The following information is provided by Wells Fargo Securities LLC. All inquiries on the following listings should be directed to Wells Fargo Securities. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Revolution Resources LLC retained Wells Fargo to sell its West Edmond Hunton Lime Unit (WEHLU)–a mature, free cash flow asset in the Midcontinent with high margin inventory and shallow decline, oil weighted production.
WEHLU, comprised of a mostly contiguous 34,000 net-acre leasehold primarily in Oklahoma County, Okla., is a mature conventional development unit that has been revitalized with horizontal development. While the bulk of activity has been centered in North WEHLU, Revolution has successfully expanded the development to South WEHL, according to Wells Fargo.
Highlights:
High-margin, shallow decline, oil weighted production
- Net production of ~9,100 boe/d (48% oil, 77% liquids) from 140 gross producers
- PDP PV-10 of $346 million and next 12-month PDP EBITDA of $94 million
- Shallow next 12-month PDP decline of 20%
- Robust operating cash flow margins of >$36 per boe bolstered by above average lease net revenue interests of 83% and owned saltwater disposal system
- No MVCs or drilling requirements (WEHLU is 100% HBP)
Highly capital efficient and de-risked premium inventory
- Approximately 29,800 of the ~34,000 net acres are unitized in WEHLU
- WEHLU is 100% operated with an average working interest of 98.8%
- Revolution has successfully extended horizontal redevelopment of the Upper Hunton through the completion of 38 horizontal wells
- Average EUR of 66 boe per ft. and IRR of 71%5
- Total of 55 gross Hunton locations (average lateral length > 8,000 ft) remaining with breakevens below $30/bbl, IRRs > 90 %, and payouts of less than two years
- Operational efficiencies and completion design (acid stimulation) combine to generate best in class D&C costs of $3 million to $4 million per well with leading edge D&C costs under $300 per ft.
Initial bids are due Sept. 14. The asset sale transaction is expected to have an Aug. 1 effective date.
A virtual data room is available. For information contact Austin Van Ry, a Wells Fargo associate, at Austin.Van.Ry@wellsfargo.com or 714-308-4146.
Recommended Reading
Investment Firm Aethon Explores Options for $10B US Natgas Assets, Sources Say
2024-11-13 - U.S. energy-focused investment firm Aethon Energy Management is exploring options for its natural gas production and midstream assets that include a sale or an initial public offering at a valuation of about $10 billion, including debt, people familiar with the matter said on Nov. 12.
ONEOK Announces $4.3B Deal to Acquire Remaining EnLink Stock
2024-11-25 - ONEOK’s deal to acquire the remaining stake in EnLink is expected to close in the first quarter of 2025.
Delek Closes $285MM Buyout of Permian’s Gravity Water Midstream
2025-01-03 - Delek Logistics continues to focus on bolstering its Permian Basin infrastructure holdings with the acquisition of Gravity Water Midstream.
Phillips 66 Sells Stake in Gulf Coast Express for $865MM
2024-12-16 - After the sale, the ownership of the line will be split between affiliates of ArcLight Capital Partners and subsidiaries of Kinder Morgan, which owns the operating interest in the pipeline.
DT Midstream Closes $1.2B Midwest Pipeline Acquisition with ONEOK
2024-12-31 - DT Midstream acquired three pipelines with more than 3.7 Bcf/d of capacity that span approximately 1,300 miles across seven states.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.