The Permian Basin continues to see significant shifts in ownership as oil and gas operators refine their asset portfolios. One such transaction involves Scout Energy Management LLC, which has acquired multiple production facilities from ConocoPhillips in Pecos and Reeves counties, Texas. As part of this transition, regulatory filings for air permits have been submitted to the Texas Commission on Environmental Quality (TCEQ) under an Air New Source Review (NSR) Change of Ownership.

Understanding Air Permits in Oil & Gas Transfers

When ownership of an oil and gas facility changes, the new operator must update regulatory permits to reflect the transition. In this case, the permits in question fall under Permit by Rule (PBR), a streamlined authorization process designed for facilities that meet specific emissions and operational criteria. This ensures that environmental compliance remains intact despite operational changes.

The recent filings indicate that Scout Energy Management has assumed control of several facilities, including:

LARIMER BATTERY
ROASTED GOAT STATE UNIT BATTERY
BIG CHIEF 46, 73, and 76 BATTERIES

These assets were previously operated by ConocoPhillips, and the air permit changes were officially completed in March 2025. The regulatory filings include a change in the TCEQ Account ID, ensuring that Scout Energy Management is now recognized as the responsible party for emissions compliance.

Why Air Permitting Matters

Air permits are crucial in the oil and gas industry as they govern emissions limits, operational guidelines, and environmental impact mitigation. The Texas Commission on Environmental Quality (TCEQ) oversees these permits to ensure that production activities adhere to state and federal environmental regulations. Failing to update ownership records could lead to compliance issues and potential operational delays.

By securing the necessary permits, Scout Energy Management not only meets regulatory obligations but also signals its commitment to responsible energy development. The company has built a reputation for acquiring mature, cash-flowing assets and optimizing their operations for long-term sustainability.

Scout Energy Management’s Expansion Strategy

Scout Energy Management is a major player in the upstream energy sector, managing over 22,000 operated wellbores across the U.S. The company’s focus on acquiring and optimizing conventional oil and gas assets aligns with its goal of maintaining steady production while implementing cost-effective operational improvements. The recent acquisition in the Midland Region further strengthens its presence in the Permian Basin, a critical area for U.S. domestic energy production.

ConocoPhillips Looks to Sell Permian Assets

In addition to acquisitions like Scout Energy Management’s recent purchase, the Permian Basin is also seeing notable divestments. ConocoPhillips is currently exploring the sale of some of its Permian shale assets worth over $1 billion. The company is looking to divest non-core assets as it prepares to complete its $22.5 billion acquisition of Marathon Oil by the end of the year.

ConocoPhillips has engaged RBC Capital Markets to facilitate the sale process, which has attracted interest from smaller public and private oil producers. The assets span approximately 55,000 net acres in the Delaware portion of the Permian Basin, with production estimated at 17,000 barrels of oil equivalent per day (boe/d) by the end of 2025.

This move is part of a broader trend where large energy companies streamline their portfolios following major mergers and acquisitions. If successful, the sale would contribute to ConocoPhillips’ plan to raise $2 billion through asset sales, helping to offset the $5.4 billion debt it will assume from Marathon Oil. The outcome of this sale will be a key indicator of ongoing M&A activity in the Permian Basin and could provide acquisition opportunities for emerging players looking to expand their footprint.

As the oil and gas industry continues to evolve, regulatory compliance, including air permitting, will remain an essential component of asset transfers. Scout Energy’s latest move highlights the ongoing consolidation within the Permian Basin and underscores the importance of meticulous regulatory adherence in the energy sector.

For industry professionals tracking mergers, acquisitions, and permitting developments, these updates offer valuable insights into the shifting landscape of Permian Basin operations. Stay tuned as we continue to monitor regulatory filings and corporate strategies shaping the future of oil and gas production in the region.