The increasing gassiness of the Permian Basin poses challenges for upstream oil production but presents significant opportunities for midstream companies.
Permian Basin may soon face a peak oil output
Break-even for existing wells in the Delaware and Midland are $31 per barrel and $38 per barrel
According to Statista, the break-even WTI oil prices for existing wells in the Delaware and Midland sub-basins are $31 per barrel and $38 per barrel, respectively. For new wells, the break-even prices are $64 per barrel and $62 per barrel, respectively.
ConocoPhillips to acquire Marathon Oil Corporation in all-stock transaction
ConocoPhillips (NYSE: COP) and Marathon Oil Corporation (NYSE: MRO) have entered into a definitive agreement for ConocoPhillips to acquire Marathon Oil in an all-stock transaction valued at $22.5 billion, including $5.4 billion of net debt.
Diamondback Energy, Inc. Announces Sale of WTG Midstream
Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) today announced the sale of WTG Midstream Holdings LLC to Energy Transfer LP
Matador Resources Midstream
Ensuring flow assurance in the Delaware Basin is crucial due to capacity limitations. Matador has secured firm transport agreements on takeaway pipelines to mitigate risks associated with negative pricing at Waha and ensure that their gas can be sold.
Chevron plans in the Delaware Basin – Infrastructure Build-Out
Chevron is undertaking more development in the New Mexico portion of the Delaware Basin this year.
Natural gas saw a significant gain week over week, hitting their highest level since January
While the natural gas market has shown improvement, it remains volatile and influenced by weather and production trends. Investors should exercise caution and consider holding fundamentally strong stocks like Coterra Energy and Cheniere Energy to navigate the unpredictable market landscape effectively.
Key Insights on ConocoPhillips’ Ownership Structure
ConocoPhillips has a significant institutional ownership of 83%, making its stock price sensitive to institutional trading actions. The top 19 investors hold a combined 50% stake, with The Vanguard Group being the largest shareholder at 9.3%.
Apache sells properties in Texas for over $700 million in two transactions
APA Corporation is selling non-core assets in Texas for over $700 million, with divestments in the Midland Basin and East Texas.
Phillips 66 to Acquire Pinnacle Midstream from Energy Spectrum Capital
Phillips 66 is acquiring Pinnacle Midland Parent LLC for $550 million to expand its natural gas gathering and processing in the Midland Basin. This acquisition includes the Dos Picos system, which adds significant capacity and complements Phillips 66’s existing infrastructure. The transaction is expected to close by mid-2024, pending regulatory approval.
