Anadarko Basin-focused BCE-Mach III LLC is beefing up its natural gas-weighted assets with a deal to add 18,200 net acres and 17 MMcfe/d to its portfolio amid high commodity prices.
The company, a partnership of Houston-based Bayou City Energy Management LLC and Oklahoma City-based Mach Resources LLC, said this week it recently closed on the deal. The acquired assets consist of producing properties primarily across Blaine, Custer and Dewey counties in Oklahoma and include about 4,400 net royalty acres. Financial terms and the seller were undisclosed.
“We remain active and successful in closing acquisitions that fit our profile,” said Mach CEO Tom Ward, who also co-founded Chesapeake Energy Corp. and SandRidge Energy Inc.
“In early 2021, BCE-Mach made a concerted effort to add natural gas reserves to our portfolio. Our last two acquisitions were over 70% weighted toward natural gas while prices have increased more than 80% this year.”
Natural gas prices have risen steadily this year driven primarily by robust demand and low storage injections. On Thursday, the October Nymex contract settled at $4.914/MMBtu.
The announcement follows news earlier this year that BCE-Mach acquired producing properties and processing assets in Texas and Oklahoma from Cimarex Energy Inc. Bayou City managing partner Will McMullen indicated the partnership would continue to grow its Anadarko footprint.
“Our low-leverage profile allows the BCE-Mach enterprise to remain flexible with respect to hedging and shareholder distributions and opportunistic with respect to developmental operations and acquisitions,” said McMullen. “The disciplined approach we’ve employed on all of the above will continue to allow us to efficiently grow our already vast position in the Midcontinent.”
BCE-Mach expects to generate more than $300 million of operating cash flow in 2021.
BCE-Mach III was formed in early 2020 and has since completed four acquisitions. That includes its high-profile acquisition of Alta Mesa Resources Inc. in April 2020. A previous BCE-Mach partnership also acquired a package of Mississippian Lime assets from SandRidge in 2018.
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