Colby Tiffee

Non-OPEC+ oil production is set to rise by 1M bpd in 2024 and 1.6M bpd in 2025, potentially leading to a surplus of 700,000 bpd by 2025. Brent crude prices could dip to $80/barrel. #OilMarket #OPEC #Energy

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‘Tis the Season for Midstream Deals and Decisions in the Permian Jingle bells are ringing this week in the Land of Oil and Gas A-plenty where midstream operators are already unwrapping holiday gifts. Reese Energy Consulting today is following the latest from the Permian, starting with Midland, Texas-based rockstars Kinetik Midstream and E&P Permian Resources. Kinetik, which in short order has become the Delaware’s largest independent gatherer and processor, operates 4,600+ miles of natural gas and crude oil pipe, and six gas plants with another under construction and another one planned. The company in 3Q reported $83.7 million in net income—a 94% increase year over year—and fattened its stake in Diamondback Energy’s EPIC crude pipeline to 27.5%. Kinetik will now further expand its “super system” in a $180 million bolt-on deal for Permian Resources’ Delaware oil and gas midstream assets. Kinetik gains 60,000 gross acres dedicated by Permian Resources under long-term, fixed-fee agreements that include 150 MMCFD and an estimated 250 MBPD next year, 250 MMCFD of compression, and natural gas processing. For its part, Permian Resources is sticking to its guns to remain the Delaware’s lowest-cost operator. This, after announcing a third consecutive increase to its full-year production targets and 160.8 MBPD announced in 3Q. Rock on, rockstars. Energy Transfer meanwhile has gifted Permian producers with a FID on the formerly named Warrior natural gas pipeline project. Now known as the Hugh Brinson, the 400-mile pipeline will flow an initial 1.5 BCFD from the Waha Hub to its pipeline connection south of Fort Worth. Phase I completion is expected by year end 2026 to be followed by Phase II which will increase capacity to 2.2 BCFD. Jingle all the way. What do you think? Learn more about REC and our range of midstream services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.  

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‘Tis the Season for Midstream Deals and Decisions in the Permian Jingle bells are ringing this week in the Land of Oil and Gas A-plenty where midstream operators are already unwrapping holiday gifts. Reese Energy Consulting today is following the latest from the Permian, starting with Midland, Texas-based rockstars Kinetik Midstream and E&P Permian Resources. Kinetik, which in short order has become the Delaware’s largest independent gatherer and processor, operates 4,600+ miles of natural gas and crude oil pipe, and six gas plants with another under construction and another one planned. The company in 3Q reported $83.7 million in net income—a 94% increase year over year—and fattened its stake in Diamondback Energy’s EPIC crude pipeline to 27.5%. Kinetik will now further expand its “super system” in a $180 million bolt-on deal for Permian Resources’ Delaware oil and gas midstream assets. Kinetik gains 60,000 gross acres dedicated by Permian Resources under long-term, fixed-fee agreements that include 150 MMCFD and an estimated 250 MBPD next year, 250 MMCFD of compression, and natural gas processing. For its part, Permian Resources is sticking to its guns to remain the Delaware’s lowest-cost operator. This, after announcing a third consecutive increase to its full-year production targets and 160.8 MBPD announced in 3Q. Rock on, rockstars. Energy Transfer meanwhile has gifted Permian producers with a FID on the formerly named Warrior natural gas pipeline project. Now known as the Hugh Brinson, the 400-mile pipeline will flow an initial 1.5 BCFD from the Waha Hub to its pipeline connection south of Fort Worth. Phase I completion is expected by year end 2026 to be followed by Phase II which will increase capacity to 2.2 BCFD. Jingle all the way. What do you think? Learn more about REC and our range of midstream services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.  

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Hat tip to Beacon Offshore Energy, for 1st oil at Winterfell (look for EOY exit rate ~20MBOED). Their focused strategy execution by successfully monetizing non-op positions to O.G. Oil & Gas Ltd., and bringing it's operated short cycle, quick return ILX asset online positions them to continue funding and focusing on delivering their larger operated development at Shenandoah. Value delivered to Kosmos Energy, Red Willow Production Company, and CSL Exploration along with the newest members of the GOM Independents Club, Westlawn Americas Offshore (WAO) and Alta Mar Energy, LLC. Oxy gets a win as well with Winterfell production tied back to the Heidelberg platform that was otherwise looking down the barrel of a near term abandonment. Bravo, Beacon Offshore Energy! https://lnkd.in/gedk4eUU #oil #energy #gulfofmexico #ilx #strategy

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Diamondback Energy stands as a premier independent oil producer in the U.S., boasting prime Permian acreage across the #Midland, #Delaware, and #Central #Basin. Last year's production hit 263,000 bbl/d, with a projected 2024 full-year guidance of 275,000 bbl/d. February saw Diamondback's announcement of a $26 billion merger with Endeavor Energy Resources, LP, expanding their net #Permian acreage to 838,000 and potentially elevating combined production to 816,000 bbl/d. Don't miss this operator spotlight featuring Kaes Van't Hof, President and CFO of Diamondback Energy, where you'll gain insights on: • The Endeavor merger's strategic benefits from an insider's perspective. • Analysis of the merger's implications for Diamondback. • Diamondback's operational roadmap for 2024 and beyond. • Potential future M&A prospects. Register now to secure your spot! https://ow.ly/wjsF50R9uVa #SUPERDUG24

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With money being expensive, high ROI & IRR projects are in demand. Check out EAG's recent study on ReFracs in the Haynesville.

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https://lnkd.in/gjdDeh5u ZOMBIE WELLS are in the news! Maybe with this much coverage, Regulators and Legislators will step up to the bar to help protect citizens health, environment, and property rights. Remember that these abandoned wells not only affect health and the environment, but destroy property rights. Not only is the surface owner damaged, but mineral owners are damaged by subsurface crossflow and reservoir depressurization. Even pore space for CO2 sequestration is damaged by these poorly plugged wells.

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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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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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Energy Transfer Announces Pipeline Project Connecting Permian Basin Production Supplies to Multiple Markets - Energy Transfer LP has announced a final investment decision for constructing a new intrastate natural gas pipeline connecting Permian Basin production to markets and trading hubs. - The pipeline, previously known as the Warrior Pipeline, is now renamed the Hugh Brinson Pipeline in honor of Hugh Brinson. - The pipeline aims to provide increased transportation capacity to meet the growing demand for natural gas. - Phase I of the project will include approximately 400 miles of 42-inch pipeline with a capacity of 1.5 billion cubic feet per day extending from Waha to Maypearl, Texas, expected to be operational by the end of 2026. - The construction will also include a 42-mile, 36-inch lateral known as the Midland Lateral to connect processing plants in Martin and Midland Counties. - Phase II plans to add compression to increase the pipeline's capacity to about 2.2 billion cubic feet per day, contingent on shipper demand. - The combined cost for Phases I and II is projected at approximately $2.7 billion, backed by long-term commitments from reputable counterparties. - The pipeline will connect shippers to Energy Transfer’s existing intrastate network and offer access to major hubs throughout Texas and beyond. - The project is expected to enhance Energy Transfer's position in supporting growth for power plants and data centers in Texas. - Energy Transfer LP operates one of the largest and most diversified energy asset portfolios in the U.S. with over 130,000 miles of pipeline. https://lnkd.in/gpfF6G32

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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 II LLC 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/ewhkGFa.

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This morning there is a GREAT blog post from #RBN that discusses oil production in the Permian. As gas processing capacity in the area continues to expand, producers are still experiencing natural gas pipeline constraints to move the processed gas out of the region. While pipeline capacity may not be the entire driver of the reduced oil production in the basin, it definitely may be having a basin. While the opening of the Matterhorn pipeline is expected to drive increased oil production by allowing more natural gas to be transported out of the region - will it be enough of a long-term solution as we are seeing more "gassy" wells? TransTech continues to increase our capacity to deliver the required equipment to support gas processing. As we see an increased demand for LNG in the US as a transportable fuel, we are working on having LNG storage tanks in production to reduce the normal lead times for our clients' fast-track projects. www.transtechenergy.com [email protected] #lng #gasprocessing #natgas #oilandgas #crude #drilling #propane #lpg #butane #powergen #powergeneration #pipeline #permian #asme #terminal #cryogenic https://lnkd.in/e3jubiCq

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Energy Transfer is yet again slaking its acquisition appetite by gobbling up another natural gas gatherer and processor to further expand its already formidable Permian footprint. The company announced May 28 that it has struck a $3.25 billion deal to buy WTG Midstream. In today’s blog, we’ll look at how the addition of WTG’s midstream holdings will enhance Energy Transfer’s asset lineup, including its ongoing NGL export and storage expansions. https://lnkd.in/gPjx6Pkf

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The Uinta Basin is no Permian when it comes to drilling activity and production volumes, but the folks behind what may be the biggest M&A deal in Uinta history say the oil-production economics parts of the northeastern Utah play compare very favorably with the best of the Permian’s Delaware and Midland basins. In today’s blog, we discuss the plan by SM Energy and non-op specialist Northern Oil & Gas to acquire XCL Resources in a pair of deals valued at $2.55 billion. https://lnkd.in/gi5pSEJp

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Permian Resources announces $818mm bolt-on acquisition from Oxy - Permian Resources Corporation announced a definitive agreement to purchase approximately 29,500 net acres and 9,900 net royalty acres in the Delaware Basin from Occidental for $817.5 million. - The acquisition, effective July 1, 2024, is expected to close by the end of Q3 2024. - The deal includes substantial midstream assets, such as over 100 miles of pipelines and a robust water infrastructure system. - The purchased assets are attractively valued at about 3.4 times the 2025 estimated EBITDAX and have a 17% free cash flow yield. - The acquisition is expected to be accretive to cash flow per share, free cash flow per share, and net asset value per share. - The company plans to maintain leverage of approximately 1 times net debt-to-EBITDAX post-acquisition, financing through a mix of equity and debt. - Over 200 gross operated, two-mile locations with high net revenue interests are included in the acquired acreage. - Management emphasized the synergy potential of the acquisition, citing it as a natural fit to enhance operational efficiency. - The acquired assets are predominantly located in Reeves County, Texas, and have minimal future drilling requirements. - Permian Resources anticipates starting development on the newly acquired properties in Q4 2024, expecting production of around 15 MBoe/d. - The infrastructure also allows for future growth and third-party volume accommodation, which offers operational flexibility. - As of the second quarter of 2024, the company estimates average daily oil production volumes between 152.1 and 153.6 MBbls/d. https://lnkd.in/gQWEDpx7

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Diamondback Strikes Again in the Midland After snapping up the largest, privately held, pure-play operator in the Midland last February, Texas-based Diamondback Energy (FANG) emerged a Permian force of nature. The $26 billion merger with shale rival Endeavor Energy Resources, LP gifted FANG with an added 344,000 net acres and 2,300 drilling locations in the Midland, and nearly doubled its total production across the Midland, Delaware, and Central Basin Platform. The deal at the time also catapulted Diamondback to third-largest producer in the Permian, right behind heavyweights ExxonMobil and Chevron, with a total 838,000 acres and 816 MBOED. Reese Energy Consulting today is following the latest strike from Diamondback, which has now taken another bite in the Midland with its recent swap of certain Delaware assets for more Midland goodness. In a trade with Houston-based TRP Energy, LLC, FANG sweetened the exchange with $238 million in cash to bring home 15,000 acres in Upton and Reagan counties, 55 undeveloped locations, and 18 DUCs. TRP last year announced exploring a $1.5+ billion sale of its Midland assets producing 25 MBOED. Diamondback on Monday reported 3Q revenues of $1.2 billion and 571.1 MBOED (321.1 MBOD oil). What do you think? Learn more about Reese Energy Consulting and our oil, natural gas, NGL, LNG, and midstream services at https://lnkd.in/ewhkGFa. For more info about our new online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.

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