The Permian Basin continues to attract significant investment, with US Energy Development Corporation (USEDC) announcing plans to deploy up to $1 billion in operated and non-operated oil and gas projects throughout 2025. This marks a substantial increase from the company’s $800 million investment in 2024 and underscores its confidence in the region’s strong drilling economics.
USEDC’s Strategic Growth in the Permian
USEDC, a privately held exploration and production (E&P) company, has steadily ramped up its investments, growing from $600 million in 2023 to $800 million in 2024, and now targeting a $1 billion commitment in 2025. This increase aligns with the company’s strategy of acquiring and developing high-potential properties while maintaining operational efficiency.
Chairman and CEO Jordan Jayson emphasized that despite market volatility, USEDC’s disciplined acquisition and production strategies have delivered solid performance across its portfolio of 2,000+ wells.
Why the Permian Basin?
The Permian Basin remains the top U.S. shale play due to its:
- Strong drilling economics with low breakeven costs.
- Consistent production growth and high returns.
- Established infrastructure supporting efficient operations.
USEDC’s investment strategy focuses on both operated and non-operated ventures, allowing it to maximize opportunities while mitigating risk. The company also noted its ability to evaluate, acquire, and efficiently manage assets, which has contributed to a record year in 2024.
Expansion & Deal Flow
USEDC has demonstrated an aggressive deal-making strategy, with notable growth in recent years:
- 2023: Evaluated over 150 opportunities and closed 19 transactions, deploying $600 million.
- 2024: Reviewed 220+ opportunities and completed 29 transactions, with $800 million invested.
- 2025: Plans to continue expanding acquisitions and capital deployment, with a $1 billion target.
What This Means for the Oil & Gas Sector
This level of investment presents significant opportunities for service providers in the Permian Basin, particularly in drilling, completions, production optimization, and midstream infrastructure. The continued growth of USEDC’s operated and non-operated assets suggests increased demand for oilfield services, equipment, and technology solutions.
As industry players look to capitalize on the Permian’s robust potential, companies offering innovative solutions in enhanced recovery, digital oilfield technologies, and cost-efficient drilling methods could find valuable partnership opportunities with USEDC and other major investors.
Looking Ahead
With its strong financial position, disciplined investment strategy, and deep industry expertise, USEDC is well-positioned to further solidify its presence in the Permian Basin. As 2025 unfolds, all eyes will be on how the company executes its $1 billion investment plan and continues driving growth in the region.
For those operating in the Permian’s oilfield services sector, USEDC’s expansion signals potential new contracts and collaborations. Staying ahead of investment trends like this could be key to securing high-value business opportunities in the evolving energy landscape.
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