NOG Announces Additional Core Northern Delaware Basin Bolt-on Acquisition -- October 11, 2022

Press release:

• bolt-on acquisition of core non-operated working interest properties in the Northern Delaware Basin for a purchase price of $130.0 million 
• average production of ~2,500 Boe per day (68% oil, 2-stream) expected for 2023, generating an estimated $55 million of unhedged cash flow in 2023 at strip pricing as of October 10, 2022 (~2.4x transaction multiple)  -- $52,000 / boepd
  
• ~2,100 net acres located in Lea and Eddy Counties, NM and Loving & Winkler Counties, TX with significant Tier-1 inventory (sub-$40 per barrel average breakevens) -- $62,000 / acre
  
• strong growth and free cash flow profile with ~$25 million capital spending expected on the assets in 2023

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Back to the Bakken

The Far Side: link here.

WTI: $89.76. Looks like OPEC's cut was not enough, or the additional release from the US SPR is working. The bad news: SPR release unlikely to help California.

Natural gas: $6.372.

Active rigs: 44.

Does anyone remember what was going on in the Bakken six months ago? Link here.

Monday, October 17, 2022: 22 for the month, 22 for the quarter, 467 for the year.
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Sunday, October 16, 2022: 22 for the month, 22 for the quarter, 467 for the year.
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Saturday, October 15, 2022: 22 for the month, 22 for the quarter, 467 for the year.
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Friday, October 14, 2022: 22 for the month, 22 for the quarter, 467 for the year.
None.

Thursday, October 13, 2022: 22 for the month, 22 for the quarter, 467 for the year.
None.

Wednesday, October 12, 2022: 22 for the month, 22 for the quarter, 467 for the year.
None.

Tuesday, October 11, 2022: 22 for the month, 22 for the quarter, 467 for the year
38811, conf, Crescent Point Energy, CPEUSC Defrance 3-12-1-158N-100W-MMBH,

RBN Energy: Permian crude leads growth, but will gas processing capacity keep up? Archived.

When it comes to U.S. crude oil plays, no basin has been more resilient than the Permian post-2020, and by extension, no basin has played a bigger role in taming oil prices — and regional natural gas prices — in recent months. 

While crude production in most other oil-focused basins is flat-to-lower on average since 2020, Permian crude output has climbed 15% in that time, from about 4.5 MMb/d in 2020 to just over 5.1 MMb/d this year to date, with much of that growth occurring in the past year or so. 

You could say Permian crude saved the day — at least for a time. However, that growth could not have happened without a significant build-out of natural gas midstream infrastructure. And a lot more of it will be needed if Permian crude production is to continue growing and keep U.S. crude oil prices in check. In today’s RBN blog, we provide an update on gas processing capacity in the Permian.