U.S. Energy Expands Permian Basin Footprint Via $390M Acquisition
U.S. Energy Development Corporation, or USEDC – a Fort Worth-based sponsor of energy-related investment programs – has acquired roughly 20,000 net acres in Reeves and Ward counties, Texas, for $390 million. This is the largest single acquisition transaction in the company’s 45-year history.
The acreage includes a substantial proved producing component and multi-year drilling inventory to supplement the firm’s existing footprint in the area and significantly expands its total Permian Basin holdings.
“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,” said Jordan Jayson, chief executive officer and chairman of USEDC. “These factors position USEDC for sustained, efficient growth and reinforce our commitment to delivering long-term value for our partners.”
USEDC plans to run a dedicated drilling rig on the acquired acreage, making this acquisition a key component of USEDC’s 2025 plan to invest up to $1 billion in U.S. oil and gas properties. According to the firm, it deployed about $850 million in operated and non-operated oil and gas projects in the basin in 2024, and it continues to evaluate opportunities that align with its investment strategy and can deliver value to our partners.
“This acquisition checks a number of boxes – proven production, long runway, and meaningful scale in one of the most productive basins in the U.S.,” Matthew Iak, executive vice president of USEDC, told AltsWire. “This is a clear example of how we remain nimble from an investment standpoint. Our ability to shift capital quickly toward high-conviction opportunities is a core strength – and one that allows us to create long-term value for our partners through disciplined execution.”
Concurrent with this acquisition, USEDC completed an increase in the borrowing base and commitments under its syndicated revolving credit facility led by Citibank N.A. previously reported on by AltsWire from $165 million to $300 million. The company said that the upsized revolving credit facility provides it with more financial flexibility to support its continued growth and has a maximum credit amount of $500 million.
“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 capitalize on future growth opportunities,” said Brandon Standifird, chief financial officer of USEDC. “We’re pleased to have strong support from our banking group as we continue our trajectory of strategic expansion.”
Citibank N.A. led the financing syndicate, with TCBI Securities Inc., U.S. Bank National Association, Washington Federal Bank, and KeyBank as joint lead arrangers and bookrunners.
Founded in 1980, USEDC is a privately held exploration and production firm. It has invested in, operated, and/or drilled approximately 4,000 wells in 13 states and Canada and deployed more than $3 billion on behalf of itself and its partners.
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