Permian Producers Prioritizing Discipline, Shareholder Returns Amid Crude Oil Retreat

Karthik Revana, Petroleum Engineer with Ralph E. Davis Associates, provides insight into how values of Permian acreage have come at a premium.

"[P]remium values for Permian acreage make a good argument for the basin being the world’s premier oil and gas play. The Concho/RSP deal implied an acquisition cost of $75,504/acre, while Diamondback’s purchase of Energen implied an acquisition cost of $54,977/acre for the 89,000 net Tier 1 acres and $1.5 million each for 3,901 net drilling locations."

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