What's Papa Doing Now? Buying Permian Acreage For $11,000 / Acre -- Nothing About The Bakken -- November 28, 2016

Updates

June 23, 2017: Bloomberg update of Centennial Resource and Mark Papa.
 

Original Post

 

Data points from bizjournals:

• Mark Papa stepped down as CEO of EOG in 2013; after 13 years
• Papa became CEO and chairman of Silver Run Acquisition Corp (SRAC)
• SRAC combined with Centennial Resource earlier this year
• new company: Centennial Resource Development
• Papa became CEO and chairman of Centennial Resource Development (CDEV)last month
• acquired 77,000 acres in Delaware Basin; becomes one of the bigger operators in the basin
• CDEV acquired the leasehold interests from Silverback Exploration LLC, out of San Antonio
• acquisition cost: $855 million (Reuters)

if those are net acres, $855 million / 77,000 acres = $11,000 / acre.

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And Now Concho....

From PennEnergy, data points:

• Concho Resources has acquired "dozens of square miles" in the northern Delaware Basin
• much of the acreage is located in the Red Hills area in Lea County, New Mexico
• deal worth $430 million
• from the linked article: "providing a glimmer of hope as state officials look to rebound from depressed energy prices that have crippled government spending."

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The Market

The market was down a bit today. After a thousand-point Trump rally, and all the uncertainty with the election recount, dropping 60 points is fairly trivial. But even on a down day, 217 issues on the NYSE hit new highs, including: BHI, Bank of America, Chevron, Cliffs Natural Resources, Deere, McDermott International, ONEOK -- I assume most of these hit their new highs early in the day and then dropped back.

Having said that, there were only 23 issues that recorded new lows, and some of those actually rose by the end of the, off their lows.

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The Political Page

VP-elect Pence says there will be important announcements coming from Trump Tower Tuesday. Quick: who was the last to leave Trump Tower today: Rudy Giuliani, Mitt Romney, or David Petraeus?

The AP projects that California republican representative Darrell Issa will (narrowly) win re-election. The only question yet to be answered is whether Jill Stein will ask for a recount. It probably depends on how fast and how much money she can raise.