The following information is provided by Detring Energy Advisors. All inquiries on the following listings should be directed to Detring Energy Advisors. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Peacemaker Royalties LP, an affiliate of PetroLegacy Energy, is offering for sale its mineral & royalty interests located in the active fairway of the Northern Midland Basin, primarily underneath PetroLegacy’s recently announced divestiture to Ovintiv. The assets provide an attractive opportunity to acquire:

  • ~5,000 Net Royalty Acres generating $20MM in NTM cash flow (PDP & WIP);
  • ~50 near-term DUC’s and Permits and ~210 “line-of-sight” undeveloped locations in key development trends; and
  • ~380 remaining locations across seven highly economic horizons, including elevated operator NRI, ensuring continued development and long-term cash flow yield.

Peacemaker has retained Detring Energy Advisors as its exclusive advisor relating to the transaction.

Peacemaker map
(Source: Detring Energy Advisors)

Asset Highlights:

  • $20MM NTM Cash Flow | PDP + Near-Term (DUC/Permit)
    • Substantial operator activity generates rapid cash flow growth from high-interest near-term wells
      • 0.8 net wells expected online by EOY (avg. 1.6% RI per well)
    • 218 producing wells (126 Hz) provide a stable cash flow base for growth
      • PDP PV8: ~$40 million.
  • ~5,000 Net Royalty Acres | Under Active Development
    • High-interest units (avg. 1.6% RI) across a highly active focus region
      • Operators continue to progress multi-bench pad development northward in the basin with stellar results
    • Ovintiv’s imminent $4+ billion regional acquisition (including PetroLegacy) sets the stage for high drilling activity
      • Substantial running room versus Ovintiv’s legacy Permian footprint, which is mostly developed
  • ~590 Undeveloped Locations | Assets ~15% Horizontally Developed
    • Line-of-sight development in key operator fairways accelerates growth
      • 3P PV10: $182 million ($422 million PV0)
      • 3P Net Reserves: 9.1 MMboe
    • Seven primary horizontal targets across the Wolfcamp, Spraberry, Jo Mill and Dean horizons
      • Ongoing delineation with multiple recent results across all targets proving superior operator returns.

Bids for this lot are due on July 12. For complete due diligence information on this property, please contact Melinda Faust at mel@detring.com.

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