Updates
Later, from twitter, 9:02 p.m. CT: link here. The CLR deal works if WTI goes to $150. Someone else said that; not me. Don't kill the messenger.
Original Post
CLR has gains for the day; dropped 6% on the news.
Nov 3 (Reuters) - U.S. oil and gas producer Continental Resources Inc is nearing a deal to acquire the Delaware Basin assets of peer Pioneer Natural Resources for more than $3 billion, people familiar with the matter said on Wednesday.
Continental would add to its existing operations in the Bakken of North Dakota and Oklahoma's SCOOP/STACK shale formations through the acquisition, which could be announced by the companies when they report quarterly earnings later on Wednesday, the sources said.
Reuters reported in September that Pioneer was seeking to sell the assets in a bid to streamline its business and reduce debt after two big acquisitions this year.
CLR could have bought a lot of Bitcoin for $3 billion.
- OXY:
- marketing 250,000 net acres in Delaware portion of the Permian;
- $550 million
- the company has targeted more than $2 billion from divestments in the first half of 2021
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3Q21 Earnings
From the press release:
- net income: $1.01 / share; $369.3 million net income; adjusted, $437.2 million; $1.20 EPS, adjusted;
- cash flow: $1.0 billion from operations
- highly accretive expansion into Permian Basin; see above; immediately additive to ECF (enterprise capital fund?) capacity;
- "92,000 contiguous net leasehold acres and 50,000 net royalty acres"
- not sure if this is 142,000 acres or not; maybe someone explain the difference between "contiguous net leasehold acres" and "net royalty acres" but if bottom line is 50,000 net royalty acres:
- a total of 92,000 net leasehold acres of which 50,000 are currently net royalty acres?
- $3 billion / 92,000 = $32,608 / acre
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