Riley Exploration Permian, Inc. announced the sale of its New Mexico midstream project to Targa Northern Delaware LLC for a cash purchase price of approximately $111 million.
The sale includes all membership interests in Dovetail Midstream, LLC, a subsidiary of Riley Exploration Permian, Inc.
Dovetail's assets consist of natural gas gathering infrastructure in Eddy County, New Mexico.
Sale Details
Aggregated cash purchase price of $111 million with additional $60 million possible contingent payments over five years.
Strategic Partnership
Enhanced partnership with Targa for flow assurance and development of New Mexico assets, allowing focus on upstream operations.
Future Asset Sale
Anticipated sale of compressor station assets for $10 million in the first quarter of 2026.
- The sale enables Riley Permian to reduce borrowings, pay taxes, and cover transaction costs.
- Focusing on upstream assets can lead to increased development and operational efficiency in the oil and gas sector.
The sale of the New Mexico midstream project marks a strategic move to optimize operations and strengthen partnerships, positioning Riley Exploration Permian for future growth and success.