PXD and SM benefit from Eagle Ford sale

dan_s · Post by **dan_s** » Sat Mar 17, 2018 9:33 am

From TPH notes:

Sundance Energy announced the acquisition of 22k net acres in Eagle Ford from PXD and Reliance (PXD's ~50/50 JV partner in the EF) in McMullen, Live Oak, Atascosa and La Salle Counties, including 1.8mboepd for $221.5MM (TPHe $7k/acre). This package represents the 10.5k net acres (at ~50% WI) PXD has marketed for a year, and is separate from the remaining ~59k net acres focused in DeWitt, Karnes and Live Oak Counties for which data rooms will open this year. Good to see this level of undeveloped value as we carried no value for this acreage in our recent PXD EF valuation analysis, representing a positive read-through for other upcoming deals in the basin such as PXD's remaining, larger package, BHP & DVN's (TPHe) position, and potentially SM's acreage further down the road.