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Permian Resources (NYSE:PR) said Monday it agreed to acquire 27.5K net acres in the Barilla Draw field of the Delaware Basin in Texas and 2K net acres in the New Mexico Delaware Basin, with ~15K boe/day of production, from Occidental Petroleum (OXY) for $817.5M.
Permian Resources (PR) said the acreage position is contiguous to its existing positions in both Texas and New Mexico, and the acreage has minimal future drilling requirements and is 99% held by production.
To fund the deal, Permian Resources (PR) said it is launching an underwritten public offering of 26.5M common shares and a concurrent senior notes private placement offering of $750M.
Permian Resources (PR) also estimated its average daily production volumes during Q2 at 152.1K-153.6K bbl/day and capital expenditures at $511M-$522M.
Occidental (OXY) also announced additional sales with $152M in total purchase price proceeds, bringing total YTD proceeds of closed or announced divestments to $970M.