Cyp0111 said:

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However, it's virtue signaling deluxe

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Got it in one.

BackRoad Dan said:

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I didn't realize renewable jet fuel was a thing (even in concept). Biodiesel has been around for a long time, but jet fuel?

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It's all about the triglyceride profile of the feed. You typically have to distill out the heart of the product once it comes off the reactor to make an aviation focused fuel, but it's doable.

BackRoad Dan said:

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I didn't realize renewable jet fuel was a thing (even in concept). Biodiesel has been around for a long time, but jet fuel?

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DOD did some test flights with renewable/bio jet fuel a decade ago. Basically blew their fuel budget on a few test flights because it was so expensive. Obviously scale would make it less expensive.

https://www.gao.gov/assets/gao-15-674.pdf

Javelina said:

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BackRoad Dan said:

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I didn't realize renewable jet fuel was a thing (even in concept). Biodiesel has been around for a long time, but jet fuel?

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It's all about the triglyceride profile of the feed. You typically have to distill out the heart of the product once it comes off the reactor to make an aviation focused fuel, but it's doable.

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Yea my big ass aint going up in a plan on 'doable' fuel.

Shell has been pushing this for a couple years now

https://www.shell.com/business-customers/aviation/the-future-of-energy/sustainable-aviation-fuel.html

BiochemAg97 said:

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Obviously scale would make it less expensive.

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If we are ignoring the obvious (enormous) costs it would take to scale.

https://seekingalpha.com/news/3728757-chesapeake-to-buy-haynesville-shale-driller-vine-energy-in-22b-deal?source=ios-messages

Boat Shoes said:

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https://seekingalpha.com/news/3728757-chesapeake-to-buy-haynesville-shale-driller-vine-energy-in-22b-deal?source=ios-messages

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Ha, when I saw the link I thought it was $22b. $2.2b makes more sense.

Here's the thing on SAF (renewable jet fuel as you know it).

Right now it requires blending with petroleum jet (Jet A, common pipeline spec) in different ratios depending on the manufacturer. The logistics go like this: Rail/Vessel in SAF to tank, blend in Jet A at ratio, mix and let settle for a pre determined amount of time. Then the fuel is tested for characteristics and certified by a Bureau Veritas, Amspec, etc asJet A!

In this way, there are no limitations on product pipeline movements as opposed to historical biodiesel, which had issues with FAME trailing back into the Jet stream. It's just Jet fuel at that point. What's wild is the pipeline companies won't even necessarily know it's SAF being nominated and pushed down the line, the finished product is certified and ships as plain ol Jet A.

This is how SF, Oakland, and in the future LAX are getting supplied with large volumes of SAF. You need the marine/rail/tank infra that also has access to the product pipeline with a lateral to the airport.

Right now Neste makes most of the SAF that I've seen, but Shell has a pilot plant in Oregon, and most refinery conversions you hear about are capable of making both RD and SAF with small configuration changes (P66 Rodeo, HF, BP CP, MPC Dickinson/Martinez, etc)

I'm not going to go too far down the rabbit hole but looked at a few projects in the renewable jet fuel space. Almost all of them have massive hockey stick assumptions and struggle mightily with feedstock and price hedging. The end users are there but deals are tricky to finance with the open strings.

is the pricing at a premium or did CHK get a decent valuation?

Cyp0111 said:

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I cannot believe someone bailed out Blackstone/GSO on Vine. That deal almost died multiple times since it initially blew up in 2014 with the banks unable to distribute all the term loan action.

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Agree. Wonder what their debt was.

Comeby! said:

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Cyp0111 said:

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I cannot believe someone bailed out Blackstone/GSO on Vine. That deal almost died multiple times since it initially blew up in 2014 with the banks unable to distribute all the term loan action.

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Agree. Wonder what their debt was.

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$1.2bil. CHK appears to be assuming it.

There were alot of pieces to that deal. Will be interesting to see how loose the paper was and what the can do with it.

That was one of the last big deals in 2014.

We better up our game.

Double Eagle is proud to announce partnerships with each and every offensive lineman on the #TexasTech roster! Not long ago, most TTU O-Linemen made the NFL. The tradition is back!! Texas Tech is #OLU pic.twitter.com/WYGZuEPUwO

— Cody Campbell (@CodyC64) August 11, 2021

pretty much what I suspect will happen. Expect to see the QB at Texas hawking Hilcorp Oil each year for a fee.

Well, sounds like some of us on this thread need to do our part.

The CHK Vine acquisition does not make any sense.

agree. CHK bailed out Blackstone, big time.

Ag CPA said:

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The CHK Vine acquisition does not make any sense.

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That's Mike Wichterich at his finest right there....

lol. no comment

I read somewhere that CHK was limited to grow free cash flow organically so they bought it instead.

Just heard that Schlumberger has pulled out of showing/exhibiting at OTC Houston for next week. They had a huge booth space.

Our company is still planning to exhibit. It will be a ghost town!

NAPE happy hours and gatherings getting canceled as well..

Yep! I have zero expectations for next week but frankly it's too late to back out. We will proceed and if we can just pull a few good face to face meetings out of it so be it. We may no show Thursday and leave our booth empty.

Quote:

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Aug 11 (Reuters) - Private equity firm EnCap Investments has agreed to acquire EP Energy for $1.5 billion, people familiar with the matter said, less than a year after the oil and gas producer emerged from a bankruptcy process that handed control to its creditors.

EnCap plans to split EP, which holds production assets in South Texas and Northeastern Utah, into its separate geographies and merge them with existing portfolio companies, according to the sources.

The Utah assets, in the Uinta Basin, will be merged with XCL Resources, while the operations in Texas' Eagle Ford will be combined with an EnCap company with acreage in the area, the sources added.

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https://www.reuters.com/business/energy/buyout-firm-encap-investments-agrees-15-bln-purchase-ep-energy-sources-2021-08-11/

Ag CPA said:

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The CHK Vine acquisition does not make any sense.

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It makes perfect sense to me. Chesapeake is still the dumbest guy in the room.

CrazyRichAggie said:

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NAPE happy hours and gatherings getting canceled as well..

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Like the show, or just after hours shenaniganry?

jetch17 said:

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CrazyRichAggie said:

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NAPE happy hours and gatherings getting canceled as well..

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Like the show, or just after hours shenaniganry?

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Just some happy hours and parties hosted by law firms and banks is all I have heard of as of today.

boyz05 said:

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I read somewhere that CHK was limited to grow free cash flow organically so they bought it instead.

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So the Wildhorse buy was a bad idea????

Shocking.

it was bad but atleast they had the decency to pay a good chunk in shares to spread the pain back to pe guys on that side.