Two Wells Coming Off Confidential List -- June 8, 2023

Locator: 44867B.

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Today's Weekly Jobs Report

Big headline.

Little story.

Link here.

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101 Days Of Summer

Day 12.

Beautiful biking weather. On a scale of 1 - 10, a twelve (12).

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Back to the Bakken

Active rig: 37.

WTI: $72.74. Green.

Natural gas: $2.340. Green.

Peter Zeihan newsletter.

Friday, June 9, 2023: 23 for the month; 131 for the quarter, 386 for the year
39417, conf, Bison Land & Minerals, West Dry Creek 1H,
39257, conf, Stephens Williston LLC DBA SEG Williston, Greenbrier 15591W-0211-5H,
33904, conf, Slawson, Mole 5-20TFH,

Thursday, June 8, 2023: 20 for the month; 130 for the quarter, 385for the year
37899, conf, BR, Lillibridge 2B. TFH,
33902, conf, Slawson, Mole 4-20TFH,

RBN Energy: E&P consolidation continues in the Permian and Eagle Ford.

The headwinds facing producers in the Permian, the Eagle Ford and other shale plays are trimming the valuations of oil and gas assets and making it easier for deep-pocketed acquirers and private-equity-backed sellers to reach deals. For proof, look no further than the ongoing frenzy of M&A activity in South and West Texas, where large and medium-size E&Ps alike continue to gobble up smaller producers with complementary assets. Their goals are one and the same: increase scale, improve efficiency, cut costs and build inventory in highly productive plays with easy access to Gulf Coast refineries, fractionation plants, and export docks for oil, LNG and NGLs. In today’s RBN blog, we discuss the most significant deals in the Lone Star State so far this spring and what they mean for the acquiring companies. 

Sagging hydrocarbon prices, concerns that the best well sites have already been drilled, and prospects for a slowing economy this summer and fall have combined to bring down the valuation of many oil and gas assets in recent months, thereby closing the bid/ask spread and enabling a number of deals to be reached.

Just a few weeks ago we looked at Ovintiv’s $4.275 billion plan to purchase ”substantially all” of the leaseholds and related assets of EnCap Investments’ Black Swan Oil & Gas, PetroLegacy Energy, and Piedra Resources in the Permian’s Midland Basin. The deal, which is expected to close later this month, is a biggie for Ovintiv — it will nearly double the company’s oil and condensate output in West Texas, lower its per-barrel production costs, and add more than 1,000 well locations to its inventory.