Brigham Minerals is already demonstrating an appetite for deals and acquired key Delaware Basin acreage, according to a Raymond James analyst. (Source: Shutterstock.com)
After Brigham Minerals Inc. debuted on the New York Stock Exchange in April with a $277.4 million IPO, the company made clear it remains in deal-hunting mode with an announced acquisition across five states.
Brigham Minerals spent $41.3 million in first-quarter 2019 to buy 2,700 net mineral interests, the majority in the Delaware Basin. The acreage is standardized to a 1/8th royalty interest.
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James Freeman, an analyst at Raymond James, said Brigham Minerals is already demonstrating an appetite for deals and acquired key Delaware Basin acreage.
“So far, Brigham is living up to expectations on the acquisitions front by being highly active right from the outset,” Freeman said in a commentary.
Raymond James estimates Brigham Minerals will make about $75 million in acquisitions annually, suggesting that its first-quarter activity will exceed analysts’ base case projections.
In a May earnings report, Brigham Minerals said it purchased the assets from sellers in Texas, Oklahoma, Colorado, New Mexico and North Dakota. Overall, about 90% of the capital went to buy acreage in the Permian Basin (51%) and the Scoop/Stack (39%).
Brigham Minerals also added additional acreage in December for $1.4 million.
Since the end of December, the company has increased its net mineral acreage to 50,000 net acres by adding about 1,900 acres. About 3,619 gross horizontal well are in production.
Brigham Minerals’s acreage is tied into production from more than 100 operators, with its largest producers including Apache Corp., Noble Energy Inc. and Encana Corp.
Darren Barbee can be reached at dbarbee@hartenergy.com.
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