Update -- CVX And PDC -- June 19, 2023

Locator: 44975INV.

Press release from CVX:

Back-of-envelope:

• $6.3 billion / 300,000 net acres = $21,000 / acre
• I assume the Permian is worth a bit more than the DJ Basin
• but Permian is only 8% of entire acreage, so, we're probably talking about $20,000 / acre in the DJ Basin

PDC in core area in Colorado:

From the CVX website:

Chevron is one of the largest producers of oil and natural gas in the Permian.

Our holdings total approximately 2.2 million net acres. Approximately 75 percent have either low or no royalty payments. That gives us a strong competitive advantage.

In 2019, production in the Permian increased 44 percent over 2018.

From 2015 to 2018, development and production costs decreased by approximately 40 percent, and well performance continues to improve.

The Permian Basin is forecasted to reach one million barrels of oil-equivalent production per day in 2025. Chevron’s acquisition of Nobel Energy in October 2020 strengthened its premier position.

Posted earlier:

CVX and PDC, at Yahoo!Finance; this is actually quite remarkable in the Permian:

• PDC Energy's carbon intensity is currently around half of Chevron's 2028 target! As an example, there is "zero routine flaring" in the basin (sic) in which PDC Energy operates. So with this move, Chevron is not only increasing its reserves, but it is also reducing the carbon intensity of its business, speeding up its efforts to reach that 2028 goal.

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A Musical Interlude

Link here.