Wednesday, August 4, 2021

The Permian: Idle Thoughts -- Not Ready For Prime Time -- August 4, 2021

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;
  • Part VII: Recent Activity and Growth

2 comments:

  1. It would really fit best with OXY.

    ReplyDelete
    Replies
    1. Yes. Warren Buffett is probably watching for another huge payday.

      Delete

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