, refrac liner testing and a waterless frac gun are among deep diagnostics in the queue in the quest to recover more oil from shale rock.
EY: E&Ps Remain Disciplined as Shareholder Returns Outpace Development Spending
2023-08-24 - E&Ps have been expanding capital budgets, producing more ESG reporting and returning capital to shareholders and companies appear poised to return to M&A, a report by EY found.
Southwestern’s New Directions
2023-09-05 - CEO Bill Way has shifted Southwestern Energy’s course from Fayetteville founder to dual-basin natural gas powerhouse. Now the LNG sector’s top supplier aims to establish itself as the leading natural gas company in the U.S. with decades of inventory in the Haynesville Shale and Appalachian Basin.