E&P - Quick Take - Thoughts on TRP and NM Lease Sale

Research evidence excerpt

E&P - Quick Take - Thoughts on TRP and NM Lease Sale

Truist Securities

Equity Research Report May 20, 2026

ENERGY: Energy Exploration &

Production E&P - Quick Take - Thoughts on TRP and

NM Lease Sale

Hart Energy reported TRP Energy (Private) could be exploring a potential sale that could Gabe Daoud fetch $3Bn. Based on Enverus data, the headline price implies PDP value of $857MM,

212-303-4193

Gabe.Daoud@truist.com assuming $40k per flowing Boe and 75% WI on TRP's 1Q26 gross production and

$12MM per our undeveloped location estimate of 175, which screens well above avg $/

location paid in Delaware deals since 2024. However, we note $/location values have Frankie DiGiovanna been increasing over time, most notably Diamondback's acquisition of Double Eagle IV 212-326-3158

Francis.DiGiovanna@truist.com and Coterra's acquisition of Franklin Mountain.

Eric Look TRP Energy exploring options. Private Delaware producer TRP Energy is exploring

212-303-4174 a potential sale for $3B according to a recent Hart Energy report. Recall in Nov. 2024,

Eric.Look@truist.com Diamondback Energy (FANG, Buy) paid TRP Energy $238MM and swapped its Vermejo

asset in the Delaware for TRP's Midland Basin asset. At the time of the deal, the

8 Page Document Vermejo asset included ~33k net acres. Per Enverus, 1Q26 gross production averaged

~28.6 Mboe/d, assuming 75% working interest (WI) and $40k/flowing Boe implies total

PDP value of ~ $857MM. As for locations, based on ~50k gross acres, 1,280 acre

Reasons for this report DSU development, 10 wells-per-section, and gross PDP wells of 135, implies 234

locations remain. Using the same 75% WI implies ~176 net locations. If we assume the