Transaction Details: 

Coterra Energy announced the acquisition of Permian Basin assets from Franklin Mountain Energy and Avant Natural Resources for $3.95 billion (comprised of $2.95 billion in cash and $1.0 billion in Coterra common stock). Franklin is backed by EnCap Investments, and Avant is backed by KKR, marking another significant private equity-backed upstream transaction. 

The acquired assets include approximately 49,000 net highly contiguous acres in Lea County, New Mexico, and are expected to produce 70–80 Mboe/d in 2025, including 40–50 Mbbl/d of oil, representing an oil mix of approximately 50%–71%. The package adds 400–550 net drilling locations, targeting oil-rich formations such as Bone Spring, Avalon, Harkey, and the emerging Lower Wolfcamp/Penn Shale.

Transaction Benefits:

• Accretive Financial Impact: The deal is estimated to be >15% accretive to 2025–2027 per share Discretionary Cash Flow and Free Cash Flow, and accretive to Net Asset Value.

• Enhanced Scale & Inventory: Expands Coterra’s Permian footprint to an ~83,000 net acre focus area and increases Permian net locations by ~25%, with 15+ years of inventory

Permian - Delaware Basin Deal Activity In Last 12 Months