Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
A major U.S. shale oil producer is looking to start a land selloff in the lone star state
10/05/2021
Pioneer Natural Resources Co PXD.N, one of the nation's largest oil companies by output, has put up for sale its onshore assets in the Delaware basin of Texas intending to raise over $2 billion.
This move comes to light following crude oil prices rebound after last year's pandemic-induced crash. Gas and oil are hiking to new heights as the demand for exports is rising. The price of West Texas Intermediate Crude is now at about $70 per barrel. As a result of the recovery, producers are finally able to shed some underperforming properties, igniting a shale consolidation wave.
In the event of a successful sale, Pioneer would be left concentrating on the Midland Permian, its traditional base of operation.
Through divestment, Pioneer likely wants to streamline its upstream portfolio. Since at present, investors are pressing more and more upstream companies for a higher shareholder value, not production, so they are forced to focus on finding profitable resources instead.
The need for Pioneer to restructure its business and reduce debt is understandable, giving a big splurge earlier this year when it completed two acquisitions valued at over $1 billion each. The oilfield services business was already sold by Pioneer for an undisclosed sum in March to kickstart the process. As speculated, the company has agreed to sell approximately 20,000 net acres in western Glasscock County, Texas, to Laredo Petroleum for as much as $230 million under its assets sale plan.
Pioneer paid $6.2 billion for Midland-basin rival DoublePoint Energy after closing the Parsley deal in January. As a result of the deals, companies’ total debt amounted to no less than $6.9 billion at the end of June, spiking more than 100% up from $3.1 billion six months prior.
With this convenient acquisition, the company now owns 97,000 acres in the Permian Basin, making it one of the biggest producers there. Through the transaction, the acquirer now controls approximately 1 million acres of basin land.
Apart from offsetting its debt, Pioneer also recently pushed forward with the notion of paying a variable quarterly dividend starting in September instead of the first quarter of 2022 as was planned earlier. Not surprising, considering boosted buybacks and dividends are part of the wider effort of shale companies to improve investor confidence following years of sub-par returns compared to other industries.
Therefore a detailed analysis of such intel becomes a useful necessity for any financial endeavor. The map-based asset intelligence provided by Rextag, as shown, allows business development teams to rapidly and accurately analyze and grab all and any opportunities such as Pioneer's proposed sale from a holistic standpoint, including midstream.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Restructuration is in a full-speed: Comstock to sell Bakken for $154 million
Comstock Resources decided to go through with asset divestment, selling its Bakken Shale actives for $150M to Northern Oil and Gas. The proceeds from these sales will be reinvested by Comstock Resources Inc. into the Haynesville Shale, at which point the company may acquire additional leasehold and fund drilling activities starting in 2022. Meanwhile, Northern clearly gunning for the pack leading position in the Texas shale play, but whether they succeed or not is remains to be seen.
Vital Energy Expands Permian Basin Footprint with New Working Interest Acquisitions
Vital Energy, an independent energy firm, recently expanded its holdings in the Permian Basin by purchasing additional working interests in prime production assets for approximately $55 million. These newly acquired assets were originally part of a larger transaction involving Henry Energy, Moriah Henry Partners, and Henry Resources.
The Haynesville Shale play, located in northwestern Louisiana and eastern Texas, was recognized in March 2008. Petrohawk Energy Corp. and Chesapeake Energy Corp. had leased acreages in Louisiana, bringing fame to the region. The Haynesville Shale is crucial for meeting the rising demand for LNG exports from the Gulf Coast because of its location. It's expected that Haynesville will contribute about 13 Bcf/d to the overall growth in U.S. gas demand by 2030. However, drilling in Haynesville is more expensive and challenging due to the depth of its wells, especially when compared to areas like the Marcellus Shale.
Crude oil prices are on the verge of a significant rise, as per Helima Croft, a top commodities strategist at RBC Capital Markets. She highlights a looming shift in the oil market's supply-demand dynamics, forecasting a potential slowdown in global crude production. This slowdown might push Brent crude prices to $85 in the latter half of 2024.
In January 2024, the United States saw a mix of ups and downs in the number of active drilling rigs across its major oil shale regions and states. Starting with the shale regions, the Permian Basin led with a slight increase, reaching 310 rigs, which is 3 more than in December. The Eagle Ford in East Texas held steady with 54 rigs, unchanged from the previous month. Meanwhile, both the Haynesville and Anadarko regions saw a decrease by 2 rigs each, landing at 42 rigs. The Niobrara faced a larger drop, losing 4 rigs to settle at 27. On a brighter note, the Williston Basin and the Appalachian region saw increases of 2 and 1 rigs, respectively, resulting in counts of 34 and 41 rigs.