According to a June Enverus report, 23 of the nation’s top 100 producing companies stake claims in the Permian. Those 23 also happen to fall within the first 50 on the list. Midland, Texas-based CrownQuest Operating takes 12th place, pumping out nearly 112 MBPD. Despite challenging price environments—and CrownQuest knows them like the stacked play geology responsible for its success—the E&P doesn’t allow prices to influence decisions. Then again, some rules are meant to be… well, you know.
Reese Energy Consulting today is following the latest from CrownQuest, which is entertaining a potential sale that, given the right buyer, could shoot past the $10 billion mark. “Price” appears to be all over this surprising move with crude inching closer to the $100 per barrel mark and a price tag on the company limited to a small group of deep-pocketed, reserves-hungry supermajors.
CrownQuest owns and operates 86,000 net acres in the Permian’s Northern Midland—practically the home backyard of its billionaire CEO, Timothy Dunn. The company also operates in N.M., and Utah. But West Texas holds the jewels and that’s where CrownQuest maintains more than 15 years of inventory, where it consistently drills 140-150 vertical and horizontal wells a year. In total, the company operates about 1,564 wells.
As a family-owned independent, CrownQuest has amassed an impressive, high-yield Permian position that has safeguarded the company during the worst of downturns. Back in 2016—then two years into an industry bust—Dunn was quoted in a news piece quipping, “I like to say the main goal in the oil business is to stay in it.” Well, at least for now.