Oil and Gas Investor Magazine - December 2023
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The OGInterview
Buy & Buy
Vital Energy’s rapid growth in the Permian Basin’s stems from CEO Jason Pigott’s strategy of acquiring smaller private producers—one after the other.
Features
Between a Rock and a Wind Turbine
EIG’s chairman and CEO says private equity investors are steering clear of fossil fuels but balk at energy transition projects’ lackluster returns.
'A Transformational Acquisition'
Four years after the controversial acquisition of Anadarko, Occidental CEO Vicki Hollub has silenced the doubters.
Is Endeavor Worth $30 Billion?
Based on Exxon Mobil’s valuation of Pioneer Natural Resources and other data, analysis
suggests the Midland Basin pure-play could attract a very high price.
Does M&A Reduce CO2?
Dan Pickering: “Consolidation is going to translate to probably more intensive efforts
around low carbon.”
Big Tech, Bad Rep Draining Talent
Attracting younger hires requires changing hearts and minds, says industry advocate.
Energy's New Math: Addition, Not Transition
Tech experts spell out how the industry can educate the public about the energy transition.
In Memoriam: Jim Henry
Oil and Gas Investor Presents: Hart Energy's Hall of Fame 2023
In a special 13th issue of the 2023 production year celebrating the 50th anniversary of Hart Energy, Oil and Gas Investor presents its inaugural Hall of Fame, celebrating the icons of the industry—fifty of the most impactful and influential people in the oil and gas industry, as well as 19 Agents of Change in Energy (ACEs), people who are paving the way for the future of the industry.
Cover Story
Buy and Buy: Vital Energy's M&A Strategy for the Permian
Vital Energy’s rapid growth in the Permian Basin stems from CEO Jason Pigott’s strategy of acquiring smaller private producers—one after the other.
Feature
Analysis: Endeavor Energy’s Value Could Hit $30 Billion
Exxon Mobil’s valuation of Pioneer Natural Resources plus new Endeavor data suggests buying Endeavor Energy Resources could come with a high price tag, according to Hart Energy analysis.
ATCE: Energy Addition, Not Transition, Most Likely Scenario
Recruiting new talent requires improving the oil and gas industry’s image panelists at the Society of Petroleum Engineers’ (SPE) Annual Technical Conference and Exhibition said on Oct. 16.
Between a Rock and the Transition: PE Investors Shun Old, New Energy - EIG CEO
R. Blair Thomas, EIG chairman and CEO, says private equity investments have been balkanized as investors steer clear of fossil fuels but balk at energy transition project’s lackluster returns.
EOC: Oil Industry Losing Talent to Big Tech, Bad Reputation
Drawing in younger talents requires changing hearts and minds about the industry, Energy Workforce & Technology Council president says.
Henry Resources' Jim Henry, Permian Basin Wildcatter, Dies at 89
James “Jim” Henry, a longtime Permian Basin wildcatter who last month sold his company to Vital Energy, has passed away.
More Consolidation Could Increase Focus on Emissions Reduction
‘Consolidation is going to translate to probably more intensive efforts around low carbon,’ Pickering Energy Partners founder says in the wake of Exxon Mobil's massive acquisition of Pioneer Natural Resources.
Silencing the Doubters: Occidental CEO Vicki Hollub Lauded for Anadarko Deal
Four years after acquiring Anadarko Petroleum, Occidental CEO Vicki Hollub has proved her critics wrong, and she credits the deal with carrying the company through the depths of the pandemic.
A&D Watch
Crescent Point Buying Alberta Montney E&P in $1.86 Billion Deal
Crescent Point is extending its premium drilling inventory in the Alberta, Canada, Montney Shale with a roughly US$1.86 billion (CA$2.55 billion) acquisition of Hammerhead Energy.
Kimmeridge Exec: Chesapeake-Southwestern is Gas Sector’s ‘Most Logical Combination’
After pushing Chesapeake to pivot into a pure-play natural gas company, activist investor Kimmeridge wants to see a deal come together with Southwestern Energy—for the right price.
Permian Resources Finds ‘Unique Value Prop’ in Small-ball M&A
Permian Resources isn’t ruling out more large-scale M&A after closing a $4.5 billion acquisition earlier this month, but the growing E&P sees multiple opportunities for small-scale bolt-ons in the Delaware Basin.
Which Assets Will Chevron Shop After $53B Hess Deal?
Chevron is entering the Bakken Shale play in a big way through its $53 billion acquisition of Hess Corp. After closing, will the supermajor be in North Dakota to stay?
At Closing
Commentary: Are Renewable Incentives Degrading Powergen Reliability?
A Vistra Corp. chief, ERCOT’s vice chairman and a private investor talk about what’s really happening on the U.S. grid, and it’s not just a Texas thing.
Commentary
Commentary: Chevron Holds Steady in Venezuela
Chevron appears to be in Venezuela to recoup money from the OPEC country while confronting a number of headwinds, including political uncertainties and a now truncated General License No. 44.
Commentary: Is Saudi Arabia Friend, Foe or Just Fickle?
With OPEC+ meetings in Vienna on Nov. 26, Saudi Arabia remains the de facto head of the group — and a wildcard.
Commentary: Notable Quotes and Headlines from 3Q Earnings
Reading between the lines of midstream management's third-quarter commentary, executives had plenty to say about dividends, M&A and misjudged opportunities.
Paisie: If Conflict Expands, Oil Could Hit $115/bbl
While the oil market is currently dismissing geopolitical risks, Stratas Advisors' John Paisie says the possibility of the Israel-Hamas conflict progressing in an unpredictable manner may cause a spike in oil prices.
Peering into 2024: Where Will Oil, Gas Prices Go?
As 2023 closes and we look ahead, energy prices remain volatile and dependent on weather and geopolitical factors.
The Romance of Oil and Gas
As Hart Energy commemorates its 50th anniversary in the December issue of Oil and Gas Investor, Hart looks back on what truly drives the oil industry—the romance and thrill of the business.
We Need to Act Like the Energy Leader We Are
Our energy policy needs to reflect and enhance our role as the global energy and environmental leader.
Energy Transition
NextEra Gears Up for Wind Repower Projects as Renewables Backlog Grows
NextEra Energy Inc. said its renewables arm, NextEra Energy Resources, added more than 3.2 gigawatts of projects to its backlog.
Finance & Investment
Despite Bump, a Warm Winter Should Keep Nat Gas Prices Level
Without any imminent threats to natural gas supplies, a forecasted El Niño typically leads to warmer weather and less demand in the Lower 48.
Gas E&Ps Fixated on Rising Demand for US LNG Exports
Third-quarter earnings for U.S. natural gas producers plummeted compared to last year, when prices spiked to their highest levels since the Great Recession. Now, all eyes are turned toward growing gas demand to serve new U.S. LNG export capacity coming online.
Haynes Boone: RBLs Continue to Cool as Source of Oil, Gas Capital
A survey by law firm Haynes Boone found equity and free cash flow are expected to meet nearly half of oil and gas companies’ capital needs in the next 12 months.
No Money Down: Analysts See Logic in Chevron, Exxon M&A Strategy
Analysts are supportive of Exxon Mobil and Chevron’s all-stock deals in response to some grumbling among stockholders, saying the supermajors are saving cash for optionality and avoiding debt.
Global Energy
Chevron-Hess Deal Creates American “Dream Team” Offshore Guyana, Surprises Analysts
Chevron’s $53 billion all-stock deal for Hess Corp. will see the California oil giant team up with its Texas counterpart Exxon Mobil to create an American “dream team” in Guyana’s offshore Stabroek Block where production has been rising exponentially each year.
Rystad: Easing US Sanctions on Venezuela Could Boost Production
A potential deal between Washington and Caracas to ease sanctions on Venezuela could see the South American country boost production by 200,000 bbl/d—a relative drop in the bucket for world oil markets, Rystad Energy says.
Venezuela’s VP Says Guyana Follows Exxon Mobil Script to Rob Resources
Venezuela’s Vice President Delcy Rodríguez accused Guyana’s president Mohamed Irfaan Ali of following mandates from Exxon Mobil Corp. and the U.S. Southern Command regarding the small English-speaking country’s claims to the disputed Essequibo territory located between the two South American countries.
Midstream
Midstream Consolidation Pays Off in the Third Quarter
Pipeline company M&A continues as Lower 48 production soars while midstream companies also hiked dividends despite weak commodity prices.
Technology
AWS, SLB, Shell Team Up to Explore ‘Subsurface Data Universe’
Amazon Web Services, Shell and SLB are collaborating to streamline workflows and transform workloads.
Cybersecurity for Legacy Equipment: Protect ‘Ponds, not Ocean,’ Expert says
From fool’s errands to potentially “breaking” systems, cybersecurity executives should tread carefully as they strengthen legacy oil and gas infrastructure — and better communicate risks to decision-makers.
Digital Pipeline: XCL Resources Harnesses Excess Gas for Bitcoin Mining
In areas with limited takeaway capacity like the Uinta Basin, using natural gas to power bitcoin mining can prevent operators from having to shut in production.
Exxon Juggles the Energy Transition Imperative: More Power, Fewer Emissions
Vijay Swarup, senior director for climate strategy and technology at Exxon Mobil, said existing technologies have had decades to develop while newer emissions advances are just starting to deploy.