Pop the Cork
Not that we’re looking to take credit for a love match, but after proposing the idea last month of a pairing between two minerals companies with sizeable Permian assets–one looking to acquire and one looking to sell–seems the universe has listened.
Reese Energy Consulting today is following the latest news from Denver-based Sitio Royalties Corp, which has made its third and largest acquisition to date. Sitio was borne out of the all-stock merger closed in June between Denver-based Desert Creek Minerals—the largest independent Permian pure-play mineral and royalty company—and Houston-based Falcon Minerals, creating an enterprise value of $1.9 billion. The coupling gave Sitio 139,000 net royalty acres—of which 105,000 are Permian located—and total projected production of 15 MBOED to include its activity in other basins. Then the racehorse shot through the gate, starting with two all-cash acquisitions in the Delaware and Midland, which added another 31,900 net royalty acres to the company’s Permian bucket. Now, in an all-stock merger valued at $4.8 billion, Sitio will exchange vows with Austin-based Brigham Minerals and expand its Permian dominancy to 173,700 acres. Brigham also holds mineral assets in the SCOOP/STACK, Bakken, and DJ Basin.