Locator: 51510CLR.
Query: Based on price per acre and price per flowing bbl of oil in the Permian, I'm calculating maybe $1 billion at the lower end for this deal, maybe as high as $1.5 billion.
Chatbot:
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The Article
From the link:
Continental Resources is getting substantially bigger in the Permian Basin.
The privately held oil producer has agreed to acquire FireBird Energy II, adding roughly 54,000 net acres in the Midland Basin along with 32,000 barrels of oil equivalent per day (boepd) of production, Continental said Thursday.
About 69% of that is oil.
The FireBird assets include approximately 147,000 net resource acres across more than six stacked-pay reservoirs and 307 gross operated development locations. Continental will operate about 95% of the acquired acreage.
Terms of the deal were not disclosed. [At $20,000 / net acre and/or $30,000 / flowing bbl of oil brings us to about $1 billion.] [Prior to going private in 2022, CLR had a market cap of about $27 billion.] [This suggests to me Hamm is getting plenty of bullish-on-oil from all his visits to Mar-A-Lago.]
The acquisition caps an aggressive expansion in a basin that was once secondary to Continental’s better-known Bakken position. Including FireBird, Continental says it has increased its Permian acreage by more than 40% over the past 14 months.
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Disclaimer
Briefly:
I am inappropriately exuberant about the Bakken and I am often well out front of my headlights. I am often appropriately accused of hyperbole when it comes to the Bakken. I am inappropriately exuberant about the US economy and the US market. I am also inappropriately exuberant about all things Apple. See disclaimer. This is not an investment site. Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. All my posts are done quickly: there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market. I am also inappropriately exuberant about all things Apple. And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia. Nvidia is a metonym for AI and/or the sixth industrial revolution. I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom. Now, I've added Amazon. And QCOM. Longer version here.
