Elk Range Royalties, LP, a Dallas company with interests in wells throughout Oklahoma’s Anadarko Basin announced it acquired nearly 2,600 acres of Permian Basin royalty interests from an undisclosed seller.
The company stated that the cash flow over the last 12 months was $10.8 million and included “top operator exposure to Devon, Pioneer and Endeavor.”
The land is reported to be evenly split between the Delaware and Midland Basins with most of the interests in Loving, Reeves, Upton and Midland Counties in Texas and Lea County in New Mexico. The acquisition includes nearly 250 producing horizontal wells and more than 650 remaining undeveloped locations.
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.
“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,” stated Charlie Shufeldt, CEO.
Kirkland & Ellis served as legal counsel for Elk Range on the transaction.
Elk Range is led by Shufeldt , 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.
