MCM Delaware Resources, a subsidiary of MCM Energy Partners, has closed its acquisition of crude oil and natural gas assets from Battalion Oil Corporation, strengthening its position in the core of the Permian Basin.
The transaction advances MCM’s strategy to build a premier, multi-bench development platform in one of North America’s most economic and resilient oil and gas regions. In connection with the acquisition, MCM also entered into a new senior secured credit facility with Valor Upstream Credit Partners II, L.P., a dedicated upstream credit fund managed by Breakwall Capital LP in partnership with Vitol.
The newly acquired assets comprise approximately 6,207 net acres in the West Quito Draw area of Ward County, Texas, in the Southern Delaware Basin. The deal expands MCM’s footprint across multiple benches and adds operated inventory, an established production base, and development upside to its existing position in Ward County, where it is currently drilling and completing wells as part of its Vulcan program.
MCM said it plans to immediately integrate the Battalion assets into its development program, leveraging its technical team, infrastructure expertise, and ongoing drilling and completion operations in the region.
Beyond Ward County, the company continues to advance its position in Dawson County in the Midland Basin, adding incremental inventory to support its broader Permian development strategy.
Advisors on the transaction included Jackson Walker LLP as legal counsel to MCM, Latham & Watkins LLP as legal counsel to Breakwall, and TenOaks Energy Advisors as financial advisor to Battalion.
MCM Energy Partners is a Midland-based independent oil and gas company focused on acquiring, developing, and operating assets across the Permian Basin. Breakwall Capital is an energy-focused asset manager specializing in direct lending capital solutions to middle-market and developing energy companies, with approximately $7 billion committed to energy and related investments across more than 70 transactions since 2014.
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“This acquisition marks a significant milestone for our company. Through this transaction, we are expanding our core position in Ward County and materially increasing our operated inventory. Our focus is on building a scaled development program in Ward County with repeatable drilling opportunities across multiple zones. We believe this asset, combined with our existing program, positions MCM for meaningful production growth and long-term value creation in the years ahead.”
Miles McPherren, Founder And CEO, MCM Energy Partners
“We are excited to partner with MCM on this acquisition and support the continued development of their asset base across both the Midland and Southern Delaware Basins. This financing combines refinancing, acquisition, and development capital, demonstrating our commitment to providing flexible and tailored growth capital solutions to the upstream sector.”
Daniel Flannery, Managing Partner And President, Breakwall Capital
