Brigham Resources Closes $2.55 Billion Southern Delaware Basin Asset Sale to Diamondback Energy
Austin, TX – February 28, 2017 – Brigham Resources Operating, LLC and Brigham Resources Midstream, LLC (collectively “Brigham Resources”) announced that it has closed the sale of substantially all of its southern Delaware Basin assets for $2.55 billion to Diamondback Energy, Inc. (NASDAQ “FANG”).
Brigham Resources has closed the sale less than four years after receiving its initial private equity commitment in April 2013. The sale to Diamondback included the following assets: 80,185 net leasehold acres in Pecos and Reeves counties, 48 Brigham operated producing horizontal wells accounting for the bulk of its southern Delaware Basin production, 170 miles of natural gas and water gathering and water recycling infrastructure supporting its producing wells, and 5,745 net mineral acres (assuming an average 23% royalty) underlying Brigham Resources’operated leasehold acres or where its ownership will give Diamondback the right to operate.
Brigham Resources Chief Executive Officer Gene Shepherd commented, “Our exceptional management team and staff, with strong financial support provided by our private equity partners Warburg Pincus, Pine Brook and Yorktown, delivered outstanding returns in identifying, capturing and initiating development of a large and highly economic inventory of horizontal drilling locations across multiple objectives in the Permian Basin in Pecos and Reeves Counties, Texas. After a successful exit from the Williston Basin in 2011, and three years of operations in the southern Delaware Basin culminating with this sale to Diamondback, our team looks forward to our next chapter.”
Brigham Minerals President Rob Roosa added, “The minerals sold to Diamondback represent only a small portion of the portfolio that our team has assembled over the past four years, which post-divestiture includes 32,500 net mineral acres in the Permian Basin, SCOOP/STACK, the DJ Basin and the Williston Basin. Brigham Minerals is continuing to actively evaluate and acquire minerals, and has capacity to enter into and rapidly close transactions of significant scale.”