Reese Energy Training’s Post

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.

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

Natural Gas Conundrums Play Heavy on 1Q Earnings Reports Is that confetti raining from the sky? No, that would be a blizzard of 1Q earnings reports from our oil and gas producer friends commiserating sub-zero natural gas prices, and our midstream friends largely making hay. Associated gas in the Permian has become a huge pain in the arse for producers that’s not only costing them for takeaway, but the pipeline capacity to get that flow out of the basin is growing tighter than an Arkansas tick after a blood supper. For most midstreamers, it’s a whole other fish fry. Reese Energy Consulting today has selected two reports for cussin’ and discussin’ because we’re too darn busy with audits to sift through them all. On the producer side, we send a whoop and holler to Minn-based NOG, Inc. (NYSE: NOG), the nation’s largest non-operated E&P that continues to work magic in the Permian, Williston, and Marcellus. After two acquisitions last year, the company expanded its Delaware position to 40,000 acres—crowning it the largest asset—and brought cupcakes to its entry in the Ohio Utica. NOG posted 1Q record production of 120 MBOED with oil and gas sales of $532 million. On the midstream side, we send a shoutout to Tulsa-based ONEOK, which last year combined its expansive natural gas bones with downtown neighbor Magellan Midstream Partners and its massive crude oil and refined products pipeline network. Magellan owns the nation’s largest refined products pipeline extending 9,800 miles from the Texas Gulf across 15 states. Now a year into the acquisition, ONEOK continues to integrate its $18.8 billion baby while reporting 1Q adjusted EBITDA of $1.44 billion and a $70 million increase to its 2024 net income guidance to a range of $2.73 billion to $3.03 billion. This, largely due to increased volumes of natural gas and NGLs. What do you think? Learn more about REC and our producer and midstream consulting services at https://lnkd.in/ewhkGFa.

Natural Gas Conundrums Play Heavy on 1Q Earnings Reports Is that confetti raining from the sky? No, that would be a blizzard of 1Q earnings reports from our oil and gas producer friends commiserating sub-zero natural gas prices, and our midstream friends largely making hay. Associated gas in the Permian has become a huge pain in the arse for producers that’s not only costing them for takeaway, but the pipeline capacity to get that flow out of the basin is growing tighter than an Arkansas tick after a blood supper. For most midstreamers, it’s a whole other fish fry. Reese Energy Consulting today has selected two reports for cussin’ and discussin’ because we’re too darn busy with audits to sift through them all. On the producer side, we send a whoop and holler to Minn-based NOG, Inc. (NYSE: NOG), the nation’s largest non-operated E&P that continues to work magic in the Permian, Williston, and Marcellus. After two acquisitions last year, the company expanded its Delaware position to 40,000 acres—crowning it the largest asset—and brought cupcakes to its entry in the Ohio Utica. NOG posted 1Q record production of 120 MBOED with oil and gas sales of $532 million. On the midstream side, we send a shoutout to Tulsa-based ONEOK, which last year combined its expansive natural gas bones with downtown neighbor Magellan Midstream Partners and its massive crude oil and refined products pipeline network. Magellan owns the nation’s largest refined products pipeline extending 9,800 miles from the Texas Gulf across 15 states. Now a year into the acquisition, ONEOK continues to integrate its $18.8 billion baby while reporting 1Q adjusted EBITDA of $1.44 billion and a $70 million increase to its 2024 net income guidance to a range of $2.73 billion to $3.03 billion. This, largely due to increased volumes of natural gas and NGLs. What do you think? Learn more about REC and our producer and midstream consulting services at https://lnkd.in/ewhkGFa.

Over a year ago, Ovintiv picked up EnCap Investments L.L.C's Piedra Resources, LLC, PetroLegacy Energy, and Black Swan Oil & Gas, LLC., Using $30K per flowing BOE, we attributed $2.25BN to PDP. On the $4BN deal, this left $1.75BN for drilling locations. We measured 548 drilling locations and estimated a 90% working interest off our gross acreage. This left us with 493 estimated net locations (versus 1,050 company) at $3.55MM/location, which did not credit benefit for the DUCs, especially on the western acreage. At least Ovintiv came away with a large number of absolute locations. Based on our rough sketch of the deal, this looked like another rich per-location price. However, we had no reason to think these prices would start to come down. Inventory is the most important asset, and everyone needs more runway. Using the larger well set associated with the Martin acreage, we applied a 2-mile lateral type curve of 400 MBO and 1.1 BCF. On a half-cycle, pretax basis using $825 of capex per lateral foot and $80 oil and $4 gas, we got a modest 41% pre-tax IRR. This deal reinforced the scarcity of inventory and the marginal cost of swing production, over a year ago. Now, we have to swallow this benchmark as a pre ExxonMobil / Pioneer Natural Resources Company transaction value measurement.

Why “Drill, Baby, Drill” Isn’t Always the Answer The oil and gas industry is no stranger to evolving strategies, even from the biggest players. This article highlights how Exxon is maintaining a focus on returns and longer-term value creation rather than shifting to an aggressive drilling strategy. It’s a powerful reminder that sustainable energy investment isn’t just about quantity—it’s about quality and timing. At PetroPeak Investments, we align with this principle by offering investors a way to participate in oil and gas through mineral royalties—an asset class that benefits from these strategic developments without the operational risks. Curious about how mineral rights can diversify your portfolio? Visit us at www.petropeakinvest.com to learn more. 💬 What’s your take on Exxon’s strategy? Let’s discuss! #OilAndGas #EnergyInvesting #PortfolioDiversification #PetroPeakInvest https://lnkd.in/gP-BSEdE

Natural Gas Conundrums Play Heavy on 1Q Earnings Reports Is that confetti raining from the sky? No, that would be a blizzard of 1Q earnings reports from our oil and gas producer friends commiserating sub-zero natural gas prices, and our midstream friends largely making hay. Associated gas in the Permian has become a huge pain in the arse for producers that’s not only costing them for takeaway, but the pipeline capacity to get that flow out of the basin is growing tighter than an Arkansas tick after a blood supper. For most midstreamers, it’s a whole other ballgame. Reese Energy Consulting today has selected two reports for cussin’ and discussin’ because we’re too darn busy with audits to sift through them all. On the producer side, we send a whoop and holler to Minn-based NOG, the nation’s largest non-operated E&P that continues to work magic in the Permian, Williston, and Marcellus. After two acquisitions last year, the company expanded its Delaware position to 40,000 acres—crowning it the largest asset—and bringing cupcakes to its entry in the Ohio Utica. NOG posted 1Q record production of 120 MBOED with oil and gas sales of $532 million. On the midstream side, we send a shoutout to Tulsa-based ONEOK, which last year combined its expansive natural gas bones with downtown neighbor Magellan Midstream Partners and its massive crude oil and refined products pipeline network. Magellan owns the nation’s largest refined products pipeline extending 9,800 miles from the Texas Gulf across 15 states. Now a year into the acquisition, ONEOK continues to integrate its $18.8 billion baby while reporting 1Q adjusted EBITDA of $1.44 billion and a $70 million increase to its 2024 net income guidance to a range of $2.73 billion to $3.03 billion. This, largely due to increased volumes of natural gas and NGLs. What do you think? Learn more about REC and our producer and midstream consulting services at https://lnkd.in/ebXT2mS. #energy #midstream #naturalgas #mergersandacquisitions #reeseenergyconsulting

Enterprise Bets on a Dark Horse Back in 2020, Houston-based Piñon Midstream LLC 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/ewhkGFa. For more information about our latest online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.  

Enterprise Bets on a Dark Horse Back in 2020, Houston-based Piñon Midstream LLC 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/ewhkGFa. For more information about our latest online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.