XTO And CLR -- A Smiley Face -- August 27, 2022

See this post.

See this post.

A reader asked me about this. My reply:

It certainly looks like XTO and CLR are trying to come to some kind of deal, but with CLR's focus on cutting debt they may be looking at other ways of playing this. 

This is really quite fascinating if you think about it. 

This may be a win-win for both XTO and CLR. 

By doing it this way, CRL does not have to come up with a lot of cash and over-pay for drilling locations in the Bakken. 

Meanwhile, XTO benefits from oil production and high oil prices without spending CAPEX on the wells and still hold their acreage in the Bakken.

I think it's brilliant. 

Mom-and-pop mineral owners benefit big time: if CLR and XTO didn't come to this arrangement, these drilling units might lie idle while XTO focuses elsewhere and doesn't drill in the Bakken. 

I'm lovin' it.