HEW-TEX INDUSTRY NEWS ROOM
The Permian Basin Is Chock Full Of Potential Takeover Targets
Forbes.com: by
With its April 26 announcement that it has an agreement-in-principle for the sale of its last remaining assets in the Eagle Ford Shale, Pioneer Natural Resources is on the verge of fulfilling its objective, announced in February 2018, of attaining a new status as a pure Permian Basin play. Whether intentional or not, the company has also just made itself a more attractive takeover target for bigger companies looking to increase their holdings in the world’s hottest oil field.
A map of Permian acreage owned by each major operator, provided by the folks at industry solutions firm DrillingInfo, can be seen at this link. It shows that Pioneer’s assets are concentrated in the Midland Basin, which makes up the Eastern half of the greater Permian region. While the Midland Basin is not currently considered as attractive as acreage in the Delaware Basin in the Western half of the Permian region, potential suitors will look on Pioneer’s big swath of concentrated acreage with great favor. Read more…
Pioneer Natural Resources Clears the Path to Become a Pure Permian Play
Pioneer Natural Resources (NYSE:PXD) announced on April 26 that it was engaged in advanced negotiations to sell the last remaining non-Permian Basin asset in its portfolio, a suite of joint venture properties in the Eagle Ford Shale region of Central Texas. If completed, the transaction to sell the properties to Ensign Natural Resources would complete Pioneer’s two-year transition from a nationwide producer to a pure Permian Basin play.
It’s fair to note that that fact will also have the effect of making the company a more attractive target for a buyout by a larger company in the coming months. With Chevron and Oxy battling to become the acquirer of major Permian producer Anadarko Petroleum, and other majors like Shell, BP and ExxonMobil looking to enlarge their own positions in the Permian region, the industry appears to be headed into a period of rapid consolidation. Read more…
Drilling Down: Boom times in Texas’ least populated county
Loving County, population 134, has become a top destination for oil and natural gas drillers. So far this year, about 18 companies have filed for 218 drilling permits, putting the West Texas county on pace to eclipse the 437 drilling permits filed by 35 companies in 2018.
The Permian Basin operations of EOG Resources, Shell and Anadarko account for nearly half of the activity Loving County.
Service companies aren’t too far behind. Carlsbad, New Mexico oilfield wastewater management company Mesquite SWD has filed to drill 30 saltwater disposal wells in Loving County so far this year. Read more…
Oil surges 2.7% to nearly 6-month high, settling at $65.70, after Trump cracks down on Iran exports
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 more…
Permian Basin water disposal volumes expected to double by 2022
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 more…
Chevron to buy Anadarko Petroleum in a $33 billion cash and stock deal
- 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 more…
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.
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 more…
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 more…
Exxon-Chevron Permian slugfest expected to last years
The nation’s biggest energy players, Exxon Mobil and Chevron, are emerging as the biggest competitors in the booming Permian Basin, and they’re set to duke it out in the region for more than a decade to come, analysts said Friday.
Earlier this month, Exxon Mobil and Chevron both said they planned to grow their Permian Basin production to about 1 million barrels of oil equivalent a day within five years, roughly tripling their current output.
“These players are set to increase collective output to over 2.5 million barrels of oil equivalent per day by 2030, leaving all well-established shale producers behind,” said Artem Abramov, head of shale research at Norwegian research firm Rystad Energy. Read more…
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Oil prices surged about 3% at midday on Monday, hitting fresh 2019 highs, after the Trump administration announced that all oil buyers will have to end imports from Iran in just over a week or be subject to U.S. sanctions.
The administration said the State Department will cease granting sanctions waivers to any country still importing Iranian crude or condensate, an ultra-light form of crude oil, after May 2. Read more…