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
Piper Sandler Marketed Map - Stronghold Energy II Permian Central Basin Platform Divestiture

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.