The M&A boom in the Permian and Eagle Ford continues unabated. Recently, a multitude of E&Ps have increased scale and profitability by acquiring other producers that control acreage and produce crude oil, natural gas, and NGL. But it is also possible for an E&P to increase its holdings by acquiring incremental working interests in its operated assets or by having an affiliate acquire royalties and mineral interests in the acreage the producer plans to develop. In today’s RBN blog, we discuss the latest M&A activity in two of the top U.S. producing areas, including the planned $1 billion purchase of Permian minerals and royalties from Viper Energy Partners; Crescent Energy’s plan to acquire incremental working interests in South Texas; and an old-school acquisition by Magnolia Oil & Gas, also in the Eagle Ford.
It has been difficult to keep up with all the mergers and acquisitions in South Texas, West Texas and Southeast New Mexico; it’s not just summer temperatures that have been hot in this part of the world. Just a couple of weeks ago, a Eat or be eaten, we examined Permian Resources’ plans to acquire Earthstone Energy; Civitas Resources to buy assets in the Delaware and Midland basins of the Permian from Tap Rock Resources and Hibernia Resources, respectively; and SilverBow Resources to pick up Chesapeake Energy’s last remaining assets in the Eagle Ford.
A couple of months before, a What I love about Texaswe looked at an earlier round of Permian and Eagle Ford M&A, that time involving Vital Energy i Northern Oil & Gas’s purchase of the assets of Forge Energy II Delaware LLC in West Texas; Callon Petroleum’s acquisition of Permian-focused Percussion Petroleum Operating II LLC and sale of its remaining Eagle Ford assets to Ridgemar Energy Operating LLC; and Crescent Energy’s purchase of Mesquite Energy’s Eagle Ford assets. (More on Crescent in a moment, as we said in the intro, it’s still in acquisition mode.) And we’ve discussed other Permian-related M&A at Harder better faster stronger and other Eagle Ford businesses Part 1 i Part 2 from our blog series Come Back Story.
