Legacy Reserves LP acquires Permian basin properties from Concho Resources for $520 million
MIDLAND -- Legacy Reserves has entered into an agreement to purchase Permian Basin oil and natural gas properties from Concho Resources Inc. for $520 million in cash, subject to customary purchase price adjustments.
The properties have estimated proved reserves of approximately 25.6 MMBoe, 71% of which are proved developed producing ("PDP"), 14% are proved developed non-producing, and 15% are proved undeveloped. Proved reserves are approximately 90.5% operated, and estimated to be 62% oil and 38% natural gas. Estimated PDP production from the current 1,584 producing wells is 5,238 boed for the three months ending March 31, 2013. 2013 estimated cash flow from operations of approximately $80 million.
Cary Brown, Chairman, President and CEO, commented, "We are very excited to announce this landmark acquisition of Permian Basin assets from Concho. These assets are in some of the most prolific fields in the Permian Basin and contain proved reserves that are largely PDP, making them well-suited for our MLP model. We have identified a significant number of attractive development projects, and believe we will find additional opportunities to improve production as we have consistently done in the past. Because the assets are essentially in our backyard, we expect to benefit from our operational expertise and existing field-level infrastructure."
Legacy Reserves is an independent oil and natural gas limited partnership headquartered in Midland, Texas, focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin, Mid-Continent and Rocky Mountain regions of the United States.