MCM Energy Partners LLC said it recently sold leasehold in Ward and Loving counties, Texas, as the privately-held Permian company continues to pare down its portfolio.
An undisclosed company agreed to acquire MCM Energy Partners’ acreage for $42 million, according to an MCM press release on Jan. 8.
Including the recent sale, MCM Energy Partners said it has sold over 4,800 net acres of operated and nonop leasehold in the Permian’s Midland and Delaware basins during 2018 for more than $90 million. The company will also add to that with the anticipated sale of Midland Basin leasehold for about $20 million expected to close in first-quarter 2019, the release said.
MCM currently owns roughly 1,320 net acres in the core areas of the Midland and Delaware basins, as well as 12,000 contiguous acres in central Pecos County, Texas. The Midland, Texas-based company was founded in 2009 by its CEO, Miles McPherren.
Activist investor Elliott Management offered to buy oil and gas producer QEP Resources in an all-cash deal valued at $2.07 billion, saying that the company is "deeply undervalued."
Overall, 2018 was the Year of Consolidation as several E&Ps agreed to merge throughout the U.S., including inside and outside the prolific Permian Basin.
Expect plenty of capital, plenty of volatility, plenty of shifts in investor strategies—and plenty of unfolding stories to track as the new year progresses.