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  • Data analysis Parsley Acquires Midland Basin Assets for $2.8 Billion

    Parsley Energy has entered into an agreement to acquire certain undeveloped acreage and producing oil and gas properties in the core of the Midland Basin from Double Eagle Energy Permian LLC for an aggregate purchase price of approximately $2.8 billion.Upon completion, the pending acquisition will add...

    Parsley Acquires Midland Basin Assets for $2.8 BillionData analysis
    Headlines, Global Deals

    Parsley Energy has entered into an agreement to acquire certain undeveloped acreage and producing oil and gas properties in the core of the Midland Basin from Double Eagle Energy Permian LLC for an aggregate purchase price of approximately $2.8 billion.

    Upon completion, the pending acquisition will add approximately 71,000 net acres to the Parsley's Midland Basin acreage portfolio, bringing total Permian Basin net acreage to approximately 227,000 acres.

    Acquisition highlights:

    • Approximately 71,000 net leasehold acres
    • Estimated net production of approximately 3.6 MBOE/d as of 1-Jan-2017
    • 23 drilled uncompleted wells, variously targeting the Lower Spraberry, Middle Spraberry, Wolfcamp A, and Wolfcamp B formations, with an average lateral length of approximately 8,400 ft, valued at approximately $75-$100 million in aggregate
    • Approximately 3,300 net horizontal drilling locations, including approximately 1,800 net locations in high priority target intervals (Lower Spraberry, Wolfcamp A, Wolfcamp B)
    • Average lateral length of approximately 6,600 ft on acquired horizontal drilling locations; more than 40% of acquired horizontal drilling locations have lateral lengths of 7,500 ft or more
    • Operating control on 80% of net horizontal drilling locations
    • Incremental value potential through ongoing acreage trades, bolt-on acquisitions, and working interest buyouts; Double Eagle to assist with asset operation and handoff, as well as acreage trades and purchases after closing

    Consideration consists of approximately $1.4 billion of cash and approximately 39.4 million units of Parsley Energy LLC (together with a corresponding number of shares of Parsley Energy class B common stock) valued at approximately $1.4 billion; Parsley intends to finance the cash portion of the consideration through equity and debt offerings announced concurrently with the acquisition.

    The transaction is scheduled to close on or before 20-Apr-2017.

    View Parsley press release

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