Mergers In The Permian -- September 4, 2022

Link here.

Permian Resources: Centennial Resource Development + Colgate Energy Partners.

REI closes deal with Stronghold. 

Permian Resources:

• website;
• SeekingAlpha, September 1, 2022: the largest pure-play E&P company in the Delaware Basin.
• Oil & Gas Journal, September 1, 2022: 

Permian Resources, the combine of the now-closed merger of Centennial Resource Development Inc. and Colgate Energy Partners III LLC, expects to deliver total equivalent production of 140,000-150,000 boe/d in fourth-quarter 2022.

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Ring Energy -- Stronghold

Link here, July 5, 2022:

THE WOODLANDS, Texas, July 05, 2022 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) today announced it has entered into an agreement to acquire the assets of privately-held Stronghold Energy II Operating, LLC and Stronghold Energy II Royalties, LP. 

Stronghold’s operations are located primarily in Crane County, Texas and focused on the development of approximately 37,000 net acres in the Permian Basin’s Central Basin Platform. 

Stronghold is majority owned by Warburg Pincus, LLC, a leading growth investor.

Consideration for the Transaction, subject to customary closing adjustments, consists of:

• $200.0 million in cash at closing;
• $15.0 million deferred cash payment due six months after closing;
• $20.0 million of existing Stronghold hedge liability; and
• $230.0 million in Ring equity based on a 20-day volume weighted average price (“VWAP”) of $3.60 per common share as of June 30, 2022, all of which will be issued to the owners of Stronghold.

Back-of-the-envelope:
$465 million / 37,000 net acres = $13,000 / net acre.

Carlsbad Current Argus, July 12, 2022: