IRVING, Texas, Aug. 10, 2020 /PRNewswire/ -- HomeBound Resources, LLC, announced today the company has completed a $4.4 million acquisition in Texas' Midland Basin—part of the greater Permian Basin. The acquisition spans Martin, Reagan, Lea, Glasscock, and Midland Counties, and includes 55 drilled wells and 106 acres of proven undeveloped reserves (PUDs) with roughly 50 locations at varying depths. The acquisition was made at a significant discount to its estimated pre-COVID-19 valuation and demonstrates HomeBound's ability to acquire premium assets at a time when some energy operators are struggling due to depressed oil prices.
"At HomeBound, we understand that energy price fluctuations are inevitable and try to price these events into our acquisitions. As an opportunistic investor, we seek opportunities from distressed sellers, not distressed assets," said Stefan Toth, CEO of HomeBound Resources. "Our value-investing strategy helps position us in a manner that can withstand volatility. Furthermore, with reduced demand brought on by COVID-19, we've taken extra measures to increase our storage capacity, enabling us to continue production while waiting for prices to rebound."
The acquisition was made on behalf of an energy-focused investment fund, sponsored by HomeBound and offered through Resolute Capital Partners, that invests in productive regions with known oil and gas fields that are too complex for small companies and not large enough for many public companies. HomeBound estimates the acquisitions' average lifting cost is below $15 per barrel, which mirrors many of its other operating wells and enables HomeBound to be profitable and make opportunistic acquisitions during periods of reduced prices.
"HomeBound Resources has been an exceptional partner for our energy platform, and we are pleased with their efforts to effectively manage their energy portfolios," said Thomas Powell, senior managing partner and founder of Resolute Capital Partners. "Their disciplined approach to identifying viable opportunities for investors while incorporating highly effective risk management practices throughout their business, has cemented them in the industry as a leader among small energy operators."
About HomeBound Resources HomeBound is a Texas-based corporation involved in primary and secondary production, acquisition, development, and exploration of oil and gas projects in Texas, Louisiana, New Mexico, and Oklahoma. HomeBound's team of business professionals, engineers, geologists, and geophysicists has over 386 years of combined oil and gas experience and over 100,000 acres under management.
About Resolute Capital Partners Resolute Capital is a private equity firm with offices in San Francisco, Dallas, and Minneapolis. It employs a seasoned executive team that has placed more than $3 billion in institutional-grade and private securities investments throughout their careers. Resolute Capital contributes professional expertise and multi-level support towards companies that help them realize their vision in structuring transactions and offers proven management techniques that yield flexibility and opportunity. By partnering with issuers beyond Wall Street, Resolute Capital is bringing capital to worthy projects.