Vital Energy expands in Permian Basin with deals valued at $1.17 bln - Reuters
Vital Energy expands in Permian Basin with deals valued at $1.17 bln | Reuters
Vital Energy expands in Permian Basin with deals valued at $1.17 bln
A pumpjack is shown outside Midland-Odessa area in the Permian basin in Texas, U.S., July 17, 2018. Image taken July 17, 2018. REUTERS/Liz Hampton/File Photo Acquire Licensing Rights
Sept 13 (Reuters) - Vital Energy has signed agreements valued at about $1.17 billion to expand its acreage in the Permian Basin, where dealmaking is gathering pace as drillers tap the largest U.S. oil patch to quickly replenish their depleting reserves.
The deal will increase the company's current production by about 35,000 barrels of oil equivalent per day (boepd), Vital said on Wednesday.
Permian is a prime target for producers looking to increase their inventory. The shale patch, which lies between Texas and New Mexico, has the necessary infrastructure and is known for high productivity and large undeveloped reserves.
Vital in May also acquired Permian assets of Forge Energy II Delaware, an EnCap portfolio company, in a $540 million all-cash deal.
The deals announced on Wednesday, with the affiliates of Henry Energy and Henry Resources, Tall City Property Holdings III and Maple Energy Holdings, are expected to close in the fourth quarter, Vital said.
It will be funded by a combination of sales of stocks and securities, and borrowings.
U.S.-listed shares of Vital were down 2.4% in extended trading.
Reporting by Seher Dareen in Bengaluru; Editing by Sriraj Kalluvila and Devika Syamnath
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Related Knowledge Center: Methane
As the production of natural gas from shale fields has expanded, so have methane emissions. U.S. methane emissions grew 27 percent from 1990 to 2009, according to the Energy Information Administration. Methane contributes about 10 percent of all U.S. greenhouse gas emissions and is 25 times more potent a greenhouse gas than carbon dioxide.