Deal insight

PDC Energy enters the Permian with US$1.5 billion Southern Delaware acquisition

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Report summary

PDC Energy will enter the Permian's Delaware Basin with a purchase of 57 000 net acres for US$1.5 billion. The acreage located in Reeves and Culberson counties in west Texas has a current net production of approximately 7 000 boe/d from 21 horizontal wells. PDC will operate 100% of the areage with an average working interest of 93%. The sellers are Arris Petroleum Corporation and 299 Resources LLC both backed by Kimmeridge Energy Management Company. Our valuation supports the deal price paid by PDC. We model breakevens as low as US$44/bbl in the Central area based on recent offset well performance.

What's included

This report contains

  • Document

    PDC Energy enters the Permian with US$1.5 billion Southern Delaware acquisition

    PDF 4.51 MB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 11 images and tables including:

Images

  • Offset operators near Arris Petroleum wells
  • Permian operators ranked by locations and Permian M&A spend (2015-2016)

Tables

  • Executive summary: Table 1
  • Upstream assets: Table 1
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Deal analysis: Table 4
  • Deal analysis: Table 5
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2

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