Permian Resources Corporation (NYSE: PR) has announced a series of significant portfolio optimization transactions, marking a new era in its strategic growth. These transactions include two bolt-on acquisitions, a substantial acreage swap, the divestiture of non-core assets, and additional grassroots acquisitions, all set to reshape the company’s future in the oil and natural gas sector.

According to Co-CEO James Walter, since closing the Earthstone transaction, Permian Resources has added 14,000 net acres and 5,300 net royalty acres in the core of the Delaware Basin at attractive valuations. The company’s portfolio management over the past year has been instrumental in replacing approximately 150 wells in its 2023 development schedule, effectively increasing inventory life. Walter emphasized the company’s ongoing focus on portfolio optimization as a key value driver differentiating Permian Resources in the market.

The company executed two separate transactions to acquire approximately 11,500 net leasehold acres and 4,000 net royalty acres in Eddy County, New Mexico, from undisclosed third-parties. The total consideration for these acquisitions was about $175 million. These properties, predominantly undeveloped, are contiguous to legacy Earthstone’s position and offset Permian Resources’ highly capital-efficient Parkway asset. Over 100 gross operated, two-mile locations with high Net Revenue Interests (NRIs) have been identified on these acquired properties, which immediately compete for capital.

Co-CEO Will Hickey expressed excitement about developing the recently acquired acreage, highlighting its consistency with their core Parkway position, one of the highest returning assets within their portfolio.

Permian Resources has been highly successful in executing smaller grassroots acquisitions. During the fourth quarter of 2023, the company added approximately 500 net acres through over 35 leasing and working interest acquisitions. Additionally, in the first quarter of 2024, the company executed an acreage trade in Lea County, New Mexico, bolstering its position with high-return operated inventory.

The company also closed the previously announced divestiture of legacy Earthstone’s Eagle Ford assets for $67 million. This transaction included approximately 1,000 barrels of oil equivalent per day of net production.

Since early 2023, Permian Resources has been active in high-grading its portfolio through a series of acquisitions, swaps, and divestitures. The company’s robust portfolio optimization efforts have added approximately 17,000 Permian net acres, 7,300 Permian net royalty acres, and over 200 high-quality gross operated locations in the core of the Delaware Basin. This cumulative effect has resulted in the company replacing over 100% of its developed inventory during 2023 at less than $100 million net of divestitures.

Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on acquiring, optimizing, and developing high-return oil and natural gas properties. Its operations are concentrated in the core of the Delaware Basin, making it the second-largest Permian Basin pure-play E&P company.

  Delaware Basin, Eddy County, New Mexico, Permian Resources, USA, Will Hickey