Back in October, Encap Investments announced it was looking to sell five of the 21 upstream portfolio companies the energy-focused PE firm managed at the time.
Up for grabs was the crown jewel of those facing the auction block—Ameredev II and Advanced Energy, which Encap combined in December 2021 creating one of the largest, privately held, contiguous land positions in the northern Delaware. Price tag for the twofer? $4+ billion.
Reese Energy Consulting today is following the latest news from Dallas-based Matador Resources whose Permian interests lie exclusively in in the basin’s sweet spot. Matador operates 137,000 net acres in the Delaware with production of 56.4 MBOED, making it the company’s largest asset by far compared to its operations in the Eagle Ford and Haynesville. And while a $4+ billion price tag to dramatically expand its Delaware footprint might have been outside Matador’s comfort zone, $1.6 billion to buy Advanced Energy separately cut like butter on a warm Texas day. The deal includes 18,000 acres, 20 MBOED of production, and additional payments of $7.5 million per month in 2023 should the average oil price rise above $85 per barrel.