Oxy bets on the Bakken (MarketWatch). The Motley Fool article on OXY/Bakken.
This story just broke about 10:30 a.m. EST, Friday, December 10, 2010.
Details:
- Oxy to sell interests in Argentina, to China Petrochemical Corp (Sinopec)
- Oxy will buy 180,000 acres in the Bakken and Three Forks formations in North Dakota from a private seller for $1.4 billion ($7,777/acre -- same "ballpark" as ERF and WMB recent purchases).
- Oxy is also a key player in ownership of Plains All American Pipeline, LP.
With regard to "Plains All American Pipeline LP," I posted the following in mid-November:
Plains All American Pipeline, L.P., today announced that it has entered into a definitive agreement with Nexen Holdings U.S.A. Inc. to purchase entities that hold crude oil gathering and transportation assets that primarily service Bakken area producers. Total consideration is estimated at $210 million, including approximately $170 million for the business and physical assets and approximately $40 million for approximately 400,000 barrels of inventory and other working capital adjustments. Subject to regulatory approval, the transaction is scheduled to close by year-end 2010.
The assets are primarily located in Northwestern North Dakota and Northeastern Montana and include: a lease gathering business that currently handles approximately 55,000 barrels per day; the Robinson Lake pipeline, a FERC regulated 20-mile, 8-inch pipeline that currently handles approximately 18,000 barrels per day; 8 truck terminals and various other contractual rights.
Who is next in line to cash in? I think the flurry will peak in the third quater next year (just a guess). I wonder if Al global warming Gore still holds all those Oxy stocks?
ReplyDeleteI won't argue that activity (mergers/acquisitions) will peak by third quarter next year. For the past few months I've been opining that 2011 will be another watershed year for the Bakken. I have no idea how the "private" seller was, but it would be hard to turn down $1.4 billion. It's very possible we will get the answer in Forbes Magazine annual richest Americans issue.
ReplyDeletei wonder if the private party was Anschultz.
ReplyDeleteIt certainly could have been. Anschutz has been at the back of my mind ever since they announced they were selling. It seems I remember that Anschutz announced they found a buyer but maybe I was dreaming. Regardless, it would be very possible. I'm sure the OXY/CEO and Mr Anschutz visit the same watering holes. Perhaps the deal was promulgated during the North Dakota hunting season.
ReplyDeleteIt is Anshutz.
ReplyDeleteThank you. Very, very interesting.
ReplyDeleteOxy signs my Royality checks now instead of Anshutz. That pretty much says it all.
ReplyDeleteYou are correct. It was fun connecting the dots back in December, 2010. This is one of the big reasons I enjoy blogging on the Bakken. Readers have picked up on many developments well before the mainstream media has picked up on them.
ReplyDelete