Looks like the Delaware this week is host of Party Central in Perm Town for upstream M&A and a midstream FID. A whole lotta shakin’ is going on here with producers eyeballing opportunities to buy or sell assets in the nation’s most prolific oilfield with crude prices tipping $100 per barrel.  

Reese Energy Consulting today starts with the latest news from buyers and sellers in the Delaware, either growing their positions or exploring sales in a volatile price environment. Okla. City-based Devon Energy has announced an acquisition via a federal lease in the core of the Delaware in N.M. The $2.6 billion, all-cash deal includes 16,300 net undeveloped acres next to Devon’s existing acreage and 400 net drilling locations.

This next news nugget is highly interesting. Sev.en Global Investments, owned by Czech billionaire Pavel Tykaĉ, has acquired 21,000 net Delaware acres from UpCurve Energy Partners I and II for an undisclosed sum. Production capacity weighs in at 13 MBOED with additional natural gas output. As part of the deal into the U.S. upstream oil and gas sector, the firm has launched Sev.en US Resources.

Meanwhile, Houston-based TRP Energy, one of the Delaware’s largest producers, is flirting with a potential sale of its assets which could see a $3 billion payday. In an acreage swap with Diamondback Energy in 2024, TRP acquired 35,000 net acres in the Delaware while Diamondback added 15,000 net acres and 55 operated locations in the Midland.

And Midland, Texas, is exactly where Kinetik has created the Delaware’s largest publicly traded, fully integrated midstream company, operating crude oil and natural gas infrastructure. Kinetik has now reached a FID on its Kings Landing II project in the Northern Delaware that will add 300 MMCFD of natural gas processing capacity.

This party is on.