Langford Energy Partners Enters Midland Basin with Acquisition from Murchison Oil & Gas

AUSTIN, Texas, Jan. 13, 2025 (GLOBE NEWSWIRE) — Affiliates of Langford Energy Partners (“LEP”), a privately held oil & gas operating company, announced today that they have closed on the acquisition of Midland Basin assets from Murchison Oil and Gas, LLC.

Management Comments

Lance Langford, LEP’s CEO, stated, “LEP’s acquisition represents a great opportunity for our team to add to its long history of operating success and delivering value to investors. We will leverage this asset as an anchor for expansion through additional bolt-on acquisitions in the Midland Basin.”

Bud Brigham, the company’s Executive Chairman added, “I’m thrilled that LEP has captured what we believe is a high-quality asset with the ideal profile to complement our stated strategy. On a personal note, it’s exciting to re-enter the area of the Midland Basin where I began my career and drilled my first wells.”

Acquisition Highlights

Approximately 8,000 net acres primarily in Howard, Borden, and Midland Counties, TX
Net production of approximately 7,200 boe/d (72% oil), primarily from 63 operated horizontal wells
Substantial runway of quality, fully delineated drilling locations
Established oil, gas, and water infrastructure, including two owned saltwater disposal wells, to support future production and development
Acquisition closed on December 6, 2024

Financing

LEP funded the acquisition with equity from its flagship fund, Langford Energy Partners I, LP, and senior bank debt from a new credit facility led by Texas Capital Bank.

Advisors

Vartabedian Hester & Haynes LLP, Vinson & Elkins LLP, and Kirkland & Ellis LLP served as legal counsel to LEP.

RBC Richardson Barr served as exclusive financial advisor and Holland & Knight LLP served as legal counsel to Murchison.

Disappointing market reactions followed the June-quarter earnings reports of Tesla TSLA, Alphabet GOOGL, Microsoft MSFT, and Amazon AMZN from 'The Magnificent 7' group, while Apple AAPL and Meta META received more positive feedback. The interpreted downturn may signal tougher times ahead for this elite group, possibly marking the end of their market reign.

Growth Potential Amidst Turbulent Market Sentiments

Despite this, the majority of the 'Mag 7' stocks exhibit robust growth in both revenues and earnings, positioning them as sustainable growth performers in the current market landscape. With most companies showing impressive financial numbers and a positive growth trajectory stretching into the foreseeable future, Amazon's remarkable earnings surge of almost 100% and Alphabet and Microsoft's solid performances reflect the overall positive outlook for these market giants.

Strategic AI Investments and Market Discontent

While the lack of clarity on monetizing significant AI investments has left investors skeptical, the commitment of these companies to enhance AI infrastructure ensures their relevance and leadership in an AI-centric future. Market concerns are primarily due to the perceived ambiguity around the returns on these substantial investments. However, Alphabet's CEO warning about the risks of underinvestment in AI underscores the critical nature of these strategic moves.

Current and Future Growth Expectations

Charts highlighting consensus expectations for the 'Mag 7' stocks portray a promising growth trajectory, with anticipated earnings growth of 33.5%. These projections, combined with a favorable revisions trend in the Technology sector, suggest continued prosperity for key players in the industry.

Insights from Earnings Season and Future Expectations

Recent Q2 earnings reports indicate a positive trend, with S&P 500 members showcasing a notable 11.2% increase in earnings and a resilient 5.5% rise in revenues. As more companies prepare to reveal their financial results, the upcoming reports from industry titans like Disney, Uber, and Shopify will provide further insight into the market's direction.

Historical Context and Future Projections

Examining the historical context of revenue and earnings beats percentages reveals a new low for Q2 revenue beats at 59.2%, emphasizing the unique challenges faced in the current economic landscape. Despite this, the overall outlook remains optimistic, with total S&P 500 earnings expected to climb by 10.5% and revenues by 5.3% from the previous year.

Paving the Way for Future Growth

As the market navigates through uncertain terrains, the strategic investments and growth initiatives undertaken by the 'Magnificent 7' stocks position them favorably for future success. By staying ahead of emerging trends like AI and fostering sustainable growth, these companies are set to maintain their leadership positions in the ever-evolving market landscape.

Insightful Analysis on Revenue Growth Trends Insightful Analysis on Revenue Growth Trends

About Langford Energy Partners

Langford Energy Partners manages a direct-to-LP fund focused on operated oil & gas investments and is led by General Partners Lance Langford and Bud Brigham. Lance Langford and Bud Brigham have demonstrated industry-leading operating and commercial capabilities over more than three decades, having collectively built and managed 11 energy companies responsible for drilling over 1,500 wells across the United States.

For more information, please visit langfordep.com or contact investors@langfordep.com.

About The Brigham Platform

The Brigham Platform is an independent platform of oil and gas companies based in Austin, Texas and led by Bud Brigham. With over 30 years of industry experience, Bud Brigham has founded and successfully built multiple energy enterprises, including three which have successfully IPO’d and three which have had successful exits totaling over $9 billion. The Brigham Platform currently consists of four enterprises, each with a dedicated management team and a unique strategy, collectively aiming to capitalize on the long-term prospects for traditional energy sources while prioritizing innovation, capital discipline, and operational efficiency. Among its enterprises are Atlas Energy Solutions AESI, Brigham Exploration (non-operated oil & gas), Brigham Royalties (minerals & royalties), and LEP (operated oil & gas).

SOURCE Langford Energy Partners

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