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Laredo to Acquire Midland Asset from Pioneer in $230MM Cash/Stock Deal

Announced Date
September 20,2021
Deal Value $
230,000,000
Net Acres
20,000
Location Count
135
Transaction Type
Property
Buyer
Seller
Price Per BOE $
40,000
Working Interest
80%
Source Documents:
   Source Link
   Source Link
Location
Region
Permian - Midland Basin

Country
United States

State
Texas

County
Glasscock

Play


Production
Production
4,400 Boe/d

Production Mix
59 % Oil


Multiples
Production ($/boe/d)
52,273

$Price/Net Acre
11,500

$Price/Adj. Net Acre
2,700

$/Location
400,000

Adj. $/acre is based on production @40,000 Boe/d

Transaction Details: 

Laredo Petroleum Inc. has agreed to acquire approximately 20,000 net acres in western Glasscock County from Pioneer Natural Resources Co. for approximately $230 million.

Purchase price comprised of $160 million in cash and issuance of 959,691 shares of Laredo common equity to Pioneer. The transaction is expected to close in October 2021.

The leasehold to be acquired is directly adjacent to Laredo's existing western Glasscock leasehold, expanding its oil-weighted core development area in the prolific Midland Basin.

Deal Details:

  • Acreage: 20,000 net acres (80% operated, 98% HBP) in Glasscock County, TX
  • Drilling Locations: 135 gross with average lateral length of 9,700'
  • Production: 4,400 BOEPD (82% liquids, 59% oil)

Maintains current expectations for 2022 activity levels of two drilling rigs and one completions crew.

Laredo CEO Jason Pigott said: "Upon closing this transaction, we will have acquired more than 55,000 net acres of highly productive, oil-weighted inventory in Howard and western Glasscock counties in just two years, fundamentally transforming Laredo. Seven years of inventory across these core areas will enhance our ability to deliver sustainable, long-term Free Cash Flow1 generation and to rapidly deleverage. Through transactions like today's, we continue to demonstrate our ability to integrate premier locations into our operations and enhance our return profile while operating in an environmentally responsible and sustainable manner."

Permian - Midland Basin Deal Activity In Last 12 Months



Other Permian - Midland Basin Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Oct-04-2021 - - Click here Texas  E&P
Aug-16-2021 - - Click here Texas  E&P
Aug-09-2021 - - Click here Texas  E&P
May-10-2021 - - Click here Texas  E&P
May-10-2021 - - Click here Texas  E&P

Price History



Date Deal Headline Price$/acre
Aug-16-2021 Surge Energy Bolts On Midland Basin Assets for $37.5 Million - -
Aug-09-2021 Viper Inks Deal with Swallowtail for Midland Basin Royalty Assets - -
May-10-2021 Laredo to Acquire PE-Backed Sabalo Energy in $715MM Deal - -

Other Pioneer Natural Resources Co. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Apr-01-2021 - - Click here Texas  E&P
Oct-20-2020 - - Click here Texas  E&P
Dec-09-2019 - - Click here Texas  E&P
May-07-2019 - - Click here Texas  E&P
Oct-31-2018 - - Click here Texas  E&P

Other Laredo Petroleum Inc. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
May-10-2021 - - Click here Texas  E&P
May-10-2021 - - Click here Texas  E&P
Oct-23-2020 - - Click here Texas  E&P
Feb-12-2020 - - Click here Texas  E&P
Dec-09-2019 - - Click here Texas  E&P