Operators pay high premiums for top tier Permian Acreage
Between Devon and Coterra’s $25 billion merger and over $4 billion spent in the May 20 lease sale covering Lea and Eddy County, acquisition activity in the Permian is heating up showing no signs of cooling. Sources indicate that TRP Energy, one of the largest private operators in the Delaware Basin, is exploring a sale of its Permian assets that could fetch $3 billion. Utilizing TGS Well Data Analytics, we can explore TRP Energy’s assets to determine what makes them an attractive acquisition target. When compared to some of the largest operators in the Delaware Basin, TGS data reveals one of the strongest performing type curves, averaging 690,000 boe per TRP well during their first 10 years.
TRP's current Delaware Basin position is the product of a significant portfolio reshuffling. In late 2024, Diamondback Energy agreed to trade approximately 33,000 net acres in the Delaware Basin, along with nearly $238 million in cash, to TRP Energy in exchange for approximately 15,000 net acres in the Midland Basin. The transaction closed on December 20, 2024, valued at approximately $1.4 billion in total consideration. The swap allowed TRP to concentrate its footprint in Loving and Reeves Counties, Texas, where the company has assembled approximately 35,000 net acres of highly contiguous, high-quality Delaware acreage as seen in Figure 1.
Figure 1. A) TRP Acreage B) TRP and Neighboring Wells
What makes TRP's position particularly compelling is its well-level performance. As seen in Figure 2, TRP ranks among the highest performing operators in the Delaware Basin, with an average type-curve of approximately 690,000 BOE over a 10-year production period, placing TRP near the top of the basin's operator peer group. The company's Loving and Reeves County acreage sits in the heart of the southern Delaware, where stacked-pay targets across the Wolfcamp and Bone Spring formations offer a deep inventory of high-return locations. Figure 3 shows that TRPs nearly 30,000 BOE/d comes primarily from the Wolfcamp, with plenty of room for development in the Bone Springs.
Figure 2. Type Curves of TRP Energy and Top Delaware Basin Operators
Figure 3. TRP Energy Production by Fluid and Formation
The timing of a potential TRP sale aligns with one of the most competitive markets for Permian acreage in recent memory. Devon Energy's blockbuster participation in the May 2026 BLM lease sale underscored the depth of buyer appetite: Devon acquired 16,300 net undeveloped acres in Lea and Eddy Counties for approximately $2.6 billion, or roughly $161,500 per acre. The overall sale exceeded $4 billion in high bids, more than four times the prior New Mexico lease sale record.
At a $3 billion valuation, TRP's acreage would be valued at roughly $85,000 per acre, a discount to Devon's BLM pricing but reflective of the difference between developed private acreage and undeveloped federal leases. Viewed through a production lens, TRP's approximately 690,000 BOE per well average over 10 years across a deep Loving and Reeves County inventory of 215 wells represents a substantial long-term production base for any acquirer. Potential buyers could include large independents seeking Delaware scale, international majors, or private equity platforms building toward their own exit. Figure 1 shows TRP assets closely adjacent to the wells of Occidental and Devon, two massive independents who have demonstrated a willingness to make large acquisitions for quality acreage. Ultimately, a potential buyer would be adding 35,000 acres of high-quality Delaware acreage, and 30,000BOE/d of production at a time when WTI price dances around the $100/bbl mark.
No formal process has been confirmed, and a deal is not guaranteed. TGS will continue to monitor this situation using our Well Data Analytics platform and provide updates as developments warrant.
For more information about TGS Well Data Analytics or to schedule a demo, please contact us at WDPSales@tgs.com.
