Hey Oil Barons.......

[BTW 370]

Does anyone have any experience with Prosperity Bank out of Houston as an energy lender?

We are a small E&P, operating a handful of Midland Basin assets and our senior debt is with a bank that was just acquired by those guys.  Any info or experiences you guys can share is much appreciated.

[Guest]

2 hours ago, BTW said:

Does anyone have any experience with Prosperity Bank out of Houston as an energy lender?

We are a small E&P, operating a handful of Midland Basin assets and our senior debt is with a bank that was just acquired by those guys.  Any info or experiences you guys can share is much appreciated.

Yeah, good luck. Find a new bank. They are out of the business. I know the guy that runs their energy group well, and it’s now a group of one because they’ve shut down every bit of new business because they don’t understand it. Like your bank, they (Legacy Texas) was acquired by Prosperity. All their lenders have quit because they expect personal guarantees on everything and unreasonable non-market stuff. I’d like to know more about your loan, and I can advise you where else you might go. 

I imagine you bank with First Capital Bank out of Midland. Despite what your banker tells you, unless you already provide a personal guarantee you will probably be asked to leave or squeezed in some fashion. Best to leave now, or at the right time before your cost of capital is about to increase. Prosperity is the largest small time bank ever. They attain their size through acquisitions and are extremely small time. 

[Storm the Field 5294]

Diamondback adds on to its core Permian acreage, buying up Firebird and its 68K acres in Midland and Ector for $1.6B.

[BTW 370]

15 hours ago, Porterhouse said:

Yeah, good luck. Find a new bank. They are out of the business. I know the guy that runs their energy group well, and it’s now a group of one because they’ve shut down every bit of new business because they don’t understand it. Like your bank, they (Legacy Texas) was acquired by Prosperity. All their lenders have quit because they expect personal guarantees on everything and unreasonable non-market stuff. I’d like to know more about your loan, and I can advise you where else you might go. 

I imagine you bank with First Capital Bank out of Midland. Despite what your banker tells you, unless you already provide a personal guarantee you will probably be asked to leave or squeezed in some fashion. Best to leave now, or at the right time before your cost of capital is about to increase. Prosperity is the largest small time bank ever. They attain their size through acquisitions and are extremely small time. 

This is unfortunate news.  The same thing happened to me when I was with Western National Bank and they got bought by Frost.  Turns out Frost isn't much of an energy lender either and they were total nazis on terms relative to WNB (which is why I left).  I found this bank with reasonable terms headed by a guy I've known and seen weekly for over a decade, and now they're selling too, smh. 

Personal guarantees give me heartburn, with our relatively low LTV, I'd say we have a case to not have to do one, but if it's a blanket policy I might have to go bank shopping.

Thanks for the info

[BTW 370]

14 hours ago, Storm the Field said:

Diamondback adds on to its core Permian acreage, buying up Firebird and its 68K acres in Midland and Ector for $1.6B.

Happy for these guys, I really like DB as a company.  Which is funny because Travis is an Aggy and Kaes is a torjan, so I shouldn't like them at all.

[Guest]

17 minutes ago, BTW said:

This is unfortunate news.  The same thing happened to me when I was with Western National Bank and they got bought by Frost.  Turns out Frost isn't much of an energy lender either and they were total nazis on terms relative to WNB (which is why I left).  I found this bank with reasonable terms headed by a guy I've known and seen weekly for over a decade, and now they're selling too, smh. 

Personal guarantees give me heartburn, with our relatively low LTV, I'd say we have a case to not have to do one, but if it's a blanket policy I might have to go bank shopping.

Thanks for the info

Frost is considerably more a player than Prosperity. First thing is, don’t panic. Second is, be upfront with your banker and tell them what you’ve heard and experienced with WNB, and are therefore shopping but he’ll have a chance to prove what you’ve heard wrong. 

PM me for details of your loan. I know the market very well and can refer you to a few banks. I have a loan that’s $5.5m now and I personally guarantee because the structure is a little unorthodox. I don’t mind. But it’ll drop here shortly. 

[babysdaddy 2721]

Anyone have an opinion on Permian Resources?  Combo of Centennial and Colgate.

[Guest]

50 minutes ago, babysdaddy said:

Anyone have an opinion on Permian Resources?  Combo of Centennial and Colgate.

I have a very high opinion of Colgate. 

[Cornpop 230]

https://www.cnbc.com/2022/10/13/biden-admin-asked-saudi-arabia-to-postpone-opec-cut-by-a-month-saudis-say.html

[Guest]

2 hours ago, Cornpop said:

https://www.cnbc.com/2022/10/13/biden-admin-asked-saudi-arabia-to-postpone-opec-cut-by-a-month-saudis-say.html

It’s comical this admin is doing this and placing blame on the saudis for this. Comical. Careful, you could get labeled a traitorous cunt for even posting this link. I’ve made my feelings known here, so I don’t care. 

[Cornpop 230]

4 minutes ago, Porterhouse said:

It’s comical this admin is doing this and placing blame on the saudis for this. Comical. Careful, you could get labeled a traitorous cunt for even posting this link. I’ve made my feelings known here, so I don’t care. 

I'll have to try and muster a couple of fucks to give. It's obvious what the driving factor of this administration's energy policy is, and it's not in the best interest of the American people

[pearlandhorn 3269]

17 hours ago, Cornpop said:

https://www.cnbc.com/2022/10/13/biden-admin-asked-saudi-arabia-to-postpone-opec-cut-by-a-month-saudis-say.html

 

14 hours ago, Porterhouse said:

It’s comical this admin is doing this and placing blame on the saudis for this. Comical. Careful, you could get labeled a traitorous cunt for even posting this link. I’ve made my feelings known here, so I don’t care. 

Let's plan a nuclear deal with Iran, the mortal enemy of the Saudis, then call out the Saudis for not increasing production.  What could possibly go wrong?

14 hours ago, Cornpop said:

I'll have to try and muster a couple of fucks to give. It's obvious what the driving factor of this administration's energy policy is, and it's not in the best interest of the American people

Let's also support treacherous dictators like Maduro in Venezuela by begging them for oil too.  What could possibly go wrong?

[Guest]

6 minutes ago, pearlandhorn said:

 

Let's plan a nuclear deal with Iran, the mortal enemy of the Saudis, then call out the Saudis for not increasing production.  What could possibly go wrong?

Let's also support treacherous dictators like Maduro in Venezuela by begging them for oil too.  What could possibly go wrong?

If you don’t blindly follow the Biden admin, you’re a traitorous cunt. It’s hilarious many of these people claim to be former republicans.  Trump’s disastrous 4 years lobotomized them such that you can’t even be critical of idiots on the other side. 

[MoJames 8244]

23 minutes ago, Porterhouse said:

If you don’t blindly follow the Biden admin party affiliation

fify

[Guest]

15 minutes ago, MoJames said:

fify

Absolutely true. But you don’t see those people as surlyhorns posters. You see Biden admin foister posters everywhere. Hence my comment. 

[Guest]

Election price fixing. 

[MeerkatBong 115]

TIL: How Oil is made and what the Oil Window is. I'm gonna be an O&G genius in like two weeks.

[Armybrat 40826]

5 hours ago, Porterhouse said:

Election price fixing. 

Yeah, empty the SPR when there is a serious threat of global nuclear war.

[MeerkatBong 115]

Wait a minute.

What a darn minute.

Are you gonna sit there and tell me that the largest oil refinery in Texas, and probably America, the Motiva PA refinery, is owned by the Saudi's and is mainly used to refine their oil? No way we are getting cucked by Prince Bonesaw in our own home, right? I had to have read that wrong.

[torre 1285]

The Biden administration will start buying crude to replenish the strategic petroleum reserve when prices fall to between $67 and $72 per barrel, the White House said in a fact sheet.

“As part of its commitment to ensure replenishment of the SPR, the DOE is finalizing a rule that will allow it to enter fixed price contracts through a competitive bid process for product delivered at a future date,” the statement also said.

Biden Plans To Refill The SPR When Oil Prices Fall Below $72 | OilPrice.com

 

 

 

[jeevsie 3733]

[Guest]

26 minutes ago, torre said:

The Biden administration will start buying crude to replenish the strategic petroleum reserve when prices fall to between $67 and $72 per barrel, the White House said in a fact sheet.

“As part of its commitment to ensure replenishment of the SPR, the DOE is finalizing a rule that will allow it to enter fixed price contracts through a competitive bid process for product delivered at a future date,” the statement also said.

Biden Plans To Refill The SPR When Oil Prices Fall Below $72 | OilPrice.com

 

 

 

The probability we get down to that level in his admin is not great Bob. 

[torre 1285]

Forgot to add this quote from the article.

 

However, there have been calls from legislators to stop selling oil from what is meant to be a strategic reserve, to be used in a time of emergency. As inventories stand now, the U.S. would only have enough SPR oil for 22 days of consumption in case of an actual emergency.

https://oilprice.com/Energy/Energy-General/Biden-Plans-To-Refill-The-SPR-When-Oil-Prices-Fall-Below-72.html

 

 

[Horn Under a Bad Sign 20393]

U.S. now the number one oil producer in the world.

https://www.eia.gov/todayinenergy/detail.php?id=37053


Likely to reach all-time record production for any country next spring. . 

[Tex48 840]

9 hours ago, Horn Under a Bad Sign said:

U.S. now the number one oil producer in the world.

https://www.eia.gov/todayinenergy/detail.php?id=37053


Likely to reach all-time record production for any country next spring. . 

Not sure if you are trying to be funny or clueless but this is from 2018.

[Storm the Field 5294]

WTI pops back above $88 while Nat Gas continues its losing streak, dropping to a 7-month low of $5.35. Down $1.50 in just the past 5 trading days.

[Horn Under a Bad Sign 20393]

3 hours ago, Tex48 said:

Not sure if you are trying to be funny or clueless but this is from 2018.

Sorry. I posted the wrong link:

https://www.forbes.com/sites/rrapier/2022/07/22/the-us-is-still-the-worlds-top-oil-producer/?sh=125c77bc7b39

 

[MoJames 8244]

30 minutes ago, Horn Under a Bad Sign said:

Sorry. I posted the wrong link:

https://www.forbes.com/sites/rrapier/2022/07/22/the-us-is-still-the-worlds-top-oil-producer/?sh=125c77bc7b39

 

Not sure if you are trying to be funny or clueless but this was posted from July 2022.

[Guest]

2 hours ago, Horn Under a Bad Sign said:

Sorry. I posted the wrong link:

https://www.forbes.com/sites/rrapier/2022/07/22/the-us-is-still-the-worlds-top-oil-producer/?sh=125c77bc7b39

 

 

1 hour ago, MoJames said:

Not sure if you are trying to be funny or clueless but this was posted from July 2022.

What points are y’all trying to make?

[MoJames 8244]

That people in O&G are way too fucking defensive.

[Guest]

7 minutes ago, MoJames said:

That people in O&G are way too fucking defensive.

About the fact that he originally posted an article from 2018?  I viewed the comment as mystified and informative, not defensive. I’m not sure of the point of the correct link, either. That we produce less daily volume in 2022 than we did in 2021?  That is very telling - in an era of very high prices - and proves the points of many on here about an impending crisis. 

Not sure what that has to do with O&G people being defensive. Though, I am certain that the industry/our livelihoods being under constant assault by the administration and the climate change activist lobby makes people rightfully defensive. Should be pretty easy to understand for someone with purported ties to the business. 

[Hornius Emeritus 12450]

22 minutes ago, MoJames said:

That people in O&G are way too fucking defensive.

I don't know if that's true but one of my readers sent me a pretty badass photo of wind turbines in Rotan, Texas that he took a couple of days ago.  I posted it and really couldn't believe the backlash. I finally had to stop allowing comments on the post because of all the arguing back and forth, something I've only done one other time.   I see all U.S. sources of energy as being part of a whole energy pizza that feeds the U.S. and don't have any political opinions about any of them so I was surprised. I learned my lesson.




 

Edited October 20, 2022 by Hornius Emeritus

[MoJames 8244]

16 minutes ago, Porterhouse said:

About the fact that he originally posted an article from 2018?  I viewed the comment as mystified and informative, not defensive. I’m not sure of the point of the correct link, either. That we produce less daily volume in 2022 than we did in 2021?  That is very telling - in an era of very high prices - and proves the points of many on here about an impending crisis. 

Not sure what that has to do with O&G people being defensive. Though, I am certain that the industry/our livelihoods being under constant assault by the administration and the climate change activist lobby makes people rightfully defensive. Should be pretty easy to understand for someone with purported ties to the business. 

I generally use the term clueless when trying to be informative.

My family is far enough into the O&G game to realize how good it's been over the past 20 years and to understand that no matter how well we diversify the energy sources in the USA, it won't devalue the trade to the same effect some of you all would lead us to believe that O&G is headed to the same ending as coal mining.

[Guest]

5 minutes ago, MoJames said:

I generally use the term clueless when trying to be informative.

My family is far enough into the O&G game to realize how good it's been over the past 20 years and to understand that no matter how well we diversify the energy sources in the USA, it won't devalue the trade to the same effect some of you all would lead us to believe that O&G is headed to the same ending as coal mining.

Well when you post an article from over four years ago, you deserve some grief. And it was in fact informative because I (and probably HUBS) didn’t know initially it was from ‘18. 

I agree with you with two exceptions: the business was bad from 2014 to 2020 and miserable from 2018 to 2020.  Historically bad.  And nobody here really thinks the “trade will be devalued”.  I’m investing a lot of my own money direct property ownership. I believe we are going higher and higher over the mid and long term. I think people in the CR are ones that think oil & gas is going the way of coal. I don’t think that. Nobody here does either. For me personally, I’m defensive when stupid people say and do stupid shit. It doesn’t have any real long term impact on my returns, except the cumulative effect of all those stupid actions will increase the returns. 

[MoJames 8244]

4 minutes ago, Porterhouse said:

Well when you post an article from over four years ago, you deserve some grief

Nice 180.

4 minutes ago, Porterhouse said:

miserable from 2018 to 2020

Oh no 2 years of difficulty in 20+ years of unprecedented profits.

5 minutes ago, Porterhouse said:

For me personally, I’m defensive when stupid people say and do stupid shit.

I know and it isn't helpful. At least, @52-80 jumps in and helps explain situations.

[YGIFS 19449]

This is still a good thread even when it teeters into politics.  O&G are forever condemned to be the most politicized commodities/tradable security/derivative for two reasons (there are several more you industry experts can expand upon)...our geopolitical rivals are also really good at making the shit.  Russia doesn't grow much corn, Venezuela doesn't have much silver, Iraq doesn't grow much soybean crop.  But they're all real fucking good at O&G. 

That's one factor.  the other is that O&G changes hands in vast amounts every single day across many borders and many waterways.  That means politics.  Precious metals don't physically move much.  Crops do move, but only at certain times of year.  Industrial commodities move a lot and with regularity but not at the percentages of O&G as a portion of global markets.  But tens of millions of barrels of oil physically move across multiple borders and maritime routes every single day of the year come winter or summer, recession or boom.  Nevermind the monetary implication on global securities markets.  Part of the allure of solar is sunlight doesn't have to shipped across an ocean, it moves itself for free.  But i digest...

We're certainly seeing massive political shockwaves in the end-user energy space right now and in part, for good reason.  I'll let y'all get back to the debate but let me add something Mickey Klein once said about oilmen.  "Only time you worry about the American Economy is when Oil & Gas folks quit playing the victim card.  That's when you know the shit's actually gonna hit the fan."  

[52-80 19147]

1 hour ago, Hornius Emeritus said:

I see all U.S. sources of energy as being part of a whole energy pizza that feeds the U.S. and don't have any political opinions about any of them so I was surprised. I learned my lesson.

Samesies.  A joule is a joule.  No need to be dogmatic about each slice of the pie.

At a high level, energy ~= civilization.  (see: Kardashev scale).  Which is why I find those hippie reactionaries so naively anachronistic.  If you want to live in the caves like a neanderthal, you can do that.  More energy is more better for everybody else.

[T’Boo Ted Marshall 2732]

Digest?

[YGIFS 19449]

Peruse again after you put on your Reader's

[Guest]

1 hour ago, MoJames said:

Nice 180.

Oh no 2 years of difficulty in 20+ years of unprecedented profits.

I know and it isn't helpful. At least, @52-80 jumps in and helps explain situations.

180?  It was informative. 

You downplay the brain damage endured on this very thread at your own peril. I don’t dismiss people’s experiences when I have no fucking clue what I’m talking about, but go right ahead. 

Oh, not helpful? I’m not posting in here to educate the ignorant. If ignorant comments are made, or inflammatory comments, I’m here to make fun of those people. I have no desire to be helpful in a manner that suits you. 

[Guest]

1 hour ago, YGIFS said:

This is still a good thread even when it teeters into politics.  O&G are forever condemned to be the most politicized commodities/tradable security/derivative for two reasons (there are several more you industry experts can expand upon)...our geopolitical rivals are also really good at making the shit.  Russia doesn't grow much corn, Venezuela doesn't have much silver, Iraq doesn't grow much soybean crop.  But they're all real fucking good at O&G. 

That's one factor.  the other is that O&G changes hands in vast amounts every single day across many borders and many waterways.  That means politics.  Precious metals don't physically move much.  Crops do move, but only at certain times of year.  Industrial commodities move a lot and with regularity but not at the percentages of O&G as a portion of global markets.  But tens of millions of barrels of oil physically move across multiple borders and maritime routes every single day of the year come winter or summer, recession or boom.  Nevermind the monetary implication on global securities markets.  Part of the allure of solar is sunlight doesn't have to shipped across an ocean, it moves itself for free.  But i digest...

We're certainly seeing massive political shockwaves in the end-user energy space right now and in part, for good reason.  I'll let y'all get back to the debate but let me add something Mickey Klein once said about oilmen.  "Only time you worry about the American Economy is when Oil & Gas folks quit playing the victim card.  That's when you know the shit's actually gonna hit the fan."  

Those countries are terrible at hydrocarbons. Without American technology, they’d be appreciably worse resource stewards than they ready are. Venezuela is particularly bad. Another curious post. 

Edited October 20, 2022 by Porterhouse

[MoJames 8244]

2 minutes ago, Porterhouse said:

180?  It was informative. 

You downplay the brain damage endured on this very thread at your own peril. I don’t dismiss people’s experiences when I have no fucking clue what I’m talking about, but go right ahead. 

Oh, not helpful? I’m not posting in here to educate the ignorant. If ignorant comments are made, or inflammatory comments, I’m here to make fun of those people. I have no desire to be helpful in a manner that suits you. 

[YGIFS 19449]

13 minutes ago, Porterhouse said:

Those countries are terrible at hydrocarbons. Without American technology, they’d be appreciably worse resource stewards than they ready are. Venezuela is particularly bad. Another curious post. 

Yeah, they’re bad it but they have it and we have other socio-political and religious reasons not gotten along with them terribly well.  You know their market inefficiencies, I just picked on them ‘cause they’ve been on our shitlist in the last generation and I needed places that don’t do other commodities particularly well for illustrative purposes.  
 

we’re lucky; we got shit under our feet, ways to get it out at scale, plus farmland and pork bellies.  We’re a little thin on some metals and minerals but thankfully our reserve currency helps with that too.  
 

I was merely speaking to why this particular commodity is so political, way beyond all others.  

[Guest]

2 hours ago, YGIFS said:

Yeah, they’re bad it but they have it and we have other socio-political and religious reasons not gotten along with them terribly well.  You know their market inefficiencies, I just picked on them ‘cause they’ve been on our shitlist in the last generation and I needed places that don’t do other commodities particularly well for illustrative purposes.  
 

we’re lucky; we got shit under our feet, ways to get it out at scale, plus farmland and pork bellies.  We’re a little thin on some metals and minerals but thankfully our reserve currency helps with that too.  
 

I was merely speaking to why this particular commodity is so political, way beyond all others.  

I get your point, but, that’s not what you said initially. They are bad at it when left to their own devices, and Venezuela is bad period. PDVSA, Pemex CNOOC - terrible companies. Petrobras and Aramco aren’t exactly EOG or Pioneer, either.

When people get irritated with Big Oil, they fail to realize the global scale of the business, and that nationalized oil companies have wasted resources, increasing oil prices when supply / demand fundamentals dictate upward price pressure. Any efficiencies they have are because of XOM, CVR, BP, Shell, the Hunt family, etc. It’s westerners that taught the world how to extract efficiently and still provide the technology. And they still fuck it up continuously. They are for the most part notoriously bad stewards.

Before anyone says this is some pro white guy argument, if the US were to nationalize its reserves (will never happen), volumes and profit would plummet too, because our government is retarded too, and notoriously wastes money. There is a reason we are the top producer in the world. And our oil reserves pale in comparison to some of the countries mentioned, particularly Russia and Saudi Arabia. We are really good at milking reserves out of really old fields. They’re dealing with virgin fields, relatively speaking. If we had them all under the operational control of US majors / independents, we’d increase volumes and profits by 50% and oil would be under $20 within 5 years. So, no, they are the opposite of being “real fucking good at O&G”. 

[swraith 346]

Nat Gas is getting absolutely slammed.  Sub $5 for prompt month (November) and down 50% from its high in August.  Yeesh.

[Guest]

1 hour ago, swraith said:

Nat Gas is getting absolutely slammed.  Sub $5 for prompt month (November) and down 50% from its high in August.  Yeesh.

Your mom’s getting slammed. 

[Guest]

1 hour ago, swraith said:

Nat Gas is getting absolutely slammed.  Sub $5 for prompt month (November) and down 50% from its high in August.  Yeesh.

That's cause Biden is making them produce at record levels. What an asshole!

[MoJames 8244]

12 minutes ago, Porterhouse said:

Purposeless post.

Your expertise.

[Guest]

15 minutes ago, Porterhouse said:

Purposeless post.  Except to make some futile pro-Biden comment, as if that’ll fly here with his idiot actions toward the industry. 

This kind of drivel actually gets published, and people believe it:

https://www.usatoday.com/story/news/nation/2022/10/18/what-is-fracking-is-it-harmful-explained/10271834002/

You know, you have the ability to be one of the most interesting posters in this thread. You honestly sound knowledgeable and you're in the industry. But instead, you just post this sort of stuff to seemingly say "I'm so smart and everyone else is so dumb."

Edited October 21, 2022 by FirstTimeCaller

[Guest]

7 minutes ago, MoJames said:

Your expertise.

Examples. I make relevant comments about this terrible admin as it relates to the industry. You don’t like that. Examples or go fuck off to the CR.