Hey Oil Barons.......

[Storm the Field 5366]

25 minutes ago, Ted Dantzler said:

Thanks for the input, definitely looks like we should be looking for more. My dad's going out there next week to talk to some neighbors etc to see if he can get any details of what is standard out there. For reference its 620 acres of pasture/cropland. 

Own the minerals on all 620?

[Rex Kramer 1531]

2 hours ago, Ted Dantzler said:

Thanks for the input, definitely looks like we should be looking for more. My dad's going out there next week to talk to some neighbors etc to see if he can get any details of what is standard out there. For reference its 620 acres of pasture/cropland. 

Comparing your offer to @Armybrat’s Bakken stuff is not productive because he’s been in a historically hot area and you are not. @billfromlaketravis20% seems odd. Maybe that’s just an average. 25% must be the standard in Weld Co.

My thoughts are:

1) 1/8th sounds like a 1920s lease. 1/4 is the standard for active areas. But you’re area is the antithesis of a hotbed of activity.

2) Same comment with $20/acre. 

3) For $12,400, I’d tactfully tell them to eat a bag of dicks. 

4) whatever you do, try and get a short term lease, and negotiate a tough surface agreement. This won’t be life changing money either way, don’t let them fuck up your land. 

[Armybrat 41366]

Well, the land our lease(s) is under is situated 50’ - 60’ below the surface of Lake Sakakawea and has been since the 1950s.

 

 

[Ted Dantzler 157]

Own the minerals on all 620?

Yes. We also have a windmill lease on our land, they ended up building the windmills a mile north and a mile south of our land so no actual windmills but they did bury a power line through our land next to the road. Since they didn't build any on our land they gave us an extra "good neighbor" bonus for having to look at them....I don't mind though. As far as I know the only condition is we can't build any structures over a certain height.

From looking at neighbors land some of them have windmills and oil wells on the same section so I don't think that would be an issue.

Token windmill sunset pic

[Armybrat 41366]

19 hours ago, Rex Kramer said:

Comparing your offer to @Armybrat’s Bakken stuff is not productive because he’s been in a historically hot area and you are not. @billfromlaketravis20% seems odd. Maybe that’s just an average. 25% must be the standard in Weld Co.

My thoughts are:

1) 1/8th sounds like a 1920s lease. 1/4 is the standard for active areas. But you’re area is the antithesis of a hotbed of activity.

2) Same comment with $20/acre. 

3) For $12,400, I’d tactfully tell them to eat a bag of dicks. 

4) whatever you do, try and get a short term lease, and negotiate a tough surface agreement. This won’t be life changing money either way, don’t let them fuck up your land. 

That’s why I qualified my reply with this…

Quote

But that’s on the higher end in the Bakken’s better play areas.
 

 

[Rex Kramer 1531]

Just voted Craddick. Sorry to the dipshit duo of Dunlap and Stogner

[Storm the Field 5366]

On 10/31/2024 at 2:00 PM, Rex Kramer said:

Just voted Craddick. Sorry to the dipshit duo of Dunlap and Stogner

Just saw that Stogner won the DA race for the combined office that encompasses Loving, Reeves, and Ward. Didn't even realize she was running for something this time around. Also didn't realize that those counties have shared personnel. 

[Rex Kramer 1531]

2 hours ago, Storm the Field said:

Just saw that Stogner won the DA race for the combined office that encompasses Loving, Reeves, and Ward. Didn't even realize she was running for something this time around. Also didn't realize that those counties have shared personnel. 

She’s such a cunt. I find her repulsive in all aspects. Largely because of her, I happily voted Craddick and noted Hawk Dunlap got 2.5% of the vote. 

[StassneyHorn 6763]

Feels like this situation is begging for a reality show to follow her around.

[CycleTex87 3020]

Is Hawk Dunlap related to Hawk Tuah?

[Armybrat 41366]

On 11/7/2024 at 4:57 PM, CycleTex87 said:

Is Hawk Dunlap related to Hawk Tuah?

Tuah hawked on Dun’s lap?

[Wilcox Cummingtonite 3560]

Hilcorp buys Exxon’s conventional Permian assets. 

https://www.reuters.com/markets/deals/exxon-sell-older-permian-assets-hilcorp-1-billion-deal-sources-say-2024-11-12/
 

Quote

NEW YORK, Nov 12 (Reuters) - Top U.S. oil producer Exxon Mobil Corp (XOM.N), has agreed to sell conventional oil drilling assets in the Permian Basin of Texas and New Mexico to privately-owned Hilcorp Energy for around $1 billion, four sources familiar with the matter told Reuters.

The deal follows a trend of U.S. oil and gas companies culling older properties following a record-breaking wave of acquisitions. Private operators like Hilcorp have been among the most active buyers of such assets.

Exxon confirmed the sale of the assets but declined to name the buyer or valuation, using terms that signify the properties were conventional vertical wells, not the horizontal wells used to pump shale.

"The sale is consistent with our strategy to focus investments on advantaged assets in our industry-leading portfolio," the Exxon spokesperson said, adding the deal is expected to close in the first quarter of 2025.

Reuters reported in June that Exxon was auctioning the assets to focus on higher growth shale drilling properties, following the completion of its $60 billion takeover of Pioneer Natural Resources in May.

Hilcorp, which specializes in buying mature oilfields, emerged as the winner of this auction, the sources said, requesting anonymity as the auction was confidential.

Hilcorp did not respond to requests for comment.

Like other companies which took advantage of sharply elevated commodity prices to pursue recent megamergers, Exxon has been reviewing its portfolio to focus on its most profitable assets while raising cash from selling so-called non-core assets to shore up its balance sheet.

The Exxon assets which Hilcorp is buying are estimated to have net production of about 26,000 barrels of oil equivalent per day, one of the sources said. The sale does not include assets acquired from Pioneer, they added.

Hilcorp, founded by billionaire Jeffery Hildebrand, has been among the most active buyers of assets being divested by public rivals. The company this month finalized a $1 billion takeover of Italian group Eni's offshore Alaska assets.

It was also the undisclosed buyer in APA Corp's $950 million sale of conventional Permian properties agreed in September, sources told Reuters.

APA Corp did not immediately respond to requests for comment.

 

Edited November 14 by Wilcox Cummingtonite

[Storm the Field 5366]

Looks like a total of 400 out of roughly 2000 PXD folks are getting let go by XOM.

Edited November 14 by Storm the Field

[billfromlaketravis 11808]

9 hours ago, Storm the Field said:

Looks like a total of 400 out of roughly 2000 PXD folks are getting let go by XOM.

How many on the dreaded Performance Improvement Plan? That’s a death sentence at XOM. 

[tx 3 putt 78614]

13 minutes ago, billfromlaketravis said:

How many on the dreaded Performance Improvement Plan? That’s a death sentence at XOM. 

 

i had a PIP twice 

quit after I earned a rather large bonus check, while on PIP #2

[billfromlaketravis 11808]

4 minutes ago, tx 3 putt said:

 

i had a PIP twice 

quit after I earned a rather large bonus check, while on PIP #2

Haha good for you buddy. I haven’t heard of anybody coming back from it in land.

My company is a little different. I know a couple fellas that received a 1 and a 0 on their performance review are pushing 10 years of service. 

[billfromlaketravis 11808]

The guy that got a 0 year was told he was moving into a new group, but they forgot to give him any work to do for the better part of a year. Some real Seinfeld Penske File type shit. His old manager conducted his performance review and buried him. He didn’t take a bonus for 3 years. 
 

The guy that got a 1 is pretty good is pretty well known for watching Netflix all day. 
 

When landmen bitch about making less than engineers I look at them like they’re insane because they are. Some of us have no idea how good we have it. We only have to go the field if we want to wear a hard hat and take pictures. When I describe what I do to people in other industries, they are mouth agape shocked. Most of the stereotypes are true. 

[Hook1997 5494]

Was just notified by my broker our client is not selling…  I didn’t even know that was possibly happening since I was just finishing up work on them buying a bunch of producing Units.  Depending on the broker to a point I guess, the days of a landman drinking beer and playing golf half the day are long gone.  Most of those guys are not in the business anymore unless they have deep connections.  A lot more work getting done with way less landmen compared to ten years ago. 

[billfromlaketravis 11808]

4 hours ago, Hook1997 said:

Was just notified by my broker our client is not selling…  I didn’t even know that was possibly happening since I was just finishing up work on them buying a bunch of producing Units.  Depending on the broker to a point I guess, the days of a landman drinking beer and playing golf half the day are long gone.  Most of those guys are not in the business anymore unless they have deep connections.  A lot more work getting done with way less landmen compared to ten years ago. 

Also this. Everything going digital and Quorum have helped immensely. Disappearing after lunch everyday isn’t a thing anymore, but some of the best golfers I know are landmen. 
 

I miss the old guys. It’s very buttoned down now. A lot of people don’t even leave for lunch. They knock out 7 to 4 and go home. Unless you’re running several rigs, it’s a very laid back workday. 

[Storm the Field 5366]

Natty $3.20

[CycleTex87 3020]

Thoughts on Chris Wright as Sec of Energy?

[Rex Kramer 1531]

7 hours ago, CycleTex87 said:

Thoughts on Chris Wright as Sec of Energy?

A pick that makes sense. Hope he doesn’t get Trump’ed like Tillerson. No CR. 

[Horn Under a Bad Sign 20895]

On 11/6/2024 at 10:45 AM, Rex Kramer said:

She’s such a cunt. I find her repulsive in all aspects. Largely because of her, I happily voted Craddick and noted Hawk Dunlap got 2.5% of the vote. 

As one who knows her personally, she's actually awesome. Super smart. 

[Rex Kramer 1531]

15 hours ago, Horn Under a Bad Sign said:

As one who knows her personally, she's actually awesome. Super smart. 

Tell her Rex from the internet doesn’t want to know her personally. Tell her fat ass to keep clothes on, and to stop with the attention whoring posts on LinkedIn, Insta and wherever else that annoying wildebeest goes. 

[Horn Under a Bad Sign 20895]

6 hours ago, Rex Kramer said:

Tell her Rex from the internet doesn’t want to know her personally. Tell her fat ass to keep clothes on, and to stop with the attention whoring posts on LinkedIn, Insta and wherever else that annoying wildebeest goes. 

I'll tell her tomorrow.

[txduck87 1021]

MRO is officially no more.

[billfromlaketravis 11808]

On 11/22/2024 at 11:00 AM, txduck87 said:

MRO is officially no more.

I saw a couple screenshots of the emails. Basically, everybody finds out next week if they’re getting a package or staying on. Is there anything new to report? 

[Rex Kramer 1531]

Oil up 3%, yay. Gas down 4%, bigger neigh. Gas is so volatile. Colder December than anticipated but projected to have a relatively warm January. Fuck me in the goat ass. 

[LonghornJones 838]

3 hours ago, Rex Kramer said:

... but projected to have a relatively warm January.

<weather nerd> not if this potential sudden stratospheric warming event occurs as predicted by the Madden-Julien Oscillation <weather nerd>

[Rex Kramer 1531]

1 hour ago, LonghornJones said:

<weather nerd> not if this potential sudden stratospheric warming event occurs as predicted by the Madden-Julien Oscillation <weather nerd>

[txduck87 1021]

I saw a couple screenshots of the emails. Basically, everybody finds out next week if they’re getting a package or staying on. Is there anything new to report? 

MRO folks find out next Wednesday or Thursday what their fate is. Severance or job with COP. Also who will be on transition team. All MRO employees told to wfh those two days.

[billfromlaketravis 11808]

24 minutes ago, txduck87 said:

MRO folks find out next Wednesday or Thursday what their fate is. Severance or job with COP. Also who will be on transition team. All MRO employees told to wfh those two days.

It sounds like 9 months severance, and the equivalent of 2 annual bonuses in a lump sum seems to be the going rate. Not bad, not great, but if those folks can find another job quickly it’s a nice chunk of change.’

[Rex Kramer 1531]

I wonder if this includes DO analysts.  Related, I’m dealing with truly moronic MRO DO analysts. 

[txduck87 1021]

It sounds like 9 months severance, and the equivalent of 2 annual bonuses in a lump sum seems to be the going rate. Not bad, not great, but if those folks can find another job quickly it’s a nice chunk of change.’

9 months minimum. Some getting 2 years plus depending on service time. 2 years bonus. All RSUs vest, medical for a year. It’s a nice package .

[swraith 348]

I would welcome a severance package with those terms.

[tx 3 putt 78614]

Weekly EIA estimates show a new record for US oil production: 13.51 million barrels per day.

 

[txduck87 1021]

MRO folks find out next Wednesday or Thursday what their fate is. Severance or job with COP. Also who will be on transition team. All MRO employees told to wfh those two days.

All done. Almost everyone got laid off, I’d guess 90+% with a majority working on a transition team from anywhere from June-December.

Lots of happy people as many receiving 2 years severance, 2 years bonuses, one year medical and all RSU’s.

[Johnny Chimpo 489]

2 hours ago, txduck87 said:

All done. Almost everyone got laid off, I’d guess 90+% with a majority working on a transition team from anywhere from June-December.

Lots of happy people as many receiving 2 years severance, 2 years bonuses, one year medical and all RSU’s.

Man, that’s a win. 

[billfromlaketravis 11808]

If you’re young/new and on the transition team at MRO, I’d say life isn’t swell. They can’t touch their severance until after their exit date, and they have to be in the office 5 days a week. Plus they’ve already extended some of their exit dates from December 2025 to June 2025 to now September 2025.

I urged my friend to please find another job before the exit date. Not easy when you have to go in every day. I have no idea what’s next for my friend. They’ve already extended the exit date. Why stop there? COP could extend a take it or leave job offer… in Midland come September. 
 

I think COP is a pretty well run company, but Jesus you don’t want to be acquired by them. 

[tx 3 putt 78614]

10 hours ago, txduck87 said:

All done. Almost everyone got laid off, I’d guess 90+% with a majority working on a transition team from anywhere from June-December.

Lots of happy people as many receiving 2 years severance, 2 years bonuses, one year medical and all RSU’s.

 

[txduck87 1021]

If you’re young/new and on the transition team at MRO, I’d say life isn’t swell. They can’t touch their severance until after their exit date, and they have to be in the office 5 days a week. Plus they’ve already extended some of their exit dates from December 2025 to June 2025 to now September 2025.
I urged my friend to please find another job before the exit date. Not easy when you have to go in every day. I have no idea what’s next for my friend. They’ve already extended the exit date. Why stop there? COP could extend a take it or leave job offer… in Midland come September. 
 
I think COP is a pretty well run company, but Jesus you don’t want to be acquired by them. 

They can’t extend the transition period. Also, if they offer full time job at end, (they won’t),you can reject it and get your severance. They can reduce the transition period but have to give you 30 days notice. Severance is locked in. Yes the 5 days a week in house sucks , but for that package , suck it up.

[CycleTex87 3020]

Man, I'd kill for that severance package.  Out here is the O&G service sector, no such thing exists outside of maybe SLB and Baker Hughes, at least in public companies.

[Rex Kramer 1531]

Where is out here?

[CycleTex87 3020]

Out here outside major oil companies. 

[Rex Kramer 1531]

Nat gas market is fascinating to me. After last year’s warm winter we were 50% above 5-year inventory average. Today, we’re at 3.6% above. A lot of which was burned off in a few shoulder seasons. Demand for gas is very strong. We are having a warm winter, or rather are projected to have a warmer winter in Jan/Feb, so it’ll be interesting to see how it plays out. 

Trump’s EU tariffs seems like rhetoric. But if it’s not, is it not a direct shot across Putin’s bow?  It’s also huge support for gas, and what he’d do on LNG takeaway capacity. 

Edited yesterday at 04:17 PM by Rex Kramer

[Storm the Field 5366]

Related: Natty currently at $3.67 as of this post. Highest price in over 700 days. Last time above $3.60 was 1/10/23.