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:

• Permian Basin;
• Delaware Basin;
• Midland Basin;

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