Mike Wood

For One Producer, it’s Diamond Life in the Permian Midland and Delaware As they say, when one door closes another door opens. But in the case of Midland, Texas-based Diamondback Energy this week, that old expression with one negative translates to a big positive all the way around. Reese Energy Consulting today is following the latest news from Diamondback, which has closed the door on its February $26 billion merger deal with Midland neighbor Endeavor Resources. Among the biggest acquisitions we’ve seen as part of the consolidation frenzy now a year long, the Diamondback-Endeavor merger has to rank as one of the most memorable. As two of the Permian’s largest operators, each was considered prime buy targets early on for producers on the hunt for more acreage and drilling inventory. This to which both E&Ps rebuffed any rumor, any notion, any idea they were up for sale. Then came Diamondback’s Endeavor announcement last February, no doubt leaving a few broken hearts. With fed scrutiny officially in the rearview, the combination gives Diamondback a total 838,000 net acres across the Midland and Delaware and 816 MBOED. Now onto the open door, where Diamondback’s subsidiary Viper Energy Inc. continues to build its Permian mineral and royalty interests in both plays with three new acquisitions from Fort Worth and Midland, Texas-based Tumbleweed Royalty IV in a cash and stock deal valued at $1.1 billion. Assets include 3,237 acres in the Midland and 490 acres in the Delaware core, which currently produce 2.5 MBPD (4 MBOED). According to news sources, Viper expects Diamondback to develop 120-140 new well locations by the end of 2026. What do you think? Learn more about REC and our Permian expertise and consulting services at https://lnkd.in/ebXT2mS. For more information about our new online natural gas training courses, visit us at https://lnkd.in/g_jDyx_Y. #Energy #permianbasin #acquisitions #reeseenergyconsulting

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Meaningful voluntary production curtailment is beginning to improve natural gas market investment sentiment. Domestic natgas output has declined approximately 10% thus far in 2024, with major producers such as Chesapeake Energy and EQT dialing back production due to the lowest prices seen in decades. The number of natgas rigs in operation has been reduced to its lowest since late 2021, as production is presently either not profitable or marginally so for US producers. I expect increased demand for natgas due to better inventory draw and control entering the summer months, and rising prices during the winter of 2024/25 due to seasonal weather as well as rapidly growing infotech and AI usage. It is important to note that natural gas accounts for some 43% of utility electric generation, and I believe that this number will increase due to adaptation (although slowing) to electric vehicles, which will add pressure to an already overburdened and archaic power grid, as well as incremental power availability for often unreliable wind and solar.

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Hey, Oil & Gas Producers: Let's skip the fluff. This app increases profit in your oil & gas production company by streamlining communication with the field to reduce downtime and increase production. Period. No clunky, overcomplicated, overpriced legacy software. No need to adopt new tactics or make changes to your operation. Just let me back up our claims with testimonials from independent operators. I know this sounds too good to be true. Trust me, I get it. However, none of this is a stretch when you think about how it works. We streamline communication between you and your pumpers, centralizing all info to improve production and keep things from falling through the cracks. In simple terms: (1) Greasebook enables pumpers to submit all production data through their smartphones at the well site, even without internet connectivity. (2) Greasebook gives you access to the status of each pumper and the performance of every well in your business. (3) This enables you to produce hydrocarbons more effectively than using text messages, phone calls, Excel sheets, or outdated software. When you do this: A. Waste in communication among your team is eliminated. B. Pumpers' performance increases because they know they're being held accountable. C. Your company can produce more oil and gas for less spend than others using outdated, expensive, and complicated systems. It's like having a production manager sit shotgun with your pumper to optimize production. Simple? Yes. Effective? Oh, YES!! And unlike having your production manager ride along, our app lets them maximize contributions from anywhere. We set everything up for you, build your wells, train your pumpers, and walk you through every step. Seriously, don't take my word for it. Every customer has 60 days to try us. If you don't see huge savings and streamlined communication, we pay you 2X what you spent. We have top producers in 22 oil and gas-producing states. With our 200% money-back guarantee, if we weren't doing something right, we'd be broke by now. Take 2 seconds to click this post and see how we can streamline your operations and turn your outfit into the most profitable version of itself. Most operators see results in just 1 week after starting the app. Without exaggeration, it could be the most cost-efficient thing you do this year. If this sounds interesting, click 'Learn More' and schedule a 5-minute 'Prove It' call here >> www.greasebook.com/vsl → Achieve results in less than 1 week. → "No-sweat" company set-up, turn-keyed by a Petroleum Engineer. → "Done for you" Pumper roll-out and training. → Unprecedented 60-day, 200% money-back guarantee. Schedule your 5-minute 'Prove It' call here >> www.greasebook.com/vsl

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From our reader's desk. "I like the depth of your thinking, clear communication and agree that we'll figure out how to have enough hydrocarbons for the next 100 years." -- Bret. Uncover the hidden truths of the energy market at https://lnkd.in/gi4uhTRk. #Doomberg #GreenChicken #Energy #Finance #Geopolitics

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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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Long laterals are more important than ever in the Permian Basin, with 25% of Midland Basin wells and 8% of Delaware Basin wells reaching three miles (or longer). How are these long wells producing compared to shorter laterals? My top plot shows the average normalized production rates over time, grouped by lateral length. The light red comprises wells less than 2 miles, the medium red is 2 milers, and black is 3 milers or longer (for exact cutoffs, see the footnotes). Each line is normalized by the production rate per foot, adjusted to a 10,000 foot lateral. In other words, this removes the obvious effect of the longer laterals having more reservoir to produce. Looking at the production curves in this way, the long laterals produce less per foot in early time, but the gap narrows up later in the wells life. This effect is more exaggerated in the Midland Basin. Functionally, this translates to lower IPs (per foot) and shallower decline for 3+ milers. Keep this in mind as you interpret early-time productivity trends! The middle chart shows cumulative degradation of 3+ milers vs. 2 milers measured at different time intervals. Wells are grouped by Novi's Rock Quality Tiers. A couple observations: - In both subbasins, higher-quality rock has less per-foot degradation than lower-quality rock. - In both subbasins, but especially in Midland, early-time degradation is more than later time. - These metrics are noisy due to small well counts, but 24-month cums show between 4% and 10% per-foot degradation for Tier 1/2 rock. Per-foot degradation this low translates into strong economics for longer laterals, reflected in the rapid growth of long laterals in the Permian (bottom chart). Here, the Midland dominates the Delaware. ExxonMobil leads the way, with 135 long laterals drilled in 2024. Note that the Midland Basin is significantly more consolidated than the Delaware, giving more contiguous acreage for extended laterals. Increased lateral length has been a major driver of improved per-well productivity and drilling efficiency numbers that have driven solid 2024 production. With 4-mile tests now coming online, extended laterals are more important than ever in the Permian.

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Petroleum inventories built while net exports decreased. The EIA reports are out and overall, we built 8.5 MMB to 1608 MMB, the highest level since January. We’ve built 29 MMB in the last four weeks. SPR built another 0.6 MMB to 166 MMB. Crude oil built 7.3 MMB to 461 MMB, the highest level since June of last year. Petroleum products built 0.8 MMB to 827 MMB, the highest level since May of last year. The latter two combined two built 7.9 MMB to 1242 MMB, a level not seen since last November. The build should help decrease gasoline prices. Overall exports were 1.3 MMB/D. That’s a net 2.9 MMB/D oil in and a net exports of petroleum products out of 4.1 MMB/D.  The result is a drawdown of 8.8 MMB for the week, about half of last week’s drawdown. That’s the third lowest drawdown since last September. Oil prices rose a dollar or two last week, depending on the source. WTI finished the week at $85.38/BBL. Add $4.57/BBL for Brent and $3.00/BBL for LLS. The 3-2-1 crack spread was also up $1.21/BBL to $20.31/BBL. Gasoline finished the week down 2¢/GAL. Henry Hub natural gas prices were down 2¢/MMBTU last week to $1.40/MMBTU while oilprice.com NG prices rose some 17¢/MMBTU to $1.92/MMBTU, still a bargain. Artificial intelligence has been a hot topic, and natural gas could be a big winner. Tsvetana Paraskova wrote in oilprice.com on April 25, “U.S. Natural Gas Could Be A Big Winner of The AI Boom”. The highlights: ·        Electricity demand to power the data centers is soaring and so is demand for grid connections. ·        As electricity demand from data centers is set to jump to as much as 42 GW by 2030, from 11 GW now, the U.S. would need an additional 8.5 billion cubic feet per day of natural gas. ·        Natural gas demand for power generation is set to jump in the second half of this decade, and U.S. benchmark natural gas prices could average as much as $4 per million British thermal units. It certainly hasn’t shown up in the power consumption stats. Last year power consumption went down. I’ll continue to keep an eye on electric power consumption...and natural gas prices. Benoit Morenne, David Michaels and Collin Eaton wrote “Former Pioneer CEO Is Accused of Trying to Collude With OPEC”, updated today in the WSJ. “The former CEO of shale oil company Pioneer Natural Resources…attempted to collude with OPEC officials to raise oil prices, U.S. antitrust enforcers said in an unusual order that barred the executive from Exxon Mobil’s XOM…board and could lead to a criminal probe... “The allegations, unveiled by the Federal Trade Commission on Thursday, come as Exxon Mobil struck an agreement with antitrust enforcers not to add Sheffield to its board of directors. The agreement allows Exxon to close a $60 billion stock deal to acquire rival Pioneer as early as this week.”

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Double Eagle IV has quietly added to its Midland Basin acreage footprint since the private E&P launched in 2022 with over $1.7 billion in investor commitments.   The latest iteration of Double Eagle is led by co-CEOs Cody Campbell and John Sellers, who in 2021 guided Midland Basin E&P Double Eagle III through a $6.4 billion sale to Pioneer Natural Resources.   After reloading with dry powder from EnCap Investments, Apollo Natural Resources and Magnetar Capital, Double Eagle IV is back to buying and drilling in the core of the Midland Basin.   Analysts say the experienced Double Eagle IV team has quickly developed one of the more attractive inventory portfolios among the shrinking list of private producers still standing in the Permian, and industry experts are keeping a close eye.   Double Eagle, unlike many of its smaller private peers, is drilling some of the most core portions of the Midland Basin, directly adjacent to where major players such as Pioneer, Diamondback Energy, Exxon Mobil Corp and ConocoPhillips.   Their operating arm, DE IV Operating LLC, are operating on leases in Martin, Reagan, Midland, Ector, Glasscock, Upton, Andrews and Howard counties, Texas.   The company’s Permian oil production totaled nearly 1.12 MMbbl this January, or an average 38,700 bbl/d, per the RRC’s most updated figures,   up from 96,000 bbl, roughly 3,100 bbl/d, in January 2023.   But Double Eagle IV’s value isn’t based on just existing oil production; It’s also based on the company’s high-quality portfolio of undrilled land.   It is estimate that they own 300 gross operated drilling locations across the core of the Midland Basin.   The land surrounding Double Eagle IV’s position is awash in a historic deluge of corporate consolidation, with many of the area’s oldest and largest operators getting scooped off the drawing board in a matter of months.   Exxon Mobil’s acquisition of Pioneer Natural Resources for $64.5 billion, including Pioneer’s net debt, will reshape the pecking order in the Midland Basin.   Diamondback Energy’s acquisition of Endeavor Energy Resources for $26 billion, including debt, was the largest takeout of a private oil producer on record, per Enverus data.   Occidental is making a smaller, albeit still massive, $12 billion acquisition of private E&P CrownRock LP for more running room in the Midland Basin.   Other smaller publics Civitas Resources, Ovintiv Inc., Vital Energy and SM Energy have also gotten deeper in the Midland Basin through M&A in the past year.   After well over $100 billion in deal making in the past 12 months, acquisitive operators are left with a much smaller slice of the Midland Basin pie to parse through for potential deals.   That’s why Double Eagle IV stands out so much among the rest of the private equity-backed E&Ps remaining in the Permian.   Experts anticipate Double Eagle IV will eventually approach the market for a sale, like the exit strategies for previous iterations of the company.

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Petroleum inventories drew down last week. The EIA reports are out and overall, we drew down overall inventories 3.3 MMB to 1629 MMB. SPR built 1.4 MMB to 392 MMB. Crude oil drew down 5.1 MMB to 423 MMB while petroleum products built 0.36 MMB to 914 MMB. The latter combined for a drawdown of 4.7 MMB to 1237 MMB; upward pressure on gasoline prices. Exports continue as usual. Net oil in was 3.1 MMB/D and net products out of 6.1 MMB/D. That’s 3.0 MMB/D overall exports., a drawdown of 21.1 MMB for the week. Production was 13.5 MMB/D for the second straight week. Record volumes in the midst of a war on energy. The rig count fell by another rig last week. I got ahead of myself last week reporting we were two rigs down. In the week prior, we were down a rig, and down one again last week. The ratio I reported last week was correct (477/100 oil/gas) Offshore and the GOM held steady at 13 and 12. Oil prices slid last week, WTI was down $6.42/BBL , Brent down $1.94/BBL and LLS down $3.84/BBL. WTI finished the week at $65.26/BBL; add $8.90/BBL for LLS and $4.58/BBL for LLS. The 3-2-1 crack spread was down $1.14/BBL to $10.79/BBL, squeezing refiners. Gasoline gained a penny last week to $3.06/GAL, but the overall trend is down 3 mils/gallon/day. Natural gas spot prices shot up 94¢ to $3.39/MMBTU at Henry Hub. Natgas futures, already elevated, lost 6¢ to $3.31/MMBTU. Alex Kimani writes on Oilprice.com, “Oil Prices Predicted to Plummet Below $60 Under Trump” on 12/4. “A new survey from law firm Haynes Boone LLC has revealed that banks are gearing up for oil prices to fall below $60 a barrel by the middle of President-elect Donald Trump’s new term, Bloomberg reported on Monday. “The survey of 26 bankers showed that they expect WTI prices to drop to $58.62 a barrel by 2027, more than $10 lower than the intraday price of $69.87 at 11.00 am ET on Wednesday. “Trump says he’ll push shale producers to ramp up output, even if it means operators “drill themselves out of business.” However, it’s not clear he intends to accomplish this feat since U.S. oil is produced by independent companies and not a national oil company (NOC). Exxon Mobil’s (NYSE:XOM) Upstream President Liam Mallon recently dismissed the notion that U.S. producers will dramatically increase output under a second Trump term…” Jacky Wong writes ” Battery Makers In South Korea Have Bright Future” in thew WSJ’s Heard on the Street today (12/5). “Energy-storage systems are another area that could potentially soften the blow of slower EV sales in the U.S. Operators added five gigawatts of utility-scale battery energy storage to the power grid in the first seven months of this year, bringing the total in the country to 20.7 gigawatts, according to the U.S. Energy Information Administration. “Rising renewable energy production has increased the need for batteries in the grid to balance out supply and demand. Energy-hungry artificial-intelligence data centers create additional demand for battery systems..."

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US Department of Energy announced their efforts to replace the barrels of crude oil that it sold off in 2022 from the Strategic Petroleum Reserve (SPR)(about 200 MMBbl prior to the November 2022 elections), ostensibly because of the Russian invasion of Ukraine. Secretary Granholm claims that in the past year the DOE replaced 32.3 MMBbl at an average cost of $76.98 per barrel. However, the adminstration drew down the SPR during 2022 from 600 MMBbl at the start of the year to 367 MMBbl today (233 MMBbl remaining to replenish). Granholm claims that they are doing this for the taxpayers and now that crude oil prices are again below $79 per barrel they are looking to buy another 3 MMBbl. The DOE is sensitive to using taxpayer dollars wisely (no comment). At this pace of replacement, it will require another SEVEN years to reach the previous level of 600 MMBbl of reserves. Perhaps this seems acceptable. However, given that the US uses about 20 MMBbl each day, our current emergency reserves in the SPR amount to 18 days' of supply; at the start of 2022 it was a 30-day supply. If one assumes that the DOE purchased oil in equal volumes every day for the past year, they were buying 124,000 Bbl daily, or 0.6% of the daily amount used in the US. Secretary Granholm stated that they didn't want to disrupt the oil markets by being a large buyer. If the DOE were to truly intend to replenish the SPR within a reasonable goal of 18 months, it would require 425,000 Bbl of crude purchases per day; this is just over two percent of the daily usage in the US. That would have minimal impact on markets. Clearly, this DOE effort is strictly lip service to the US voting public and not a serious effort to replenish the SPR. Congress just agreed to send nearly $90 billion to Ukraine, Israel and Taiwan in foreign aid. Does that make us more secure? Perhaps, in a different way it does. But, simply outright buying 233 MMBbl of crude oil at $80 per barrel today would cost $18 billion. It couldn't physically be delivered overnight, but we might sleep better knowing that our SPR will be there for us citizens, as intended, rather than being used for political purposes. It's all a matter of policy and priorities. https://lnkd.in/g2PfR52J

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Momentum Builds in the Anadarko About 10 miles south of Tulsa, the city of Glenpool holds a most unique oil and gas legacy. If you were around in 1905 (and if you were, we want to hear from you), you might remember the Glen Pool discovery, which started on a rural farm with a single well drilled 1,400’ deep and gushing an initial 75 BPD. Within a few months, the Glen Pool was declared the world’s largest oilfield, and practically overnight Tulsa, Okla., would be declared the Oil Capital of the World. Wildcatters soon descended on the state, making extraordinary discoveries that led geologists at the time to proclaim Okla., “was sitting atop what appeared to be the biggest, deepest oil deposit ever.” One that stretched from North Texas to Kan., and later dubbed the Mid-Continent Field. Reese Energy Consulting today is following the latest piece from Hart Energy publications, which offers a current overview of the Midcon Okla., plays and the E&Ps sticking with them. The Anadarko’s SCOOP/STACK reins king here for producers who know well the core of its oiliest center in a gassy basin. Continental Resources has long been a stalwart here, reporting 32% of 2Q total production. Devon Energy, Mewbourne Oil Company, Camino Natural Resources, @Citizen Energy III, Coterra Energy, MACH Resources, and Ovintiv claim large Anadarko footprints, with Ovintiv reporting lowest base decline rates and offering less capital investment across its entire portfolio, while adding significant free cash flow. Coterra cited the Anadarko’s proximity to the Henry Hub “as some of the strongest gas realizations in our portfolio.” Devon’s JV with Dow pointed to the Anadarko delivering “solid returns and double-digit production growth” in 2Q. While all eyes are on the Permian and Bakken, it would be foolhardy to underestimate the Midcon for all the crude, natural gas, and NGL resources it continues to offer and wait to be discovered. What do you think? Learn more about REC and our 30 years of Midcon and Anadarko oil and gas services at https://lnkd.in/ebXT2mS. For more info about our new online natural gas training courses, visit us at https://lnkd.in/g_jDyx_Y. #energy #drilling #acreage #oklahoma #SCOOP #STACK #reeseenergyconsulting

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The WSJ writes—and as EnergyPoint Research further discusses in a separate post on its account—satellite and other data reveal the impact of oil and gas drilling on the Permian Basin’s landscape. What operators and researchers are most concerned about are forces pushing the ground up. A growing concern for residents and scientists is that wastewater from disposal wells could migrate into the aging, unplugged wells that litter the Permian by the thousands and contaminate drinking-water supplies or shoot to the surface, where the fluids could damage ranchland. As background, alongside crude, oil-and-gas companies are extracting gargantuan amounts of subterranean water—in the Delaware Basin, between five and six barrels of water are produced, on average, for every barrel of oil. To dispose of it, they inject billions of barrels of wastewater into underground disposal wells. Operators inject most of the water down wells that reach about a mile under the surface, which is convenient and relatively cheap. Drilling clusters of injection wells means companies don’t have to build expensive pipelines to link disposal sites together. Oil execs say the issue of water disposal is having an impact on their bottom line, driving up the costs for new wells. One reason is that concentrated volumes of water increase pressure underground, which then makes it more difficult for companies to drill down through those levels to shale rocks. Operators also fear that, if left unmanaged, these developments could dent local support for their activities. “Produced water management is probably one of the, if not the biggest, challenge in the Permian,” said Cody Comiskey, an earth-science adviser at Chevron. With shrinking options to discard wastewater, crude producers have to get creative. Some are looking for lower-risk formations to inject water into and ways to treat water so it can be reused for agriculture. Whether these efforts will pass regulatory muster or how much they will cost remains unclear. “There’s just no silver bullet,” Comiskey said. The volume of briny, polluted water that companies have to handle has skyrocketed. In 2013, companies discarded about 382 MM barrels of water. Last year, they injected about 3.4 B barrels of water down disposal wells. The Earth is noticing. The number of earthquakes in the Permian with magnitudes greater than 2.5 jumped from 42 in 2017 to 671 in 2022, per B3 Insight. In late 2022, a 5.4-magnitude earthquake in Reeves County. Texas regulators have imposed restrictions on injection volumes in the region, and the number of magnitude-3.5 earthquakes and higher has come down. In a related note, there's an emerging issue—and growing sense of urgency—around the need to improve methods used by the industry to estimate bottom-hole pressures of disposal wells. In the comments of this post, we've posted a link to an video on the issue from EnergyMakers Advisory Group. We recommend watching it. 🛢️💦 👀 #shale #water #permian

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Oklahoma Takes the Oil and Gas Stage Today – All Ya’ll Reese Energy Consulting is going full-tilt boogie Okla., for all ya’ll this Thursday. (If you’re new to this second-person plural pronoun, Okies, Texicans, and those of us in the Midcontinent tend to use it indiscriminately with zero apologies.) Okla-City-based Chesapeake Energy has announced a company name change following this year’s $7.4 billion merger with Southwestern Energy that’s expected to close next week. The combo creates the nation’s largest natural gas producer upsetting EQT Corporation’s number one position it’s held since 2017. Of all the mega merger combinations of late, Chesapeake’s name-change to now Expand Energy might be the most bittersweet for us and all ya’ll, given its beloved founder and extraordinary shale gas history. Nevertheless, time and business go on, and companies reinvent themselves to do what they do best. Meanwhile, Denver based Validus Energy has won the lottery ticket to snap up Tulsa-based Citizen Energy in a $2 billion deal, merging the two largest Mid-Con rivals with operations in Okla., Kans., Texas, and Ark. This marks the second acquisition this year by Validus, which scooped up Mid-Con assets from Continental Resources back in February for $450 million. A little backstory here: Validus in 2022 sold its Eagle Ford position to Okla. City-based Devon Energy for $1.8 billion—more than double the price Validus paid for those assets a year earlier from Ovintiv. The same year, Citizen Energy closed two deals that gave the company “a dominant Midcontinent footprint” to include 326,000 net acres, 720 operated wells, and 86 MBOED, which set it on a trajectory to become one of the top private producers in the U.S. What do you think? Learn more about REC and our natural gas expertise and 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 #naturalgas #okies #reeseenergyconsulting

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More Smokin’ Hot Deals to Be Had in the Lone Star State Reese Energy Consulting today is following the latest buzz from the nation’s largest oil-producing state where the Texas horse trading continues among midstreamers and Eagle Ford producers. First up is Houston-based Phillips 66 (PSX), which operates a midstream powerhouse with 72,000 miles of crude oil, natural gas, and NGL pipelines, along with fractionation and gas processing—all of which serve its diverse business segment to include chemicals and refining. After a years’ long JV courtship, PSX last year acquired DCP Midstream for $3.8 billion to further beef up its NGL business following record fractionated volumes and growing export demand. The company will now add even more meat to its NGL bones in the Permian Midland with the pick-up of Pinnacle Midstream for $550 million. The deal includes the Dos Pico processing complex with 220 MMCFD of capacity, ample space for a second 220 MMCFD gas plant, and 80 miles of pipeline. In short order Houston-based WildFire Energy LLC has shrewdly executed its pure-play South Texas strategy to create the largest consolidated acreage position in the Eagle Ford. The company has now landed its fourth acquisition in three years, this time in a deal with Apache Corporation. The price was not disclosed but wraps up Apache’s non-core asset sale that fetched a total $750 million. Wildfire will gain 237,000 net acres, 11 MBOED, and interests in 465 wells. Pro forma, the company will operate 850,000 net acres, 50 MBOED, and more than 2,000 gross wells. What do you think? Learn more about REC and our crude oil, natural gas, and NGL consulting services at https://lnkd.in/ebXT2mS. #energy #midstream #naturalgas #ngls #gasprocessing #reeseenergyconsulting

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America's oil boom is hitting a geological ceiling, according to Continental Resources Executive Chairman Harold Hamm, who predicts only modest oil production increases of 1-2 million barrels per day over the next five to six years, driven primarily by the Permian Basin. Even with fewer regulations under the incoming Trump administration, Hamm cautions that maturing shale fields and dwindling resources will constrain the industry's capacity to replicate past booms.

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Big Oil News! 🚨 The FTC has given the green light to Exxon Mobil's $60 billion deal to acquire Pioneer Natural Resources, solidifying Exxon's dominance in the Permian Basin. 🛢️ However, Pioneer's former CEO, Scott Sheffield, has been barred from joining the new board over allegations of collusion with OPEC+ to influence oil prices. ⚖️ This merger adds Pioneer's 850,000+ acres to Exxon's existing 570,000 acres, creating one of the largest combined oil fields in West Texas and New Mexico. Exxon aims to streamline operations and reduce costs. Pioneer disputes the FTC's claims but will not block the closing of the deal. 💼 👉 Read the full details: https://lnkd.in/drBfYXMe #ExxonMobil #PioneerResources #OilAndGas #PermianBasin #EnergyIndustry #BigOil #MergerApproved #EnergyNews

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Big Oil News! 🚨 The FTC has given the green light to Exxon Mobil's $60 billion deal to acquire Pioneer Natural Resources, solidifying Exxon's dominance in the Permian Basin. 🛢️ However, Pioneer's former CEO, Scott Sheffield, has been barred from joining the new board over allegations of collusion with OPEC+ to influence oil prices. ⚖️ This merger adds Pioneer's 850,000+ acres to Exxon's existing 570,000 acres, creating one of the largest combined oil fields in West Texas and New Mexico. Exxon aims to streamline operations and reduce costs. Pioneer disputes the FTC's claims but will not block the closing of the deal. 💼 👉 Read the full details: https://lnkd.in/drBfYXMe #ExxonMobil #PioneerResources #OilAndGas #PermianBasin #EnergyIndustry #BigOil #MergerApproved #EnergyNews

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