Permian Resources Corporation has announced an agreement to sell its natural gas and oil gathering systems in Reeves County, Texas, to Kinetik Holdings Inc. The transaction is valued at $180 million, with adjustments expected post-closing. The deal excludes water infrastructure or surface acreage.
James Walter, Co-CEO of Permian Resources, stated, "We are excited to announce another divestiture of non-core assets at a price that is accretive over both the short and long-term, further streamlining our business and driving value for investors." He added that this sale would help the company maintain its focus on cost efficiency in the Delaware Basin.
Will Hickey, also Co-CEO of Permian Resources, noted Kinetik's capability in managing midstream assets: "Kinetik has a strong track-record of operating midstream assets across the Delaware Basin, and we are pleased to partner with them on this transaction. Their extensive infrastructure and logistics expertise will continue to support the development of our high-return drilling inventory."
The sale is anticipated to allow Permian Resources to enhance its sales of residue natural gas at Gulf Coast pricing while minimizing exposure to Waha pricing. The transaction is expected to have minimal impact on cash operating costs and should close in the first quarter of 2025 following regulatory approval.
Jefferies LLC served as financial advisor, with Kirkland & Ellis LLP providing legal advice for Permian Resources during this transaction.
Permian Resources is headquartered in Midland, Texas, focusing on oil and natural gas property acquisition and development in the Delaware Basin. More information can be found on their website.