Mesa Minerals Partners III, LLC’s Post

EnCap Investments scored the latest private-equity exit deal in the oil patch, inking a nearly $2 billion asset sale to Matador Resources as publicly traded energy companies strive to expand before they become acquisition targets themselves. Dallas-based Matador said Wednesday that it agreed to buy a unit of Ameredev II Parent, an EnCap-backed oil and gas producer that operates in the Permian Basin in West Texas and southeastern New Mexico. EnCap and its managers formed the company in 2017 with a $400 million commitment. As part of the deal, Matador is acquiring roughly 33,500 net acres in the Permian’s Delaware Basin with a daily output of as much as 26,000 barrels and 431 well sites. The buyer also gets a 19% stake that Ameredev II owns in Piñon Midstream, an operator of natural gas processing plants and pipelines that is also backed by private-equity firm Black Bay Energy Capital. The U.S. oil and gas sector has seen a number of substantial mergers and acquisitions in the past few years as large energy companies raced to secure prized assets. Some of those buyout targets remain for sale in the rapidly consolidating shale industry, particularly in the prolific Permian.

The recent wave of M&A activity could point to a resurgence in the oil & #gasindustry. Matador Resources' $1.9bn acquisition of Permian Basin properties and Noble Corp.'s $1.6bn acquisition of Diamond #OffshoreDrilling are examples of companies taking bold steps to expand their operations. With their strong asset bases and solid financial prospects that can capitalize on the #oil industry's recovery, these companies could attract investors. But as always, it's still important to conduct thorough research before making any decisions. https://loom.ly/95l4g6k

The Era of Oil and Gas M&As continues to bring forth opportunities for those hungry and motivated. I think we'll see a lot more divestiture of non-core acreage over the next six months to 18 months. https://lnkd.in/evVqY--i

Mastering Complexity: A Dive into The Texas Mineral Company's Latest Success Story Oil and gas mineral and royalty transactions are rarely a breeze, and most deals come with their own unique set of challenges. Despite that, you do enough deals and the process becomes fairly routine. However, our recent transaction wasn't just another run-of-the-mill endeavor—it was a testament to our commitment, expertise, and the relentless pursuit of excellence. This wasn’t a quick and easy deal. This deal demanded over 8 months of meticulous dedication. We delved into the intricacies of over 200 tracts spanning non-op, mineral, and override interests across 11 counties in 4 states, totaling close to 600 net acres across Federal, State, and Fee lands. This wasn't just another deal; it was a complex orchestration requiring large-scale project management, organization, and precision. At The Texas Mineral Company, we run lean, and we don't shy away from challenges. We rolled up our sleeves, immersed ourselves in the details, and navigated through the complexities. Several months and countless hours were spent parsing through title, scouring courthouse records, understanding leasehold, and researching production. Our team's unwavering attention to detail, strategic planning, and industry expertise paved the way for the successful completion of this intricate deal. I want to extend my gratitude to our exceptional team at The Texas Mineral Company. Their dedication and hard work were the driving force behind our success. As we celebrate this achievement, I'm eagerly looking forward to the next giant deal on the horizon. No matter the size of the deal, reach out to us. At The Texas Mineral Company, we thrive on challenges, and we're ready to handle it all. 👊Let's make your next acquisition or divestiture a success together! #OilandGas #MineralRights #TheTexasMineralCo #BusinessSuccess Toby D. Martinez, MBA - Blake Paschal - Max Gallegos

This week’s most important private equity news (2/3)   APA, a U.S. oil producer, is buying Callon Petroleum in a $4.5 billion all-stock deal, focusing on expanding its operations in the Permian shale basin. This move addresses investor concerns about inventory depth. Analysts express mixed views on the deal's impact on APA's share price, while the broader industry trend shows energy firms leveraging stock prices for acquisitions. The deal, approved by both boards, is slated to close in Q2, reflecting the ongoing momentum in the U.S. energy sector.   Full note: https://lnkd.in/ebZfkeH4   #privateequity #newsweek #BloomCapital

"APA Corp. agreed to acquire shale explorer Callon Petroleum Co. for $2.6 billion, the latest in a wave of deals reshaping the US oil landscape. The all-stock transaction equates to $38.31 per share for Callon and has been unanimously approved by both boards of directors, the companies said in a statement Thursday. It is expected to close during the second quarter. 'Callon has built a strong portfolio in the Permian Basin that is complementary to our existing Permian assets,' APA’s President and Chief Executive Officer John J. Christmann said in the statement. 'Increased scale will enable us to realize significant overhead and cost-of-capital synergies.' APA plans to retire Callon’s roughly $1.9 billion in debt, giving the deal an enterprise value of $4.5 billlion. APA shares fell 5.5% before the start of regular trading in New York. Callon shares, which closed at $33.65 on Wednesday, rose 5%." #shale #oilandgas #mergersandacquisitions #finance #equipmentfinance #equipmentleasing #financialservices #corporatefinance https://lnkd.in/g7za4FyR

2023 Closes with a Wave of Deals: Canada to Permian Basin #CrescentPoint buys #Hammerhead for $1.9B to grow in #MontneyShale, Canadian firms merge in #KaybobDuvernay, #RingEnergy acquires in #PermianBasin. 2023 Year-End Energy Sector Roundup: Festive Highlights!  Crescent Point's $1.9B Hammerhead buy boosts drilling in Montney Shale.  Canadian merger strengthens Kaybob Duvernay area presence.  Ring Energy's Permian Basin acquisition adds 3,600 acres and 50 drilling spots.  Crescent Point aims for 198,000-206,000 boe/d production in 2024, with CA$1.4-1.5B capex.  Athabasca and Cenovus form Duvernay Energy, eyeing 25,000 barrels/day.  Let's toast to these end-of-year triumphs, lighting up the sector's future! Here's to a prosperous and exciting 2024! ️ As we close 2023, the energy industry has witnessed notable growth and collaborations. Let's welcome 2024 with more great news for each of us. Read more here: https://lnkd.in/dCuVRnfq Rextag's Energy DataLink: One app to meet your energy research needs Try it for FREE: https://lnkd.in/dknQrdvn

🛢️ Major Moves in the Permian Basin: Vital Energy’s $1.165B Acquisitions 🛢️ Talk about going big or going home! Vital Energy is making waves in the Permian Basin! They’ve just announced a whopping $1.165 billion in acquisitions from Henry Energy, Tall City Property Holdings, and Maple Energy Holdings. So what does this mean? 🤔 They’re adding nearly 53,000 net acres and increasing their current production by about 35,000 boe/d. Translation? That’s a fair bit of production! This also ups Vital’s free cash flow for 2024 by an estimated 90%. https://lnkd.in/gTVaq5NU

The recent M&A surge in the Permian has been driven by the need for companies to increase reserves, with declining acreage quality pushing them towards acquisitions. Crownrock LP, a prized Midland basin producer, is attracting attention, and potential acquirers include OXY, ConocoPhillips, Marathon Oil, and Diamondback Energy. The race is already underway, but due to the financial challenges faced by several of the potential buyers, it’s likely to come down to just a couple of the big names... and one dark horse.

Oxy Takes the Lead for the Crown Someone’s PR folks were up at the crack of dawn all dressed in catnip. Looks like the proverbial cat has been lured out of the bag as to which contender is most likely to win the crown for Permian Prince CrownRock, L.P.. Steve Reese is following the latest news first broken by the Wall Street Journal to report Houston-based Oxy has offered the highest bid for the Midland player. According to the paid tattletales, Oxy’s bid values CrownRock at $12.5 billion. CrownRock CEO Tim Dunn in mid-September floated a price tag of $10+ billion after announcing his flirtation with a possible sale. Bloomberg would later report, eh, maybe it’ll fetch $8 billion. This, of course, before October’s Exxon-Pioneer and Chevron-Hess mega mergers whipped up a consolidation firestorm, igniting rampant speculation as to who was next in line to snap up or sell. It’s created quite the entertaining spectacle. Just last month, Continental Resources, Marathon Oil Corporation, Devon Energy, ExxonMobil, Diamondback Energy, and ConocoPhillips were said to be eyeing potential bids for CrownRock’s 86,000 net acres, 226 MBOED, and 15 years of inventory. Nary a whisper or mention of Oxy, a Permian giant pumping 968 MBOED across 2.8 million net acres in the Midland and Delaware. Oxy this year has grabbed more headlines about its low-carbon pursuits, direct air capture (DAC) projects, and increasing investments by Berkshire Hathaway than any hunch of a Permian acquisition. But should Oxy capture the Crown, it wins three ways—growing its output well past the million BOED mark, implementing its DAC technology for enhanced oil recovery to produce even more, and further proving its ability to produce low-carbon oil which it wants to commercialize. What do you think? Learn more about REC and our oil and gas consulting services in the Permian at https://lnkd.in/ewhkGFa.