The following information is provided by Piper Sandler & Co. All inquiries on the following listings should be directed to Piper Sandler. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Stronghold Energy II is offering for sale its Central Basin Platform assets in the Permian Basin. Piper Sandler has been retained as exclusive financial adviser.
Highlights:
- ~37,000 net acres (~31,000 net leasehold acres, ~6,000 net mineral acres) largely in Crane County, Texas (~97% Average Working Interest / ~88% 8/8ths Net Revenue Interest)
- ~100% operated, ~99% HBP
- Net Production >7,000 boe/d
- March 1 PDP PV-10 of ~$400 million going to PDP PV-10 of ~$475 million by June 1 effective date
- ~500 vertical new drill locations and recompletions targeting various formations including the Glorieta, Upper Clear Fork, Tubb, Lower Clear Fork and Wolfcamp with modern completion techniques
- Average IRR of >500% and ROI of ~8.1x on currently quantified remaining inventory
- Next 12 months EBITDA of ~$200 million
- Next 12 months free cash flow of ~$130 million; Five-year free cash flow of ~$900 million
Process Timeline:
The virtual data room opens week of April 4 with data room presentations from April 11-29. Bid date is targeted for May 17.
Submit questions and inquiries to StrongholdCBP@psc.com or content Robert Urquhart, Piper Sandler manager director, at Robert.Urquhart@psc.com.
Recommended Reading
The Wall: Uinta, Green River Gas Fills West Coast Supply Gaps
2025-03-05 - Gas demand is rising in the western U.S., and Uinta and Green River producers have ample supply and takeaway capacity.
Brookfield Infrastructure Partners Buys Colonial Pipeline for $9B
2025-04-04 - Brookfield Infrastructure Partners LP has agreed to acquire Colonial Enterprises, the owner of the Colonial Pipeline, in a deal valued at $9 billion.
Western Midstream to Build Permian Produced Water Pipeline
2025-02-26 - Western Midstream is investing up to $450 million to expand its produced water infrastructure, including the Pathfinder pipeline to transport produced water to disposal facilities in the Delaware Basin.
Targa Buys Back Bakken Assets After Strong 2024
2025-02-20 - Targa Resources Corp. is repurchasing its interest in Targa Badlands LLC for $1.8 billion and announced three new projects to expand its NGL system during its fourth-quarter earnings call.
Polar LNG Express: North American NatGas Dynamics to Change with LNG Canada
2025-02-21 - The next major natural gas export project in North America has a location advantage with Asian markets. LNG Canada opens up a new pathway that will change the price dynamics for producers.
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.