Reese Energy Training on LinkedIn: Is the Uinta Just the Basin Flavor of the Week or an Under-Appreciated… (2024)

Reunited and It Feels So Good for XTO EnergyNew basin entries by oil and gas producers seem to be having a moment right now. Stories always compelling to explore—especially if their core assets happen to lie primarily in the almighty Permian or aren’t the result of an acquisition inheritance. Reese Energy Consulting today is following the latest leap outside the Perm by Midland and Delaware players betting more than a buck or two on fresh territory and inventory to expand their portfolios. We shared last week Denver-based SM Energy Company’s $2.55 billion deal for XCL Resources and a welcome howdy into the Uinta Basin that came as somewhat of a surprise for most folks. Now, Fort Worth-based TXO Partners, which operates a combined 371,000 net acres in the Texas and N.M., Permian and San Juan, has hopscotched into the Williston with two acquisitions valued at $300 million. But it’s not exactly their first rodeo there. The company, which went public last year, is led by CEO Bob Simpson—shale veteran and former CEO of XTO Energy who built a Bakken powerhouse before selling to ExxonMobil back in 2010 for $41 billion and finding a comfortable nest in the nation’s most prolific basin. Still, an old friend has a way of wooing one back. Simpson’s return to the Williston with TXO includes acquisitions of Eagle Mountain Energy Partners and an undisclosed seller with assets in N.D., and Montana. They add 4.5 MBOED in production and proved developed reserves of 17 MMBOE. TXO in 1Q announced sales volumes of 22 MBOED. Some past romances are hard to forget. What do you think? Learn more about REC and our oil and gas consulting services in the Permian and Williston at https://lnkd.in/ewhkGFa and our natural gas online training courses at https://lnkd.in/ggd3UkJM.

The Ballad of Doug and DaveAlligator hunts, even staged ones, might not be on everyone’s to-do list. But for Doug Lawler and younger brother Dave, a charity auction presented just the right opportunity for an adventure the two could sink their teeth into. If it didn’t bite first. So, the story goes that back in 2014 the brothers Lawler, CEOs at the time for rival shale giants, kicked things up a notch from their everyday hunts for oil and gas with a trek to the swampy waters of N.C. Reese Energy Consulting today spotlights the dynamic duo once dubbed the Peyton and Eli Manning of energy. At the time, Doug was the newly anointed CEO of Okla. City-based Chesapeake Energy. Dave, chairman and president of BP America, Inc., soon to become CEO of BPX Energy in Houston. Both overachievers and pranksters, they were raised in Denver by parents who surrounded them with books, a no-nonsense work ethic, and a push toward math and science pursuits, and went on to earn petroleum engineering degrees. In the gator-infested marshes of N.C., where the brothers’ staged hunt offered gun or archery options, it’s hardly surprising the Lawlers chose a more up close and personal experience. Jumping atop a banked, jaws-snapping, nine-footer, the two worked in tandem to force close the alligator’s mouth and seal it shut with duct tape—an exercise that didn’t come without a fight. But that’s where the real joy lies in the memory. Not in competition to outdo the other, but because success—whether shared or apart—is simply in their nature. Doug Lawler currently serves as CEO of Okla. City-based Continental Resources, a position he’s held since 2022. Dave Lawler has now been named CEO of Kimmeridge Texas Gas, an Eagle Ford operator with 148,000 net acres in South Texas. What do you think? Learn more about REC and our natural gas expertise and consulting services at https://lnkd.in/ewhkGFa.

LNG Projects Face More ConundrumsFor U.S. LNG project developers, times are tougher than trying to grab a couple of winks on a bed of nails. Not that times were ever easy to get these multi-billion-dollar projects off the ground given the inherent complexities in the process. But then came that whole permit delay nonsense back in January that descended like a swollen black cloud over five LNG plants now under development and another 16 under consideration. Only that was just the latest of bedevilments. Reese Energy Consulting today is following news on those LNG developers now under construction—still waiting to see which way the political winds blow on export approvals while battling labor, engineering, construction, and materials costs that have risen 25% over the last three years. Maybe the most shocking example of this is Golden Pass in Sabine Pass, Texas, whose construction contractor suddenly filed last month for bankruptcy after its $9.25 billion fixed-price estimate in 2019 ballooned to $11.6 billion in 2022. Work on the LNG plant is currently stalled, but doubtfully for long. Golden Pass is a joint venture between ExxonMobil and Qatar. Qatar announced in March it’s out to reclaim its former #1 LNG exporter status from the U.S. by expanding the Gulf nation’s LNG output by 85% and seizing a 25% share of the global market by 2030. Read into that what you will. Meanwhile, other Middle East investments in U.S. LNG projects are ramping up to include ADNOC Group’s very first in the U.S., last month with a 11.7% stake in NextDecade’s Rio Grande LNG project along with a 20-year sales agreement. Saudi’s aramco earlier in June also signed a 20-year offtake agreement with NextDecade. What do you think? Learn more about REC and our natural gas and LNG consulting services at https://lnkd.in/ewhkGFa. You can also learn more about our online natural gas courses at https://lnkd.in/ggd3UkJM.

Off the Beaten PathFollowing up on our post from Tuesday, Reese Energy Consulting today is following news from producers who are finding oil and gas magic on the fringes of core-basin plays. In an article earlier this month, Hart Energy featured Denver-based Bayswater Exploration and Production, which aside from its assets in the DJ and Powder River, also operates 48,000 acres in the Permian’s Northern Midland. Here, targeting the Wolfcamp and Spraberry, Bayswater is striking paydirt the farther east it explores. Call it extending the extensions. With a strategy to develop tier-2 acreage positions that could ultimately deliver tier-1 performance, the company first went to work in Howard County, Texas, near Mitchell County, where high levels of carbonates comprised of limestone and dolomite have tended to discourage drilling. Not so for Bayswater, which discovered a rich hydrocarbon environment in the carbonate/shale reservoir, completing its first well in 2021 with initial production of nearly 1.3 MBPD and cumulative production of 430+ Mbbls. Now three years later, Bayswater has moved farther east into Mitchell County, reporting even higher production and drilling six more 2.5-mile laterals with completions slated this summer. Speaking of step outs, gas producers Comstock Resources and Aethon Energy continue their “victory is mine” exploration and development of the Western Haynesville—an extension now aptly christened Waynesville. Aethon, whose newest well in Robertson County, Texas, produced nearly 3.3 BCF in the first four months of production last fall, can’t get enough of Wayne’s world and is now on the hunt for more. What do you think? Learn more about REC and our crude oil and natural gas consulting services in the Permian and Haynesville at https://lnkd.in/ewhkGFa.

Here’s to the Smaller GuysConsolidation by the Big Guys in the nation’s largest oil and gas basins may well offer golden opportunities for the Smaller Guys to snap up non-core cast offs when the deal dust finally settles. For other smaller operators, finding remarkable success in plays outside of the major headliners is no big mystery—just largely under covered. Reese Energy Consulting today is following the latest news from the Barnett and San Juan where producers well understand you don’t have to be a Permian Midland and Delaware big fella to find big oil. We’ll start with Midland, Texas-based Ares Energy and its CEO Bob Dimit whose exploration for crude oil lies hands-down in the Barnett. Back in January, Ares launched a 4-5 well drilling program targeting the Mississippian interval. The program has since expanded to 7 wells with completions due to begin in July. These are big, deep wells, Dimit says, estimating initial production of 1+ MBPD and ultimately 1.2 MMBbls—along with extremely rich gas from what he hails the Permian’s next big play. Meanwhile in N.M., far north from the state’s southern Delaware fanfare, the gassy San Juan Basin continues to reveal its crude oil secrets for producers developing the Marcos shale and Gallup oil window. The two leading operators in this small subset of the basin are N.M.-based DJR Operating and Denver-based Enduring Resources, LLC, which have found San Juan gold at breakeven costs less than $40/bbl. DJR in 2023 produced an average 13 MBPD while Enduring recorded an average 11.9 MBPD. What do you think? Learn more about REC and our natural gas, crude oil, and midstream consulting services at https://lnkd.in/ewhkGFa.

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Sittin’ Tall in the SaddleBack in 2020, the world’s largest alternative asset manager took private a Kan.-based midstream operator in a surprise and sweetened deal valued at $6.3 billion. Since those days of yore under the wing and capital infusions of Blackstone, Tallgrass Energy has taken flight as an energy infrastructure force to be reckoned with, diversifying its traditional oil and gas pipeline, processing, and storage business to include exploring new opportunities in CCS, synthetic methane, sustainable aviation fuel technology, and gigawatt-scale green hydrogen and ammonia.Reese Energy Consulting today is following the latest news on Tallgrass, which—aside from its three crude oil pipelines to include the Pony Express, Powder River Express, and Iron Horse and its recently converted 400-mile Trailblazer to C02—operates five natural gas pipelines spanning more than 7,000 miles and flowing 10.3+ BCFD across 10 states. The big bad boy in this bunch includes one of the largest natural gas pipelines ever built in North America. That would be the 1,714-mile Rockies Express simply known as REX, which extends from Colo., to eastern Ohio, with a west-to-east design capacity of 1.8 BCFD and an east-to-west capacity of 2.6 BCFD. Tallgrass operates REX and owns a 75% interest in the pipeline commissioned in 2008. Since its completion, partners have come and gone leaving refiner Phillips 66 the final other stakeholder at 25%, now no longer. Phillips announced today it will sell its 25% share in REX to Tallgrass in a $1.28 billion deal that looks like a win-win for both. Phillips chisels off a big chunk of its $3 billion asset divestment strategy, and Tallgrass gains total ownership of its natural gas mothership. What do you think? Learn more about REC and our natural gas and midstream consulting services at https://lnkd.in/ewhkGFa.

‘Let’s Rock This Pipe!’Following our post yesterday, Reese Energy Consulting is talking natural gas pipelines again for those whose heart’s race each time a new project is announced or pronounced “Go!” We share the same affliction. Now sealed with a FERC kiss, the 304-mile Mountain Valley Pipeline is officially blessed-stamped-authorized to begin service where it will deliver 2 BCFD of low-cost Appalachian gas to Mid- and South Atlantic markets. Ten years in the making at an estimated cost of $7.85 billion, final preparations to fire up operations on MVP are now in high gear to welcome aboard Marcellus and Utica gas from the nation’s largest natural gas basin. Producers were rumored to holler, “Let’s rock this pipe!” Back in the Permian, pipeline constraints and natural gas takeaway have producers sweating it out for a go-live date on the 580-mile, 2.5 BCFD capacity Matterhorn Express. Certain to fill up lickety-split, Matterhorn offers some much-needed relief to move record volumes of residual gas out of the basin. At least until the end of next year. While three other natgas pipeline projects are on midstreamers’ Permian to-do list, including Targa Resources’ Apex, Energy Transfer’s Warrior, and Kinder Morgan, Inc.’s expansion of its Natural Gas Pipeline of America system, a new cowboy in Perm Town has big plans for the next big gas pipe behind Matterhorn. Houston-based Moss Lake Partners (MLP) is hot on its NGL heels to build the 690-mile DeLa Express, which would move 2 BCFD of rich gas from West Texas to Gulf Coast fractionators and export terminals. The project would include access to MLP’s Hackberry, La., NGL export project. What do you think? Learn more about REC and our natural gas and midstream consulting services at https://lnkd.in/ewhkGFa.

‘Gas Is Ready to Flow’At long last the day has arrived.Ten years after the project was first proposed, the 304-mile Mountain Valley Pipeline is ready to hang an Open for Business sign as it awaits the final FERC greenlight, which could happen at any time. During that glorious moment when the first of 2 BCFD of Appalachian gas starts flowing from northwestern W.V. to southern Va., shippers will rejoice, senators will slap palms, and the JV parties behind the whole ordeal will breathe a collective sigh of relief, then toss back a few. Well deserved.Reese Energy Consulting today is following the latest in pipeline news, starting with MVP, which requested an in-service authorization today. After a decade of delays and count battles, the cost of the project is visiting the $7.85 billion neighborhood. Moving mountains in the East doesn’t come cheap or fast. Some have suggested the greenfield interstate pipeline could well be the last there. But after paying high premiums for gas supply and power generation over the last several years, end-users are weeping with joy. Meanwhile Permian producers are checking their watches for completion of the Matterhorn Express. With linefill expected in July, the 580-mile natural gas pipeline will flow 2.5 BCFD from West Texas to the Katy Hub, offering an Alka Seltzer for producers struggling to move record volumes of residual gas amid current takeaway constraints. But that plop-plop, fizz-fizz relief is only temporary, expected to last until the end of next year or so. For now, other Permian natgas pipe projects lay fancied out on the whiteboard. In development, yes, but still waiting on FIDs—especially on those major greenfield builds that can take two years to complete. There’s more to share on this and other pipeline news tomorrow, so stay tuned. Learn more about REC and our natural gas expertise in the Marcellus, Utica, Permian, and the nation’s most prolific basins at https://lnkd.in/ewhkGFa.

When Oil and Gas CEOs Sit Down to Talk Is a Time to ListenHeadline speakers at industry events are the forever premium attraction to draw an audience. Who doesn’t want to hear from the nation’s top oil and gas CEOs sharing their company stories and foresight? But aside from those presentations largely scripted, one-on-one interviews can offer other takeaway gems when energy leaders sit down to address questions. And while we can’t share them all, Reese Energy Consulting today is following the latest two Q&As in case you missed them. They’re worth the read.Alan Armstrong, president and CEO of Tulsa-based pipeline giant Williams, is a familiar figure on the speaker circuit with a whole lot to say about natural gas. He preaches and teaches about the evolving role natural gas plays in today’s energy spectrum and how Williams—a company now more than a century old—continues to rise like cream at the top. In a recent Q&A with , Armstrong shared WMB’s acquisition strategy following its recent series of pipeline, gathering and processing, and storage pick-ups that add to its sprawling infrastructure network, saying “Doing deals just to get bigger is a failed strategy.” Maybe not so much for Houston-based E&P Chord Energy, whose February acquisition of Enerplus has been wet-kissed the largest operator in the Williston and now valued at $11 billion. In a Hart Energy interview with Chord’s Danny Brown, the CEO reveals “Getting bigger isn’t always better but there’s more ways to be better if you’re bigger.” Now supersized in the Bakken, Chord operates 1.3 million net acres, reported 168.4 MBOED in 1Q, and not at all entertaining an acquisition trip out of the basin it knows best. What do you think? Learn more about REC and our producer services and midstream consulting at https://lnkd.in/ewhkGFa.