June 20 Reuters Civitas Resources said on Tuesday it would acquire oil and gas operations in the Permian Basin managed by private equity firm NGP Energy Capital Management for 4.7 billion, expanding its operations into the lucrative shale patch.

Under the terms of the transactions, Civitas has agreed to purchase a portion of Tap Rock Resources39; Delaware Basin assets and all of Hibernia Energy III39;s Midland Basin assets.

Both Tap Rock and Hibernia are portfolio companies of funds managed by NGP.

Reuters was the first to report that Civitas was in advanced talks with NGP to buy the Permian Basinfocused assets.

Permian is an obvious target for producers looking to increase their inventory. The shale patch, which lies between Texas and New Mexico, has the necessary infrastructure and is known for high productivity and large undeveloped reserves.

Denverbased Civitas currently operates on more than 500,000 net acres and produces roughly 160,000 barrels of oil equivalent per day boed.

The transactions would increase Civitas39; existing production by 60, the company said.

The acquisition of the attractively priced, scaled assets in the heart of the Permian Basin would lead to increased free cash flow and enhanced shareholder returns, according to Civitas Chief Executive Chris Doyle. We will soon have nearly a decade of priceresilient, highreturn drilling inventory.

High inflation and greater focus on investor returns had limited shale supply growth in the past year,…