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☆ Occidental Petroleum to buy Permian producer CrownRock for $12 billion, raise dividend
▼ + stars: | 2023-12-11 | by ( Spencer Kimball | ) www.cnbc.com time to read: +4 min

Occidental will issue $9.1 billion in debt and about $1.7 billion in common stock to finance the transaction. Occidental Petroleum on Monday agreed to buy CrownRock , a major privately held energy producer that operates in the Permian Basin, for $12 billion. Occidental CEO Vicki Hollub said the company is purchasing CrownRock to increase its scale in the Midland Basin. Occidental is the ninth-largest energy company in the U.S. with a market capitalization of $49.7 billion. Occidental's purchase of CrownRock is the third major deal in the energy sector in less than two months.

Persons: Vicki Hollub, Hollub, CNBC's, CrownRock, Timothy Dunn, Warren Buffett's, Warren Buffett's Berkshire Hathaway, Berkshire Hathaway, Buffett, Carl Icahn, Enverus, Weeks, Hess Organizations: Midland Basin, U.S . Energy Information Administration, U.S, Occidental Petroleum, Occidental, Endeavor Resources, Houston, Lime Rock Partners, Warren Buffett's Berkshire, Anadarko Petroleum, Exxon Mobil, Natural Resources, Chevron, Pioneer, Texas Intermediate, CNBC, Energy Information Administration Locations: Occidental, Midland, Texas, U.S, Warren, Berkshire, CrownRock

☆ Cash-rich Exxon, Chevron use stock for mega deals amid energy market jitters
▼ + stars: | 2023-10-24 | by ( David French | ) www.reuters.com time to read: +5 min

Since our shareholders are getting Chevron stock, we get to participate in the upside, and also get a higher dividend," he said. He added that Hess shareholders who keep their shares in their combined company will see their dividend rise from $1.75 to $6 per share following the close of the deal. Exxon and Chevron are keen on these deals because they want to avoid the risk of exploring unproven reserves as oil and gas become scarcer. Exxon and Chevron had $29.5 billion and $9.3 billion in cash, respectively, as of the end of June. Keeping dividends and share buybacks strong helps compensate existing Exxon and Chevron shareholders for the dilution incurred in the all-stock acquisitions.

Persons: Hess, John Hess, Andrew Dittmar, David French, Greg Roumeliotis, Marguerita Choy Organizations: Exxon Mobil, Chevron, Exxon, Natural Resources, PDC Energy, Noble Energy, Morningstar, Anadarko, Occidental Petroleum, Thomson Locations: Ukraine, U.S, Guyana, New York

☆ Analysis: Cash-rich Exxon, Chevron use stock for mega deals amid energy market jitters
▼ + stars: | 2023-10-24 | by ( David French | ) www.reuters.com time to read: +5 min

Dealmaking in the U.S. oil and gas patch has picked up pace as producers sought to replenish their inventory after years of under-investment. The most-prized targets for Chevron could be Coterra Energy (CTRA.N) or Devon Energy (DVN.N), he added. Others mentioned included Matador Resources (MTDR.N), Permian Resources (PR.N) and Diamondback Energy (FANG.O). Still, the Exxon deal, the industry's largest since 2016, also set off worries about stiff regulatory scrutiny over anti-competitive concerns. Exxon does not anticipate antitrust hurdles to complete the deal, expected by early 2024.

Persons: Exxon Mobil's, Gabriele Sorbara, Siebert Williams Shank, Sorbara, Dado Ruvic, Andrew Dittmar, Elizabeth Warren, Sven Del Pozzo, Mrinalika Roy, Chris Sanders, Sriraj Organizations: Exxon, Natural Resources, Co, Chevron, ConocoPhillips, ExxonMobil, Pioneer, REUTERS, Devon Energy, Matador Resources, Diamondback Energy, U.S, P, Insights, Thomson Locations: U.S, Bengaluru, Washington

Exxon Mobil logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. Exxon shares were down 1.6%Friday's gains leave the stock short of the offer, as it is possible that the two companies will not reach an agreement. If the negotiations conclude successfully, an agreement between Exxon and Pioneer could be reached in the coming days, Reuters reported on Thursday, citing three sources. "Pioneer is the Permian's largest operator at 9% of gross production while Exxon is No. Combined amounts to 15% of operated Permian production, but only 6% of total US production.

Persons: Dado Ruvic, Andrew Dittmar, Enverus, Scott Hanold, Bill Smead, Mrinalika Roy, Sourasis Bose, Arunima Kumar, Sabrina Valle, Sriraj Organizations: Exxon Mobil, REUTERS, Natural Resources, Mobil, Reuters Graphics, Exxon, Pioneer, Reuters, RBC Capital, Smead Capital Management, Thomson, & $ Locations: Bengaluru, Houston

☆ Oil prices are surging again, but this time Biden has way less ammunition to bring them down
▼ + stars: | 2023-09-09 | by ( Jason Ma | ) www.businessinsider.com time to read: +4 min

Oil prices are surging again, but the Strategic Petroleum Reserve remains near 40-year lows. Last year, the Biden administration drained 180 million barrels from the SPR as oil prices soared. Flooding the market with all that supply helped bring oil prices down — and helped cool inflation, which had shot up as well. But while it has ticked up slightly, the level remains near 40-year lows at about 350 million barrels. The stock market has started to feel the ripple effects from rising oil prices.

Persons: Biden, Brent, Enverus Organizations: Strategic Petroleum Reserve, Service, Biden, Petroleum Reserve Energy Department, Energy Department, Federal Reserve Locations: Wall, Silicon, Ukraine, Saudi Arabia, Russia, Texas , New Mexico, North Dakota

☆ US oil M&A jumps as private equity unloads shale assets
▼ + stars: | 2023-07-25 | by ( Gary Mcwilliams | ) www.reuters.com time to read: +2 min

HOUSTON, July 25 (Reuters) - U.S. oil and gas deals rebounded in the second quarter as private equity firms shed shale portfolio investments and publicly traded oil firms grabbed smaller rivals. The surge was due in part to energy focused private equity firms EnCap Investments and NGP Energy Capital selling off a combined six portfolio companies. In total, $14 billion in private equity-owned assets have changed hands this year, Enverus said. Private equity firms have moved away from oil deals, with only 10 new exploration and production firm investments this year compared to 100 per year last decade, Enverus said. Most M&A was in the top U.S. shale field as companies looked to add oil acreage, Enverus' Dittmar said.

Persons: Enverus, Andrew Dittmar, Jon Platt, Baker Botts, Dittmar, Gary McWilliams, Nick Zieminski Organizations: EnCap Investments, NGP Energy Capital, Civitas Resources, PDC Energy, Thomson Locations: U.S, Dittmar . U.S

July 21 (Reuters) - U.S. energy firms this week reduced the number of oil and natural gas rigs operating for a second week in a row, including the deepest oil rig cut since early June, energy services firm Baker Hughes (BKR.O) said in its closely followed report on Friday. U.S. oil rigs fell by seven to 530 this week, their lowest since March 2022, while gas rigs dropped by two to 131. Baker Hughes said drillers cut four rigs in the Permian in West Texas and eastern New Mexico, the nation's biggest shale oil formation, bringing the total down to 333 rigs. They also cut two rigs in the Eagle Ford bringing the total in that South Texas shale basin down to 57 rigs. U.S. shale oil and gas production will fall in August for the first time since December, the U.S. Energy Information Administration (EIA) said in its monthly Drilling Productivity Report this week.

Persons: Baker Hughes, Scott DiSavino, Marguerita Choy Organizations: drillers, Eagle Ford, Halliburton, U.S . Energy Information Administration, Thomson Locations: West Texas, New Mexico, South Texas, U.S

June 9 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for a sixth week in a row for the first time since July 2020, energy services firm Baker Hughes Co (BKR.O) said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, fell by one to 695 in the week to June 9, the lowest since April 2022. , ,U.S. oil rigs rose one to 556 this week, while gas rigs fell two to 135, their lowest since March 2022. Data provider Enverus, which publishes its own rig count data, said drillers cut nine rigs in the week to June 7, dropping the overall count to 750. That compares with a record 12.3 million bpd in 2019. U.S. gas production, meanwhile, was on track to rise from a record 98.13 billion cubic feet per day (bcfd) in 2022 to 102.74 bcfd in 2023 and 103.04 bcfd in 2024, according to EIA's projection.

Persons: Baker Hughes, Beth McDonald, McDonald, Goldman Sachs, Scott DiSavino, Marguerita Choy Organizations: drillers, Natural Resources, Organization of Petroleum, U.S . Energy Information Administration, Thomson Locations: U.S, Saudi Arabia, Russia

Top producers have built a war chest to fund acquisitions after reaping windfall profit in 2022 from skyrocketing oil prices following Russia's invasion of Ukraine. At least three analysts have identified Diamondback Energy Inc (FANG.O), Matador Resources Inc (MTDR.N) and Permian Resources Corp (PR.N) as possible takeout targets. The shale patch, which lies between Texas and New Mexico, has the necessary infrastructure and is known for high productivity and large undeveloped reserves. But a surge in oil prices last year helped turn the tide. Last week, ConocoPhillips (COP.N) CEO Ryan Lance said he was expecting more shale deals, adding that "consolidation needs to happen" among Permian Basin energy producers.

Oil prices jumped over 6% on Monday, with U.S. crude futures topping $80 per barrel. The U.S. pumped nearly 12.5 million bpd in January, according to the latest government data. U.S. cash crude prices strengthened on Monday, with Mars Sour gaining 50 cents to trade at a $1.40 discount to U.S. crude futures . U.S. seaborne crude exports last month hit 4.74 million bpd, the highest monthly total since at least January 2020, Vortexa data showed. "This development should bode well for already strong U.S. crude exports with increased medium- and heavy-sour Canadian crude exports from the U.S. in order to supply a global market which is already short on sour crude," said Rohit Rathod, senior oil market analyst at Vortexa.

REUTERS/Nathan Frandino//File PhotoNEW YORK/HOUSTON, March 10 (Reuters) - Corporations and investors have been pouring money into renewable energy projects, seeing an opportunity to grasp the Holy Grail of socially conscious investing: do good while doing well. But sharply higher interest rates have further stressed a model strained by soaring prices for steel and silicon, vital for wind turbines and solar panels. Higher costs have buyers and sellers of renewable power projects recalculating potential returns, hampering fundraising and mergers and acquisitions (M&A). A decade of low interest rates meant borrowers could raise cheap debt to build projects and juice returns. Financial investors traditionally took stakes in operating renewables projects to avoid risks of construction delays and ensure stable returns.

☆ As natural gas prices tumble, new worries for U.S. shale patch
▼ + stars: | 2023-02-09 | by ( Liz Hampton | ) www.reuters.com time to read: +2 min

Feb 9 (Reuters) - A 46% drop in natural gas prices this year is rippling across the U.S. shale patch, threatening to slow drilling and chill deal-making in a move unthinkable six months ago as global demand soared. Analysts are chopping their outlook for gas prices this year, and for production and earnings. Such moves were unfathomable six months ago as Russia reduced its gas flows to Europe and U.S. gas became a hot commodity. Analysts expect gas drilling rigs to fall beginning this month. Prices will remain around $2.50 per mmBtu this summer, down from an earlier $3.50 per mmBtu outlook, predicts energy technology firm Enverus.

☆ U.S. oil & gas M&A hit 17-year low; big firms dominate deals-report
▼ + stars: | 2023-01-24 | by ( Liz Hampton | ) www.reuters.com time to read: +2 min

Oil companies are also grappling with less productive wells, with some viewing asset purchases as a way to keep oil and gas flowing. Larger companies with better inventories tend to have a premium built into their stock, giving them more buying power, Enverus wrote. "It's a market where the rich get richer," said Andrew Dittmar, a director at Enverus who focuses on mergers and acquisitions. Publicly traded U.S. shale firm Diamondback Energy (FANG.O) added some 500 drilling locations to its portfolio by spending $3 billion to purchase Lario Oil & Gas and Firebird Energy during the fourth quarter. Diamondback's added inventory was "more of a luxury than a necessity," Dittmar said of those deals.

Output in the Eagle Ford shale field tanked in 2020, but has returned to growth with an average increase per month of about 17,000 barrels per bay (bpd) in the back half of 2022, according to U.S. government data. Its gains will help keep U.S. output rising as the Permian basin, the largest U.S. shale field, has slowed rapidly in the last year. The Eagle Ford is close to existing and proposed liquefied natural gas terminals, offering producers more buyers for their gas. February's Eagle Ford oil production is forecast to hit 1.2 million bpd, the most since April 2020, according to data from the Energy Information Administration. GRAPHIC: Eagle Ford oil rig count rises to highest since March 2019 https://graphics.reuters.com/USA-OIL/EAGLE/dwpkdazxgvm/Reporting by Stephanie Kelly; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

☆ Shale oil wraps up an underwhelming year, girds for lower growth
▼ + stars: | 2022-12-30 | by ( Liz Hampton | ) www.reuters.com time to read: +3 min

SummarySummary Companies U.S. gains stifled by inflation, aging wells, investor demandsWeaker shale oil production growth lies ahead for 2023Dec 30 (Reuters) - The shale oil patch this week closes the door on a disappointing year while bracing for weaker output gains in 2023, hamstrung by rising costs, dwindling reserves and pressures to hold down spending. He predicted 300,000 bpd to 400,000 bpd of increased shale production in 2023. Civitas grew volume about 4% year-over-year, and anticipates similar growth this coming year as it prioritizes free cash flow and balance sheet strength over growth. OLD WELLS PUMP LESSPioneer and other shale producers are experimenting with oil recovery techniques that could eventually squeeze more oil out of older wells. In the near-term, Sheffield warned oilfield inflation, which ran around 10% to 15% this year, will persist and limit production growth.

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