MCM Expands Permian Footprint with Delaware Basin Asset Buy From Battalion
MCM Energy Partners has closed its acquisition of Delaware Basin crude oil and gas assets from Battalion Oil, adding 6,207 net acres in Ward County, Texas, and expanding its operated inventory across the Permian Basin.
(P&GJ) — MCM Delaware Resources LLC, a subsidiary of MCM Energy Partners, has completed its acquisition of crude oil and natural gas assets in the Southern Delaware Basin from Battalion Oil Corporation, expanding its position in Ward County, Texas.
The deal adds approximately 6,207 net acres in the West Quito Draw area and strengthens MCM’s multi-bench development footprint in the core of the Permian Basin. The assets include operated inventory and existing production that MCM plans to integrate immediately into its drilling and completion program.
The acquisition builds on the company’s existing operations in Ward County, where it is actively developing its Vulcan program. MCM said the transaction increases its operated inventory and development runway in the Southern Delaware Basin.
In connection with the closing, MCM entered into a new senior secured credit facility with Valor Upstream Credit Partners II, L.P., a dedicated upstream credit fund managed by Breakwall Capital LP in partnership with Vitol. The financing supports the acquisition and ongoing development activity.
“This acquisition marks a significant milestone for our company,” said Miles McPherren, Founder and CEO of MCM Energy Partners. “Through this transaction, we are expanding our core position in Ward County and materially increasing our operated inventory. Our focus is on building a scaled development program in Ward County with repeatable drilling opportunities across multiple zones. We believe this asset, combined with our existing program, positions MCM for meaningful production growth and long-term value creation in the years ahead.”
MCM also continues to advance its position in Dawson County in the Midland Basin, adding inventory alongside its Ward County development activity.
Daniel Flannery, Managing Partner and President of Breakwall, added, “We are excited to partner with MCM on this acquisition and support the continued development of their asset base across both the Midland and Southern Delaware Basins. This financing combines refinancing, acquisition, and development capital, demonstrating our commitment to providing flexible and tailored growth capital solutions to the upstream sector.”
TenOaks Energy Advisors served as financial advisor to Battalion. Jackson Walker LLP served as legal counsel for MCM, and Latham & Watkins LLP represented Breakwall.