Jordan Soto, executive producer, Hart Energy: To get better, you need to get bigger. That's what one analyst notes about the massive $4.5 billion deal Permian Resources (PR) just announced with Earthstone Energy, but there's more to the story. Joining us is Neal Dingmann, managing director of energy research at Truist Securities, and interestingly enough, the man who introduced the CEOs in this deal. Neil—PR traditionally focused on organic growth. Now they're growing through acquisition. What's your insight on the deal?
Neal Dingmann, managing director of energy research, Truist Securities: Yeah, I think that is the big deal. If you would say what's changed over the last maybe year to three in the group? And I think scale and size has become much more important. And that is because I think if you went back two or three or four years ago, maybe even a little bit longer, it was up to a lot of the smaller E&Ps to go in there and figure out which areas were the best, figure out which ways to drill them the best. And I think now there's not much of that that's still undiscovered, if you will. So again, I think now the key areas are who can come in there most efficiently, who can have the best well productivity, who can have the best balance sheets, all those things that makes them a better company.
JS: Thanks Neal! Do you think this deal set PR up to potentially be bought by a bigger player? Let us know. That's your A&D Minute, powered by BOK Financial Securities.
Recommended Reading
TC Energy's Keystone Oil Pipeline Offline Due to Operational Issues, Sources Say
2024-03-07 - TC Energy's Keystone oil pipeline is offline due to operational issues, cutting off a major conduit of Canadian oil to the U.S.
Pembina Pipeline Enters Ethane-Supply Agreement, Slow Walks LNG Project
2024-02-26 - Canadian midstream company Pembina Pipeline also said it would hold off on new LNG terminal decision in a fourth quarter earnings call.
Early Startup of Trans Mountain Pipeline Expansion Surprises Analysts
2024-04-04 - Analysts had expected the Trans Mountain Pipeline expansion to commence operations in June but the company said the system will begin shipping crude on May 1.
TC Energy’s Keystone Back Online After Temporary Service Halt
2024-03-10 - As Canada’s pipeline network runs full, producers are anxious for the Trans Mountain Expansion to come online.
Energy Transfer Asks FERC to Weigh in on Williams Gas Project
2024-04-08 - Energy Transfer's filing continues the dispute over Williams’ development of the Louisiana Energy Gateway.