Civitas Resources said on Tuesday it would acquire oil and gas operations in the Permian Basin from private equity firm NGP Energy Capital Management for $4.7 billion, expanding its operations into the lucrative shale patch.

Under the terms of the transactions, Civitas has agreed to purchase a portion of Tap Rock's Delaware Basin assets and all of Hibernia's Midland Basin assets.

Both Tap Rock and Hibernia are portfolio companies of funds managed by NGP.

Reuters was the first to report that Civitas was in advanced talks with NGP to buy the Permian Basin-focused assets.

Permian is an obvious target for producers looking to increase their inventory. The shale patch, which lies between Texas and New Mexico, has the necessary infrastructure and is known for high productivity and large undeveloped reserves.

The deals are expected to close in the third quarter of 2023.

(Reporting by Mrinalika Roy in Bengaluru; Editing by Shilpi Majumdar)