Continental Resources agreed to acquire FireBird Energy II LLC, a company backed by Quantum Capital Group, in a move that will significantly expand its presence in the Permian Basin and especially in the Cuenca Midland.
The transaction incorporates approximately 54,000 net acres to Continental Resources’ position and adds assets that currently produce close to 32,000 barrels of oil equivalent per day (boepd) of the total volume, approximately 69% corresponds to oil.
Thus, the purchase of FireBird reinforces an expansion strategy that has led Continental to increase its surface area in the Permian by more than 40% during the last 14 months.
FireBird brings production and drilling inventory to Midland
The assets included in the acquisition comprise approximately 147,000 net acres of resources distributed across more than six overlapping fields. Continental will also have operational control of approximately 95% of the acquired area.
The portfolio incorporates 307 gross development locations under own operation, an inventory that expands the company’s drilling options within one of the main oil-producing regions in the United States.
Furthermore, the proximity of these assets to Continental’s existing operations can facilitate more integrated development planning. Greater territorial continuity allows for the coordination of infrastructure, drilling, and production across larger areas.
Continental Resources accelerates its expansion in the Permian Basin
Continental Resources President and CEO Doug Lawler noted that the Permian Basin it is a fundamental part of the company’s portfolio and highlighted the complementarity of FireBird’s assets with the existing position.
The operation continues Continental’s growth in the Permian region, which has gained more weight within its portfolio compared to other areas historically associated with the company, such as Bakken.
Furthermore, this expansion coincides with a prolonged consolidation process among oil and gas operators in the Permian Basin. In recent years, several companies have sought to increase the continuity of their well extensions and add drilling capacity through acquisitions.
The acquired production has a strong oil component.
One of FireBird’s main attractions is the composition of its production, which is approximately 69% of the current 32,000 boepd corresponding to oil, giving Continental a production base with a predominance of crude since the closure of the operation.
Added to this is the presence of several overlapping deposits, a feature that allows for the evaluation of different productive zones within the same area and expands long-term development alternatives.
The combination of existing production, new drilling locations, and a large-scale operated position can also create opportunities to improve capital efficiency and optimize infrastructure.
FireBird was backed by Quantum Capital Group
FireBird Energy II has been backed by Quantum Capital Group since 2023, the alliance was geared towards strengthening a platform of scale in the Midland Basin and developing assets with a focus on operational efficiency and value creation.
Travis Thompson, CEO of FireBird, highlighted the company’s growth and noted that Continental has the operational capacity to continue developing its assets. Quantum, for its part, indicated that FireBird has built a large-scale portfolio in Midland over the past few years.
The acquisition is scheduled to close in September 2026.
Continental expects to complete the acquisition of FireBird in September 2026, once the usual closing conditions are met.
Once the transaction is completed, the company will have a larger and more continuous presence in the Permian Basin, as well as greater oil production and development inventory.
The operation thus reinforces Continental Resources’ commitment to unconventional resources in the United States and increases the importance of the Permian Basin within its long-term growth strategy.
Source: Pipeline & Gas Journal
Photo: Shutterstock
