Brigham Minerals, Inc. Announces Highly Accretive Midland Basin Acquisition
Summary
• Subsequent to year-end, the Company entered into a definitive purchase and sale agreement for a high-quality Midland Basin package • Approximately 1,800 net royalty acres in the Midland Basin largely operated by Pioneer Natural Resources and Endeavor Energy Resources • Brigham intends to finance the $15 million cash portion of the purchase price through a combination of cash on hand and borrowings under the Company’s revolving credit facility • December 1, 2021 effective date with anticipated close in early-to-mid April 2022, subject to continued diligence and closing conditions Robert M. (“Rob”) Roosa, Chief Executive Officer, commented, “ I’m excited to announce a large Midland Basin mineral acquisition, which once again checks all the boxes we require for large deals including both near-term cash flow per share and NAV accretion. We remain extremely focused on capturing and creating value through consolidation and are pleased that our disciplined underwriting has been rewarded with acquisitions of over $120 million in the past three months.” (1) Non-GAAP measure. EBITDA yield has important limitations as an analytical tool because it excludes some but not all items that affect net income, the most directly comparable GAAP financial measure. The Company’s primary business objective is to maximize risk-adjusted total return to its shareholders by both capturing organic growth in its existing assets as well as leveraging its highly experienced technical evaluation team to continue acquiring minerals. These include, but are not limited to, continued downturns or delays in resuming operator activity due to commodity price fluctuations, the Company’s ability to integrate acquisitions into its existing business, changes in oil, natural gas and NGL prices, weather and environmental conditions, the timing of planned capital expenditures, availability of and competition for acquisitions, operational factors affecting the commencement or maintenance of producing wells on the Company’s properties, the condition of the capital markets generally, as well as the Company’s ability to access them, the proximity to and capacity of transportation, uncertainties regarding environmental regulations or litigation, global or national health events, including the ongoing spread and economic effects of the ongoing COVID-19 pandemic, potential future pandemics, the actions of the Organization of Petroleum Exporting Countries and other significant producers and governments and the ability of such producers to agree to and maintain oil price and production controls and other legal or regulatory developments affecting the Company’s business and other important factors.