E Hartstreet LLC: Possible Acquisitions In The Permian

Concho recently stated there was little acreage in the Permian to acquire at a reasonable price.  This shows that operators are focusing on the area, due to very good well results and a stacked payzone.  We believe consolidation will continue.  The upcoming driving season may push Permian operator valuations higher, and this could also increase activity in the basin.  The Delaware Basin is extremely profitable, and with the expectation of costs decreasing faster than in Midland, we believe Delaware Basin economics could match or surpass valuations on a per acre basis.  The chart below provides the activity in Reeves County.

Name

Well Count

CUM Gas 

CUM Oil

OXY USA WTP LP 

72

7,548,237

5,708,539

COG OPERATING LLC 

37

9,882,762

4,789,985

OXY USA INC.

19

1,813,180

1,625,167

THOMPSON, J. CLEO

14

4,792,593

2,331,952

PATRIOT RESOURCES, INC.

12

1,819,197

1,628,389

CENTENNIAL RESOURCE 

11

2,607,557

1,009,181

ROSETTA RESOURCES OPER

8

2,237,934

795,618

PARSLEY ENERGY OPERATIONS

7

925,050

475,207

PRIMEXX OPERATING CORPORATION

7

1,407,558

682,560

BRIGHAM RESOURCES OPERATING

6

1,643,668

887,248

WILLIAMS, CLAYTON ENERGY

6

1,107,492

795,378

JAGGED PEAK ENERGY LLC

4

708,073

716,827

Apache Corporation 

3

247,327

217,298

DIAMONDBACK E&P LLC 

2

131,310

87,188

ARRIS OPERATING COMPANY LLC

1

493,279

82,474

ELK RIVER RESOURCES, LLC

1

246,786

218,139

MDC TEXAS OPERATOR LLC

1

843,243

193,400

SAMSON EXPLORATION, LLC

1

194,673

156,401

Total

212

38,649,919

22,400,951