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

A private seller is under contract to purchase the historic Hanging H Ranch located in the Delaware Basin in Reeves and Loving counties, Texas. The seller has retained Detring Energy Advisors to market for sale the associated mineral interests.

The assets offer an opportunity to acquire approximately 7,500 net royalty acres of mineral rights under active development across several high royalty interest units (10%+).

Offers are due on Aug. 24, with anticipated sign and close occurring by Sept. 30.

Highlights:

  • 7,464 net royalty acres (normalized to 1/8th)
    • 90% Reeves County and 10% Loving County
    • 100% Minerals
    • Approximately 19,700 gross leasehold acres
      • 68% HBP
    • Concentrated, high-NRA units leased by top in-basin operators with avg. unit NRI of ~5%
  • About $10 million next 12-month Cash Flow from PDP, DUCs and Permits
    • About 500 boe/d Net Production
      • 30 horizontal producing wells with average about 4.7% Net Revenue Interest
    • Strong near-term cash flow driven by Four DUCs and Nine permits with about 6.2% average Net Revenue Interest
    • 2020E cash flow of about $6 million with anticipated growth to a total  of $12 million in 2021E driven by high Net Revenue Interest DUCs on minerals
    • Total undiscounted cash flow of $591 million generated by about 21 million boe of net reserves ($143 million PV-10)
  • Active Development by Top Delaware Basin Operators
    • Whereas previous HHR ownership partially limited access, Seller will facilitate operators in developing the mineral assets
    • 76 horizontal rigs continue to run in the Delaware Basin with significant near-term on-lease activity identified
    • Ownership concentrated under premier Delaware Basin operators including Concho Resources Inc., Primexx Energy Partners Ltd. Occidental Petroleum Corp. (Anadarko) and PDC Energy Inc.
    • Multi-decade inventory of identified 3rd Bone Spring, Wolfcamp A and Wolfcamp B targets continue to generate strong returns at current strip
Marketed: Private Seller Delaware Basin Minerals Opportunity

Process Summary:

  • Evaluation materials available via the Virtual Data Room on Aug. 10
  • Proposals due on Aug. 24

For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.

Onshore