If anyone understands/knows the Permian, they know how big a deal this two-play basin is. It's huge.
I would never in a million years recommend anyone invest in energy but this is getting pretty exciting:
Energy investing:
- PXD: hikes dividend; new: $1.51; was 56 cents;
- Scott Sheffield: "we aren't looking at any more Midland Basin acquisitions; we bought the best two available;
- unsaid: "RDSA is in the Delaware." I'm not the first to have noticed that.
- OXY: swings to profit; impresses Wall Street;
- DVN: impresses Wall Street;
- Shell Permian's assets, link here:
- $10 billion
- Devon
- Conoco
- wow: what a great opportunity for a joint venture, then divvy up the acres where they fit best; this is not rocket science
That has all been previously posted, but this is new:
- Shell is trolling (in a good sense); getting the word out its Permian assets may be up for sale;
- Shell has opened a data room for its Permian assets, Reuters, from June 15, 2021;
- 260,000 acresa
- analysts have thrown out a marker: $10 billion
- $10 billion / 260,000 acres = $40,000 / acre
- we should start to see a bidding war develop before the end of the summer if not a whole lot sooner;
- one thing is for sure: OXY won't get involved
- there's only one thing oilmen like better than drilling: making deals
- remember: PXD just tripled its dividend;
Sidebar at the right, although not updated in a long time:
The Permian, from a 2013 post, this is very, very old but it still might be relevant; I don't know:
For newbies: again, there are three oil plays currently boom in the US: west Texas/Permian (primarily the Spraberry and the Wolfcamp); south Texas/West Gulf (the Eagle Ford); and, North Dakota/Williston Basin (Bakken).
The links are to the Market Realist:
- Part I: The importance of the Permian
- Part II: Geography of the Permian
- Part III: Major Players: Concho Resources, Pioneer Natural Resources, Laredo Petroleum
- Part IV: Major Players: Devon Energy, EOG, Approach Resources
- Part V: link not found, major players continued
- Part VI: that's the link but it seems to be the wrong link but it is worthwhile keeping;
- this link: Part 6: Resource potential and oil vs. gas split is broken;
- Part VII: Recent Activity and Growth
It would really fit best with OXY.
ReplyDeleteYes. Warren Buffett is probably watching for another huge payday.
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