RSP Permian completes first part of Silver Hill Energy Partners transaction
RSP Permian has completed the first part of its previously announced acquisitions of Silver Hill Energy Partners and Silver Hill E&P II. The Company closed the acquisition of SHEP I for an aggregate purchase price of approximately $604M of cash and 15M shares of RSP common stock, subject to certain customary post-closing adjustments. RSP anticipates closing the acquisition of SHEP II in the first quarter of 2017 for a purchase price of approximately $646M of cash and approximately 16M shares of RSP common stock, following a shareholder vote to approve the issuance of shares. SHEP I and SHEP II collectively own approximately 68,000 gross, 41,000 net acres in northeast Loving and northwest Winkler Counties, Texas, and at the time of the acquisition announcement had approximately 15 MBoe/d of net production (69% oil, 86% liquids) from 58 wells (49 horizontals) producing from seven horizontal zones.