U.S. Energy Development Corporation (USEDC) has expanded its presence in the Permian Basin by acquiring approximately 20,000 net acres in Reeves and Ward Counties, Texas, for $390m.
The acquisition significantly enhances USEDC's portfolio, adding a substantial proved producing component and a multi-year drilling inventory to its existing holdings in the region.
USEDC plans to operate a dedicated drilling rig on the newly acquired acreage.
This acquisition is a key component of USEDC's 2025 plan to invest up to $1bn in US oil and gas properties. It also marks the largest single acquisition in the company's 45-year history.
In 2024, the company deployed around $850m in operated and non-operated projects in the basin, continuing to seek opportunities aligned with its investment strategy.
USEDC CEO and chairman Jordan Jayson said: "This transaction greatly enhances the overall quality and resilience of our portfolio, supplementing our reserves with additional proved producing assets, adding years of multi-bench drilling inventory, and expanding our operated economies of scale."
RBC Richards Barr advised on the acquisition process, while Willkie Farr & Gallagher provided legal counsel to USEDC.
Concurrently, USEDC increased its syndicated revolving credit facility, led by Citibank, from $165m to $300m, offering significant financial flexibility for growth.
The credit facility, with a maximum amount of $500m, was arranged by Citibank with TCBI Securities, US Bank National Association, Washington Federal Bank and KeyBank as joint lead arrangers.
Sidley Austin served as legal counsel to USEDC on the credit facility.
USEDC chief financial officer Brandon Standifird said: "The upsize of our revolving credit facility in connection with our recently completed acquisition underscores our lenders' confidence in USEDC's disciplined strategy and positions us to capitalise on future growth opportunities.
"We are pleased to have strong support from our banking group as we continue our trajectory of strategic expansion."
Headquartered in Fort Worth, Texas, USEDC has invested in, operated and/or drilled around 4,000 wells in 13 states and Canada. The company has deployed more than $3bn on behalf of itself and its partners.
