Desert Peak Minerals Inc.
We acquire, own and manage mineral and royalty interests in the Permian Basin with the objective of generating cash flow from operations that can be distributed to shareholders as dividends and reinvested to expand our base of cash flow generating assets. Our assets are exclusively focused in the Permian Basin. We benefit from cash flow growth through continued development of our mineral and royalty interests, free of capital costs and lease operating expenses. As of June 30, 2021, we owned mineral and royalty interests representing 75,602 net royalty acres (“NRAs”) when adjusted to a 1/8th royalty. Subsequent to June 30, 2021, we completed additional acquisitions that brought our total amount of NRAs to over 104,000 as of September 30, 2021. For the six months ended June 30, 2021, on a pro forma basis the average net daily production associated with our mineral and royalty interests was 8,946 barrels of oil equivalent per day (“BOE/d”), consisting of 4,706 Bbls/d of oil, 16,173 Mcf/d of natural gas and 1,544 Bbls/d of natural gas liquids (“NGLs”). For the month of September 2021, the average net daily production associated with our mineral and royalty interests was 9,189 BOE/d, consisting of 4,685 Bbls/d of oil, 16,851 Mcf/d of natural gas and 1,695 Bbls/d of NGLs. September 2021 production reflects the actual production of our predecessor, which includes production attributable to the assets acquired in each of the Chambers Acquisition, the Rock Ridge Acquisition, the Source Acquisition, the Recent Acquisitions and the July 2021 Acquisition for the full month. Since our formation in November 2016, we have accumulated our acreage position by making 177 acquisitions. We expect to continue to grow our acreage position by making acquisitions that meet our investment criteria for geologic quality, operator capability, remaining growth potential, cash flow generation and, most importantly, rate of return.
As of June 30, 2021, approximately 99% of our NRAs were located in West Texas where there are no federal lands, which means that operators on our acreage are not subject to leasing, permitting, or easement authority from the federal government. The remaining 1% of our NRAs are located in southeastern New Mexico. We believe the Permian Basin offers some of the most compelling rates of return for oil and gas exploration and production (“E&P”) companies and significant potential for mineral and royalty income growth. As a result of these compelling rates of return, development activity in the Permian Basin has outpaced all other onshore U.S. oil and gas basins since the end of 2016. This development activity has driven basin-level production to grow faster than production in the rest of the United States.
(Note: Desert Peak Minerals postponed its IPO on the afternoon of Nov. 4, 2021, just hours ahead of the expected pricing.)
|Address||1144 15th Street Suite 2650 Denver, Colorado 80202|
|Phone Number||(720) 640-7620|
|View Prospectus:||Desert Peak Minerals Inc.|
|Revenues||$60.13 mil (last 12 months)|
|Net Income||$7.41 mil (last 12 months)|
|Price range||$20.00 - $23.00|
|Est. $ Volume||$215.0 mil|
|Manager / Joint Managers||Barclays/ Credit Suisse/ UBS Investment Bank/ Capital One Securities/ Citi/ Evercore ISI/ RBC Capital Markets|
|CO-Managers||Maxim Group/ Stephens/ Tudor, Pickering, Holt & Co./ Tuohy Brothers|
|Expected To Trade:||11/5/2021|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|