For E&P companies, the Permian continues to be the basin in the bubble, largely isolated from the industry downturn that is filling ledgers in other plays with red ink.
While Luxe Energy LLC’s hunt took it across Texas in search of acreage, it was the relative infancy of the Delaware Basin’s development and the opportunity it presented that ultimately pushed the company to make a deal.
While deals elsewhere have stalled, the Delaware’s prices have remained consistent with 2014 metrics. That made finding an entry point challenging for the company even in the down market.
“Right now it’s so competitive in the Delaware Basin it’s difficult to get a transaction done,” Lance Langford, Luxe’s CEO and president, told Hart Energy.