No New Permits; Oasis Renewed Five Permits; Three DUCs Reported As Completed -- August 18, 2022

PSX: to acquire Colorado's biggest oil and gas employer. PSX stake: $6 billion. Link here.

• DCP Midstream: currently a standalone joint venture; would be merged into a PSX subsidiary
• DCP is a joint venture of Phillips 66 and Enbridge (PSX + ENB)
• DCP: one of the largest US transporters and processors of natural gas and associated liquids, operating pipelines and 39 natural gas processing plants across nine states;
• also a major gas processor and handler of natural gas liquids in the Permian Basin region of west Texas, the largest oil-producing area in the country
• so, DCP: Denver-Julesburg Basin of northeast Colorado and Texas' Permian Basin

Common stock investors reacted positively to the news of the Phillips 66 offer to buy out the DCP Midstream's remaining common units. The stock’s share price jumped 8%, to just over $38 per share in early Thursday trading, since before the buyout offer was announced.

Wednesday’s restructuring also swapped Phillips 66’s interest in Gray Oak Pipeline, cutting Phillip 66s stake from 42% to just over 6%, while Enbridge’s stake rose to 58.5%. 

In return Enbridge gave up more than half of what it owned in the DCP Midstream joint venture, reducing it to a 13.2% stake. 

Phillips 66 opened the Gray Oak Pipeline in 2020, saying it was planned to transport 900,000 barrels of crude oil per day. The system connects Texas’ Permian Basin and the Eagle Ford oilfields to the state’s major Gulf Coast refinery hubs.

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Back to the Bakken

WTI: $90.75. President XI said he was "re-opening" China; Saudi Arabia shows no urgency in increasing production.

Natural gas: $9.218. US natural gas storage sees minimal injection as exports rise. 

Active rigs: 46.

No new permits.

Five permits renewed:

• Oasis: four Lars permits in Mountrail County; and one Pederson permit in McKenzie County.

Three producing wells (DUCs) reported as completed;

• 38451, 776, Slawson, Rainmaker Federal 6-25-36TFH,
• 38455, 1,181, Slawson, Lightning Federal 5-24-13TFH,
• 35433, n/d, XTO, Emma 31X-30A,