WildHorse Resource Development Corp. (WRD), Houston, has agreed to acquire 111,000 net acres and associated production from Anadarko Petroleum Corp., The Woodlands, Tex., and affiliates of New York City private equity firm KKR & Co. LP for $625 million.
The acquired acreage, which is 95% held by production, is in Burleson, Brazos, Lee, Milam, Robertson, and Washington counties of Texas by WRD’s existing acreage position. First-quarter 2016 net production from the acreage was 7,600 boe/d, of which 72% was oil and 89% liquids, from 68 Eagle Ford, 299 Austin Chalk, and 19 Buda-Georgetown operated wells.
The new position includes 949 net Eagle Ford locations and proved developed producing reserves of 22.9 million boe, of which 73% is oil and 88% liquids. The deal is effective Jan. 1 and expected to close on or about June 30.
“This transformative acquisition presented us with a strategic opportunity to consolidate our acreage position,” said Jay Graham, WRD chairman and chief executive officer. “With a total of 385,000 net acres, we have built a premier contiguous acreage base making us the second largest operator in the entire Eagle Ford trend. Furthermore, we have done so at prices we believe to be extremely attractive, providing highly economic returns on a full cycle basis.
“WRD’s preacquisition drilling schedule already includes 36 wells immediately adjacent to the acquired acreage.” Graham said. “With the new acquisition, WRD can further optimize pad location and development planning with fewer limitations. As a result, this transaction immediately adds value to our existing program.”
Earlier this year, Anadarko sold 155,000 acres net in the western Eagle Ford to a partnership of Sanchez Energy Corp. and private equity firm Blackstone Energy Partners LP for $2.3 billion (OGJ Online, Jan. 13, 2017).
The moves are part of Anadarko’s effort to refocus its portfolio on the Delaware basin, DJ basin, and deepwater Gulf of Mexico. In its first-quarter earnings report, Al Walker, Anadarko chairman, president, and chief executive officer, said the firm has “largely completed” its divestiture program, ending the quarter with nearly $6 billion of cash on hand.
Contact Matt Zborowski at [email protected].