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Permian water company Solaris says it’s closing in on new deal

WorldOil.com : By RACHEL ADAMS-HEARD on 4/16/2019 HOUSTON (Bloomberg) — Solaris Water Midstream, which handles water supplies and disposal for Marathon Oil, is closing in on a deal with another driller as explorers increasingly outsource one of the key components of fracing. Backed by private equity investor Trilantic North America, Solaris has “a couple” letters of intent with oil producers in the works and expects to be handling the wastewater needs for another driller in the future, Greg Mullin, the company’s senior vice president of commercial, said at a conference in Fort Worth, Texas. The Permian basin’s budding water business is only getting bigger as oil producers seek to cash in on infrastructure used to transport water to wells and to dispose of it after it’s been blasted into shale rock with sand and chemicals. Private equity-backed companies like Solaris have been buying the assets from drillers to become their service providers. Read...

Permian Basin water disposal volumes expected to double by 2022

By Sergio Chapa Houston Chronicle: Published 5:02 pm CDT, Saturday, April 13, 2019 Oilfield wastewater disposal volumes are expected to double in the Permian Basin within the next two to three years, a new analysis from global energy intelligence firm Wood Mackenzie shows. As drilling activity continues to expand in the arid region between West Texas and southeastern New Mexico, hydraulic fracturing has resulted in growing challenges in sourcing water and what to do with wastewater from completed wells. Read...

Chevron to buy Anadarko Petroleum in a $33 billion cash and stock deal

CNBC-PUBLISHED FRI, APR 12 2019 • 6:00 AM EDT  UPDATED FRI, APR 12 2019 • 10:30 AM EDT KEY POINTS Chevron plans to acquire Anadarko Petroleum in a cash and stock deal the company valued at $33 billion. The transaction values Anadarko at $65 per share, a 37% premium to Thursday’s closing price. Chevron’s deal represents the 11th biggest ever for an energy and power company, according to Refinitiv. Chevron announced on Friday it will acquire oil and gas driller Anadarko Petroleum in a cash and stock deal valued at $33 billion, marking one of the biggest energy sector mergers in years and a transformative moment for one of the industry’s dominant players. Read...

Permian Basin Drillers Continue to Cash In on Their Infrastructure Bets

Investments in midstream assets have paid off for the region’s oil and gas producers. Matthew DiLallo (TMFmd19) - Apr 2, 2019 at 7:48PM Oil and gas companies have poured billions of dollars into developing the Permian Basin over the last several years. In addition to buying land and drilling more wells, many have invested in building out the necessary midstream infrastructure to move their growing production out of the region. That infrastructure investment has proven to be a smart one, as an increasing number of drillers are cashing in on these assets by selling them to private equity funds or midstream-focused companies for a significant premium to their initial investment. Concho Resources (NYSE:CXO) and WPX Energy (NYSE:WPX) are the latest to cash in on a midstream investment; they both recently sold their stake in Oryx Midstream to private equity fund Stonepeak Infrastructure Partners. These sales highlight the value oil and gas producers are creating by investing in early-stage midstream developments.   Ringing the register Stonepeak Infrastructure Partners is buying Oryx Midstream from drillers Concho Resources and WPX Energy as well as private equity funds Quantum Energy Partners and Post Oak Energy Capital for $3.6 billion. Oryx operates oil gathering and transportation systems that move crude from wells in the Delaware Basin to longer-haul pipelines that take it out of the region. Read...

A Flood of U.S. Oil Exports Is Coming

Bloomberg: By Javier Blas March 25, 2019, 10:01 PM MDT Updated on March 26, 2019, 9:50 AM MDT American petroleum exports to overtake Russia within 5 years Second wave of U.S. shale revolution to hit geopolitics: IEA Oil trader Paul Vega is at the vanguard of shale’s next revolution. Driving his pick-up truck through the heartland of the Permian basin — the vast tract of west Texas scrub where one of history’s greatest oil booms means miles-long traffic jams — Vega says there’s more crude being pumped than America’s refineries can absorb. Today, the primary task of trading houses like his is getting the stuff overseas. “We buy it, we truck it, we put it on a pipeline, and there it goes to the port — and from there to the world,” said Vega, who heads the office of global commodities trader Trafigura Group in Midland, the region’s oil industry hub. What started as an American phenomenon is now being felt around the world as U.S. oil exports surge to levels unthinkable only a few years ago. The flow of crude will keep growing over the next few years with huge consequences for the oil industry, global politics and even whole economies. OPEC, for example, will face challenges keeping oil prices high, while Washington has a new, and potent, diplomatic weapon. Read...