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936horn

By 936horn
in Business and Markets

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Pescado_Rojo
Pescado_Rojo

I bet you could score a Lafayette 10 for a mani/pedi gift card and a pound of boudin right now.  I was sitting in a Starbucks by the med center in Laffy once, and a brand new white Escalade, lift

Rimbo
Rimbo

If you're Trump right now, you're watching Fox News, eating a cheeseburger, and getting mad about the lyin' media and preparing your next tweet about how some lupus treatment should be given to your s

fattyflattie
fattyflattie

My time finally came last Friday AM. I have survived around a dozen, give or take 1-2, since ‘08.  I was consulting for a project set to go in ‘22, but with all the uncertainty, it sounds like they’ve

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tequila

tequila 318

Posted
Posted

I see majors taking a run at the Permian focused Independents. CVX bought Anadarko because of their Delaware basin holdings, much of which sits over CVX owned minerals.

XOM will make a move in the next year, with prime candidates being PXD, Concho, FANG, or Endeavor.

As a Midlander, consolidation is going to be really weird. It’ll be interesting what type of presence in West Texas the majors/large independents maintain.


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LongestHorn

LongestHorn 759

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Quote

Last month the Environmental Defense Fund released an analysis of NOAA satellite data estimating volumes of gas flared in the Permian Basin in 2017. Its findings: operators report half of the amount of gas actually flared.  104 Bcf of gas is enough to serve all needs of Texas’ seven largest cities – $322 million worth of gas. The State also does not collect severance tax on that gas.

https://www.oilandgaslawyerblog.com/gas-flaring-in-the-permian/

Flaring-graphic.jpg

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Armybrat

Armybrat 40911

Posted
Posted
On 4/15/2019 at 5:41 PM, Neonmoon said:

Flaring is a huge problem. No one is willing to pay for the infrastructure to capture it. But laws should be passed to stop it. 

North Dakota has already done that for the Bakken play, and producers are scrambling to  to build more recapture infrastructure.

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Newdoc

Newdoc 3453

Posted
Posted (edited)
On 4/15/2019 at 5:41 PM, Neonmoon said:

Flaring is a huge problem. No one is willing to pay for the infrastructure to capture it. But laws should be passed to stop it. 

I flare often after eating Freebirds. The only recapture that happens is when I flare in bed and hold the cover down tight. Sorry Texas climate.

Edited by Newdoc
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tucker

tucker 238

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2 minutes ago, Okie State said:
2 hours ago, Trey3216 said:
Oxy comes in with an overbid for Anadarko at $76/

So what are some reasons this offer wouldn't be accepted? More confidence in Chevron's long-term viability?

Or confidence of regulatory and shareholder approval.

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Trey3216

Trey3216 15356

Posted
Posted
4 minutes ago, Okie State said:
2 hours ago, Trey3216 said:
Oxy comes in with an overbid for Anadarko at $76/

So what are some reasons this offer wouldn't be accepted? More confidence in Chevron's long-term viability?

Oxy will likely have to do more maneuvering to make it happen, most likely a combination of equity issuance and debt. Shareholders may not accept that.   Chevron has so much more access to capital.  

Oxy is gonna make Chevron pay over $80 for APC, then they'll try and scoop up someone else.  

 

There is going to be a lot of consolidation in the industry over the next 2 years.  

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Trey3216

Trey3216 15356

Posted
Posted (edited)

A lot of the companies scooped up will be those that have great assets and shitty management, or those with great assets and good management that are current turnaround stories from shitty management prior.   I know, real rocket surgery comment.  But they are out there.  

 

And sadly, don't count ARAMCO out of getting into the game.  They want American shale assets and access to American Shale tech/IP.  They will play ball in this game.  

Edited by Trey3216
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Llano Estacado

Llano Estacado 1257

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Blurb I read this morning said Oxy was doing it strictly for APC’s shale.

I know in the CVX announcement they were anticipating 15bil debt, but were planning on divesting 15-20bil over the next few years. I’d have to imagine that’d come heavily from some offshore and international projects.

As mostly a GOM guy it’ll be interesting to see if US Shale consolidation creates more mom&pop and bank plays in the gulf and international offshore as part of divestments (LLOG and APC assets so far). I may be wrong, but I don’t think Oxy has operated in the GOM since the Apache and BP deals a decade ago.

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Trey3216

Trey3216 15356

Posted
Posted
8 minutes ago, Llano Estacado said:

Blurb I read this morning said Oxy was doing it strictly for APC’s shale.

I know in the CVX announcement they were anticipating 15bil debt, but were planning on divesting 15-20bil over the next few years. I’d have to imagine that’d come heavily from some offshore and international projects.

As mostly a GOM guy it’ll be interesting to see if US Shale consolidation creates more mom&pop and bank plays in the gulf and international offshore as part of divestments (LLOG and APC assets so far). I may be wrong, but I don’t think Oxy has operated in the GOM since the Apache and BP deals a decade ago.

If Chevron is strictly looking for Shale plays, they may just let Oxy have APC for $11 more than their bid.  Then they go and scoop up multiple smaller players for way less than what they would have spent on Oxy without the divestiture headache of offshore.  

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Trey3216

Trey3216 15356

Posted
Posted
17 minutes ago, TonyTexas said:

That $4.50 natural gas in November is a distant memory. $2.47 close today for a multi-year low and, what looks to me be a break in support. What gives, oil barons?

supply, supply, supply.

 

Need pipeline action.  Need a deal with China, and need the Northeast to stop being bitches and paying 3x for natty during the winter months from Europe.  So again, pipeline action.  We have some takeaway coming online, but it's pretty much filled out.  Need more.  Need to shut down coal power plants and replace with natty.  

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Trey3216

Trey3216 15356

Posted
Posted
21 minutes ago, TonyTexas said:

That $4.50 natural gas in November is a distant memory. $2.47 close today for a multi-year low and, what looks to me be a break in support. What gives, oil barons?

Not to mention the $4.50 spike was the result of a quick cold snap combined with a hedge fund implosion.  

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Archer

Archer 474

Posted
Posted

I saw $33B purchase and assuming $15B in debt for the $50B number. 

 

Does the $1B buyout apply if the board and shareholders haven’t voted and approved the sale? I would think that right now it’s still verbal and not contractual. 

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TonyTexas

TonyTexas 10527

Posted
Posted
Okay so maybe I don't know what I'm talking about. Every damn article has a different number in it. I've seen $33B and $50B for Chevron and $38B and $57B for Oxy. What the hell is the correct amount?

The lower # is the value of cash and stock. The higher # include the assumed APC debt of $ 15 billion.
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TonyTexas

TonyTexas 10527

Posted
Posted
Does the $1B buyout apply if the board and shareholders haven’t voted and approved the sale? I would think that right now it’s still verbal and not contractual. 

If the shareholders voted and approved then there would be no need for the cancellation payment as the deal would be done. And lulz that you think that this is just a handshake deal.
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jimmyjazz

jimmyjazz 46130

Posted
Posted
20 hours ago, Rusty Shackelford said:

Natgas still has $2.40 support intact, I don't see the freefall yet

I must be looking at different data, I don't see any support at $2.40 going back years.  It looks to me like it's broken through multiple mid-$2.50 lows and there's one questionable peak at $2.49 or so.  To me the chart looks horrible.

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