Houston-based E&P company Coterra Energy has agreed to buy two Permian Basin asset packages from Franklin Mountain Energy and Avant Natural Resources for a total consideration of USD 3.95 billion, Coterra announced on Wednesday.
The packages include approximately 49,000 net acres concentrated in Lea County, New Mexico, and around 200 kilometres of pipeline and other infrastructures. Coterra expects the new acreage will yield a total equivalent production of 60,000-70,000 bopd.
Coterra will fund the acquisitions with USD 2.95 billion in cash and 40.9 million new shares of common stock valued at approximately USD 1.0 billion. The cash portion is expected to be funded through a combination of cash on hand and borrowings.
“These acquisitions create an expanded core area in New Mexico that plays to Coterra’s organisational strengths. We have been drilling horizontal wells in Lea County since 2010 and are extremely excited with the recent results and future opportunities across the area,” said Tom Jorden, chairman, CEO and president of Coterra.
The transactions are subject to customary terms and conditions and expected to close during Q1 2025.
Source: By theenergyyear.com