Marathon Oil Corporation’s Post

The recent wave of M&A activity could point to a resurgence in the oil & #gasindustry. Matador Resources' $1.9bn acquisition of Permian Basin properties and Noble Corp.'s $1.6bn acquisition of Diamond #OffshoreDrilling are examples of companies taking bold steps to expand their operations. With their strong asset bases and solid financial prospects that can capitalize on the #oil industry's recovery, these companies could attract investors. But as always, it's still important to conduct thorough research before making any decisions. https://loom.ly/95l4g6k

APA Corporation has announced a significant move in the energy sector with its $4.5 billion acquisition of Callon Petroleum Co. This strategic all-stock deal, which includes Callon’s net debt, is set to notably enhance APA's scale and opportunities in the prolific Permian basin, while also increasing the company’s oil mix. The acquisition grants APA access to nearly 120,000 acres in the Delaware basin, primarily across Reeves, Winkler, and Ward counties, where Callon operated 4 rigs in the third quarter of 2023. Additionally, Callon's holdings include about 26,000 acres in the Midland basin, further expanding APA's operational footprint. This deal is transformative for APA, with pro forma total company production exceeding 500,000 barrels of oil equivalent per day (boe/d) and increasing the enterprise value to over $21 billion. Notably, the pro forma average daily Permian basin production was 311,000 boe/d in the third quarter of this year, representing a 48% increase from APA’s standalone Permian basin production. APA also anticipates an increase in its oil production as a percentage of boe in the Permian basin, rising to 43% from 37% on a pro forma basis. The company's operational efficiency is evident in its third-quarter activities, with multiple wells placed on production in both the Southern Midland and Delaware basins. The acquisition, expected to close in the second quarter of 2024, is projected to yield yearly overhead, operational, and cost-of-capital synergies exceeding $150 million. Following the closure, APA's worldwide pro forma production mix will be approximately 64% U.S. and 36% international, with the executive management team leading the combined company from Houston, Texas. This deal not only signifies APA's growth but also underscores the ongoing consolidation and strategic realignment within the oil and gas industry. MJ Logs - The Best Source for Raster Well Logs and LAS 🌐 mjlogs.com #MJLogs #WellLogging #Oil #Gas #APACorporation #CallonPetroleum #EnergySector #OilAndGas #PermianBasin #Acquisition #StrategicGrowth #IndustryConsolidation

Dealmaking in US oil and gas has surged to almost $200bn in the past year as the biggest producers compete to swallow up rivals in a race for scale that has redrawn the national energy landscape. But as the country’s best drilling acreage is snapped up, companies are casting a wider net and looking beyond the most sought after oilfields for acquisitions that will bolster their ability to pump hydrocarbons in the years ahead. “We are in the midst of a consolidation wave and I don’t think it is over yet,” said Jon Hughes, chief executive of Petrie Partners, a boutique investment banking firm which advised on Pioneer Natural Resources’ $60bn sale to ExxonMobil. “We’ve gone from about 65 to 41 publicly traded oil and gas companies in the US in less than five years.” Read full article here https://on.ft.com/4aJVaOU  Myles McCormick Financial Times 

Devon Energy, a prominent U.S. oil and gas producer, has made a bid to acquire Enerplus a Canadian company valued at C$4 billion ($3 billion), amid a flurry of deal-making in the North American oil sector. This potential acquisition is part of a broader trend of consolidation, with industry giants like Exxon Mobil, Chevron, and Occidental Petroleum also making significant acquisitions recently. There's no guarantee that Devon and Enerplus will reach an agreement, as details of the offer remain undisclosed. Following the news, Enerplus' stock price surged by 8.6%, while Devon's shares increased by 2.6%. Kimmeridge Energy Management, a major shareholder in Enerplus, emphasized that any deal should fairly value the company, particularly given its prime assets in the Bakken shale formation. Analysts from TD Securities believe Devon could finance the $3.5 billion acquisition through available cash and projected cash flow, suggesting the deal would enhance Devon's financial metrics, including a notable increase in its free cash flow yield. Enerplus has focused its operations on the #BakkenBasin in North Dakota and the #Marcellus shale in Pennsylvania, complementing Devon's existing operations in North Dakota and diversifying away from its Delaware Basin operations in Texas and New Mexico. Following a strategic shift to concentrate on its more profitable U.S. assets, Enerplus has seen strong cash flow, enabling significant shareholder returns. Despite its operational success, Enerplus' stock performance has lagged behind its peers, a trend Devon shares, as it faces its own challenges with production costs and achieving performance targets. This acquisition could represent a strategic move for Devon to bolster its reserves and achieve greater economies of scale in an industry increasingly leaning towards consolidation for competitive advantage. https://lnkd.in/g4WTMERD

Jerral W. Jones / Blue Star Exploration Corp / Arkoma Drilling L.P. / Williston Drilling L.P., 10% Owner of Comstock Resources Inc (CRK), bought 12,500,000 shares at $8.04 for a total of $100,450,000. Opinion: The good news is that CRK rose 18% last week on news that a group affiliated with Jerry Jones of the Dallas Cowboys added ~$100 million worth of stock to his controlling interest. I'm very optimistic about Exxon and Devon, but Comstock has always been a speculative bet about the growth of the natural gas export market. The Biden administration compounded the supply situation by slow-walking LNG export projects, stranding much sought-after American natural gas. They emptied the Strategic Petroleum Reserve to fight inflation, reducing it to current levels not seen since 1985. Cheap gasoline at the pump never lost any votes but weighed on all the fossil fuel stocks in the 1st quarter. $STOCK $CRK https://lnkd.in/gHi9RKwC

This article discusses: Prairie is set to acquire DJ Basin Assets valued at $94.5 million, expanding their holdings with an additional 5,500 net leasehold acres. The transaction also includes 62 fully permitted, yet undeveloped, drilling locations. The deal highlights an ongoing investment and interest in the potential of these unexplored drilling locations for future oil and gas extraction. A thoughtful question might be, what strategies does Prairie plan to implement for the sustainable development and management of these newly acquired assets? #OilAndGas #Acquisition #SustainableDevelopment https://lnkd.in/gqnkQUEH https://lnkd.in/gHzwVzQi ---------------------------------- Go Rogue and focus on the WHY on Energy Markets…. Rogue Edge® Members already know…. Sign up here: https://lnkd.in/gvPx5WDr About Energy Rogue: https://energyrogue.com/ Energy Rogue® provides a state of the art fundamental and technical analytics platform for the energy industry focused on Oil, Natural Gas, Power and Natural Gas Liquids. Risk ---------------------------------- If you want to learn more: 1. drop us a line at [email protected] 2. join Rogue Edge TODAY: https://lnkd.in/gvPx5WDr Disclaimer - The summary and image provided here are generated using artificial intelligence (AI) based on the content of the original article.

Financial Risk & Reward, or Mitigation in the Alberta Tarsands Tarnation : Buy Low, Sell High; or is it the other way, I’m never sure, Yeeehaw Eh?⚠️⛔️💰⛔️⚠️ Globe & Mail - Reuters: Cheaper Canadian oil & gas valuations lure potential U.S. buyers north. NIA WILLIAMS & MAIYA KEIDAN : Reuters

USA comoanies as well as private equity firms are increasingly eyeing Canadian oil & gas companies for acquisition, drawn by lower valuations, ample fossil fuel reserves, & improving market access, according to dealmakers & analysts. 
Companies operating in the huge Montney shale formation, which spans northern Alberta & British Columbia and accounts for roughly half Canada’s gas production, are most attractive to potential buyers. Assets located in the smaller Duvernay & Clearwater formations are also piquing interest. 
The surge in interest comes in the wake of major USA oil sector deals: Exxon Mobil’s $60-billion bid for Pioneer Natural Resources & Chevron’s $53-billion agreement to acquire Hess.
Both deals were driven in part by the buyers’ need to increase drilling inventory & secure future production in key USA shale basins after several years of limited exploration spending.

We continue our discussion on the Haynesville shale in this week's Energy Valuation Insights blog. My colleague David Smith highlights production and activity levels, commodity price volatility, and financial performance of our Haynesville shale public comp group, which will be reduced by one going forward given Chesapeake Energy's recently announced $7.4 billion merger with Southwestern Energy. #naturalgas #haynesville #mergersandacquisitions https://lnkd.in/gPSVehvt

“Andrew Dittmar, SVP at Enverus Intelligence Research (EIR), said in an email that SWN’s biggest value addition for Chesapeake comes from its 286,000 net acres of leasehold in the Haynesville region, which straddles the border between northwest Louisiana and northeast Texas. ‘The acreage contains about 1,300 gross operated drilling locations capable of generating a 10% return at $3.50/Mcf gas pricing or less,’ Dittmar notes. ‘Combined Chesapeake and Southwestern will be the largest producer in the Haynesville with over 4 Bcf/d gross operated production, and the largest gas producer in the U.S., jumping EQT.’ “ #energy #energyindustry #oil #oilgas #oilandgas #natgas #naturalgas #shale #shaleoil #shalegas #hydrocarbons #haynesville #mergersandacquisitions #oilindustry #energystrong

Cheaper Canadian oil and gas valuations lure potential US buyers north.   US corporates and private equity firms are increasingly eyeing Canadian oil and gas companies for acquisition, drawn by lower valuations, ample fossil fuel reserves, and improving market access, Reuters reported.   Companies operating in the huge Montney shale formation, which spans northern Alberta and British Columbia and accounts for roughly half Canada's gas production, are most attractive to potential buyers. Assets located in the smaller Duvernay and Clearwater formations are also piquing interest. The surge in interest comes in the wake of major US oil sector deals: ExxonMobil's $60bn bid for Pioneer Natural Resources Company and Chevron's $53bn agreement to acquire Hess Corporation. #MergersAcquisitionsDivestitures #Energy #OilandGas