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My post today for Steve Reese and Reese Energy Consulting. A Late Autumn Harvest for NOG Minnetonka may be best known for its eponymous moccasins and bedroom slippers, but this western suburb of the bustling Twin Cities is also home to the largest, publicly traded, non-operated oil and gas E&P. Formed in 2007, Northern Oil and Gas (NOG) has steadily catalyzed its investment portfolio of assets in the Permian, Williston, and Marcellus with bolt-on acquisitions that have now brought the company into that sweet territory known as Harvest Mode. Reese Energy Consulting today is following the latest from Minn.-based NOG, which recently reported 3Q oil and natural gas sales of $511.7 million and 102.3 MBOED in production. The company announced at the time it was working through a multitude of investment opportunities—and voila!—it’s now landed two from separate undisclosed buyers for a combined $170 million and 107,657 shares of common stock. NOG will add another 3,000 net acres in the Permian’s northern Delaware to its current 37,000 in a deal that also includes 13 producing wells, 2.8 MBOED, and 26+ net undeveloped locations representing 13.5 years of drilling inventory. The company’s second acquisition expands its natural gas assets in the Marcellus that include 62,000 net acres with an entry into the Ohio Utica shale. The Utica properties, operated by Ascent Resources, currently produce 23 MMCFD. NOG has big expectations and plans in 2024 for its Permian acquisition—now its largest asset—as well as its Utica buy. The company estimates combined production of 6.5 MBOED and up to $62.5 million in cash flow. How sweet it is. What do you think?  Learn more about REC and our natural gas marketing and producer services at https://lnkd.in/eAebAz8.

My post today for Steve Reese and Reese Energy Consulting. Reunited and It Feels So Good for TXO Energy New basin entries by oil and gas producers seem to be having a moment right now. Stories always compelling to explore—especially if their core assets happen to lie primarily in the almighty Permian or aren’t the result of an acquisition inheritance. Reese Energy Consulting today is following the latest leap outside the Perm by Midland and Delaware players betting more than a buck or two on fresh territory and inventory to expand their portfolios. We shared last week Denver-based SM Energy Company’s $2.55 billion deal for XCL Resources and a welcome howdy into the Uinta Basin that came as somewhat of a surprise for most folks. Now, Fort Worth-based TXO Partners, which operates a combined 371,000 net acres in the Texas and N.M., Permian and San Juan, has hopscotched into the Williston with two acquisitions valued at $300 million. But it’s not exactly their first rodeo there. The company, which went public last year, is led by CEO Bob Simpson—shale veteran and former CEO of XTO Energy who built a Bakken powerhouse before selling to ExxonMobil back in 2010 for $41 billion and finding a comfortable nest in the nation’s most prolific basin. Still, an old friend has a way of wooing one back.   Simpson’s return to the Williston with TXO includes acquisitions of Eagle Mountain Energy Partners and an undisclosed seller with assets in N.D., and Montana. They add 4.5 MBOED in production and proved developed reserves of 17 MMBOE. TXO in 1Q announced sales volumes of 22 MBOED. Some past romances are hard to forget. What do you think? Learn more about REC and our oil and gas consulting services in the Permian and Williston at https://lnkd.in/eAebAz8 and our natural gas online training courses at https://lnkd.in/gzcfeQqC.

My post today for Steve Reese and Reese Energy Consulting. FireBird Uncaged in the Permian Midland Back in Fall 2022, Fort Worth, Texas-based FireBird Energy II LLC—a Permian player that had built up a respectable position in the Midland over three years—hit the kind of jackpot with a story every portfolio company and their PE money-backers live to tell. This, at a time when naysayers believed FireBird’s position was situated too far west to be considered in the “core” of the play. But not so for one of the Permian’s largest operators, which had earlier in the year ruled out any possibility of a large-scale merger or acquisition. Sometimes, resistance is futile. Reese Energy Consulting today is following the latest news from FireBird formed in 2019, which struck a $1.6 billion deal in 2022 with Midland, Texas-based Diamondback Energy. Assets included 68,000 net acres, 450+ wells, and 17 MBPD, most of which FireBird acquired from Chevron for an undisclosed price less than a year before. The deal marked FireBird’s second since its founding in 2019, but the E&P was far from done in the Midland. Its siren song was still calling. After securing a $500 million private equity commitment in 2023 from Quantum Energy Partners, FireBird is now in its second iteration and rebuilding its Permian Midland position one deal at a time—and there’ve been many. Following its crackerjack sale to Diamondback, the company has closed on 15 acquisitions, accumulating 20,000 gross acres, a total 30 MBOED, while drilling 25 wells it expects to double by year end. This time around, FireBird is out to build serious scale in the area that rustles its tailfeathers, and evaluating opportunities—on the western side, of course—where a certain song continues to beckon. What do you think? Learn more about REC and our Permian oil and gas consulting services at https://lnkd.in/eAebAz8.

My post today for Steve Reese and Reese Energy Consulting. Natural Gas Conundrums Play Heavy on 1Q Earnings Reports Is that confetti raining from the sky? No, that would be a blizzard of 1Q earnings reports from our oil and gas producer friends commiserating sub-zero natural gas prices, and our midstream friends largely making hay. Associated gas in the Permian has become a huge pain in the arse for producers that’s not only costing them for takeaway, but the pipeline capacity to get that flow out of the basin is growing tighter than an Arkansas tick after a blood supper. For most midstreamers, it’s a whole other fish fry. Reese Energy Consulting today has selected two reports for cussin’ and discussin’ because we’re too darn busy with audits to sift through them all. On the producer side, we send a whoop and holler to Minn-based NOG, Inc. (NYSE: NOG), the nation’s largest non-operated E&P that continues to work magic in the Permian, Williston, and Marcellus. After two acquisitions last year, the company expanded its Delaware position to 40,000 acres—crowning it the largest asset—and brought cupcakes to its entry in the Ohio Utica. NOG posted 1Q record production of 120 MBOED with oil and gas sales of $532 million. On the midstream side, we send a shoutout to Tulsa-based ONEOK, which last year combined its expansive natural gas bones with downtown neighbor Magellan Midstream Partners and its massive crude oil and refined products pipeline network. Magellan owns the nation’s largest refined products pipeline extending 9,800 miles from the Texas Gulf across 15 states. Now a year into the acquisition, ONEOK continues to integrate its $18.8 billion baby while reporting 1Q adjusted EBITDA of $1.44 billion and a $70 million increase to its 2024 net income guidance to a range of $2.73 billion to $3.03 billion. This, largely due to increased volumes of natural gas and NGLs. What do you think? Learn more about REC and our producer and midstream consulting services at https://lnkd.in/eAebAz8.

𝙏𝙂 𝙉𝙖𝙩𝙪𝙧𝙖𝙡 𝙍𝙚𝙨𝙤𝙪𝙧𝙘𝙚𝙨 𝘼𝙘𝙦𝙪𝙞𝙧𝙚𝙨 𝙍𝙤𝙘𝙠𝙘𝙡𝙞𝙛𝙛 𝙀𝙣𝙚𝙧𝙜𝙮 𝙛𝙤𝙧 $2.7 𝘽𝙞𝙡𝙡𝙞𝙤𝙣 TG Natural Resources LLC, based in Houston, has acquired ROCKCLIFF ENERGY II LLC, a prominent private natural gas company, for $2.7 billion. Rockcliff Energy, also Houston-based, operates in the East Texas Haynesville Shale, with over 200,000 net acres and more than 1.3 billion cubic feet per day of natural gas production. Alan Smith, CEO of Rockcliff, highlighted the company's impressive growth since 2017, with production increasing from 100 million cf/d to over 1.3 billion cf/d. This acquisition by TG Natural Resources, jointly owned by Tokyo Gas America Ltd. and Castleton Commodities International LLC, aligns with their strategy of strengthening their presence in areas close to new liquefied natural gas (#LNG) export terminals. This move is significant in the context of the anticipated increase in U.S. LNG market capacity by 8 billion cubic feet per day by 2025. The acquisition, finalized on December 27, 2023, was facilitated by J.P. Morgan Securities and Vinson & Elkins LLP for Rockcliff, and Greenhill & Co., Goldman Sachs, Bank of America Business Securities Inc., and Kirkland & Ellis for TG Natural Resources. This transaction follows Quantum Energy Partners, LLC, earlier 2023 sale of Tug Hill and XcL Midstream, LLC to EQT Corp for $2.4 billion-plus stock, demonstrating ongoing consolidation and strategic realignment in the energy sector. https://lnkd.in/gFsFwc89

My post today for Steve Reese and Reese Energy Consulting. Devon’s Quiet Consideration Could well be Christmas in July for Okla. City-based Devon Energy, now a pledged member of The Billion Dollar Consolidation Club. The company has taken a lot of heat this year from the financial community finger-pointing missed opportunities amid the smokin’ stampede of mega mergers to build inventory. Now Devon says, “Chill, bro. We got this.” Reese Energy Consulting today is following the latest news from Devon, whose CEO Rick Muncrief made clear back in May he was in no rush to hop aboard the land-grab frenzy. Quiet consideration tends to determine if a deal is the right one. And Devon has found it in Houston-based, EnCap Investments L.L.C-backed Grayson Mill Energy in a cash-and-stock deal valued at $5 billion. The acquisition comes close to tripling Devon’s position in the Williston Basin, adding 307,000 net acres to its 1Q reported 123,000; 100 MBOED in production; and 950 miles of gathering systems and other midstream assets. The company also operates in the Powder River, Anadarko, and Eagle Ford, along with more than 400,000 net acres in the Permian Delaware—the latter bringing home the bacon in 1Q to the tune of 66% of total revenues, and where Devon is expected to spend a near equal percentage of its 2024 CAPEX. That strategy’s unlikely to change post-acquisition. While Muncrief plans to hold its Williston production in the Bakken and Three Forks for the “foreseeable future,” make no mistake that Devon will be plotting development of the decade’s worth of inventory its early holiday gift brings to the company party. What do you think? Learn more about REC and our oil and gas consulting and midstream services in the Permian, Williston, Powder River, and Anadarko at https://lnkd.in/eAebAz8. For more information about our online natural gas training courses, visit us at https://lnkd.in/gzcfeQqC.             

Beacon Energy, a company engaged in oil and gas exploration and production, has recently announced the sale of its deepwater Gulf of Mexico assets to GOM 1 Holdings. The sale of these assets is part of Beacon Energy’s strategic realignment or divestment of certain assets to focus on core operations, reduce debt, or pursue new opportunities. Key points about the sale of Beacon Energy’s deepwater Gulf of Mexico assets to GOM 1 Holdings include: 1. Asset Sale: The sale involves Beacon Energy transferring ownership of its deepwater assets in the Gulf of Mexico to GOM 1 Holdings. This transaction typically includes oil and gas production platforms, drilling rights, reserves, and related infrastructure located in the deepwater Gulf of Mexico region. 2. Strategic Realignment: Companies in the oil and gas industry often engage in asset sales or divestitures as part of their strategic realignment efforts. By selling non-core assets or underperforming properties, companies can streamline their operations, optimize their portfolio, and allocate resources more effectively to high-potential areas. 3. Financial Impact: The sale of deepwater Gulf of Mexico assets can have financial implications for Beacon Energy. Depending on the terms of the transaction, the company may receive cash proceeds from the sale, which can be used to pay down debt, fund new projects, or strengthen its financial position. 4. Focus on Core Operations: By divesting its deepwater Gulf of Mexico assets, Beacon Energy may be able to focus on its core operations or strategic priorities. This could involve reallocating resources to other regions, projects, or business segments that offer higher growth potential or better align with the company’s long-term objectives. 5. Regulatory Approval: The sale of oil and gas assets, especially in offshore regions like the Gulf of Mexico, may be subject to regulatory approval by government agencies overseeing energy exploration and production activities. Compliance with regulatory requirements is essential for completing the transaction smoothly and in accordance with legal and environmental standards. Overall, the sale of Beacon Energy’s deepwater Gulf of Mexico assets to GOM 1 Holdings represents a strategic decision aimed at optimizing the company’s portfolio, enhancing financial flexibility, and positioning itself for future growth opportunities in the oil and gas industry.

My post today for Steve Reese and Reese Energy Consulting. Chord Makes Sweet Music in the Bakken Fresh from the ongoing madness of merger mania comes yet another acquisition. This one, with a backstory twist on the side and a hush-up to that scene-stealing Permian. Well, maybe. Reese Energy Consulting today is following the latest coupling taking shape in the Williston Basin, where Houston-based Chord Energy has snapped up Enerplus, perhaps climbing another rung on the Top Bakken Operators Ladder currently reigned by the ever-so Continental. In a cash-and-stock deal that values the newly combined company at $11 billion, Chord will operate 1.3 million net acres with 287 MBOED in production and inherit 32,000 net acres in the Marcellus. This news might be a nice kick in the keister for Chord’s shareholders following yesterday’s 4Q earnings report that saw the company exceeding its high-end of guidance with 183.8 MBOED. Now, about that twist on the side. Back on February 7, word was out hot and heavy that Okla. City-based Devon Energy was crushing bigtime on Enerplus and parachuting early into the bid process. A day later, ripped from the headlines, “Devon Energy Plans to Acquire Enerplus”. Well, this came as a bit of a head-scratcher given Devon’s 400,000 net acre position in the Permian Delaware—its largest revenue generator—and following the company’s November 3Q report that it planned to concentrate 2024 investments there. But the Bakken deal wasn’t to be. And maybe that’s a good thing. While an acquisition of Enerplus would have doubled Devon’s 123,000 net acre Bakken position with plenty more greenbacks to spare in Perm Town, sometimes a loss has a way of turning into a much bigger win on the other side. What do you think? Learn more about REC and our oil and gas consulting services in the Bakken and Permian at https://lnkd.in/eAebAz8.

My post today for Steve Reese and Reese Energy Consulting. More Midstream Love in Appalachia In the Land of Gas-Rich Appalachia, Denver-based Antero Resources (AR) knows exactly where its toast is buttered. That would be the Marcellus, where it jumped in circa 2008 with a bless-your-heart 115,000 acres only to cinch the 2013 title of Largest Independent E&P IPO raking in $1.8 billion. Riding a wave in the nation’s largest natural gas basin, the company one year later spun off its pipeline arm—Antero Midstream (AM)—with another IPO that brought home $1 billion and AR holding fast to a majority interest. Reese Energy Consulting today is following the latest news from the two Anteros, following last month’s EQT acquisition of its previously owned Equitrans Midstream. We’ll start with AM, which in 1Q reported 3.1 BCFD in gathering volumes—largely from AR—but not all. Antero Resources, which operates a combined 515,000 net acres in the Marcellus/Utica, recorded 3.4 BCFED in 1Q production. Now closing that gap, Antero Midstream has acquired Summit Midstream’s gathering and compression assets in an all-cash $70 million bolt-on deal that allows AM to handle substantially all of AR’s Marcellus/Utica production. What do you think? Learn more about REC and our natural gas expertise in the Marcellus, Utica, and every prolific basin in the Lower 48 at https://lnkd.in/eAebAz8.

My post today for Steve Reese and Reese Energy Consulting. One to Watch: Westlawn’s Private Eyes Private investment firm Westlawn Group came out swinging last year. The relative newcomer formed two oil and gas portfolio companies in 2023, pulling the trigger on its strategy to acquire operated and non-operated interests in producing, development, and exploration assets. Inside seven months, the Houston-based firm brought home the groceries, snapping up four deals with an eye on more in ’24. Reese Energy Consulting today is following the latest from Westlawn, which in June two-stepped into the Permian with the creation of Ellipsis. The company closed its first deal sweeping up assets of two portfolio companies managed by North Hudson Resource Partners. The Delaware buy included 4.5 MBOED and 250 gross remaining locations. Fast forward to October and an encore dance in the Delaware, where Ellipsis picked up more non-operating assets that added 3 MBOED, and 900 gross remaining locations. Then came December and a fat wallet whirlwind. Westlawn on the 19th took a deep dive with the introduction of Westlawn Americas Offshore and its acquisition of multiple assets in deepwater Gulf of Mexico. As part of a joint venture awarded high bidder on a federal lease sale earlier last year, WAO picked up three leases in the Outer Continental Shelf along with significant working interests in the Zephyrus discovery, Winterfell development, and the producing Spruance, Abilene, Who Dat, and Dome Patrol fields with a current 10+ MOBED. Two days later, Ellipsis acquired a package of assets that span the Delaware, DJ Basin, and the Texas-Louisiana Salt Basin with an expected combined production of 13+ MBOED in 2024 and more than 1,900 remaining locations in inventory. What do you think? Learn more about REC and our oil and gas consulting services at https://lnkd.in/eAebAz8.