Hart Energy’s editorial offices were jumping late Wednesday afternoon covering a flurry of deals, led by two Permian transactions. Diamondback Energy will acquire Ajax Resources in a cash-and-stock deal worth roughly $1.25 billion. Hart Energy’s Emily Patsy reports, Diamondback will add top-tier horizontal drilling locations across three zones in the Northern Midland Basin as part of the acquisition. The position is located in Northwest Martin and Northeast Andrews counties in West Texas. Diamondback will also pick up midstream infrastructure from Ajax.
Apache Corp. will contribute its midstream assets at Alpine High to Altus Midstream, a $3.5 billion pure-play, Permian Basin Midstream c-corp. That is the result of an agreement between Apache and Kayne Anderson. As Hart Energy’s Terrance Harris reports, Apache will own approximately 71% of Altus Midstream with the ability to increase to about 74%, subject to performance earn outs. Altus will own options for equity participation in five planned pipelines from the Permian Basin to various points along the Texas Gulf Coast.
Occidental Petroleum agreed to two asset sales to EnCap Flatrock Midstream portfolio companies for about $2.6 billion. Moda Midstream entered into a definitive agreement to acquire Oxy’s Ingleside Energy Center and certain crude oil and LPG infrastructure. Lotus Midstream agreed to acquire Oxy’s Centurion pipeline system and a Southeast New Mexico crude oil gathering system.
Across the world in China, tariff rhetoric kept heating up, this time over LNG with the country threatening a 25% tariff on U.S. imports. While some analysts say the tariffs could lessen the competitiveness of U.S. LNG export to china, others told Hart Energy’s Joe Markman that would not mean Gulf Coast export terminals would need to close up shop any time soon. Stratas Advisors’ George Popps said the export price has been so low, even with the 25% tariff U.S. LNG should still be competitive.
Recommended Reading
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
Imperial Expects TMX to Tighten Differentials, Raise Heavy Crude Prices
2024-02-06 - Imperial Oil expects the completion of the Trans Mountain Pipeline expansion to tighten WCS and WTI light and heavy oil differentials and boost its access to more lucrative markets in 2024.
US Gulf Coast Heavy Crude Oil Prices Firm as Supplies Tighten
2024-04-10 - Pushing up heavy crude prices are falling oil exports from Mexico, the potential for resumption of sanctions on Venezuelan crude, the imminent startup of a Canadian pipeline and continued output cuts by OPEC+.
Oil Broadly Steady After Surprise US Crude Stock Drop
2024-03-21 - Stockpiles unexpectedly declined by 2 MMbbl to 445 MMbbl in the week ended March 15, as exports rose and refiners continued to increase activity.
Exxon’s Payara Hits 220,000 bbl/d Ceiling in Just Three Months
2024-02-05 - ExxonMobil Corp.’s third development offshore Guyana in the Stabroek Block — the Payara project— reached its nameplate production capacity of 220,000 bbl/d in January 2024, less than three months after commencing production and ahead of schedule.