Desert Peak Minerals Announces Acquisitions Of 6,500 Total Net Royalty Acres In The Delaware Basin

DENVER, Dec. 16, 2019 /PRNewswire/ -- Desert Peak Minerals Inc. ("DPM") and its sponsor, Kimmeridge Energy Management Company, LLC ("Kimmeridge"), today announced that DPM has (i) completed multiple acquisitions totaling approximately 2,100 net royalty acres in the Delaware Basin on a 1/8th royalty-adjusted basis ("NRAs") from private, unrelated sellers and (ii) entered into definitive agreements to acquire approximately 4,400 additional NRAs in the Delaware Basin from multiple private, unrelated sellers. The assets being acquired are primarily located in Reeves, Ward, and Loving Counties in west Texas. The closings of the pending transactions are subject to certain conditions agreed upon by the parties, and financial terms were not disclosed.

Expected highlights of these strategic acquisitions, combined with DPM's previously publicly announced acquisition of Desert Royalty Company's ("DRC") Delaware Basin mineral and royalty assets and additional contributions of NRAs by DRC, include the following:

• Further extends DPM's position as the largest Delaware Basin pure-play mineral and royalty company by NRAs, with over 76,500 NRAs across eight counties in west Texas and southeast New Mexico;

• Expected net production of over 9,000 boe/d (inclusive of today's announced transactions);

• Exemplifies DPM's strategy of consolidating high-quality Delaware Basin mineral and royalty assets to drive benefits of scale;

• Further increases DPM's exposure to private (non-federal and non-state) lands in Texas within DPM's existing focus area in the Delaware Basin; and

• Benefit from the ability of the Delaware Basin to compete for capital within E&P company budgets as evidenced by 220 rigs currently running in the basin, representing over 30% of all horizontal rigs running onshore in the United States.

Chris Conoscenti, CEO of DPM, said, "We are pleased to announce the completion of additional acquisitions of core Delaware Basin mineral and royalty interests, as well as the execution of definitive agreements for other sizable acquisitions of such interests. Our exclusive focus on the Delaware Basin provides sellers with the ability to combine their assets into a much larger business that is diversified across the basin, as further demonstrated by these acquisitions."  

Mr. Conoscenti continued, "Despite the challenges in the oil and gas industry generally, the Delaware Basin has picked up an increasing percentage of rigs running in the United States.  Among other factors, this resiliency reinforces our belief that DPM's business will benefit from its focus on the basin."

Ben Dell, Managing Partner of Kimmeridge, said, "We founded DPM to be the leading mineral and royalty company focused on the most actively drilled region in the United States. We expect these acquisitions to further increase our ability to meaningfully capitalize on the scale and quality of the Delaware Basin from an oil and gas development standpoint, while diversifying our position across the basin to maximize our potential exposure to that development."

About Desert Peak Minerals Inc.

Desert Peak Minerals was formed in 2019 through the combination of Delaware basin mineral and royalty assets from Kimmeridge and Desert Royalty Company. DPM focuses on investing in and acquiring Delaware Basin mineral and royalty interests, and has built the largest Delaware Basin pure-play mineral and royalty company by NRAs through more than 150 acquisitions.

About Kimmeridge

Founded in 2012 by Ben Dell, Dr. Neil McMahon and Henry Makansi, Kimmeridge is an energy private equity firm focused on making direct investments in unconventional oil and gas assets in the United States. Kimmeridge is differentiated by its direct investment approach, deep technical knowledge, active portfolio management and proprietary research and data gathering.

Forward-Looking Statements

This Press Release contains forward-looking statements based on Kimmeridge's and Desert Peak Minerals' current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words such as "believes," "will," "expects," "anticipates," "intends" or similar words or phrases. No forward-looking statement can be guaranteed. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statement. Any forward-looking statement speaks only as of the date on which such statement is made and neither Kimmeridge nor Desert Peak Minerals undertakes any obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Contact

Carrie Osicka
Chief Financial Officer
720-640-7651

SOURCE Desert Peak Minerals Inc.