QEP Resources recently announced a deal to acquire 27,600 net acres, 10,500 BOE per day of production, and 125 MMBOE of proved and probable reserves. The most common calculation for these deals is the per-acre number, and this comes out to $50,000 per net acre at the purchase price of $1.38 billion. That seems quite steep, but the number becomes more reasonable if you look into the acquisition economics. Paul and Matt dig deeper into the specifics in the video below.
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