In light of this progress, I wanted to share with you a few news stories that have caught my attention:
If you look at the shift in the global landscape of where people are investing their dollars, they’re looking more at Texas today than they have in 50 years. For example, the Permian Basin has experienced multi-billion dollar acquisitions with some acreage prices eclipsing $60,000/acre. Concho Resources’ acquisition of Reliance Energy assets for $1.65 billion to increase their position in the Permian Basin was over $40,000 per acre. M&A activity will continue to increase in Texas due to the world-class asset plays, and the ability to put capital to work to quickly develop new production, and generate immediate cash-flow.
New discovery drives further development, requires the building of infrastructure and creates new jobs. Given all the energy investment and activity in Texas, and West Texas specifically, that’s good news for our schools, jobs, roads, state budget and overall economy. It’s exciting to see Texas leading the way as America regains its global leadership in energy.