Tuesday, January 25, 2022

CLR Building A Position In The Powder River Basin, Wyoming -- January 25, 2022

Re-posting. Huge story.

With free cash flow, Harold Hamm and CLR are building positions in the Permian and the Powder River Basin in Wyoming. 

CLR is tracked here

From that link, selected data points:

The Powder River Basin deals:

  • January 25, 2022 $2,600 / net mineral acre
  • February 17, 2021: $1,600 / net mineral acre

Back of the envelope, Powder River Basin acquisitions:

  • the "Samson" deal, see below:
    • $215 million / 130,000 net acres = $1,600 / acre
    • $215 million / 9,000 flowing boepd = $24,000  flowing boepd
  • the "Chesapeake" deal:
    • $450 million / 172,000 net acres = $2,600 / acre
    • $450 million / 19,000 boepd = $24,000 / flowing boepd

The "Samson" deal:



From a reader:My reply: 
Great catch about CCS. Thank you.

Yes, the faux environmentalists are already upset that Big Oil is making money off global warming by getting credits, incentives for CCS.

Yes, CLR needs to "ESG" bullets and saying they're turning Wyoming into a CCS play could be brilliant.

By the way, they used to call this "carbon capture and sequestration" but the fourth word in that phrase was a bit too "stuffy," so they changed it to "storage." The acronym, CCS, remained unchanged.

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