Elk Range Royalties Completes DJ Basin Acquisition and Launches Elk Range Royalties III
Elk Range Royalties (“Elk Range”) has announced the completion of a landmark acquisition in the DJ Basin, acquiring a substantial mineral and royalty position spanning approximately 250,000 net royalty acres (NRA) from affiliates of Occidental Petroleum (NYSE: OXY) for $905 million. This strategic acquisition significantly enhances Elk Range’s footprint in one of the premier oil and gas basins in the United States, aligning with the company’s broader strategy of acquiring high-quality royalty assets in core basins.
Expanding Presence in a Premier Basin
The newly acquired assets are actively being developed by some of the most prominent operators in the DJ Basin, including Chevron (NYSE: CVX) and Civitas (NYSE: CIVI). These operators collectively account for more than half of the wells being spud in 2024, providing significant development visibility and a robust pipeline of future activity. The acquisition offers a well-balanced mix of current production, near-term drilling activity through drilled but uncompleted wells (DUCs), and substantial long-term growth potential through undeveloped upside.
Charlie Shufeldt, CEO of Elk Range Royalties, expressed his enthusiasm about the acquisition: “This deal marks a milestone achievement for our team, demonstrating our ability to underwrite and close on large-scale assets. We remain committed to expanding our portfolio with high-quality royalty assets in proven basins. The DJ Basin offers some of the best operator economics in the U.S., and this acquisition positions us to capitalize on both immediate cash flow and long-term development potential.”
The DJ Basin is widely regarded as one of the most economically attractive oil and gas regions in the U.S., offering strong operator economics, a well-established infrastructure, and a history of steady production growth. With a proven track record of successful development, the region is poised to continue its importance as a key contributor to the U.S. energy market.
Launch of Elk Range Royalties III
In addition to the acquisition, Elk Range Royalties is also launching Elk Range Royalties III, a new investment vehicle established in partnership with NGP Energy Capital Management (NGP) in February 2025. This marks another important milestone for the company as it continues to expand its portfolio and acquisition capabilities. Since its founding in 2020, Elk Range has deployed over $1.2 billion in capital, underscoring its growing position in the mineral and royalty space. With a robust acquisition strategy in place, the company remains well-funded and poised to continue capitalizing on mineral and royalty opportunities across the U.S.
Elk Range Royalties III will play a crucial role in supporting the company’s ongoing efforts to acquire high-quality assets. The company’s strategy is focused on identifying and acquiring royalty interests in some of the most productive and well-established basins in the country, providing a diversified portfolio of high-potential assets.
Strategic Financing and Legal Support
A team of leading financial and legal advisors helped facilitate the transaction. Gibson, Dunn & Crutcher LLP, Kirkland & Ellis LLP, and Holland & Knight LLP provided legal counsel to Elk Range, while JPMorgan Bank served as the lead arranger for the new credit facilities that support the transaction. Texas Capital (NASDAQ: TCBI) played a key role as the lead arranger for the upsize of the Elk Range Royalties II, LP credit facility. Wells Fargo and CIBC Capital Markets served as financial advisors to the company, with White & Case LLP providing legal counsel to Occidental in the deal.
Elk Range’s Growth and Future Outlook
Elk Range Royalties has seen rapid growth since its inception in 2020. With a portfolio that now includes over 300,000 NRAs and interests in more than 23,500 producing wells, Elk Range has become a significant player in the U.S. mineral and royalty space. The company has built its business by targeting high-quality assets in established basins, which are critical for generating stable, long-term cash flow. Through its partnership with NGP Energy Capital Management, Elk Range benefits from the expertise of a firm with over 30 years of experience in the oil and gas industry.
Looking ahead, Elk Range is well-positioned to continue executing its growth strategy. The DJ Basin acquisition, combined with the launch of Elk Range Royalties III, sets the stage for the company’s continued expansion, both in terms of the scale of its portfolio and its ability to acquire high-value assets.
About Elk Range Royalties
Headquartered in Dallas, Texas, Elk Range Royalties is a leading acquirer of mineral and royalty interests in multiple U.S. basins. Since its inception, the company has grown its portfolio to over 300,000 NRAs, representing interests in more than 23,500 producing wells. Elk Range partners with NGP Energy Capital Management, leveraging their deep industry experience to identify and acquire high-quality assets that provide stable, long-term cash flow. With a robust acquisition pipeline and a strong financial foundation, Elk Range is committed to building a leading portfolio of mineral and royalty assets across the U.S.
