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Case Study: Transformation of the Western Anadarko

In late 2020, Maverick acquired FourPoint Energy, a leading producer in the western part of the Anadarko Basin, and added to its portfolio approximately 700,000 acres spanning Western Oklahoma and the Panhandle of Texas.

Within 90 days, Maverick executed a Transformation to move the assets, producing nearly 50,000 net barrels of oil equivalent per day (Boe/d) at the time of acquisition, to the company’s best-in-class benchmark standards.

Maverick improved the acquired asset’s adjusted EBITDA by $56 million in seven weeks, more than doubling targeted improvement.

Western Anadarko Transformation Sprint Targets

Commencing mid-January 2021, all aspects of the business were overhauled—from production operations to drilling, completions and workovers to general and administrative (G&A) activities. Specific lease operating expense (LOE)-focused initiatives included:

Restructuring labor force and vehicle fleet
Reducing vendor costs
Implementing and leveraging automation and reporting
Overhauling compression and water management strategies
Shutting in uneconomic wells
Overhauling workover planning and execution

As a result of Transformation, first-year improvements included:

$354 million (PV-10) of asset value increase through
- Reduction in operating expense (OPEX) ($258 million)
- Production optimization and debottlenecking ($71 million)
- Bringing economic wells online and recompletion activities ($25 million)
OPEX run-rate reduction of $2.2 million per month (-22 percent)
Base production increase of approximately 5,000 Boe/d (+10 percent)
Operational greenhouse gas (GHG) emissions reduction of 20.5 percent
Total recordable incident rate (TRIR) reduced from 1.3 in 2020 (employee only) to 0.0 (employee and contractor combined)

Western Anadarko Operated Net Pre-Tax Lease Operating Expense

Note. This graph shows OPEX run-rate reduction resulting from operational Transformation.

Western Anadarko Operated Gross Barrels of Oil Equivalent per Day (2-Stream)

Note. This graph shows base production increase resulting from operational Transformation, the effect of which was 100% offset of decline throughout first 12 months of Maverick’s operation.