HOUSTON--(BUSINESS WIRE)--Hilcorp San Juan, L.P. has entered into a definitive agreement to purchase interests in the San Juan Basin from ConocoPhillips.
“We are excited to move into the San Juan Basin and proud to work with ConocoPhillips on a deal that will enhance Hilcorp’s presence in the southwestern United States,” Jeffery D. Hildebrand, chairman and chief executive officer of Hilcorp, said. “Hilcorp has a long and successful history of efficiently investing capital into similar assets to increase production.”
With a vision to become the premier independent energy company in America, Hilcorp’s formula is to grow the company by acquiring and developing conventional oil and gas assets, then leveraging its core competencies and operational expertise to optimize their performance. The company’s proficiency in these areas has resulted in significant growth over the last several years. Most recently, Hilcorp has acquired conventional assets in south Texas and Wyoming.
“When we make a decision to expand, we spend capital to increase production, improve infrastructure and extend the economic life of the asset,” Greg Lalicker, president and chief operating officer of Hilcorp, said. “We look forward to a strong, thriving partnership with the local community and the state of New Mexico, which will benefit significantly from the economic boost our activity will generate.”
The full-year 2016 production associated with the San Juan Basin assets was 124 thousand barrels of oil equivalent per day (MBOED), of which approximately 80 percent was natural gas. The full-year 2017 estimated production associated with the San Juan Basin assets is approximately 115 MBOED, consisting of approximately 80 percent natural gas and 20 percent natural gas liquids.
“The San Juan Basin acquisition fits the profile of the established, conventional assets Hilcorp typically aims to secure and enhance,” Jason Rebrook, president and chief development officer of Hilcorp, said. “In the last five years alone, we have invested heavily in our properties, increasing both reserves and production.”
Hilcorp creates value in the communities in which it operates by providing local jobs, stimulating the economy and supporting causes that benefit local residents. Through its generous corporate philanthropy, scholarship programs, and the exceptional Hilcorp Giving Program, Hilcorp has proven to be an outstanding corporate citizen and philanthropic leader in every community in which it operates. Hilcorp will implement similar programs in collaboration with the communities of northwestern New Mexico, including Farmington, and southwestern Colorado.
Hilcorp cares about doing the right thing, and is committed to conducting operations safely and in an environmentally responsible way.
The transaction is subject to specific conditions precedent being satisfied, including regulatory approval, and is expected to close in summer 2017. Hilcorp San Juan, L.P. is a partnership between Hilcorp Energy Company and The Carlyle Group.
Hilcorp, founded in 1989, is one of the largest privately-held independent oil and natural gas exploration and production companies in the United States. Hilcorp is consistently ranked as one of the top places to work in America by multiple regional and national publications. Headquartered in Houston, TX, with over 1,500 employees, Hilcorp has operations across the United States including the Gulf Coast of Texas and Louisiana, Wyoming, Northeast U.S. and both the Cook Inlet and North Slope of Alaska.
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $158 billion of assets under management across 281 investment vehicles as of December 31, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors. The Carlyle Group employs more than 1,600 people in 35 offices across six continents.