When Tulsa-based Chesapeake Energy closed a whopping $3.98 billion deal in February to buy Houston-based Wildhorse Resource Development, former Wildhorse CEO Jay Graham already held lofty plans for his next venture. And it didn’t take long to kick those plans into full gallop.
RMR today is studying the next chapter in Graham’s book of E&P successes, this time turning his sights from the Eagle Ford to the Permian Basin. Barely three months after the Wildhorse sale, Graham launched Spur Energy Partners in a multibillion-dollar partnership with investment firm KKR. The partnership kicked off in grand style with Spur Energy acquiring the Permian Northwest Shelf assets of Percussion Petroleum, which included 22,000 net acres, 380 producing wells, and 9,200 BOE per day during the first quarter.
Step one completed to create a large-scale E&P that would follow the successes before it. Step two came today with Spur’s $925 million acquisition of 100,000 gross acres producing 25,000 BOE per day owned by Concho Resources—and a commitment by Spur to keep growing its Permian presence. What do you think?