Permian Resources Corporation (NYSE: PR) (“Permian Resources” or the “Company”) today announced it has entered into a definitive agreement to sell its natural gas and oil gathering systems primarily located in Reeves County, Texas to Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik”) for a total cash consideration of $180 million, subject to customary post-closing adjustments. The divested natural gas and oil pipeline systems include a combination of both recently purchased and legacy company-owned midstream infrastructure and exclude any water infrastructure or surface acreage.
“We are excited to announce another divestiture of non-core assets at a price that is accretive over both the short and long-term, further streamlining our business and driving value for investors,” said James Walter, Co-CEO of Permian Resources. “The sale of these non-core infrastructure assets will allow us to continue our relentless focus on being the Delaware Basin’s lowest cost operator.”
“Kinetik has a strong track-record of operating midstream assets across the Delaware Basin, and we are pleased to partner with them on this transaction. Their extensive infrastructure and logistics expertise will continue to support the development of our high-return drilling inventory,” said Will Hickey, Co-CEO of Permian Resources.
This transaction will also allow Permian Resources to increase the amount of residue natural gas sold at Gulf Coast pricing over time, further reducing the Company’s exposure to in-basin Waha pricing. Additionally, the Company expects the transaction to have essentially no impact to its best-in-class cash operating costs. The transaction is expected to close during the first quarter of 2025, subject to regulatory approval.
Jefferies LLC acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to the Company in connection with the transaction.
