Mach Natural Resources LP announced on Monday that it will buy certain oil and gas assets in the Anadarko Basin in Oklahoma from privately held Paloma Partners for $815 million in cash.
Mach said the assets have reserves of 31.5 million barrels of oil equivalent (mmboe) and will boost its existing production of about 65,000 barrels of oil equivalent per day (boepd) by roughly 32,000 boepd.
The company noted the acquisition is accretive to both total cash available for distribution and expected cash distribution per unit.
The assets encompass about 62,000 net acres in the Anadarko Basin, one of the most productive US basins and which spans parts of Oklahoma, Kansas, Texas, and Colorado, Reuters reported.
Mach added that it plans to fund the purchase with new debt financing.
Shares of Mach Natural Resources added 0.8% at $17.63 in midday trading on Monday but have fallen 4% year to date.
Contact Sean at sean@proactiveinvestors.com