FireBird Energy Acquires Midland Basin Assets from Chevron
Fort Worth-based FireBird Energy LLC has completed an acquisition of operated assets located in the Midland Basin from Chevron U.S.A. Inc. and Chevron Midcontinent LP. The acquisition closed Dec. 30, 2021, with an effective date of Dec. 1, 2021.
Highlights of the acquired asset base and operations include:
- Significant proved developed production (PDP) contribution from acquired assets.
- Bolt-on of approximately 21,000 leasehold acres.
- Low operating cost, oil-weighted, high-margin asset with operating synergies when added to FireBird’s existing assets.
Expected impact on FireBird includes:
- Pro forma for the transaction, FireBird will have more than 72,000 gross acres and approximate 11,500 barrels of oil equivalent (Boe) of daily production.
- Converts 60-plus 1-mile locations to 2-mile locations.
- Significant development upside in four known benches.
“This transaction will be our second major acquisition as we continue to advance our consolidation strategy and enhance our Western Midland Basin footprint with additional scale,” said FireBird CEO Travis F. Thompson. “The acquisition of these high-margin, oil-weighted assets is a complementary addition to our acreage footprint, production, and cash flow base. The acquisition includes approximately 21,000 net acres, 99 percent operated, in Ector, Midland, Crane and Upton counties. We expect to benefit from additional operating synergies when production operations are combined with our base asset.”
FireBird Energy LLC is an upstream oil and gas company focused on the acquisition and responsible development of assets in the Midland Basin. With a strong long-term commitment from its ownership and an innovative and experienced management team in place in both its Fort Worth and Midland offices, FireBird is well positioned to aggressively target and execute on further strategic acquisition opportunities and to develop its properties in a fiscally and socially responsible manner for the benefit of all of its stakeholders. The company made a significant acquisition of producing properties in the western Midland Basin at the time of its founding and presently operates more than 450 vertical and horizontal wells in the Basin.
Tags: Chevron USA Inc., FireBird Energy, mergers and acquisitions, Oil Production, upstream
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