Ring Energy Inc. has entered a deal to acquire the Permian Basin assets of privately held Stronghold Energy II Operating LLC and Stronghold Energy II Royalties LP in a transaction valued at $465 million.

Comprising about 37,000 net acres, the Stronghold assets are mainly located in Crane County, TX, and target the Permian’s Central Basin Platform (CBP), Ring management said Tuesday. Stronghold is majority owned by private equity firm Warburg Pincus LLC.

The transaction, slated to close in the third quarter, is expected to nearly double Ring’s fourth-quarter 2022 sales volumes versus the midpoint of 2Q2022 guidance to about 18,000-19,000 boe/d (70% oil, 81% liquids). 

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