Marathon Oil Corp., Houston, (NYSE: MRO) has finalized plans to sell to Kinder Morgan Energy Partners LP (NYSE: KMP) its 42.45% working interest in the Yates Field unit and its 100% interest in the Yates gathering system in the Permian Basin, West Texas, for $225.5 million. Upon closing, Kinder Morgan will own 50% of Yates Field and assume operatorship. Marathon and Kinder Morgan dissolved MKM Partners LP and MKM Holdings LLC earlier this year. At that time, Kinder Morgan acquired MKM Partners' 12.75% interest in the Sacroc Field, also in the Permian Basin. And, Kinder Morgan also agreed to acquire Marathon subsidiary Marathon Carbon Dioxide Transportation Co., which owns a 65% interest in The Pecos Carbon Dioxide Pipeline Co. That sale was for approximately $2 million. The Yates Field was discovered in 1926 and has produced nearly 1.5 billion bbl. of oil. It currently has more than 360 producing wells and covers a unitized area of approximately 26,400 acres or almost 41 square miles. Marathon's net share of current Yates production is approximately 7,500 bbl. per day. Its share of proved reserves totals 175 million BOE. The Yates gathering system consists of approximately 87 miles of pipeline ranging from two to 12 inches in diameter. About 70% of Kinder Morgan's expected production from Yates during the next 36 months is hedged. -Petroleum Finance Week
2023-08-08 - Debt reduction drives Southwestern Energy’s strategy as second quarter earnings plummet.
2023-07-28 - Exxon Mobil and Chevron Corp. each reported declines in second-quarter profits as the U.S. supermajors even as they continue to pump the Permian Basin.
2023-07-25 - Even with Kinder Morgan’s second quarter earnings falling short of forecasts due to lower commodity prices, the pipeline giant expects attractive returns on its backlog of $3.75 billion in future projects.
2023-07-30 - Operational performance improved compared to 2022’s second quarter results, and the company is “one upgrade” away from being investment grade.
2023-08-02 - Lower commodity prices are blamed for the slide in Enterprise Product Partners’ second quarter results.