Pinon is building a sour gas treatment facility in Lea County, N.M.
US Supreme Court case may decide whether the federal government can delegate to interstate pipelines their eminent domain authority, or whether states are immune form condemnation suits under sovereign immunity. So basically, any blue state could block any interstate pipeline that goes through any state property (like under a HIGHWAY), making them virtually impossible to build unless the federal government takes over building pipelines.
Here’s a company marketing mobile Bitcoin mining units that run off of flared gas.
Turn your gas into something to make your ransomware payments with
Bonanza Creek and Extraction Oil in Colorado are combining.
The International Energy Agency out of France says all investment in new oil and gas projects must stop today in order to meet the Paris Climate Accords. Oh, and by the way, OPEC will control 1/2 the worlds supply in a few years because their fields have a lower decline curve.
Oasis is selling its Permian acreage for about 1/2 of what it bought it for in 2017, but is buying Bakken acreage.
Cimarex and Cabot are merging.
Oasis raising $400 million to fund QEP purchase
Two articles about how the pipeline capacity issues in the Permian have resolved themselves. Interesting how the free market resolves these imbalances if you can build pipelines.
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Colgate is buying Oxy’s southern Delaware acreage for $508 million. Nice add on for Colgate. Helps Oxy reduce some debt.
Colgate has also acquired Luxe Energy in an all-stock transaction effect June 1. Acreage fits with both existing acreage and new Oxy acreage.
Interesting … Unfettered privately held companies like Colgate are not restraining their growth like the public companies. Colgate issued $500 million bonds at 5.875% at par to fund the two acquisitions. Who said the capital markets are dead for E&P?
Oil majors’ boards are under assault from ESG activists to impose environmentalist projects, e.g., Exxon proxy loss, Shell preparations to divest 260,000 Permian acres.
Publicly traded E&P independents continue promising restrained growth and debt reduction, even saying their growth will be only mid-single digits in next few years after markets normalize. E&P CEOs also said that their privately-owned competitors are not restraining growth.
Colgate has been drilling heavily 2017-2021 in Pecos town and in a 20-mile band south of I-20 to the Pecos River, these acquisitions provide concentration south of Pecos and across the river into western Ward County.
Dallas Fed published quarterly energy survey 6/23/21. CapEx increased, will increase modestly in 2022. Respondents predict $70 WTI and $3.10 gas at year end (range $49-$85 bbl). Anonymous responses by E&P and service companies always enlightening.
Dallas Fed 2Q21.pdf (7.7 MB)
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Wall Street Journal recaps E&P financial discipline and rig count. An expert opines U.S. production will decline in second half 2021 unless rig count increases 20%.
Bond market is open for E&P companies (WSJ, 7/15/21), both junk & investment grade, thanks to E&P promises not to over-drill. https://www.wsj.com/articles/wall-street-opens-back-up-to-oil-and-gasbut-not-for-drilling-11626341400?st=s6tlnhqwsebah73&reflink=desktopwebshare_permalink
88% of proceeds used to refinance for lower yields or longer maturities. Laredo issued 8-year bond at 7.75%. Credit spread only 3.3% between speculative E&P bonds and US Treasurys.
Energy Department report about LNG exports. Up 72.7% from May 2020. Exports by ship and pipe are quietly propping up the US gas Market at long last.
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Kimmeridge report (major private equity firm in O&G) criticizes levels of executive pay in the O&G industry.
63 mile gas pipeline in NW North Dakota begins construction. Should reduce flaring and provide better prices for that area.
Whiting is selling its assets in the D-J Basin and buying assets in the Williston Basin.
Here is an article from Enverus about how to go about automating your royalty income data. Obviously they are trying to sell their services, but it does have some good broad brush outlines on how to go about it.
We are in the process of doing this for our family. Getting income into ACH payments, signing up to get check stub data into a computer readable format, and then synching that data with a mineral management software program require a good deal of up front time and effort. However, the long term savings in manpower is considerable. Besides, I look at how the next generation is going to look at managing this. Are they going to want to be handed a big box of paper and told good luck? No, they are going to want it in electronic format and will look at us as if we were crazy if we don’t get it done before it gets split up again with another generation.