Kevin Krannawitter

You must read thoroughly through this article on cash flow, prices, and debt regarding EQT. The trap being set by selling new wells production at current prices could lead to the company's downfall due to existing debt. To avoid collapse, prices need to increase to a minimum of $3.50 for a successful investment. Interest rates, gas prices, and prudent management are crucial during this challenging period until the market improves. Returning to existing pads and drilling them out to full capacity is essential, due to the substancel cost have been incurred, along with advancing the Data center concept, Toby Rice spoke of, Trans Canada's plan to connect their lines directly to the Data center aligns well with this strategy, they just announced. The shift towards AI-driven centers is the next generation move, leaving behind LNG as prices plummet globally. The USA is poised to lead the industrial revolution in Natural Gas, akin to Coal, Oil, and Steel. Let's learn from past mistakes and avoid the pitfalls seen in the industry from 2008 to 2018. Find more insights in the article:

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The natural gas market remains tightly balanced between supply and demand, continuing to drive higher prices despite unseasonably warm temperatures across much of the U.S., which would typically exert downward pressure at this time of year. According to a report from NatGasWeather.com, the focus is shifting to how U.S. weather patterns may develop in December. The firm notes that if colder-than-normal conditions materialize, current supply surpluses could quickly turn into deficits. However, they also point out that Decembers in the U.S. have been consistently warmer than average in recent years. As of morning trading, natural gas futures have risen by 2.7%.

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The Federal Energy Regulatory Commission (FERC) held its first collaborative meeting with state commissioners yesterday. While more potential solutions are emerging on the transmission side, state and federal regulators collaborated to address key topics, including: ➡️Reliability ➡️Resource Adequacy ➡️Natural Gas-Electric Coordination ➡️Wholesale and Retail Markets ➡️New Technologies and Innovation Ten state commissioners were nominated by the National Association of Regulatory Utility Commissioners (NARUC). Link -> https://lnkd.in/g4x7Tafw Further discussions are expected in upcoming meetings to address and regulate statewide natural gas policies. #ferc #nerc #reliability #planning #transmission

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DEAL ALERT Permian Resources is acquiring Occidental Petroleum's Barilla Draw assets in the Delaware Basin for $817.5 million. The deal includes 29,500 net acres and 9,900 net royalty acres in Reeves County, Texas, and 2,000 net acres in Eddy County, New Mexico. This acquisition supports Permian Resources' strategic growth by adding high-return inventory and significant infrastructure. Occidental aims to reduce its debt, targeting $4.5 billion to $6 billion in asset sales following its CrownRock LP acquisition. Follow me by clicking the "FOLLOW" button on my LinkedIn Profile to keep updated with industry news and new job openings. "SHARE" this post to help expand my reach and my ability to help bring value to your network. Hiring Managers and Executives - We can help identify candidates in Engineering, Geoscience, Land, EHS, Accounting/Finance, and other positions. Please reach out and we can set up a time to talk. https://lnkd.in/gtCWHudP

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Current Pricing: NYMEX Natural Gas Futures: Open: $1.78 High: $1.84 Low: $1.76 Current: $1.81 Weekly and Annual Trends: Week-on-Week: Prices have shown a slight increase from last week's average of $1.75, indicative of emerging bullish sentiments. Year-on-Year: Current prices are moderately lower compared to the same period last year, when prices averaged around $2.10. Market Influences: Supply Dynamics: Today’s estimated production is slightly up at 99.8 Bcf, reflecting stable production levels amidst robust market conditions. Demand Factors: Estimated demand is at 94.5 Bcf, with a notable increase due to cooler temperatures boosting residential heating needs. Storage and Exports: Storage Levels: The latest EIA report indicates a storage injection of 48 Bcf, slightly above the 5-year average for this time of year, leading to a total storage of 2,380 Bcf. LNG Exports: LNG exports remain strong at 11.2 Bcf/D, highlighting sustained international demand, particularly from Europe and Asia. Technical Analysis: Support and Resistance: Immediate support is seen at $1.76, with resistance at $1.85. The market appears to be testing these levels as traders assess weather forecasts and supply stability. Weather Impact: Short-Term Forecast: The upcoming week is expected to see varied temperatures across major consumption areas, potentially influencing demand patterns. Market Sentiment: Investor Outlook: The market sentiment is cautiously optimistic, with traders closely monitoring weather developments and production rates. Future Outlook: Pricing Projections: Analysts expect moderate volatility in the coming weeks with potential upward pressure if cooler temperatures persist longer than currently forecasted.

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🌟 THE One Minute Energy Update for 6-4-24 🌟 #NYMEXDown #PG&EBasisUp #SoCalBasisUp #WeatherBullish #CarbonOffsets 📈 NYMEX Pricing So Far Today: Open: $2.77 High: $2.82 Low: $2.66 Current: $2.67 NYMEX prices are up 📈 approximately $0.15 from 1 week ago. NYMEX Calendar Year Estimates: 2024: $3.00 2025: $3.52 2026: $3.85 Monthly Averages: 2024 (so far): $1.98 2023: $2.73 2022: $6.64 2021: $3.84 We are above the 50-day ($2.09), 20-day ($2.52), and 9-day ($2.64) averages. 📊 Key Levels: Resistance: Starting @ $2.82/$2.89 Pivot: @ $2.72 Support: Starting @ $2.65/$2.55 📉 Basis: Both PG&E CG Basis and SoCal CG Basis prices are up today due to excessive heat away from the coast in California. Prices should correct downward once the heat subsides. Despite the increase, prices are still far cheaper than this time last year and the year before. 📉 Historical Index Averages: PG&E CG 2023: $9.83 PG&E CG 2024: $3.51 (through May) SoCal CG 2023: $10.95 SoCal CG 2024: $3.29 (through May) SoCal Border 2023: $8.14 SoCal Border 2024: $2.65 (through May) 🚢 LNG & NG Exports/Imports: LNG Exports: 12.8 Bcf/D Mexico Exports: 6.9 Bcf Canadian Imports: 5.4 Bcf 🌐 Supply & Demand This Week: Today's Estimated Supply: 104.8 Bcf 7-Day Avg. Supply: 105.98 Bcf Today's Estimated Production: 100.1 Bcf Today's Estimated Demand: 94.2 Bcf 7-Day Avg. Demand: 93.72 Bcf This week’s demand is moving from low to high for the remainder of the week. 🌦️ Weather: NatGasWeather reports most of the US will be near to warmer than normal through Thursday, with highs in the upper 70s and 80s from the Midwest to the Northeast, and upper 80s and 90s elsewhere. A hot upper ridge will build over the western US later this week, while weather systems cool the eastern US. 5-10 day forecast: bearish 10-15 day forecast: bearish 3-month forecast: bullish Summer (July-Sep) forecast: bullish 🛢️ Crude: Current Price: $74.26 Forward Estimates: 2024: $73.60, 2025: $71.03, 2026: $68.31 ⚡ CA Retail Power: CAISO pricing moves up to just over $14 per MWH. 🌍 Carbon Offsets: California and other states will mandate companies to buy carbon offsets starting as early as 2025. Is your company ready? Better to get ahead of the 2025 demand for more options and better prices. We can help. 🌱 THE BOTTOM LINE: Severe heat for inland CA, the SW, and Texas will be intense for the next few days before cooling dramatically. Below normal demand in other parts of the US balances out the increased demand in the West/SW/Texas. 📊 Indicative Fixed Prices for July '24: PG&E CGSOCAL CGSoCal Border (+ $0.51 BTS)1 Month$3.60$4.053 Months$3.85$4.606 Months$4.70$5.3012 Months$4.95$5.4524 Months$5.23$5.95 📅 Summer Strip (July '24 – Oct '24): PG&E CG: $3.85 SoCal CG: $4.40 SoCal Border: $4.00 📅 Winter Strip (Nov '24 – Feb '25): PG&E CG: $5.75 SoCal CG: $6.20 SoCal Border: $5.75 Stay informed and ahead in energy management! 🌟 #EnergyUpdate #NaturalGas #EnergyProcurement #MarketTrends

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M&A chatter lately has it that inventory is scarce, the pool of potential U.S. shale targets are drying up and consolidation is slowing. But deal making may be poised to shift from the recent epicenter of M&A, the Permian Basin to the Bakken, Marcellus and elsewhere. Research firm Rystad Energy said $80 billion worth of North American assets remains on the market, with the U.S. shale sector expected to be the engine driving activity. Shale assets account for 66%, slightly more than $52 billion, of total assets on the market. Some potential deals up for grabs include Bakken-focused Grayson Mill Energy, Uinta-focused XcL Resources, Exxon Mobil's Bakken portfolio, EQT's remaining non-operated Marcellus portfolio and certain Haynesville assets from Shell and BP, Rystad said in an April 28 report. Globally, the first quarter saw the biggest dealmaking tab in five years as deal M&A value crossed the $64 billion threshold. By value, deals were up 145% compared to first-quarter 2023. The primary fuel for M&A: U.S. shale consolidation. For the remainder of the year, Rystad said the industry could see another $150 billion in M&A. “The Permian Basin has dominated recent dealmaking, but other shale plays look set to attract significant investments in the near future, with about $41 billion of non-Permian opportunities on the market,” Rystad said in an April 28 report. In some cases, deals already announced will spawn other deals. Exxon Mobil, Chevron, Occidental Petroleum and Diamondback Energy are set to make divestitures that could “invigorate short-term M&A activity,” Rystad said. With significant recent acquisitions, the companies are planning to divest non-core assets, “paving the way for growth among regional upstream players,” Rystad said. Chevron, for instance, has plans to divest approximately $10 billion to $15 billion worth of assets by 2028. Occidental’s divestiture target ranges between $4.5 billion and $6 billion. “The Permian has been the focal point for M&A activity in recent times, but that focus is waning as available assets in the basin become scarce,” said Atul Raina, vice president of upstream research at Rystad. “But with appetite still strong, deal-hungry players are looking outside the basin for acquisitions. A power shift could be on the cards, with non-Permian assets taking center stage in the future North American deals pipeline.” Outside of the U.S., deal activity has remained strong in the first quarter of 2024, with $10.5 billion changing hands at a 5% year-on-year increase, Rystad reported. Upstream majors BP, Chevron, Shell and TotalEnergies collectively accounted for $5.2 billion in deals. Rystad said demand for gas-producing resources has been high, representing about 66% of total resources bought and sold in first quarter 2024. 

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The One Minute Energy Market Review - April 26, 2024 📉 Energy Market Trends: NYMEX Natural Gas: Current pricing dynamics show a significant decrease, with today's trading opening at $1.62, peaking there, and hitting a low of $1.48 before stabilizing around $1.58. This represents a decrease of $0.15 from last week and $0.60 from last year. Forward Estimates: Predictions for coming years show an upward trend with 2024 expected at $2.50, 2025 at $3.53, and 2026 reaching $3.98. 🔍 Market Analysis: Averages: Current prices are below the 9-day, 20-day, and 50-day averages, reflecting a bearish sentiment. Technical Indicators: Resistance is forming at $1.74 and $1.84 with support levels at $1.64 and $1.60. 🔄 Trade & Supply Dynamics: LNG and Natural Gas Trade: Exports and imports are stable with LNG exports at 11.5Bcf, Mexico exports at 6.3Bcf, and Canadian imports at 5.5Bcf. Production vs. Demand: Today's estimated supply stands at 105.1Bcf with demand slightly trailing at 99.9Bcf. 📊 Sector Updates: Storage Levels: Currently, storage levels are 439Bcf above last year and 655Bcf above the five-year average, indicating robust reserves. Weather Influence: With most of the U.S. experiencing mild spring temperatures, demand patterns are expected to change, especially with warmer forecasts in the southwest and Texas. 🛢️ Crude Oil: With inventory declines and geopolitical tensions, oil prices are bullish, currently at $83.56, with forward prices expecting to rise in 2024. 💡 Bottom Line: With natural gas prices declining this Friday, market signals suggest potential further drops next week. This presents strategic buying opportunities as we approach the new front month in June 2024. 🔗 Fixed Pricing Outlook: Near-term Pricing: Competitive rates for natural gas across major hubs, with attractive summer and winter strip pricing available, reflecting the dynamic market conditions. #EnergyMarket #NYMEX #NaturalGas #MarketAnalysis #EnergyTrading #CommoditiesTrading 🌱 Carbon Offsets: We offer a diverse range of carbon offsets, from as low as $1 to $375 per unit, aiding in effective carbon footprint management. Connect for insights on leveraging market trends for strategic energy procurement and management.

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Reese Energy Consulting Partners with Houston-based Midstream Holdings Big news happening today in Reese Land. Let us know your thoughts. Edmond, Oklahoma, October 2024 – Reese Energy Consulting (REC) is partnering with Midstream Holdings (MH) to bring MH’s revolutionary midstream asset listing platform to the market. Buyers and sellers in the broader U.S. market will have a new alternative to improve operations, as opposed to the limited visibility available in the standard A&D process. REC’s years of experience supporting energy companies complements Midstream Holdings’ new offering for listing assets outside of the owner/operator’s core business focus. The partnership will streamline the delivery of the innovative platform to the marketplace, opening up more opportunities for operators and stakeholders to enhance productivity. The new offering comes at an opportune time—recent megamergers in the midstream industry mean many non-core physical assets will soon be hitting the market. Midstream Holdings provides access to these opportunities for smaller, more regional operators looking to buy or sell. Steve Reese, President of REC, said about the platform: “Midstream Holdings offers a valuable opportunity to list and find assets, matching the right systems with the right buyers. This accessible platform will provide a much-needed alternative to the market and optimize operations for both buyers and sellers.” To see all available listings or list a non-core asset, create a free account at midstream-holdings.com. Reese Energy Consulting (REC) works with independent oil and gas producers, midstream firms, LNG companies, and end-users across all major producing basins and markets in the U.S. REC is composed of a tight team of industry experts that have a single focus on optimizing the valuable fuels that clients produce, transport, market, and export. Contact the team at https://lnkd.in/ebXT2mS. Midstream Holdings increases M&A transaction value and efficiency by introducing an expanded network that includes operators and private equity groups. With an account on the Midstream Holdings platform, asset owners and buyers see a return on capital, reduced liability, increased market access, and more. Contact the team at www.Midstream-Holdings.com. #midstream #pipelines #gasprocessing #acquisitions #reeseenergyconsulting #midstreamHoldings

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https://lnkd.in/g_jQjpte CNX Resources will buy the upstream and midstream Appalachian Basin assets of Carnelian Energy Capital Management-backed Apex Energy II for $505 million, the company said Dec. 5. CNX entered into a definitive agreement to acquire Apex’s assets, including 36,000 total net acres (94% held) in Westmoreland County, Pennsylvania.

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Permian Resources continues to make moves in its core acreage areas in the Delaware Basin and progress realizing synergies related to its $4.5 billion acquisition of Earthstone Energy, the company said in a May 7 earnings release. The company raised its tally of first-quarter acquisitions to about $270 million. In January, the company said it would acquire Delaware leasehold in two bolt-on deals. The two transactions added 11,500 net leasehold acres and 4,000 net royalty acres in Eddy County, New Mexico, for $175 million. Permian Resources said it continues to strengthen its acreage position in the core of the Delaware through bolt-on acquisitions and additional properties acquired through its ongoing grassroots program. The bolt-on deals, from undisclosed third-party sellers, consist of predominantly undeveloped acreage offset by Permian Resources' “highly capital efficient Parkway asset,” the company said. Inventory on the acquired acreage comprises two-mile locations with high net revenue interests, which the company said would immediately compete for capital. The company closed one transaction during the first quarter. The second is pending and expected to close late in the second quarter. "The acquired acreage is analogous to our high-quality Parkway position. This area represents one of the highest returning assets within our portfolio, with returns driven by reduced D&C costs and strong oil cuts. We are excited to begin development on the acquired acreage later this year," said Co-CEO Will Hickey. Permian Resources also continues to execute on its ground game through smaller grassroots acquisitions and leasehold transactions. During the first quarter, the company completed approximately 150 grassroots leasing and working interest acquisitions. The majority of these acquisitions are slated for near-term development, making them highly accretive, the company said. Through the combined efforts, the company said it had added approximately 11,200 net leasehold acres and 4,500 net royalty acres—slightly less leasehold and more royalty acres than disclosed in January. Permian Resources said the acquisitions were transacted at approximately $9,500 per net leasehold acre and approximately $5,000 per net royalty acre after adjusting for production value. Permian Resources has identified approximately 110 gross operated locations on the acquired properties. In total, these acquisitions contributed less than 100 boe/d of total production in the first quarter. Permian Resources additionally reported that the integration of its $4.5 billion Earthstone deal is ahead of schedule. Permian Resources, which acquired Earthstone in November, upped its annual synergy target from the deal by $50 million to $225 million.

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NatGas Report for May 3, 2024 - There are several key points in the natural gas sector: Prices: The Henry Hub spot price is forecasted to average below $2.00/MMBtu for the second quarter of 2024. Prices across the United States showed mixed changes, with significant decreases in specific regions like Southern California and the Northeast due to milder weather reducing demand. Supply and Storage: U.S. natural gas storage levels are notably high, ending the withdrawal season at 39% above the five-year average, which has contributed to keeping prices low in the first quarter of 2024. Production levels are expected to be lower in the second and third quarters of 2024 compared to the first quarter. However, storage is anticipated to remain above average through the injection season. LNG Exports: U.S. liquefied natural gas (LNG) exports are expected to slightly increase in 2024 by 2%, despite a temporary decline in April and May due to maintenance activities at key export facilities. The year may close with an increased output as new projects start operations. Market Influences: Various factors such as weather, maintenance of LNG facilities, and fluctuations in domestic production and consumption will continue to influence the natural gas market throughout 2024. There you have it. Happy Friday!

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Enterprise Bets on a Dark Horse Back in 2020, Houston-based Piñon Midstream set out to cure a massive headache for producers in Perm Town’s most prolific eastern flank of the Delaware in N.M., and Texas—namely, the lack of infrastructure to gather and treat pervasive sour gas. Solving that problem would no doubt be a grand introduction into the nation’s hottest play. Solving another would be even grander. So, in 2021, Piñon unveiled two of three plants comprising its Dark Horse sour gas treating and CCS facility in Lea County, N.M. At the time, Dark Horse offered amine treating capacity of 170 MMCFD, the state’s largest and deepest acid gas injection well, and CO2 and H2S capture and sequestration. Expansions would continue over the years. And at least one of the Big Five midstream operators was closely watching. Reese Energy Consulting today is following the latest news from Houston-based Enterprise Products, which has found a red-carpet entry into this slice of the Delaware with a $950 million acquisition of Piñon Midstream. This, Enterprise says, saves the company three to four years building out itself. Pinion’s Dark Horse is the largest facility of its kind in N.M., sitting fat and happy in an area where drilling has been largely restricted due to the lack of sour gas treating and acid gas injection capacity. And where more than 7,500 remaining well locations wait to be loved. The deal with Piñon includes 50 miles of gathering and redelivery pipe, five 3-stage compressor stations, two of the Delaware’s highest capacity and deepest acid injection wells at 18,000’, and 270 MMCFD of H2S and CO2 treating facilities. Expansions to 450 MMCFD are slated for completion next year. Enterprise reports adding a third injection well to increase capacity to 750 MMCFD. What do you think? Learn more about REC and our natural gas, midstream, and Permian consulting services at https://lnkd.in/ebXT2mS. For more information about our latest online natural gas training courses, visit us at https://lnkd.in/g_jDyx_Y. #energy #midstream #naturalgas #ngls #reeseenergyconsulting

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𝙋𝙝𝙞𝙡𝙡𝙞𝙥𝙨 66 𝙩𝙤 𝘽𝙪𝙮 𝙋𝙀-𝙊𝙬𝙣𝙚𝙙 𝙋𝙞𝙣𝙣𝙖𝙘𝙡𝙚 𝙈𝙞𝙙𝙡𝙖𝙣𝙙 𝙛𝙤𝙧 $550 𝙢𝙡𝙣 Phillips 66 has announced its acquisition of Pinnacle Midland, a midstream company owned by Energy Spectrum Capital, for $550 million in cash. This purchase aims to enhance Phillips 66's natural gas gathering and processing operations in the Midland Basin, a major U.S. oil and gas production area. The deal aligns with Phillips 66’s strategy to expand its natural gas liquids (#NGL) value chain, complementing its existing infrastructure of 11 NGL fractionation plants, extensive storage facilities, and 22,000 miles of pipelines. Pinnacle's assets include the Dos Picos natural gas complex, which has a processing capacity of 220 million cubic feet per day and 80 miles of pipelines, with potential for further expansion. The transaction is expected to close in mid-2024, continuing the trend of significant acquisitions in the U.S. energy sector. #Energy #Acquisition #NaturalGas #Phillips66 #MidlandBasin #OilAndGas https://lnkd.in/g8HfrVy2

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Crude down nearly $2/bbl this week despite (because of?) OPEC+ announcing a 3-month extension of cuts and presenting arguably its most unified front in months. Brent sitting just above $71/bbl, bottom end of its months-long range. Your week in crude thus far:

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FLOW published on Permian GOR's yesterday. Since this topic brings out the crazies, we detailed empirical evidence of what is changing, and what is not changing. Some surprises. We walk through formation targets, geographies, base declines, and cube development effects. We also investigate the surprises and look at good and bad case studies. This topic is important for both the oil and gas macro picture.

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Vitesse Energy, LLC just announced the all-stock acquisition of Lucero Energy Corp. (TSX-V) for Usd$222mm, which adds a small operating arm to their NonOp portfolio. During Q3 2024, Lucero had ~6.4 Mboed of two-stream net production coming from their assets in the Bakken. As of Sept 30th, 2024 Lucero had no outstanding debt and US$56 million of cash. The acquisition is expected to lead to ~$3mm/yr in general and administrative synergies for Vitesse. I find it interesting that Vitesse has pivoted from their pure-play NonOp business model... Will this transaction be a one-off or a sign of more operated assets to come in the future for Vitesse? Only time will tell...

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PERMIAN BASIN: ANOTHER VIEW.....SLOWER GROWTH IN PRODUCTION BUT MORE WELLS? #PERMIAN #OIL #GAS #PRODUCTION #EFFICIENCY #DRILLING #SENSITIVITY #GLOBALTREND #ENERGY #OUTLOOK #WELLPRODUCTION https://lnkd.in/gbZY2eMs

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