ONEOK - Magellan -- RBN Energy -- May 19, 2023

Locator: 44686B.

Active rigs: 34.

Peter Zeihan newsletter.

WTI: $73.11. (Deere-related?)

Natural gas: $2.569.

Monday, May 22, 2023: 35 for the month; 87 for the quarter, 342 for the year
38854, conf, Whiting, Littlefield 11-21HU,
37851, conf, Slawson, Loon Federal 6-24-25TFH,

Sunday, May 21, 2023: 33 for the month; 85 for the quarter, 340 for the year
38970, conf, Hess, GO-Aslakson-156-97-2734H-3,
37852, conf, Slawson, Loon Federal 7-24-25TFH,

Saturday, May 20, 2023: 31 for the month; 83 for the quarter, 338 for the year
39287, conf, CLR, Smouse 9-28H,

Friday, May 19, 2023: 30 for the month; 82 for the quarter, 337 for the year
37853, conf, Slawson, Genekat Federal 7-13-12TFH,

RBN Energy: Does ONEOK's Magellan deal give it enough scale and Permian presence? Archived.

The feeling is almost palpable among midstreamers: In a fast-changing energy industry, the companies that gather, transport, store and export hydrocarbons need to consolidate and augment — and be smart about how they get bigger. Scale, that’s the key. That — plus complementary assets that provide synergies, lower costs and increase free cash flow, a sizable portion of which can be returned to shareholders as dividends and buybacks — is what investors are looking for. Oh, and don’t forget this important M&A goal: gaining a larger footprint and a more prominent role in the Permian, the dominant U.S. production area. ONEOK, a midstream company heretofore primarily focused on moving NGLs and natural gas, earlier this week announced an $18.8 billion agreement to acquire Magellan Midstream Partners, which is best known for pipelines that transport refined products and crude oil. In today’s RBN blog, we and our friends at East Daley Analytics kick the tires, look under the hood, and give our thoughts on the deal’s pros and potential cons.