Hey Oil Barons.......

[CycleTex87 2,958]

Correct. 

[Rex Kramer 1,311]

3 hours ago, Grimas said:

Never heard of /MCR...  Natty is currently- just under $2/MMCF (million cubic feet of gas volume) and hasn't been above $10 in forever so I'm not sure if we are talking the same acronyms...  $20/MMCF would be a godsend for the industry...

Autocorrect. It’s either mmbtu or mcf. Mmcf is entirely too cheap. The metric is per thousand cubic feet - not million. 

[tomahawk dunk 321]

3 hours ago, Armybrat said:

The surface of my lease in North Dakota is about 50’ underwater. 
(Lake Sakakawea)

This is what it looked like a century or so ago - that’s Great Uncle Frank who built his cabin prior to WW1.

 

 

You sure your uncle wasn't Dick Proenneke?

[Armybrat 40,759]

3 minutes ago, tomahawk dunk said:

You sure your uncle wasn't Dick Proenneke?

Uncle Frank may have been a dick, but he was no Proenneke. 

[Grimas 669]

1 hour ago, Rex Kramer said:

Autocorrect. It’s either mmbtu or mcf. Mmcf is entirely too cheap. The metric is per thousand cubic feet - not million. 

Duh - my brain fart and you are correct that it's a thousand and not a million.  I'm used to thinking reserve numbers and European conversions to BTU's and not daily rates on the units, just the price...

MCF and MMBTU's..  Close but not the same...

Edited April 10 by Grimas

[billfromlaketravis 11,377]

Replacing reserves seems to be the every slide deck these days, so I guess the industry is going to start spending money on exploration again. 
 

Anybody work PRB? Is it the next big play?  My company surprised many of us by replying with a firm no when asked about selling our Powder business unit. 

I remember Wood Mackenzie was excited about it 2017, but I took another job to work Permian and Delaware. 

[Rex Kramer 1,311]

[Rex Kramer 1,311]

https://www.hartenergy.com/exclusives/unapologetic-barclays-restarts-ep-coverage-world-needs-oil-and-gas-208776?utm_source=morning-rush&utm_medium=email&utm_content=deck&mkt_tok=NDMzLU9ESy04ODkAAAGSa8j1sQmjyyAEKAE5yZtMIJc3RGbleb9Aruo970idanSyRVtI2CAxZ_8cn3zgCmXDSuPB9dN6bCxtZkWFkdziYLeHAHskz77PFifQ1NTV8VkATQ

[Nice Guy Eddie 13,419]

Interesting article about the oil industry using fracking techniques as a method to generate electricity via geothermal process. 

I wonder how this plays out for mineral rights. I would have to think that mineral right holders would be left in the cold. I don't think they own the underground heat but I also wouldn't be surprised if they somehow already carved out laws that would still allow them to benefit.

[MadTrapper 150]

21 hours ago, billfromlaketravis said:

Replacing reserves seems to be the every slide deck these days, so I guess the industry is going to start spending money on exploration again. 
 

Anybody work PRB? Is it the next big play?  My company surprised many of us by replying with a firm no when asked about selling our Powder business unit. 

I remember Wood Mackenzie was excited about it 2017, but I took another job to work Permian and Delaware. 

It seems like the Powder is perpetually on the verge.  The Turner seems like the best rock these days, but it's not really unconventional.  It's low porosity sandstones.  You have a lot other of these near shoreface sands up section like the Sussex, Shannon, etc. that have produced conventiknally for decades and now operators are sticking Hz in the fringes. They make good wells, but the areal distribution is limited and you can have pretty serious pressure communication issues making it difficult the scale.

Niobrara is decent, but it's more clay rich vs the silty organics (hybrid) down in the Permian. Mowry is the next bench down but that's more gassy plus we'll cost is higher.  And most of the better source rock is towards the southern end of the basin.

It's a fascinating basin with value for sure, but it's just harder for it to compete if you have Permian positions with stacked prolific benches in a portfolio.  I'm sure there's above ground issues as well. The Permian is truly a geologic, geographic, and economic Goldilocks. 

[MadTrapper 150]

9 hours ago, Rex Kramer said:

https://www.hartenergy.com/exclusives/unapologetic-barclays-restarts-ep-coverage-world-needs-oil-and-gas-208776?utm_source=morning-rush&utm_medium=email&utm_content=deck&mkt_tok=NDMzLU9ESy04ODkAAAGSa8j1sQmjyyAEKAE5yZtMIJc3RGbleb9Aruo970idanSyRVtI2CAxZ_8cn3zgCmXDSuPB9dN6bCxtZkWFkdziYLeHAHskz77PFifQ1NTV8VkATQ

Interesting.  So they just restarted coverage or did they also restart some actual energy investment funds? 

[billfromlaketravis 11,377]

13 minutes ago, MadTrapper said:

It seems like the Powder is perpetually on the verge.  The Turner seems like the best rock these days, but it's not really unconventional.  It's low porosity sandstones.  You have a lot other of these near shoreface sands up section like the Sussex, Shannon, etc. that have produced conventiknally for decades and now operators are sticking Hz in the fringes. They make good wells, but the areal distribution is limited and you can have pretty serious pressure communication issues making it difficult the scale.

Niobrara is decent, but it's more clay rich vs the silty organics (hybrid) down in the Permian. Mowry is the next bench down but that's more gassy plus we'll cost is higher.  And most of the better source rock is towards the southern end of the basin.

It's a fascinating basin with value for sure, but it's just harder for it to compete if you have Permian positions with stacked prolific benches in a portfolio.  I'm sure there's above ground issues as well. The Permian is truly a geologic, geographic, and economic Goldilocks. 

Other than geology, what’s the biggest obstacle to get the Powder over the top? 

[DCA_HORN 725]

5 hours ago, MadTrapper said:

Interesting.  So they just restarted coverage or did they also restart some actual energy investment funds? 

Coverage? Yeah they're all over that. Put it all on bp. 

5 hours ago, billfromlaketravis said:

Other than geology, what’s the biggest obstacle to get the Powder over the top? 

Mormons? Jk

[DCA_HORN 725]

5 hours ago, billfromlaketravis said:

Other than geology, what’s the biggest obstacle to get the Powder over the top? 

The problem with the powder is its been the next big thing since Diddy diddled beiber. 

Edited April 12 by DCA_HORN

[tx 3 putt 76,562]

Does it $250 / bbl ?

[tequila 317]

Other than geology, what’s the biggest obstacle to get the Powder over the top? 

Service and horse power availability.

[Rex Kramer 1,311]

7 hours ago, tx 3 putt said:

Does it $250 / bbl ?

Nah. But it’s gonna shoot up in the short term. How long depends upon what exactly Israel does. 

[tx 3 putt 76,562]

20 minutes ago, Rex Kramer said:

Nah. But it’s gonna shoot up in the short term. How long depends upon what exactly Israel does. 

saudis already jumped in

[billfromlaketravis 11,377]

The Bloomberg ticker has WTI up 64 cents and Brent up 71 cents right now. As it’s been pointed out here and many other places, global conflicts don’t really affect prices like they did in years past. 

[T’Boo Ted Marshall 2,727]

Any insight on Sitio(STR)? Div yield has a pretty decent track record and I’m looking for a place to invest in minerals and royalties.

[tequila 317]

STR is run by good guys.  I don't know how much they're going to be able to grow the business, but the div should be pretty safe.

There's a couple of the Brigham guys still hanging around over there.

[Storm the Field 5,274]

Interesting. Reports just came out that FTC will approve the XOM/PXD merger on the condition that Sheffield be barred from serving on the BOD. 

 

Quote

 

Exxon to Close Megadeal, Pioneer CEO to Be Barred from Exxon Board in Deal With FTC

Antitrust enforcers are set to allege Pioneer CEO Scott Sheffield discussed coordinating oil-production levels with other producers and OPEC.

An oil executive embroiled in a price-fixing lawsuit is expected to be barred from serving on ExxonMobil’s board when the energy giant buys the Texas-based petroleum producer Pioneer Resources, according to three people with direct knowledge of the matter.

The Federal Trade Commission is set to greenlight the $64 billion deal, despite antitrust concerns — but on the condition that Scott Sheffield, Pioneer’s founder, two-time former CEO and current board member, not serve as planned on Exxon’s board, the people said.

The FTC alleges that Sheffield exchanged hundreds of messages with OPEC officials discussing oil output and prices, one of the people said.

 

 

[Armybrat 40,759]

Some nice producers among these new wells in North Dakota’s Bakken 

(Lake Sakakawea in the background)

 

[Storm the Field 5,274]

Been helping out on some Permian work again lately for the first time in a little while. Keep seeing leases that have these specific provisions where they can't be assigned to CHK, Endeavor, or any entity affiliated with Autry Stephens.

I've run across similar provisions several times in various leases over the years. Anyone know the exact story on that? Feels like it only ever applies to those specific companies

[billfromlaketravis 11,377]

3 hours ago, Storm the Field said:

Been helping out on some Permian work again lately for the first time in a little while. Keep seeing leases that have these specific provisions where they can't be assigned to CHK, Endeavor, or any entity affiliated with Autry Stephens.

I've run across similar provisions several times in various leases over the years. Anyone know the exact story on that? Feels like it only ever applies to those specific companies

Here come the Autry apologists. No CHK is 1000% understandable.

To name them specifically is something else. A hard consent in assignment clause usually does the trick. I’m thinking a local attorney got burnt and CHK and Autry made his lease form. 

Edited May 11 by billfromlaketravis

[CycleTex87 2,958]

On 5/2/2024 at 9:06 PM, Armybrat said:

Some nice producers among these new wells in North Dakota’s Bakken 

(Lake Sakakawea in the background)

 

That doesn't look like a commercial jet wing.  Whatcha flying there?

[Armybrat 40,759]

52 minutes ago, CycleTex87 said:

That doesn't look like a commercial jet wing.  Whatcha flying there?

Not me. 
My land man  - he is half owner of a Cirrus. I dunno which model.

[Storm the Field 5,274]

Another 10 figure deal in Houston. KKR-backed Crescent Energy is buying SilverBow for $2.1B. This comes just weeks SilverBow turned down Kimmeridge's latest unsolicited offer to buy the company.

Crescent will now be the #2 operator in the Eagle Ford.

[Storm the Field 5,274]

Nat Gas has finally crawled out of the crapper a bit. Up to $2.50 today, which is its highest price since the last week of January. It has been sub-$2 since February 7th. Bottomed out at $1.57 on 3/26.

Edited May 16 by Storm the Field

[billfromlaketravis 11,377]

4 hours ago, Storm the Field said:

Another 10 figure deal in Houston. KKR-backed Crescent Energy is buying SilverBow for $2.1B. This comes just weeks SilverBow turned down Kimmeridge's latest unsolicited offer to buy the company.

Crescent will now be the #2 operator in the Eagle Ford.

Thank you for the update, but what metric are using for #2 operator? I thought EOG and COP were the big dogs in Eagle Ford. 

[Storm the Field 5,274]

15 minutes ago, billfromlaketravis said:

Thank you for the update, but what metric are using for #2 operator? I thought EOG and COP were the big dogs in Eagle Ford. 

Just quoting from the press release and all the stories reporting on it.

Press Release:

 Complementary combination creates the 2^nd largest operator in the Eagle Ford
 

Rueters:

Oil and gas producer Crescent Energy (CRGY.N), opens new tab has agreed to buy rival SilverBow Resources (SBOW.N), opens new tab for $2.1 billion, a deal which would create the second-largest operator in the Eagle Ford basin in south Texas.

 

WSJ:

The energy companies said the combination will create the second largest operator in the Eagle Ford Shale.

[billfromlaketravis 11,377]

21 minutes ago, Storm the Field said:

Just quoting from the press release and all the stories reporting on it.

Press Release:

 Complementary combination creates the 2^nd largest operator in the Eagle Ford
 

Rueters:

Oil and gas producer Crescent Energy (CRGY.N), opens new tab has agreed to buy rival SilverBow Resources (SBOW.N), opens new tab for $2.1 billion, a deal which would create the second-largest operator in the Eagle Ford basin in south Texas.

 

WSJ:

The energy companies said the combination will create the second largest operator in the Eagle Ford Shale.

Thanks. It’s been a minute since I followed the Eagle Ford. 

[LurkingHorn 1,060]

6 hours ago, billfromlaketravis said:

Thank you for the update, but what metric are using for #2 operator? I thought EOG and COP were the big dogs in Eagle Ford. 

Enterprise value. I work at one of the companies involved. This definitely came out of nowhere. Deal was dead as of a week ago. 

[Rex Kramer 1,311]

Should I hedge NG right now?  6 month trade, either buying a put or collar with like a $2.25 floor. 

[Eastwood 4,394]

ConocoPhillips acquiring Marathon Oil, per my LinkedIn feed. 

[Storm the Field 5,274]

1 hour ago, Eastwood said:

ConocoPhillips acquiring Marathon Oil, per my LinkedIn feed. 

$17B deal.

The list of mid-major E&P's in existence grows even shorter. 

[tx 3 putt 76,562]

2 hours ago, Eastwood said:

ConocoPhillips acquiring Marathon Oil, per my LinkedIn feed. 

Id be very worried if I was a marathon employee in an office 

[Rex Kramer 1,311]

2 hours ago, tx 3 putt said:

Id be very worried if I was a marathon employee in an office 

Is this like your Louisville PD will take Scottie to trial prediction?

[tx 3 putt 76,562]

16 minutes ago, Rex Kramer said:

Is this like your Louisville PD will take Scottie to trial prediction?

pesky white people had video evidence. Louisville Pd had their guy covered 

[Rex Kramer 1,311]

2 minutes ago, tx 3 putt said:

pesky white people had video evidence. Louisville Pd had their guy covered 

Video evidence of nothing. They most certainly didn’t have him covered

[billfromlaketravis 11,377]

9 hours ago, tx 3 putt said:

Id be very worried if I was a marathon employee in an office 

I have a friend over there in the land department. She wants a package so she can go to law school. 
 

But yes, the wife and kids guys have to deeply concerned. COP will eliminate any and all redundancies. 
 

I was at a crawfish boil last Thursday with a Marathon attorney and he of course didn’t say a word. If he were a landman, he would have told me about it within 5 minutes. 

[Hate 20,104]

9 hours ago, tx 3 putt said:

Id be very worried if I was a marathon employee in an office 

I guy just left a nice position at my company for a similar position at Marathon about two weeks ago. Oops.

[billfromlaketravis 11,377]

1 minute ago, Hate said:

I guy just left a nice position at my company for a similar position at Marathon about two weeks ago. Oops.

I was fishing for a competing offer to get a raise so I interviewed with Marathon last year. They could smell the bullshit on me, and I didn’t get a second interview. 

[tx 3 putt 76,562]

6 minutes ago, Hate said:

I guy just left a nice position at my company for a similar position at Marathon about two weeks ago. Oops.

 

 

[Hate 20,104]

He’s in Safety too. Probably one of the first departments to get cut. Rumor is he left because Marathon is WFH 3 days a week and we are 100% in the office. He may be at home 100% of the time now.

[billfromlaketravis 11,377]

COP has a pretty shitty reputation in land at the moment. They have a long history of brutal layoff rounds. Their latest move is worse. They made their entire Permian land department, ops and admin, move to Midland. Just a fucking bizarre move. We can drill wells in the Gulf remotely from Houston, but COP needs division order boots on the ground in West Texas, because? 

[billfromlaketravis 11,377]

2 minutes ago, Hate said:

He’s in Safety too. Probably one of the first departments to get cut. Rumor is he left because Marathon is WFH 3 days a week and we are 100% in the office. He may be at home 100% of the time now.

If you’re important enough, Marathon was OK’ing WFH 4 days a week, but 3 days was their policy for the plebs. 
 

I really like their new building in City Centre. Houston commercial real estate about to take another L. 

[Rex Kramer 1,311]

18 minutes ago, billfromlaketravis said:

COP has a pretty shitty reputation in land at the moment. They have a long history of brutal layoff rounds. Their latest move is worse. They made their entire Permian land department, ops and admin, move to Midland. Just a fucking bizarre move. We can drill wells in the Gulf remotely from Houston, but COP needs division order boots on the ground in West Texas, because? 

I’d have a huge chunk of them there. You know how many deals get cut at MCC or MPC? Edit: and I’d probably have the other half office in Horseshoe Bay  

Also, this work from home bullshit is bullshit. I wouldn’t hire anyone that demands it. 

Edited May 30 by Rex Kramer

[Hate 20,104]

I worked from home for 3 years before I moved to my current role.  I loved working from home for a variety of reason, but my current employer only allows it for very approved purposes and for a very short time.  I actually prefer being in the office now.  I fell much more productive and it's much easier to collaborate with my team. 

[billfromlaketravis 11,377]

21 minutes ago, Rex Kramer said:

I’d have a huge chunk of them there. You know how many deals get cut at MCC or MPC? Edit: and I’d probably have the other half office in Horseshoe Bay  

Also, this work from home bullshit is bullshit. I wouldn’t hire anyone that demands it. 

At companies as big as COP, I think it’s a waste of time. Big deals are done at a much higher level than land and BD. Shaking hands at the Midland Petroleum Club ain’t going to do shit other than run up expense reports. 

And it’s worse for the land admin folks. They have nothing to do with BD, and they were dragged out there. They could set up a pay deck or a lease from anywhere if their records are digitized.

Also some version of WFH is the new standard at very major except for XOM. I’ll admit to being more productive at the office, and it’s nice getting out of the house. But I also like sleeping until 7am on Mondays and Fridays. With 9/80s and how much PTO I’ve accrued, I was taking every Friday off. But they’re training me for a promotion, and I’ve been instructed to cool on never working Fridays. It was fun while it lasted, but it’s a lot of money to turn down. 

Edited May 30 by billfromlaketravis