Permian Basin

Diamondback Energy Inc. has boosted its 2016 production for the second time since July and now expects 2017 output to be up by double-digits, the Permian Basin pure-play said Monday.

Two private equity-backed exploration companies are merging their Permian Basin-focused operations to double down in one of the hottest plays in West Texas.

Resolute Energy Corp. is boosting its holdings in the Permian Basin’s Delaware formation after agreeing to pay $135 million for close to 3,300 net acres in Reeves County, TX.

Calgary-based Encana Corp., which made its name by successfully exploiting onshore natural gas resources, is taking a sharp turn toward capturing liquids and oil, as it targets a 300% jump in cash flow and a 60% gain in production by the end of 2021. Its No. 1 target, the Permian Basin, could see production quadrupling over the period.

Marathon Oil Corp., which is directing an increasing share of its capital spend to Oklahoma’s stacked reservoirs, agreed Monday to sell non-operated energy assets in the Permian Basin for $235 million.

An affiliate of Royal Dutch Shell plc has snagged long-term agreements with two midstream operators to build and operate natural gas gathering systems in West Texas across part of the supermajor’s Permian Basin Delaware acreage.

Energy Hunter Resources Inc. is acquiring Permian Basin acreage in West Texas to target Lower Spraberry and Wolfcamp formations, adding more weight to its emerging U.S. onshore portfolio, the Dallas-based explorer said Wednesday.

Sunoco Logistics Partners LP has struck a $760 million deal to acquire Vitol Group’s Permian Basin crude oil system in West Texas that is set to close by the end of the year. The transaction includes a 2 million bbl crude oil terminal in Midland and an oil gathering and mainline pipeline system in the Midland sub-basin, which includes an acreage dedication from a Permian producer. Also included are Vitol’s oil purchasing and marketing business in West Texas. The acquisition also would provide Sunoco Logistics 100% of SunVit Pipeline LLC, a 50-50 joint venture with Vitol that connects the Midland terminal to the partnership’s Permian Express 2 pipeline. In connection with the acquisition, Energy Transfer Partners LP and Energy Transfer Equity LP, owners of the partnership’s general partner Sunoco Partners LLC, agreed to reduce incentive distributions by $60 million over a two-year period. The financial assistance “provides us with expected accretive economics for this strategic acquisition,” Sunoco Logistics CEO Michael J. Hennigan said.

QEP Resources Inc. has informed federal regulators that its plans to expand in the Permian Basin by purchasing about 9,400 net acres in West Texas for $600 million will be delayed, with the closing date pushed back by about one month.