I had no doubts the SM Energy - Oasis deal was a big deal but it's always nice to see others write about it. I was quite surprised to see that a business magazine no less than Forbes wrote about that deal. A huge "thanks" to a reader for sending me that link.
The link is here: Oasis Petroleum's Bakken acquisition: when planning meets opportunity. Some excerpts and/or data points:
“You may all go to hell and I will go to Texas.” – Davy Crockett, after losing his bid to be elected to serve in congress from Tennessee
Over the last six months or so, it has sometimes seemed as if everyone in the oil and gas industry has been in the same mood as Davy Crockett was on one famous day early in 1836.
The rush by oil and gas operators to either obtain new positions or enlarge existing stakes in the West Texas/Southeast New Mexico Permian Basin has been the ongoing news of the summer and into the fall. Just last week, we saw Dallas-based RSP Permian and Denver-based SM Energy complete acquisitions of thousands of leasehold acres in the Permian, both at an announced cost of more than $40,000 per acre, which has become the going rate in the Basin.
Last week, I found the SM Energy transaction especially interesting since, to help raise funds for its entry into the Permian, the company sold its position in North Dakota’s Bakken Shale. The buyer in that transaction was Oasis Petroleum, one of the most active drillers in the Bakken over the last several years.I'll archive the article, in case it disappears, but won't post any more here; I will let you enjoy the article at Forbes.
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