At 44.1 MBOEPD, Endeavor Energy Resources is a private name which stands large in the Midland Basin
The Permian Basin continues to be the hottest basin in the country, with companies piling in and investors willing to give them premium multiples. The play has become so desirable that general reading about the industry often feels like you’re sifting through “Permian News” and “Other.” But with all the capital that has flooded into the region over the last few years, it is easy to forget that some names have been in the basin for much longer than the current cycle.
With more than 35 years in the Midland Basin, Endeavor Energy Resources is one of the largest private names in the larger Permian region. The company holds over 300,000 net acres in the Midland and was one of the most active drillers with 98 permits in the basin in September, putting it just behind Pioneer Natural Resources and XTO in the region.
The company recently updated its website and said that its 529,000 net acres in the Permian Basin produce 44.1 MBOEPD. With that level of production, the company is reporting more production than a number of major public names in the basin including Resolute Energy and Centennial Resource Development, which reported 22.6 MBOEPD and 34.7 MBOEPD in their Q3 financials, respectively.
Given that public peers in the Permian average $123,629 of enterprise value per flowing barrel of production, Endeavor could have an enterprise value of $5.5 billion based on its production. While still smaller in terms of size and production than companies such as Diamondback Energy and Concho Resources, Endeavor is a major player in the basin.
Endeavor CEO Chuck Meloy told Reuters in February of last year that the company was considering an IPO as one option for financing. With a handful of transactions announced in the opening days of 2018, it seems possible that Endeavor could explore a public offering again this year.
Investors continue to give companies with strong Permian positions a premium multiple to their peers, and Endeavor has the benefit of building up a position in the most sought-after play in the country over the course of several decades, not just while acreage multiples have been sky-high with other E&P companies trying to enter the region.
