DGC Represents Peacemaker Royalties, LP in its divestment of Midland Basin Minerals & Royalties to 1979 Royalties, LP for $61 Million

A DGC team led by shareholder Sam D. Patranella and associate Max Canon represented Peacemaker Royalties, LP (“Peacemaker”), a portfolio company of EnCap Investments, LP in its divestment of oil & gas mineral and royalty interests in the Midland Basin, West Texas to 1979 Royalties, LP a subsidiary of Endeavor Energy Resources (“Endeavor”), for $61 million in cash. The divested properties cover approximately 5,000 Net Royalty Acres (normalized to 1/8th royalty) (“NRA”) in Martin and Dawson Counties and are primarily operated by Endeavor and Ovintiv Inc., which recently completed its $4.275 billion acquisition of multiple Midland Basin operators including Peacemaker’s affiliated operating company PetroLegacy Energy II.


  • Approximately 5,000 NRA in the northern Midland Basin across Martin and Dawson Counties, Texas
  • The assets contain 218 producing wells with a net present value discounted at 10% per annum (“PV10”) of approximately $35 million
  • An additional ~50 near-term drilled uncompleted wells and permits add 0.8 net wells expected online by December 31, 2023, at an average 1.6% royalty interest per well
  • The properties are only ~15% developed horizontally and contain approximately 500 additional undeveloped locations across seven primary horizontal targets
  • Total PV10 is in excess of $150 million, with an undiscounted value of approximately $425 million generated by net reserves totaling over 9 million barrels of oil equivalent (6:1)
  • Effective date of June 1, 2023

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