Spicewood Mineral Partners has executed multiple new minerals and royalties acquisitions in the Permian Basin, the company said in an Oct. 22 press release. Spicewood said the acquisitions are part of a recent effort to acquire a selection of Tier 1 assets in the Permian.

Dallas-based Spicewood did not disclose financial details of the five transactions.

Spicewood said it acquired:

  • An “early-life,” 90% undeveloped mineral tract in the Delaware that offers potential significant upside through resource development and timing advantages. Recent activity includes Occidental Petroleum filing a lease in the neighboring section and several operators farming-in nearby to accelerate timing and reserves;
  • A higher-yielding asset with mineral interests in the Delaware and Midland basins, operated by Oxy and HighPeak Energy. The deal includes production-ready assets and significant future development opportunities. Approximately 60% of the inventory remains with a mix of sub-$40/bbl opportunities and longer-term potential;
  • Mineral interests in Ward County, Texas, considered to have strong production potential, supported by proximity to key operators such as Oxy and ConocoPhillips;
  • Mineral interests in northern Reeves County, Texas, associated with BP. The unit is one of BP’s last remaining long-lateral developments in the core of the basin, indicating significant near-term development focus; and
  • Mineral interests across the Delaware Basin with strong near-term cash flow and future development potential. Spicewood said 18% of the asset is in proved developed producing, with the majority of inventory having breakevens below $35/bbl.
Spicewood Mineral Partners Map
Spicewood Mineral Partners Permian Basin Fund I Portfolio (Source: Business Wire)

Spicewood said the recent acquisitions offer both in-place yield and early-stage development potential, featuring sub-$40/bbl breakeven operator returns.

“These uncorrelated, low-volatility assets offer a senior secured status for cash flow, tax advantages, and inflation protection, representing an emerging institutional asset class,” said John Golden, Spicewood co-founder and partner. “Additionally, we expect these assets to provide meaningful quarterly distributions to our partners, underscoring our commitment to delivering consistent risk-adjusted returns.”

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