Texas Pacific Land to buy Permian Basin royalty interests in $286M deal

Texas Pacific Land (NYSE:TPL) said post-market Wednesday it acquired oil and gas mineral and royalty interests in the Permian Basin for $286M in cash.

Texas Pacific (TPL) said the interests span across 7,490 net royalty acres, with more than 80% of the acquired interests adjacent to or overlapping the company’s existing surface and royalty acreage; Exxon Mobil (XOM) and Diamondback Energy (FANG) operate 66% of the acreage.

The acquired assets have current production of 1,300 boe/day (~78% liquids), with strong line of sight to near-term development and production growth, the company said.

“This acquisition significantly expands TPL’s net royalty acreage in the Midland Basin, with the acquired assets located in some of the highest quality subregions prospective for multiple proven formations,” CEO Tyler Glover said.