Coterra Energy Inc. purchased Delaware Basin assets from Franklin Mountain Energy and Avant Natural Resources for $3.9 billion. (Source: Shutterstock, Coterra Energy Inc.)
Coterra Energy Inc. has closed $3.9 billion worth of Permian Basin acquisitions, absorbing the assets from Franklin Mountain Energy and Avant Natural Resources in separate deals.
The transaction, announced in November, adds 400 and 550 net locations, mostly within Lea County, New Mexico, primarily targeting the Bone Spring, Harkey, Avalon and Lower Wolfcamp/Penn Shale.
The deals add about 49,000 net acres in Lea County that are contiguous with Coterra’s northern Delaware Basin acreage. The company now holds about 83,000 acres in the Delaware Basin.
Coterra upped the deal in December with an additional 1,650 net royalty acres from Sandia Minerals LLC for $43 million, according to a Dec. 31 Securities and Exchange Commission (SEC) filing. Sandia’s interests are owned by Franklin Mountain Royalty Investments, according to the SEC filing.
The purchase prices are subject to post-closing purchase price adjustments.
Tom Jorden, chairman, CEO and president of Coterra, said the deals closed on schedule due to the hard work of Franklin Mountain Energy, Avant Natural Resources and the Coterra team.
“We expect to immediately hit the ground running,” Jorden said in a Jan. 27 press release.
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