Tuesday, January 25, 2022

As Much As I Like The Motley Fool And Enbridge, There Seems To Be A Bit Of Hyperbole Here; Harold Hamm/CLR Acquires Wyoming/Powder River Assets -- January 25, 2022

Link to The Motley Fool

Growth in renewable power is huge, and it's just getting started. 

How big is this. It's huge. Absolutely huge. Humongous. From the article:

So while still operating in the carbon space, it's adjusting at the fringes to the greening world. But for investors, Enbridge's clean energy segment offers promise, accounted for 3% of EBITDA in 2020.

That 3% is projected to be 4% at the end of 2022.  

Okay.

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Harold Hamm To Acquire 172,000 Net Acres
In Powder River Basin

From the blog, last Thursday :  

Chesapeake Energy: another acquisition. Nears $2.4 billion deal to buy Chief Oil & Gas.  

Now, today, an update from a contributor over at SeekingAlpha.

  • Chesapeake Energy agrees to acquire Chief E&D Holdings ...  for $2B in cash and ~9.44M common shares, confirming earlier speculation, and agrees to sell its Powder River Basin assets in Wyoming to Continental Resources for ~$450M in cash. 
  • In the Chief Oil & Gas deal, Chesapeake will acquire 113K net Marcellus acres projected to produce 835M cf/day of net gas for nine months in 2022 and generate $500M in 2022 projected adjusted EBITDAX. 
  • The company's Powder River Basin assets include 172K net acres and 350 operated wells in Wyoming; Q4 Powder River Basin volumes are expected to average 19K boe/day
  • Upon closing of the deal, Chesapeake plans to operate two rigs on the acquired properties during 2022, resulting in a total of 9-11 gas-focused rigs and 2-3 oil-focused rigs. 
    • Chesapeake expects its portfolio to generate ~75% of 2022 projected cash flow from natural gas assets and 25% from oil assets, once the deals close.

Back of the envelope, for CLR:

  • $450 million / 172,000 net acres = $2,600 / acre
  • $450 million / 19,000 boepd = $24,000 / flowing boepd

Re-posted here with additional background. 

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Saudi Arabia and Natural Gas

From EIA today:


 


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