Elk Vary Royalties has acquired a DJ Basin mineral and royalty place with about 250,000 web royalty acres from Occidental Petroleum Corp. for $905 million.
“The newly acquired property are actively being developed by main operators, together with Chevron and Civitas, who collectively account for greater than half the wells spud in 2024”, Dallas, Texas-based Elk Vary mentioned in a web-based assertion. “The high-quality operator footprint enhances manufacturing visibility and long-term worth creation. The acquisition contains a gorgeous mixture of present manufacturing, near-term exercise by way of DUCs and long-term progress by way of undeveloped upside”.
Elk Vary chief govt Charlie Shufeldt commented, “We stay dedicated to increasing our portfolio with high-quality royalty property in confirmed basins”.
- Advertisement -
“The DJ Basin presents a few of the greatest operator economics within the US, and this acquisition positions us to capitalize on each near-term money move and long-term improvement potential”, Shufeldt added.
Elk Vary, whose enterprise is the acquisition of mineral and royalty stakes in United States basins, mentioned it now has over 300,000 web royalty acres and stakes in additional than 23,500 producing wells.
Concurrently Elk Vary introduced the launch final month of Elk Vary Royalties III, a brand new platform fashioned with present companion NGP Vitality Capital Administration.
El Vary mentioned it has deployed over $1.2 billion in capital since its launch 2020.
Final month Occidental introduced two agreements to divest a number of property within the Permian Basin and the Rocky Mountains to undisclosed consumers for a mixed value of $1.2 billion as a part of its debt administration plan.
The sale, anticipated to shut this quarter, entails stakes not included within the Houston, Texas-based firm’s near-term improvement plan, Occidental mentioned February 18.
“The ensuing proceeds can be utilized to the corporate’s remaining 2025 debt maturities”, the hydrocarbon and chemical producer mentioned.
Billionaire Warren Buffett-backed Occidental mentioned it had achieved its near-term debt reimbursement purpose of $4.5 billion within the fourth quarter of 2024.
Occidental launched a $4.5 billion-$6 billion divestiture program when it introduced its merger with CrownRock LP late 2023. It introduced the completion of its $12.4 billion buy of CrownRock August 1, 2024.
“We have been happy to succeed in the near-term deleveraging milestone within the fourth quarter of 2024, inside 5 months of closing the CrownRock acquisition, and 7 months forward of our purpose”, commented president and chief govt Vicki Hollub.
“The transactions introduced in the present day proceed to high-grade our portfolio and speed up the progress towards reaching each our medium-term stability sheet deleveraging goal and shareholder return pathway”.
The corporate mentioned, “Occidental will proceed to advance deleveraging by way of free money move and divestitures”.
It owed $1.14 billion in present maturities from long-term debt as of the top of 2024. Occidental accrued complete present liabilities of $9.52 billion, in keeping with annual outcomes it filed with the Securities and Alternate Fee.
It ended the yr with $2.13 billion in money and money equivalents, whereas its complete present property stood at $9.07 billion.
To contact the writer, e mail jov.onsat@rigzone.com
What do you assume? We’d love to listen to from you, be part of the dialog on the
Rigzone Vitality Community.
The Rigzone Vitality Community is a brand new social expertise created for you and all vitality professionals to Converse Up about our business, share data, join with friends and business insiders and have interaction in an expert group that can empower your profession in vitality.
