Houlihan Lokey Advises Element Petroleum III

Houlihan Lokey is pleased to announce Element Petroleum III, LLC’s (Element) sale of its oil and gas assets located in Martin County, Texas. Houlihan Lokey advised Element in all aspects of marketing, structuring, and negotiating the divestiture. The transaction closed on March 20, 2024.

Element is a privately owned independent exploration and production company headquartered in Midland, Texas.

The company’s strategy focuses on "early play" entry, de-risking drilling inventory, and expansion/development with ultimate monetization.

Consistent with this strategy, the assets in Martin County, Texas, include an established production base and substantial de-risked development drilling inventory located in the Northern Midland Basin of the Permian.

This divestiture represents Element’s third successful sale of Permian Basin oil and gas assets in the past 17 years. The transaction is highlighted by robust interest from a broad range of high-quality public and private buyers and illustrates the breadth of Houlihan Lokey’s relationships within the upstream A&D universe.

Houlihan Lokey acted as the exclusive financial advisor to Element for all aspects of this transaction.