Permian Resources closes $1.03 billion Ridge Runner deal next to its New Mexico acreage
What's the deal? Permian ResourcesDealroom has a profile for this one. Try Dealroom → closed its $1.025 billion acquisition of EnCapDealroom has a profile for this one. Try Dealroom →-backed Ridge Runner Resources II and an affiliated royalty company on October 30, 2026. The deal adds about 13,000 boe/d of production and roughly 200 net drilling locations in Eddy and Lea counties, directly beside Permian Resources' core New Mexico position.
What's the endgame? The adjacency is the thesis. Permian Resources expects to extend laterals, raise working interest, and run the acreage more efficiently — gains that outweigh the acreage growth alone.
The terms: Alongside the upfront cash-and-commercial-paper payment, the deal carries up to $125 million in WTI-linked payments across 2027 and 2028. Permian Resources says it signed before oil prices climbed — when the 2027 WTI strip sat near $72/Bbl — and used the earnout to bridge the gap between its lower price assumption and the seller's bet on higher oil.
By the numbers: Ridge Runner formed part of roughly 175 transactions in the third quarter that added about 24,000 net acres and 9,000 net royalty acres for about $1.15 billion. Permian Resources expects at least 5% free-cash-flow-per-share accretion under its stated price assumptions.
Why now? The deal fits a run of large, adjoining-acreage purchases in New Mexico's Delaware Basin. In October, MatadorDealroom has a profile for this one. Try Dealroom → closed its $1.255 billion buy of EnCap-backed Paloma, adding more than 156 drilling locations.
What could go wrong? Permian Resources is funding a sizable upfront purchase with cash and commercial paper while sharing some oil-price risk through the earnout. The open question is whether the added inventory earns competitive returns without straining capital allocation.
The signal: Well-capitalised public operators are paying up for bolt-on inventory they can drill with longer laterals, while private-equity-backed sellers increasingly take part of their price in commodity upside rather than cash.
Read more: shaleexperts.com
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