Wink To Webster -- January 31, 2019

Updates

February 6, 2019: see this note. 

Original Post 

Wow, this just never quits.

I think of the mismanagement of GE, and then go to Exxon -- despite a few missteps -- seems to be keeping to its knitting.

It overpaid for the Permian, but that's water under the bridge.

Now this: Exxon Mobil will create three exploration and production companies. The entire story:

Oil major Exxon Mobil Corp said on Thursday it would create three new separate exploration and production companies, effective April 1, in an effort to double its profit by 2025.
The three new companies will be called ExxonMobil Upstream Oil & Gas Co, ExxonMobil Upstream Business Development Co and ExxonMobil Upstream Integrated Solutions Co, the company said.

Last year, the world's largest listed oil company devised a plan to boost its operating cash flow and profit as well as deal with sagging output.

Exxon outlined a growth strategy to increase earnings by more than 100 percent to $31 billion by 2025.

And then this: Exxon, Plains All American, Lotus to build a one-million-bopd Permian pipeline. Wow. Plains All American and Warren Buffett? Kinder Morgan and Warren Buffett? This is getting exciting.

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Back to the linked Exxon/Permian pipeline article:

ExxonMobil, Plains All American Pipeline, and Lotus Midstream will build a pipeline capable of transporting more than 1 million barrels per day of crude oil and condensate from the Permian in West Texas to the Texas Gulf Coast.

Exxon, Plains All American, and Lotus Midstream decided to proceed with plans to build the Wink to Webster pipeline system, with origin points at Wink and Midland to multiple locations near Houston, including Webster and Baytown, and with connectivity to Texas City and Beaumont.

The companies have formed a joint venture, Wink to Webster Pipeline LLC, and have already ordered 650 miles of domestically sourced 36-inch-diameter line pipe.
The project is the result of a “significant volume of long-term commitments” and is targeted to start operations in the first half of 2021, Plains All American said.

Lotus? From a press release, August 8, 2018:

Crude oil logistics provider Lotus Midstream, LLC today announced it has entered into a definitive agreement to acquire the Centurion pipeline system and a Southeast New Mexico crude oil gathering system from Occidental Petroleum Corporation.

The transaction is expected to close later in the third quarter of 2018, subject to customary closing conditions.