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Brief -- RSP Permian

RSP Permian Inc. has closed its previously announced bolt-on acquisitions in existing core operating areas in the Midland Basin for an aggregate purchase price of $274 million in cash. The acquisitions include 5,704 net surface acres, or 27,287 net effective horizontal acres, in the Midland Basin with 162 net horizontal drilling locations in five zones (Middle Spraberry, Lower Spraberry, Wolfcamp A, Wolfcamp B and Wolfcamp D, or the Cline Shale). Acquired properties include more than 85 million boe of resource potential based on internal estimates, are 100% operated by RSP, are 100% held by production and have an average royalty burden of 23%. RSP also closed an amendment with lenders under its revolving credit facility that increases the borrowing base 20% to $600 million. No amounts are currently drawn, and the next scheduled borrowing base redetermination is May 1. "Our increased borrowing base enables us to have ample liquidity to execute our drilling plans and pursue strategic opportunities that might present themselves in this volatile period in the market," CEO Steve Gray said.

ISSN © 2577-9877 | ISSN © 2158-8023

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