WildHorse Expands into Eagle Ford
WildHorse Resource Development Corp. has announced they will purchase 111,000 acres in the Eagle Ford Shale region of south Texas.
Related: Wildhorse Goes Public
Houston-based WildHorse, has entered into a $625 million deal to expand its holdings in the Eagle Ford.
The company will purchase 111,000 net acres from Anadarko Petroleum and affiliates of private equity firm Kohlberg Kravis Roberts & Co.. The assets are located in Burleson, Brazos, Lee, Milam, Robertson and Washington counties and had a fourth quarter production of 7,583 boepd from 386 operated wells.
“This transformative acquisition presented us with a strategic opportunity to consolidate our acreage position. With a total of 385,000 net acres [1,558 square km], we have built a premier contiguous acreage base, making us the second largest operator in the entire Eagle Ford trend.”
WildHorse Resource Development Corp. is one of the newest public companies serving the region, having launched its initial public offering for $664 million in December, 2016.
The transaction is expected to close on or around June 30, 2017 with an effective date of January 1, 2017.
First Quarter 2017
Wildhorse reported an 'exciting' first quarter that included an increased average daily production by 18% to 17.6 MBoe/d for compared to 14.9 MBoe/d for the first quarter 2016. Other highlights include:
- Increased Net Income to $20.3 million compared to a Net Loss of $14.2 million for the first quarter 2016
- Raised estimated full-year 2017 production guidance range to 27.0 – 31.0 MBoe/d from 23.0 – 27.0 MBoe/d
- Gathering, processing and transportation expense was $1.7 million, versus $1.9 million in the first quarter 2016.
- Brought online its first Burleson North well and one of the strongest wells to date in the East Texas Eagle Ford and the Altimore #1H