Continental Energy, the US oil and gas producer, said on Wednesday that it had agreed to buy the Delaware Basin (Delaware Basin) assets of peer Vanguard Natural Resources (PXD.US) for $3.25 billion to expand its business to Texas. The move suggests that the surge in crude oil prices has prompted some US energy companies to trade as they seek to increase production.
Earlier this year, Continental entered Powder River Basin in Wyoming through a small acquisition. The deal with Pioneer Natural Resources gives the company ownership of part of Delaware in the Permian basin, the center of the US shale industry.
"Continental Energy has always been based on a strong corporate strategy dominated by geology," said Bill Berry, chief executive of the company. This situation continues to this day and directly gives us a new strategic position in the Permian basin. "
Andrew Dittmar, senior M & An analyst at Enverus, said: "I think this reflects the need for mainland energy to increase its inventory and the scale challenges in the basin in which it currently operates."
For its part, Vanguard Natural Resources is seeking to sell these assets to simplify its business and reduce debt after two big acquisitions this year. In January, Vanguard Natural Resources bought Parsley Energy, for $4.5 billion, followed by Midland-Basin 's rival DoublePoint Energy for $6.2 billion in May.
Pioneer Natural Resources said the Delaware deal, which included 92000 acres of net land, would account for a pre-tax loss of up to $1.1 billion.
