(KWES) - Parsley Energy announced on Tuesday that it will be buying assets in the Permian Basin for approximately $2.8 billion.
We're told the company will be purchasing the assets from Double Eagle Energy Permian LLC.
"We are pleased to solidify Parsley's position as a leading Permian operator through our largest acquisition to date," stated Bryan Sheffield, Chairman and Chief Executive Officer of Parsley Energy in a release. "This transaction maintains our focus on core of the core acreage with the most favorable reservoir characteristics and positions us for years of production growth at the low end of the cost curve. The infusion of high quality drilling locations substantially increases our peak production potential and extends our inventory of drilling locations while enhancing the quality of that inventory. We believe this transaction sets us apart from peer companies on the basis of the size and quality of our acreage position in what we consider the most desirable basin in the country."
Parsley announced that the acquisition will add about 71.000 net leasehold acres.
John Sellers and Cody Campbell, Co-CEOs of Double Eagle, commented in a release, "With many possible paths for the next phase in the evolution and development of Double Eagle's assets, we were excited to negotiate a transaction with Parsley given the Company's history of efficient growth and of enhancing the value of its asset base through the same types of creative transactions it took to build Double Eagle's portfolio." Greg Beard, Head of Natural Resources and Senior Partner at Apollo Global Management, added, "On behalf of Apollo and Double Eagle's other financial sponsors, Post Oak Energy Capital and Magnetar Capital, we look forward to working with Parsley Energy as the Company develops the prized assets the Double Eagle team has expertly assembled in the true core of the Midland Basin. We believe Parsley's record of strong operational performance and the Company's complementary asset base make Parsley the ideal company to deliver the tremendous value associated with these assets."