The Acquired Assets include roughly 2,600 core net royalty acres
Elk Range Royalties announces mineral and royalty acquisition in the Permian Basin. (Credit: John R Perry from Pixabay)
Elk Range Royalties, LP (“Elk Range”) is pleased to announce it has acquired certain Permian Basin royalty interests (“the Acquired Assets”) from an undisclosed seller.
The Acquired Assets include roughly 2,600 core net royalty acres (“NRAs”) evenly split between the Delaware and Midland Basins with most of the interests located in Loving, Reeves, Upton and Midland Counties, Texas and Lea County, New Mexico. There are approximately 250 producing horizontal wells and over 650 remaining undeveloped locations on the Acquired Assets. LTM cash flow on the Acquired Assets was $10.8mm and includes top operator exposure to Devon, Pioneer and Endeavor. Elk Range funded the acquisition through a combination of its equity commitment from NGP Royalty Partners, LP and its credit facility with Texas Capital Bank.
Charlie Shufeldt commented, “We are excited to acquire a core Permian Basin royalty package in a very active market environment. The blend of existing cash flow and line of sight to near-term development make this position ideal for Elk Range and the NGP Royalty Partners.”
Kirkland & Ellis served as legal counsel for Elk Range on the transaction.
Source: Company Press Release