Maverick Natural Resources acquires Permian Basin producing properties

Maverick Natural Resources has agreed to acquire a number of producing properties located in the Permian Basin from ConocoPhillips.

The agreement is in the amount of $440 million, which is pending subject to final agreements and revisions. The agreement goes into effect on Sept. 1. 

The acquisition is targeted at scaling up Maverick's operations and increasing revenue while also bringing down transportation and other infrastructure-related costs to increase efficiency. 

“This Permian acquisition expands the scale of Maverick’s operations and provides high quality, oil-weighted drilling inventory. The transaction highlights our portfolio focus in Texas and Oklahoma, which follows our recent divestitures of assets in California and Michigan,” Chris Heinson, CEO of Maverick, said.

The move was approved by the board of directors for Maverick as well as its majority equity owner, EIG. Financing for the purchase will be provided by JPMorgan Chase Bank in the form of a $500 million reserve-based loan which also involves the Royal Bank of Canada, Citizens Bank, KeyBank National Association and KeyBanc Capital Markets Inc. 

“Pro forma for the acquisition, Maverick’s production exceeded 78,000 boepd in September 2021. We are conservatively financed with pro forma leverage of approximately 0.5x at closing and expected pro forma 2022 EBITDA of approximately $450 million. We expect to utilize our enhanced scale, operational track record and conservative balance sheet to access capital markets for funding future acquisitions,” Heinson said.

The move is not the first in recent months for EIG, which has been positioning aggressively in the oil and gas sectors. The company recently experienced an overhaul and new leadership, which has investors excited. 

According to the press release, "Maverick is a private oil and gas company headquartered in Houston, Texas. Maverick specializes in the management of mature upstream assets through application of automation and data-science technology while focusing on safety, emissions and environmental responsibility."