Permian Resources (NYSE: PR), based in Midland, TX, is doubling down on its position in the Permian Basin with a $608 million acquisition of prime acreage in southeast New Mexico from APA Corp (parent of Apache).

The deal, announced in Permian’s Q1 2025 earnings report, includes:

13,320 net acres and 8,700 net royalty acres
Over 65% operated, with an average 83% NRI
Expected to close by end of Q2 2025

🔍 Why it matters:
This bolt-on acquisition checks all the boxes for Permian Resources’ strategic playbook:

Adds 100+ gross operated, two-mile drilling locations with high NRIs
Locations boast $30 WTI breakevens and shallow base declines
Results in a low reinvestment rate (~35%), enabling stronger cash flow
Acquisition is expected to be accretive across all key per-share metrics

📈 Strategic Upside:

Enhances working interest in 100+ existing PR-operated locations
Adds non-op acreage that is surrounded by PR assets—ripe for trades and unit consolidation
Further scales Permian’s royalty portfolio, strengthening margins and capital efficiency

💬 Executive Insight:

“This acquisition is a natural fit… acquired during a lower commodity price environment will further enhance short and long-term returns for investors,” said Co-CEO James Walter.