Permian Resources Corp. (PR) has announced a $608 million bolt-on acquisition from APA Corp., enhancing its footprint in New Mexico’s northern Delaware Basin. The deal adds ~13,320 net acres and 8,700 net royalty acres to PR’s core position in Eddy County, boosting near-term production and providing long-term development upside.
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📌 Key Deal Highlights
| Metric | Value |
|---|---|
| Acquisition Price | $608 million |
| Net Acres | ~13,320 |
| Net Royalty Acres | ~8,700 |
| H2 2025 Production | ~12,000 boe/d (45% oil) |
| Inventory | 100+ gross operated, 2-mile locations |
| Breakeven | ~$30/bbl WTI |
| Base Decline | Shallow |
| Reinvestment Rate | ~35% |
🚀 Strategic Fit: Parkway Asset Expansion
The new acreage is located within PR’s highly productive Parkway asset, where the operator has historically focused on the Second and Third Bone Spring sands and the Wolfcamp X-Y. Co-CEO Will Hickey described additional intervals northward as “underappreciated”, hinting at further upside in Harkey wells and deeper Wolfcamp targets.
“There really is a lot more beyond just those zones… really good targets,” — Will Hickey, Co-CEO
🔁 M&A and Trade-Driven Optimization
PR sees immediate value in the 4,500 non-op acres acquired, planning to trade into operated interests or form new units. The company is already in active trade talks with every relevant Delaware Basin operator, aiming to optimize both legacy and new assets. The acquisition fits a broader pattern of post-consolidation divestitures in the Permian.
“We have meaningful overlap with every operator of scale in the Delaware… this fits right into existing trade discussions.” — Hickey
📉 Capital Discipline: Capex Trimmed, Production Held
PR adjusted its 2025 capex guidance down by $50 million (to $1.9–2.0B), citing cost reductions and strong cash flow performance. Despite the cut, the company maintains full-year production guidance of 360,000–380,000 boe/d and plans to TIL 275 gross wells—down only modestly from 285 forecast earlier.
Metric Q1 2025 Adjusted Free Cash Flow $460 million (record) Drilling & Completion Cost $750/ft (–8% YoY) Cash Costs/boe –4% QoQ
🔭 Outlook: Consolidation and Opportunity
As the Permian’s wave of mega-mergers winds down, PR sees opportunity in smaller bolt-ons and non-core asset sales—especially if prices remain weak.
“In a downturn… you have more motivated sellers.” — Hickey
🧠 Takeaway
Permian Resources’ APA deal exemplifies smart bolt-on strategy in the Delaware Basin—low breakeven inventory, shallow declines, and built-in synergies through trade and consolidation. It reflects a broader trend where capital discipline, operational flexibility, and asset optimization are replacing volume-at-all-costs growth.
For investors and service companies alike, PR’s path forward offers a blueprint for resilient shale development in 2025.
