Vitol’s US upstream company, VTX Energy Partners, LLC (“VTX”), has announced it has agreed to acquire Delaware Basin Resources (“DBR”) and associated surface and water businesses for an undisclosed sum. It is VTX’s first acquisition since the partnership was established by Vitol and VTX last year.
Vitol’s US upstream company, VTX Energy Partners, LLC (“VTX”), has today announced it has agreed to acquire Delaware Basin Resources (“DBR”) and associated surface and water businesses for an undisclosed sum. It is VTX’s first acquisition since the partnership was established by Vitol and VTX last year.
The assets comprise of 35,000 net leasehold acres and 46,000 surface acres across Reeves and Pecos counties in the Delaware Basin, with current daily production of approximately 40 mboepd.
Gene Shepherd, VTX CEO said: “The opportunity to go back to work in the southern Delaware Basin, combined with the opportunity to do so with the DBR asset base and team is very exciting. With Vitol’s unique market insights, expertise and funding capabilities, we expect this transaction will serve as the foundation for growing a highly profitable US lower 48 focused upstream business over the next decade.”
Ben Marshall, Vitol Head of Americas added: “We are pleased to announce the addition of DBR and its related businesses to our US upstream portfolio. We could not have thought of a better partner for these assets than VTX in light of their proven track record. As we have said before, we are eager to continue growing our position in the US Lower 48 as we anticipate US oil to remain an important source of supply to global energy balances.”
J.P. Morgan Securities LLC acted as financing advisor and Vinson & Elkins LLP acted as legal advisor to VTX.
