DALLAS--(BUSINESS WIRE)--Elk Range Royalties, LP (“Elk Range”) is pleased to announce it has acquired certain Permian Basin royalty interests (“the Acquired Assets”) from an undisclosed seller.
The Acquired Assets include roughly 2,600 core net royalty acres (“NRAs”) evenly split between the Delaware and Midland Basins with most of the interests located in Loving, Reeves, Upton and Midland Counties, Texas and Lea County, New Mexico. There are approximately 250 producing horizontal wells and over 650 remaining undeveloped locations on the Acquired Assets. LTM cash flow on the Acquired Assets was $10.8mm and includes top operator exposure to Devon, Pioneer and Endeavor. Elk Range funded the acquisition through a combination of its equity commitment from NGP Royalty Partners, LP and its credit facility with Texas Capital Bank.
Charlie Shufeldt commented, “We are excited to acquire a core Permian Basin royalty package in a very active market environment. The blend of existing cash flow and line of sight to near-term development make this position ideal for Elk Range and the NGP Royalty Partners.”
Kirkland & Ellis served as legal counsel for Elk Range on the transaction.
About Elk Range Royalties
Elk Range is led by Charlie Shufeldt (CEO), Clinton Koerth (Vice President of Land and Business Development) and Jeff Stewart (Vice President of Engineering). Elk Range manages a portfolio consisting of more than 30,000 NRAs with an interest in over 5,000 horizontal wells across the Permian, Anadarko, Haynesville and DJ Basins under the Elk Range Royalties, Luxe Royalties, 89 Energy II Minerals and Land Run Minerals platforms.
For more information visit www.elkrange.com.
About NGP
Founded in 1988, NGP is a premier private equity firm with over $20 billion of cumulative equity commitments organized to make strategic investments in the energy industry.
For more information visit www.ngpenergycapital.com.
