Reese Energy Consulting’s Post

‘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.  

‘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/ebXT2mS. For more info about our online natural gas training courses, visit us at https://lnkd.in/g_jDyx_Y. #energy #midstream #construction #gasprocessing #pipelines #naturalgas #ngls #reeseenergyconsulting

WhiteWater Plays its Hand Permian producers, rejoice. While you await opening ceremonies on the 580-mile Matterhorn Express that will transport up to 2.5 BCFD of natural gas from West Texas to near Houston, there’s even more cause for celebration. Reese Energy Consulting today is following the latest on what’s been described as West Texas Hold ‘Em among midstream operators to play the first FID card on the next major Permian pipeline. That card has now been played. The WPC joint venture between WhiteWater Midstream, MPLX GP LLC, and Enbridge, in partnership with Targa Resources, has gone all-in to build the 365-mile Blackcomb Pipeline to flow 2.5 BCFD of natural gas from the Texas Permian to Agua Dulce. These are the same folks who brought you the 450-mile Whistler. Whistler Pipeline back in March announced it will combine its natural gas assets with the planned Enbridge Rio Bravo Pipeline in a new JV. WhiteWater is also behind the Matterhorn and Agua Blanca. The Blackcomb Pipeline will source gas from multiple upstream connections, including gas plants in the Midland and the Agua Blanca Pipeline in the Delaware. Shippers aboard include Devon Energy, Diamondback Energy, Marathon Petroleum Corporation, and Targa. Project completion is expected in the second half of 2026. What do you think? Learn more about REC and our natural gas and midstream consulting services at https://lnkd.in/ebXT2mS. For more information about our online natural gas training courses, visit us at https://lnkd.in/g_jDyx_Y. #energy #naturalgas #pipelines #lng #permianbasin #reeseenergyconsulting

#US_pipeline US pipeline operator ONEOK Inc. agreed to buy a Permian Basin rival and a controlling stake in another company in two transactions valued at a combined $5.9 billion. ONEOK will acquire Global Infrastructure Partners’ entire interest in EnLink Midstream LLC and also buy GIP’s equity interests in Medallion Midstream, the largest closely held crude gathering and transportation system in the Permian, it said in a statement late Wednesday. The move expands ONEOK’s presence in the most prolific US oil and gas basin. It’s the latest in a spate of deals in the industry as private equity firms offload assets to corporate buyers. Operators of oil and gas assets are looking to scale up as cash-flush fossil fuel companies consolidate and look to refresh their drilling inventory. New York-based Global Infrastructure Partners is a private equity firm specializing in energy, transportation, water and waste management. ONEOK shares gained 0.8% in New York. EnLink surged 11%. https://lnkd.in/dCFiT6nS

The oil and gas industry in West Texas, particularly in the Permian Basin, has had a profound economic impact, driving job creation, investment, and economic growth in the region.  Download the list of accounts driving the West Texas oil & gas industry https://lnkd.in/gD__gcHz

NEW LISTING: Eagle River Energy Advisors, LLC has been exclusively retained by SOGC, Inc. (formerly Sinclair Oil & Gas Company) to divest certain operated working interest and assets in the Arkoma Basin. The assets provide the opportunity to acquire a gas-weighted production stream of 515 Mcfe/d. Additionally, this package has stable with a shallow forecast decline of ~7% and a NTM Cash Flow of $173,000. Lastly, 2,246 net acres of leasehold provides significant exposure to future development of the Woodford Shale. SOGC, Inc. (formerly Sinclair Oil & Gas Company) is a privately held, vertically integrated oil company involved in all aspects of the oil and gas industry, from exploration to marketing. Founded in 1916 by Harry F. Sinclair, Sinclair Oil & Gas Company is one of the oldest continuous brands in the oil business, with their dinosaur being one of the most recognized icons in the United States. Bids for the Acquisition Opportunities with SOGC, Inc. referenced in this press release are due August 21, 2024. Contact the Eagle River Energy Advisors, LLC team to learn more. #OilandGas #ArkomaBasin #Oklahoma

Canadian pipeline operator Enbridge announced the formation of a joint venture with I Squared Capital, WhiteWater, and MPLX GP LLC to enhance natural gas supplies from the Permian Basin to the U.S. Gulf Coast, aiming to meet the booming LNG export demand. Enbridge holds a 19% stake in the venture, WhiteWater and I Squared together have a majority 50.6% stake, and MPLX possesses 30.4%. This strategic collaboration, set to finalize in the second quarter, underscores the United States' position as a leading LNG exporter, with expectations for several export facilities to become operational by the decade's end. The venture encompasses complete interests in Enbridge's Rio Bravo Pipeline, connecting to the Rio Grande LNG project in Texas and the Whistler pipeline and facilitating natural gas transportation from the Permian. Additionally, it includes significant stakes in the proposed ADCC pipeline, aimed at the Corpus Christi LNG export facility, and a 50% interest in the Waha Gas storage. Enbridge commits to funding the first $150 million for completing the Rio Bravo project and providing $350 million in cash to the venture, signifying a significant expansion of its capacity in the Permian Basin. https://lnkd.in/gAFhzayv

𝙈𝙖𝙟𝙤𝙧 𝘾𝙖𝙥𝙖𝙘𝙞𝙩𝙮 𝙀𝙭𝙥𝙖𝙣𝙨𝙞𝙤𝙣 𝙛𝙤𝙧 𝙋𝙚𝙧𝙢𝙞𝙖𝙣 𝘽𝙖𝙨𝙞𝙣 𝙂𝙖𝙨 𝙋𝙞𝙥𝙚𝙡𝙞𝙣𝙚𝙨 The Permian Basin, known primarily for its oil production, is witnessing a significant expansion in natural gas pipeline capacity with the upcoming launch of several major projects. The Matterhorn Express Pipeline, a joint venture including key players like EnLink Midstream and Devon Energy, is set to transport 2.5 billion cubic feet per day (Bcf/d) of natural gas to Katy, near Houston, Texas. This pipeline is expected to begin operations this month, marking a substantial increase in the region's gas transport capacity. Since 2018, natural gas production in the Permian Basin has more than doubled, drastically reducing regional prices at the Waha Hub, with prices going negative on several days in 2024. To combat these pricing challenges, additional pipeline projects like the Apex, Blackcomb, and Saguaro Connector Pipelines are underway, promising to add 7.3 Bcf/d of capacity by 2027 and alleviate bottlenecks by facilitating gas transport to Texan and Mexican markets. Further projects aiming to add 7.0 Bcf/d to transport gas to Mexico and the Texas Gulf Coast are planned, potentially coming online between 2025 and 2028. This surge in capacity is expected to relieve local price pressures and stabilize the market, benefiting Permian producers and promoting more sustainable regional pricing. What impact do you think these developments will have on the region's natural gas pricing and market dynamics? Are similar expansions needed in other production areas? Share your views below. #EnergyMarket #NaturalGas #PermianBasin #PipelineExpansion #MarketDynamics https://lnkd.in/gGVffe-w

SM Energy’s Q3 2024 results highlight exceptional production growth across South Texas, the Permian Basin, and their newly acquired Uinta Basin assets. In South Texas, the Austin Chalk continues to outperform expectations, while Midland’s Sweetie Peck and Klondike areas deliver high returns with strong well performance. The Uinta Basin acquisition adds significant scale, with new wells showing high oil content and efficiency improvements from in-basin resources, positioning SM Energy for continued growth and shareholder returns. Get 2024 drilling report https://lnkd.in/gKMV_By4

Moats are challenging to establish in oil and gas. The wide ones are unicorns. What an O&G company does to differentiate their company… Smaller basins and conventional fields put up geographical barriers to competition. The Giddings Field, where Magnolia Oil & Gas and WildFire Energy LLC reign supreme, is an excellent example of a sub-basin that creates a natural defense against competitors moving in. Riley Exploration Permian, Inc.’s conventional fields on the shelf of the basin in Texas and New Mexico are another great reference of a company developing and producing oil at margins well over their competition in the hotter acreage to the south. What are other durable oil and gas moats?