Permian Resources announces a series of portfolio management transactions

Permian Resources announced that it has entered into a series of portfolio management transactions, comprising of a bolt-on acquisition, a divestiture of non-operated production and acreage and a divestiture of a portion of its water infrastructure assets in Reeves County, Texas. Permian Resources has entered into a definitive agreement to acquire 4,000 net leasehold acres, 3,300 net royalty acres and 1,100 barrels of oil equivalent per day, or Boe/d, of net production, located predominantly in Lea County, New Mexico from an undisclosed third-party for a total purchase price of $98M. This purchase price reflects an acquisition value of approximately $8,000 per net leasehold acre and approximately $7,000 per net royalty acre. The properties’ operated position consists of largely undeveloped acreage and is contiguous to one of the Company’s existing core blocks in Lea County. Permian Resources has identified approximately 45 gross operated two-mile locations from the properties being acquired that immediately compete for capital within the existing portfolio. Permian Resources also announced the divestiture of producing, non-operated properties in Reeves County consisting of approximately 1,800 Boe/d and 3,500 net leasehold acres to an undisclosed third-party for $60M, reflecting a valuation multiple of greater than 5x 2023 estimated EBITDA. The Company also sold a non-operated position consisting of 300 net leasehold acres in Eddy County, New Mexico for $35,000 per net acre, resulting in approximately $10M of net proceeds. The Company signed definitive agreements with an undisclosed third-party that result in Permian Resources divesting a portion of its saltwater disposal wells and associated produced water infrastructure in Reeves County for total consideration of $125M. The full consideration will be received at closing with $60M subject to repayment if certain thresholds tied to Permian Resources’ future drilling activity in the service area over the next several years are not met. The Company expects to retain the full consideration based on its current development plan. The transaction is expected to close during the Q1, subject to regulatory approval.