Oh, I know on timing. Imagine their bankers are pressuring.

I saw an interesting quote yesterday from a market analyst - "There are a lot of smaller $500 million-$5 billion market cap E&Ps that don't have the size of operations to achieve per-well returns that are competitive with larger rivals. Vital Energy, HighPeak Energy and Sandridge own acreage that's valued at cheap levels on a dollar per boe/d basis, mostly because they've mismanaged their assets and destroyed shareholder value. A mid-size E&P could take them out at acreage value, get rid of their management (and be ahead)."

If this Chevron deal falls through, it will be wild.

Are you seeing something that would indicate that?

https://www.wsj.com/business/energy-oil/exxon-throws-a-wrench-in-chevrons-deal-for-hess-42fa6483

https://www.xm.com/research/markets/allNews/reuters/chevron-exxon-in-dispute-over-hess-stake-in-guyana-oil-block-53774721

Definitely load up the truck w nat gas shares. Antero has high BTU and the most efficient. Blood is in the streets and this will be the cheapest part of this cycle

Chevron is going to have to pay XOM or CNOC to let them in is in my guess.

Of the $53B purchase price, my best guess is Guyana stake for Hess is worth $35B. After Guyana government gets their piece, this was 130KBD oil production with $30 breakeven.

I can see XOM and CNOOC splitting that up. All the hard work is already done and it's a cash flow machine. At $80 oil the payback period is less than 10 years and production is accelerating so maybe shorter. Where else can you find that kind of investment if you are XOM? It's almost risk free except for concentration risk.

This could be the second $50B deal Chevron get's scooped on! Anadarko being the first.

Dan Scott said:

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Of the $53B purchase price, my best guess is Guyana stake for Hess is worth $35B. After Guyana government gets their piece, this was 130KBD oil production with $30 breakeven.

I can see XOM and CNOOC splitting that up. All the hard work is already done and it's a cash flow machine. At $80 oil the payback period is less than 10 years and production is accelerating so maybe shorter. Where else can you find that kind of investment if you are XOM? It's almost risk free except for concentration risk.

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Agreed. I would love to see that JOA. More than anything, we need to keep the Chinese out as much as possible.

SMH

WTF Darren

Houston guard Jamal Shead has become the first college athlete to ink an NIL deal with ExxonMobil.

The natural gas and oil company is based out of Houston. Shead is averaging 13.3 points and 5.9 assists per game for the nation's top-ranked team.

Read: https://t.co/9ZqRqIhyDI pic.twitter.com/AhRXXKRVn5

— On3 NIL (@On3NIL) February 27, 2024

Wow. Reminds me of the Odessa Permian days.

Exxon is opening up an engineering academy. This is probably part of that to get more people into engineering.

It probably makes more sense to partner with a local school rather than the CEO's alma mater. This is more about community outreach than recruiting I would think. At least from Exxon's standpoint

Dan Scott said:

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Exxon is opening up an engineering academy. This is probably part of that to get more people into engineering.

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That's wild. My company owns a maritime academy which also seems wild but also totally genius.

In his defense, we don't have a basketball team.

https://oilprice.com/Latest-Energy-News/World-News/Top-US-Natural-Gas-Producer-EQT-Cuts-Production-Amid-Low-Prices.html

Quote:

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EQT Corporation, currently the largest U.S. natural gas producer, said on Monday it would strategically curtail output in March in response to low benchmark natural gas prices in America.
EQT is curtailing approximately 1 billion cubic feet per day (Bcf/d) of gross production beginning in late February and through the month of March. These curtailments are expected to total approximately 30 to 40 Bcf of net production during the first quarter.
The production cut is "in response to the current low natural gas price environment resulting from warm winter weather and consequent elevated storage inventories," the corporation said, adding it would "reassess market conditions" at the end of this month.

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Sure there will be a political witch hunt incoming, producers have a duty to produce as much as possible regardless of the price they receive (even if producing loses them money).

BlackGoldAg2011 said:

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Not explicitly O&G related, but I thought this picture of Battleship Texas being moved yesterday was pretty cool and would be appreciated by many on this thread due to the background.

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This is sooo AI'd.......j/k

CheladaAg said:

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BlackGoldAg2011 said:

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Not explicitly O&G related, but I thought this picture of Battleship Texas being moved yesterday was pretty cool and would be appreciated by many on this thread due to the background.

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This is sooo AI'd.......j/k

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well it was from the Houston chronicle, so who really knows

Comeby! said:

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topher06 said:

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Sure there will be a political witch hunt incoming, producers have a duty to produce as much as possible regardless of the price they receive (even if producing loses them money).

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Not sure about that duty. Just had lunch with my field folks. I'd rather produce half as much and make the same amount (or greater) cash flow.

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Bingo. Witch hunt or not, Biden can't do damn thing about it.

https://www.wsj.com/business/energy-oil/exxon-files-for-arbitration-over-chevrons-deal-for-hess-231544c0

Out of curiosity, what would Exxon's stock do if their claim is upheld that they can preempt Chevron's claim to Hess' portion of the Guyana fields

If they can, then Chevron doesn't buy Hess and Hess continues to get the royalties. Exxon doesn't get anything. They're playing hardball either to get a payoff to allow it or to get Hess.

Hess is already willing to sell. Maybe he has to cash out the harder way by selling off the assets separately rather than all at once. If im Exxon I buy their stake. The oil is there. All the hard work is done. Breakeven $35. Where else can you invest money and get that return?

Exxon is not going to let Chevron have Guyana without paying. Exxon wrote the JOA. They know what's in it and wrote it to protect them agains this scenario.

Listen to Neil Chapman discuss this with Morgan Stanley. It's the first 10 minutes and a verbal smackdown of Chevron.

https://morganstanley.webcasts.com/starthere.jsp?ei=1660465&tp_key=6c146265d7&language=en-us

If Guyana is the only asset that is exposed to a pref right, could Chevron allocate enough of the purchase price to it to make Exxon pass?

andrago94 said:

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If Guyana is the only asset that is exposed to a pref right, could Chevron allocate enough of the purchase price to it to make Exxon pass?

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It also appears to be the main asset driving the sale.

I think it goes through with Chevron kicking some cash to Exxon and agreeing to foot a bigger bill of the development.

Don't forget Venezuela is making a pretty aggressive claim on the region. Chevron brings their ability to work with Venezuela into the deal if worse comes to worse.

From my sources, this is being pitched internally as grandstanding for the Guyanese gov.