This is your Hart Energy LIVE A&D Minute.
EnCap found a buyer for three of its Midland Basin portfolio companies: Ovintiv is picking up the core Permian acreage in a $4.2 billion deal. Here’s what Enverus’ Intelligence Research Director Andrew Dittmar had to say about the acquisition.
Andrew Dittmar, intelligence research director, Enverus: For the energy industry as a whole, it's another step towards shale consolidating, maturing. We're in the more mature phase of the shale cycle. Public companies like Ovintiv need to realize that, capture inventory that's there. They did that in this deal. Private equity companies that have this inventory are sitting in a very good spot—good returns for Encap. They've probably made a lot of money on this deal, but it's going to be a little bit more challenging to do that going forward as those kind of big acquisition opportunities to redeploy that money isn't there.
Jordan Soto, Hart Energy: Crescent Point Energy is acquiring Spartan, Delta's Montney, Alberta, Canadian assets for nearly $1.3 billion. This would provide Crescent Point with over 20 years of inventory to sustain current production levels. Could the market see other big Canadian oil deals this year?
That's your Hart Energy LIVE A&D Minute, powered by the SUPER DUG Conference and Exhibition, which covers activity in the Permian Basin, Eagle Ford, Midcontinent, Bakken and Rockies May 22-24. Watch new A&D Minute episodes every Wednesday and sign up for our A&D Watch newsletter at hartenergy.com/deals.
Recommended Reading
As Permian Gas Pipelines Quickly Fill, More Buildout Likely—EDA
2024-10-28 - Natural gas volatility remains—typically with prices down, and then down further—but demand is developing rapidly for an expanded energy market, East Daley Analytics says.
Range Confirms: Data Center Talk Underway for Marcellus Gas-fired Power
2024-10-24 - Deals will take a while, however, as these multi-gigawatt agreements are also multi-decade investments, said Range Resources CFO Mark Scucci.
Companies Hop on Digital Twins, AI Trends to Transform Day-to-day Processes
2024-10-23 - A big trend for oil and gas companies is applying AI and digital twin technology into everyday processes, said Kongsberg Digital's Yorinde Lokin-Knegtering at Gastech 2024.
Morgan Stanley Backs Data Center Builder as AI Fervor Grows
2024-10-21 - Morgan Stanley Infrastructure Partners (MSIP) is backing data center developer Flexential as demand for AI and high-performance computing grows.
Liberty Capitalizes on Frac Tech Expertise to Navigate Soft Market
2024-10-18 - Liberty Energy capitalized on its “competitive edge” when navigating a challenging demand environment in third-quarter 2024, CEO Chris Wright said in the company’s quarterly earnings call.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.