Claudia Grisales, American-Statesman Staff
Luxe Energy, an Austin-based oil and gas company formed last year, said it has agreed to sell its assets in the southern portion of the Delaware Basin in a $560 million deal.
Luxe is selling the leasehold interests and related assets in the Delaware Basin — a region known for its oil-rich fields extending from southern New Mexico into West Texas — to Midland-based Diamondback Energy Inc.
Luxe is now in talks with its investors to seek out opportunities in new equity investments.
“I am proud of the accomplishments of the entire Luxe organization,” said A. Lance Langford, CEO and president of Luxe Energy. “Our team successfully built a contiguous, world-class leasehold position in the premier Southern Delaware Basin, and subsequently entered into a definitive agreement for the sale of our assets.”
Luxe Energy, which has about 25 workers today, was formed by Langford and Jeff Larson, both former executives of Austin’s Brigham Exploration, which was sold in 2011 in a $4.7 billion deal to Norwegian oil and gas company Statoil ASA.
Luxe was formed in May 2015 with a $500 million backing from Irving-based private equity firm Natural Gas Partners. Luxe says it is in talks with the firm on future investment efforts.
Luxe says its strategy is to acquire unconventional oil properties throughout the U.S.
Luxe’s assets are primarily operated leasehold interests, the majority of which are along the Pecos River in Reeves and Ward counties in West Texas.
Luxe’s deal with Diamondback entails 19,180 net surface acres located primarily in that region. The deal is expected to close in September, but it remains subject to completion of due diligence and other closing conditions, the companies said.
“Diamondback’s accretive entrance into the Delaware Basin represents another strategic milestone for our company,” Diamondback CEO Travis Stice said of the deal. “The acreage sits within the most coveted area of the Southern Delaware Basin and has significant multi-zone and long-lateral potential.”