Oil and Gas Investor Magazine - March 2023 Earthstone Energy Image

Oil and Gas Investor Magazine - March 2023

SCALE DOES MATTER
Earthstone Energy CEO Robert Anderson discusses the firm’s acquisition strategy in The OGInterview.

KEN HERSH AND BUILDING NGP
Retired NGP co-founder Ken Hersh shares lessons learned in the energy private equity firm’s first 28 years, green lights and red lights, growing a new investment class and repotting plants.

VOLUME OVER VALUE: A&D MARKET PRIMED FOR ACTIVE BUT THRIFTY REBOUND
Despite large-cap publics such as Devon Energy Corp., Diamondback Energy Corp. and Marathon Oil Corp. dominating M&A in 2022, the overall deal count fell to the lowest level since 2005, according to Enverus.

EAGLE FORD SHALE TAKES FLIGHT
The South Texas Eagle Ford Shale’s emergence as an M&A hot spot in late 2022 highlights the play’s market potential this year.

BP: UKRAINE WAR LIKELY TO SPEED DECLINE IN FOSSIL FUEL USE
The fallout from Russia’s invasion of Ukraine includes a global movement away from imported fossil fuels toward domestically produced renewables, BP said in its annual “Energy Outlook.”

DAN PICKERING TALKS M&A, U.S. PRODUCTION GROWTH
Dan Pickering, chief investment officer of Pickering Energy Partners, discusses U.S. production and M&A after a “funky and weird” 2022.

RUSSIAN 'GHOST TANKERS' STALK GLOBAL OIL MARKET
As many as 600 ghost tankers ferry Russian crude oil and oil products to markets at high risk and reduced prices.

Cover Story

Scale Does Matter: Earthstone's Robert Anderson on Shale M&A Growth

The OGInterview: Earthstone Energy CEO Robert Anderson spoke to Hart Energy on scaling up when others hunker down.

Feature

BP: Ukraine War Likely to Speed Decline in Fossil Fuel Use

The fallout from Russia’s invasion of Ukraine includes a global movement away from imported fossil fuels toward domestically produced renewables, BP said in its annual Energy Outlook.

Q&A: Dan Pickering Talks M&A, US Production Growth and the Energy Transition

Dan Pickering, Chief Investment Officer of Pickering Energy Partners (PEP), discusses U.S. production and  M&A after a “funky and weird” 2022 and sees the U.S. shale boom settling into a “shale business.”

Quaise Aims to Scale Geothermal Energy with New Drilling Technology

Quaise Energy, with backers that include Nabors Industries, is using millimeter wave drilling technology to unlock geothermal energy.

Russian ‘Ghost Tankers’ Stalk Global Oil Markets

As many as 600 ghost tankers ferry Russian crude oil and oil products to markets at high risk and reduced prices.

Volume Over Value: A&D Market Primed for Active, But Thrifty Rebound

Despite large-cap publics such as Devon Energy, Diamondback and Marathon Oil dominating M&A in 2022, the overall deal count fell to the lowest level since 2005, according to Enverus.

A&D Trends

Column: M&A Critical Path to E&P Value Creation

Public E&P focus has shifted to the sustainability of free cash payouts from ESG and climate concerns, as well as traditionally poor returns of/on capital.

Latin America’s A&D Capital: Brazil

A&D opportunities in the Latin America and Caribbean region are primarily found in Brazil, particularly due to state-owned Petrobras and its ongoing efforts to spur competition. At least for now.

Matador Resources to Bolt-on Delaware Basin’s Advance Energy in $1.6 Billion Deal

Matador said the deal to purchase Advance Energy, an EnCap-backed company, will not increase its leverage and adds more than 200 net drilling locations in the northern Delaware.

Tudor, Pickering, Holt’s 2023 M&A Playbook

From the bruising to the guileful to artful misdirection, Tudor, Pickering Holt & Co. talks how M&A could unfold for the rest of the quarter and the year ahead – via football-heavy analogies.

Capital Options

Opinion: Business School Buzzwords Applied to Midstream

Some business school frameworks and buzzwords can be applied to the current midstream landscape, such as the five stages of the industry life cycle.

Private Equity Execs Expect Active Year for A&D

Executives in the private equity space expect this year to be an active one for A&D and M&A activities, they concurred during the Independent Petroleum Association of America’s Private Capital Conference in Houston.

Capital Markets

Canadian Gas Producers to Boost Unconventional Production, Capex

Wood Mackenzie expects Canada’s largest natural gas producers —  Montney Shale producers Tourmaline Oil, Canadian Natural Resources (CNRL) and ARC Resources — to continue to grow their unconventional production in 2023 despite inflation pressures.

Company Briefs

Oilfield Service Outlook: Earnings Will be Driven by Everything, Everywhere, All at Once

International growth, along with offshore and strength in North America, propelled fourth quarter and 2022 earnings for oilfield service companies SLB, Baker Hughes and Halliburton.

Exploration Highlights

The Eagle Ford Shale Takes Flight

The South Texas Eagle Ford Shale’s emergence as an M&A hot spot in late 2022 highlights the play’s market potential this year.

From the Editor-in-Chief

BP’s Reconciliation: Keep It Real

As BP faces backlash on dialing back on its pledge to reduce carbon emissions by 40% in 2030, the company insists it is taking a realistic approach to the energy transition. 

Industry Icons

Ken Hersh and Building NGP

Retired NGP co-founder Ken Hersh shares lessons learned in the energy private equity firm’s first 28 years, green lights and red lights, growing a new investment class and repotting plants.

International Highlights

Commentary: US Crude Sanctions On Venezuela: Past, Present and Future

Despite leeway from to U.S. allowing Chevron Corp. to operate and manage its joint ventures in Venezuela, the Maduro government has made few positive steps toward democratic reform.

Technology Report

Baker Hughes, SLB CEOs Talk ‘New Energy’

Energy technology companies, including Baker Hughes and SLB, are spreading technological know-how while forming or strengthening partnerships to reduce greenhouse gas emissions and improve energy efficiency.

How Much is a Digital Twin Worth?

HUVRdata and VEERUM partnered to engineer digital twin technology that contextualizes inspection data in virtual facilities and asset models.

Hydrogen Innovation: Challenges in the Transition to Greener Fuels

Hydrogen technology patents are on the rise as the world seeks to go “green.”

Trends & Analysis

Emissions Management: The New ‘E’ for E&P

Emissions management strategies are having a greater influence on E&P profitability, according to Enverus.

Western US

To Booms, Busts and a Good Appetite for Both

 It’s not just oil prices and production that endure booms and busts; oil people must develop an appetite for both.