Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
There is a new guy on the block: Penn Virginia rebrands to Ranger Oil
10/11/2021
Following the close of the Lonestar acquisition, Penn Virginia Corp. plans to rename the combined company to Ranger Oil Corp., shifting its energy development in Texas towards safer and more efficient oil and gas operations.
This Texas oil & gas giant emerged as an Appalachian coal company in the late 1800s. Over time, the company evolved into a gas and oil manufacturer with assets largely in shale basins. And after the acquisition of Lonestar and Rocky Creek Resources within the past year, they decided to concentrate on Eagle Ford shale, reinventing itself and its values under the new name — Ranger Oil.
The company's consolidated assets now amount to over 140,000 net acres strategically positioned in the Eagle Ford play of south Texas.
It is expected that the company will continue with the two rig programs it operated before the signing of the $370 million merger agreement with Lonestar. Taking this rapid rate of development into account, CapEx is expected to be between $65 million and $75 million in the fourth quarter.
Along with Virginia's expansion through acquisitions, the management team also made a few changes, which positively impacted the company's operational and financial strength. Therefore, from early 2020 through the first half of 2021, Penn Virginia achieved the highest EBITDA margin per boe among all U.S. independent oil and gas companies.
This majorly happened because of the companies balance sheet extensive transformation: by bringing in significant equity capital from an experienced oil and gas equity group and issuing senior unsecured notes to extend maturities. Thus helping Virginia to create an estimated 1.5x LTM leverage.
It is anticipated that Ranger Oil Corp. will rebrand officially on Oct. 18, with the full rebranding to be complete by the year-end of 2021.
Concerning the strategy, the company will continue to leverage operational and capital efficiency to generate superior returns and continue its long-term free cash flow generation track record, which it has maintained every quarter since fourth-quarter 2019. At current strip prices, Ranger is projected to produce over $200 million in free cash flow in the next 12 months.
As Ranger, the company also plans to continue its disciplined approach to potential consolidation opportunities while maintaining an extremely liquid balance sheet, all the while pledging to achieve a leverage ratio of at least 1.0 times in the next four quarters.
In addition to these operational improvements, Ranger plans to grow its dominance by drilling longer laterals, creating more wells per pad, and utilizing enhanced completions techniques, hoping to grow in dominance and establish itself as an ESG leader in the industry.
Additionally, due to the merger closing, Lonestar's swapped hedge volumes will be assumed by the company, and most of them will be reset to reflect current market pricing. Although there may be no material impact on the Ranger's leverage metrics, the reset is expected to increase the company's free cash flow and adjusted EBITDAX going forward.
Starting Oct. 18, Ranger Oil will trade under the NASDAQ ticker ROCC.
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.
The Hunting Season Is Not Over Yet: Exxon Mobil makes a $400 million commitment to Wyoming's carbon capture
Carbon footprint reduction is a new hot trend: Exxon Mobil makes a $400 million investment into its LaBarge facility to expand its carbon capture and storage capabilities by another million metric tons of CO2. Operational activities could begin as early as 2025 after a final investment decision is made in 2022. At present, about 20% of all CO2 captured worldwide each year is captured at the LaBarge. However, as one of the largest of the world's Big Oil companies, it is not the only project in Exxon's pipeline: aside from CCS capabilities, the LaBarge is one of the world's largest sources of helium, producing approximately 20% of global supply
A $2 billion deal saw Dominion Energy sell Questar Pipelines to Southwest Gas
A good asset will not sit on the market for long. After a deal with Berkshire Hathaway fell through, Dominion Energy managed to secure another one for Questar Pipelines in a drop of a hat. And get that, it is better than the former one by more than half a billion! Although not everyone is happy with such decisions, it seems that even Carl Icahn’s complaints won't be able to sway Southwest Gas Holdings’ decision. Though we will have our eyes peeled in any case… If everything goes as planned, a $2 billion deal will be closed before the end of the year.
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.