Looking to build a long-term company in a solid basin with good full-cycle margins, this new E&P chose the Ohio Utica with a $2 billion deal. How does it plan to maximize its 900,000 acres?
SPEAKER:
- Ray Walker, COO of Encino Energy LLC
Last summer, Encino Energy unveiled the $2 billion-cash acquisition of all of Chesapeake Energy Corp.’s position in the Utica Shale of Ohio. Encino’s purchase, supported with funding from Canada Pension Plan Investment Board, included more than 900,000 net acres and roughly 900 producing wells in the Buckeye State.
The Chesapeake transaction closed late October 2018 and set Encino up to be more than twice the size of the next two to three acreage holders in Ohio, according to Walker. He estimates Encino has over 2,000 economic drilling locations and the company plans to focus on building a sustainable business over the next couple of years that generates free cash flow.
Related:
Recommended Reading
Shell’s CEO Sawan Says Confidence in US LNG is Slipping
2024-02-05 - Issues related to Venture Global LNG’s contract commitments and U.S. President Joe Biden’s recent decision to pause approvals of new U.S. liquefaction plants have raised questions about the reliability of the American LNG sector, according to Shell CEO Wael Sawan.
Green Swan Seeks US Financing for Global Decarbonization Projects
2024-02-21 - Green Swan, an investment platform seeking to provide capital to countries signed on to the Paris Agreement, is courting U.S. investors to fund decarbonization projects in countries including Iran and Venezuela, its executives told Hart Energy.
Chevron Adds to Carbon Capture Tech Portfolio with ION Investment
2024-04-04 - Chevron New Energies led a funding round that raised $45 million in Series A financing for ION Clean Energy, according to a news release.
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.
Marathon Chasing 20%+ IRRs with Los Angeles, Galveston Refinery Upgrades
2024-02-01 - Marathon Petroleum Corp. is pursuing improvements at its Los Angeles refinery and a hydrotreater project at its Galveston Bay refinery that are each boasting internal rate returns (IRRs) of 20% or more.