Verde Operating, a new venture backed by Carnelian and EnCap, enters the Southern Delaware Basin through an acquisition of Vitol-backed VTX Energy, marking commodity-trader Vitol’s exit from upstream operations.
Transaction
On July 24th, 2026, Vitol announced a deal to divest VTX Energy Partners (VTX) for an undisclosed amount to Verde Operating Company. Earlier in July, Bloomberg reported late-stage talks were ongoing to sell VTX for around $2.3 billion. The scale of the purchase price required multiple capital providers for the deal, with additional equity investments from Chief Capital, HF Capital, Formentera Partners, and other co-investors joining Carnelian and EnCap in the deal. Wells Fargo and BofA Securities are also leading the syndication of a new RBL facility to support the transaction.
Figure 1: Active Horizontal Wells in the Reeves/Pecos/Ward County Southern Delaware Basin, Select Operators
Source: Novi Insights
How VTX was Built
VTX was founded in 2022 by the trading merchant Vitol and the management of ATX Energy Partners – part of the team behind Brigham Exploration (a pioneer in the Bakken that sold to Statoil in 2011) and Brigham Resources (built a Southern Delaware Basin position that it sold to Diamondback in 2017). Vitol’s initial equity commitment was $1 billion, which VTX used to build its operated position in the Southern Delaware Basin through two acquisitions in 2023.
In March 2023, VTX acquired Delaware Basin Resources (operated by PRI Operating, or Patriot Resources), a company backed by Stellus Capital Management, for a reported range of $1.5 – 2.0 billion. VTX took over ~40,000 gross boe/d, 35,000 net acres, and ~240 horizontal wells. In June of that year, VTX disclosed the acquisition of an additional ~3,500 gross boe/d, 12,000 net acres, and ~45 horizontal wells from an undisclosed seller. Operatorship transfer records suggest the seller was Continental Resources, which retained Woodford deep rights on the acreage. VTX has been focused on developing the various Wolfcamp and Bone Spring intervals.
After selling to VTX, the DBR team started Blue Arrow Operating which now operates directly south of the legacy VTX position. Blue Arrow Operating appears to have taken over a development agreement with Black Stone Minerals from Diamondback, which will require 25 gross wells to be brought online from H2/2026 – H1/2027.
The sale represents Vitol’s exit from US shale operations following its 2024 divestment of Vencer Energy in the Midland Basin to Civitas Resources. When Vitol’s US arm announced the Vencer sale they said that they remained committed to deploying capital in upstream, naming VTX or a new platform as the vehicle. No new platform followed.
The Assets
Vitol’s press release states that VTX was producing 60,000 boe/d. Novi Insights data show VTX with ~48,000 boe/d gross production in May 2026 with ~76% oil cut, indicating that VTX likely comes with significant non-op ownership in addition to the operated position.
Taking the rumored $2.3 billion price at face value and allocating it to Vitol’s disclosed production level of 60 Mboe/d results in a multiple of $38,333/flowing boe/d. We estimate the PDP portion of Matador’s recent Paloma acquisition was valued at ~$26,126/flowing boe/d, albeit with only 57% oil cut and a likely steeper base decline. We estimated the PDP PV10 value of Permian Resources’ 2025 acquisition of NM assets from APA Corp at ~$33,500/flowing boe/d for a 41% oil cut at a $60 WTI price deck.
What Comes Next
The VTX position is surrounded by the assets of large operators including Diamondback, Continental, Permian Resources, ExxonMobil, and Chevron. The Southern Delaware Basin area around the Pecos/Reeves/Ward County border is non-core for each of these operators. If Verde wants to scale the position from here, look for it to try to acquire these non-core assets from its neighbors. Each of those companies would have the opportunity to reinvest any non-core proceeds into higher value inventory in their existing portfolios.
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