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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.

#bigoil #ExxonMobil Exxon Mobil Corp. will offload some of its conventional oil assets in the Permian Basin, selling to Hilcorp Energy for approximately $1 billion, according to industry insiders who spoke to Reuters on Tuesday. This move aligns with Exxon’s aggressive shift toward higher-margin shale plays following its recent $60 billion acquisition of Pioneer Natural Resources. Exxon expects the deal to close in early 2025. Source: OilPrice.com 👇 https://lnkd.in/dsR3GR-A

𝘼𝙋𝘼 𝘾𝙤𝙧𝙥 𝙀𝙭𝙥𝙡𝙤𝙧𝙚𝙨 $1 𝘽𝙞𝙡𝙡𝙞𝙤𝙣 𝙎𝙖𝙡𝙚 𝙤𝙛 𝙋𝙚𝙧𝙢𝙞𝙖𝙣 𝘽𝙖𝙨𝙞𝙣 𝘼𝙨𝙨𝙚𝙩𝙨 APA Corporation is currently evaluating the sale of its oil and gas properties located across various parts of the Permian Basin in Texas and New Mexico, aiming for a deal worth around $1 billion. Operating under its Apache Corporation subsidiary, APA is collaborating with investment bankers from RBC, Richardson Barr, and Truist Securities to facilitate the sale. This strategic move is part of APA's broader initiative to restructure its operations, focusing on shale while aiming to reduce its $6.7 billion debt, exacerbated by the recent acquisition of Callon Petroleum. The assets in question produce over 22,000 barrels of oil equivalent per day, with approximately 60% being oil. #OilAndGas #EnergySector #MergersAndAcquisitions #APA_Corporation #PermianBasin https://lnkd.in/gkQzAkww

Midcon Momentum: SCOOP/STACK Plays, New Zones Draw Interest The past decade has been difficult for the Midcontinent, where E&Ps went bankrupt and pulled back drilling activity. But bountiful oil, gas and NGL resources remain untapped across the Anadarko, the SCOOP/STACK plays and emerging zones around the region. Click the link below to read more: https://lnkd.in/g8Ht9mue

𝙀𝙭𝙭𝙤𝙣 𝙈𝙤𝙗𝙞𝙡 𝘿𝙞𝙫𝙚𝙨𝙩𝙨 𝙋𝙚𝙧𝙢𝙞𝙖𝙣 𝘼𝙨𝙨𝙚𝙩𝙨 𝙩𝙤 𝙃𝙞𝙡𝙘𝙤𝙧𝙥 𝙞𝙣 $1 𝘽𝙞𝙡𝙡𝙞𝙤𝙣 𝘿𝙚𝙖𝙡 ExxonMobil is set to divest some of its conventional oil assets in the Permian Basin, selling to Hilcorp Energy for approximately $1 billion. This move is part of Exxon’s strategic shift toward higher-margin shale operations, particularly after its significant $60 billion acquisition of Pioneer Natural Resources Company. The transaction, expected to close in early 2025, marks Exxon's further concentration on lucrative shale assets in the Permian's Delaware and Midland basins. Hilcorp Energy has shown a pattern of acquiring mature assets from more prominent industry players, with this deal following its recent acquisitions in Alaska and from Apache Corporation. For Exxon, the sale aims to streamline its portfolio, focusing on core assets and enhancing its balance sheet amid its expanded Permian operations, projected to reach production levels of 2 million barrels per day by 2027. #EnergySector #OilAndGas #PermianBasin #ExxonMobil #HilcorpEnergy https://lnkd.in/gCaWyHpD

Meanwhile in the Williston Basin… Might Texas-born Bob Simpson be looking to build back the Williston Basin powerhouse he created more than a decade ago? Back in 2010, the company Simpson founded in 1986—XTO Energy—merged with ExxonMobil in a $41 billion all-stock deal pronounced one of the largest transactions in history for an independent oil and gas company. Assets included huge swaths of acreage across numerous basins and shale plays, including the Williston, where XTO had recently entered with 352,000 net acres. Exxon kept the XTO name and Simpson went on to co-found Morning Star Partners. Reese Energy Consulting today is following the latest from the Williston, where Exxon is wooing buyers for hand-picked assets in the N.D., Bakken. This follows Exxon’s $60 billion deal a year ago for Permian jewel Pioneer Natural Resources Company. The package for sale, expected to fetch $500 million, is a relatively small one for the monster-size Exxon—but you’ve still gotta pay the bills. Assets include 49,000 net acres, 137 operated wells, and 676 non-operated and royalty wells. Now, back to Simpson, whose TXO Partners went public last year with a fistful of acreage positions in the Permian and San Juan Basin. Simpson’s TXO this summer re-entered the Williston with two acquisitions in the Elm Coulee field of Mont., and the Russian Creek field of N.D., which add 4.5 MBOED in production and proved developed reserves of 17 MMBOE. Could TXO and XTO find a new Williston romance here? What do you think? Learn more about our natural gas consulting services in the Permian and Williston basins at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.   

Meanwhile in the Williston Basin… Might Texas-born Bob Simpson be looking to build back the Williston Basin powerhouse he created more than a decade ago? Back in 2010, the company Simpson founded in 1986—XTO Energy—merged with ExxonMobil in a $41 billion all-stock deal pronounced one of the largest transactions in history for an independent oil and gas company. Assets included huge swaths of acreage across numerous basins and shale plays, including the Williston, where XTO had recently entered with 352,000 net acres. Exxon kept the XTO name and Simpson went on to co-found Morning Star Partners. Reese Energy Consulting today is following the latest from the Williston, where Exxon is wooing buyers for hand-picked assets in the N.D., Bakken. This follows Exxon’s $60 billion deal a year ago for Permian jewel Pioneer Natural Resources Company. The package for sale, expected to fetch $500 million, is a relatively small one for the monster-size Exxon—but you’ve still gotta pay the bills. Assets include 49,000 net acres, 137 operated wells, and 676 non-operated and royalty wells. Now, back to Simpson, whose TXO Partners went public last year with a fistful of acreage positions in the Permian and San Juan Basin. Simpson’s TXO this summer re-entered the Williston with two acquisitions in the Elm Coulee field of Mont., and the Russian Creek field of N.D., which add 4.5 MBOED in production and proved developed reserves of 17 MMBOE. Could TXO and XTO find a new Williston romance here? What do you think? Learn more about our natural gas consulting services in the Permian and Williston basins at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.   

U.S. Oil and Gas M&A Hits Quarterly Record After Strong 2023 According to Enverus, the first quarter of this year witnessed a historic surge in U.S. oil and gas deals, soaring to a record-breaking $51 billion. This surge is a continuation of the vigorous merger activity observed last year, primarily centered in the Permian Basin of West Texas and New Mexico. Driven by the pursuit of expanding oil and gas drilling inventories, companies are flocking to the Permian Basin, renowned for its high-quality drilling prospects and relatively low break-even costs, averaging around $64 per barrel. With oil prices averaging approximately $77 per barrel last quarter and currently hovering near $83 per barrel, the allure of the Permian Basin for energy companies remains robust. Andrew Dittmar, Principal Analyst at Enverus Intelligence Research, notes that the Permian Basin continues to dominate the M&A landscape within the oil and gas industry due to its prolific nature. The largest proposed acquisition of the quarter was Diamondback Energy's monumental $26 billion bid for Endeavor Energy Partners, uniting two prominent Permian-centric drillers. Other significant deals include Apache Corp.'s $4.5 billion acquisition of Permian oil rival Callon Petroleum and Chesapeake Energy's April acquisition of Southwestern Energy for $7.4 billion. However, some deals, such as those by Exxon Mobil and Chevron, are facing hurdles due to antitrust reviews, particularly concerning their concentration of holdings in the Permian or Haynesville shale fields. Despite the impressive deal activity observed in the first quarter, Dittmar anticipates that the fervent pace may not be sustainable. Strong oil prices are enabling companies to justify retaining non-core drilling assets, leading to a scarcity of inventory among exploration and production companies (E&Ps). In summary, while the first quarter marked a historic surge in U.S. oil and gas deals, driven by the allure of the Permian Basin and favorable oil prices, the sustainability of this fervent pace remains uncertain amidst evolving market dynamics.

The Permian Basin continues to shine as the most prominent oil-producing shale play in the US, boasting a robust network of oil and gas gathering and export pipelines. In March 2024, production in the Permian Basin reached 5.5 MMbd for oil and 23.1 Bcfd for natural gas, with no signs of any production decline soon. With global oil demand rising post-COVID-19, Europe's shift away from Russian energy exports is reshaping global energy supplies. This strategic change is expected to benefit US shale oil and gas producers and, in turn, boost LNG export operators and midstream companies to new heights. As the US Presidential election approaches in late 2024, amidst concerns over high inflation, the potential for a rollback of regulatory measures on shale drilling implies a positive outlook for unconventional resource development. The anticipated policy shift should bode well for producers of all sizes nationwide. Noteworthy M&A activities fueling growth in the Permian Basin are recent acquisitions like ExxonMobil's purchase of Pioneer Natural Resources, which reshapes the landscape. The industry anticipates vigorous M&A activity in the US in the coming years, strengthening production and operational synergies. Looking ahead, expectations of continuity in the new administration point towards a potential long-term stability in power. This foreseen stability could usher in a renewed era for the oil and gas industry, paving the way for enhanced growth opportunities and operational advancements. We welcome back the true leaders of the free world, the men and women of the US oil and gas industry!

The Exxon acquisition of Pioneer Resources got the go ahead once they got Sheffield out of the picture. However, the fantasy reporting about the deal continues today in the WSJ. https://lnkd.in/eNXrPQdq "Exxon’s Permian production volume is expected to more than double to 1.3 million barrels of oil equivalent per day. That figure should rise to 2 million barrels in 2027, the company said." How exactly will Exxon get another 700,000 barrels a day out of this acreage? That would be the first true shale miracle. It will never happen. I've explained why in a series of articles. Details on the Pioneer deal and Sheffield. https://lnkd.in/dijJji2q How the US oil industry is peaking and thus 700,000 barrel a day increases from existing acreage in one shale play are highly improbable. https://lnkd.in/exduHZux How Exxon's promises of technology producing these magical results are not based in reality. https://lnkd.in/e4t_yKCk How the whole industry is still selling lies about how profitable shale oil is https://lnkd.in/gcMXCXES And more on the fraud lawsuit against Exxon for the last time they made one of these wildly optimistic production forecasts. https://lnkd.in/evrAfGtw #Exxon