Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Permian Basin Giants: 2024 Net Production Forecasts
02/20/2024
Rystad Energy predicts that the merged company of Diamondback Energy and Endeavor Energy will produce 819,500 barrels of oil per day in the Permian Basin in 2024.
Rystad, an energy research and business intelligence company from Norway, expects the ExxonMobil-Pioneer Natural Resources merger to lead the Permian in total net production for the year, with a projection of nearly 1.4 million barrels per day. Notably, about 53% of this production will be oil.
Chevron is set to produce slightly more than Diamondback-Endeavor, with Occidental-CrownRock following closely. ConocoPhillips ranks fifth, with a production forecast of just under 800,000 barrels per day. Chevron's production is 47% oil, while Diamondback-Endeavor and ConocoPhillips have 57% oil in their mix, and Occidental-CrownRock is just below 50%.
The U.S. Energy Information Administration (EIA) reports that Permian Basin oil production is expected to reach 6.071 million barrels per day in February and 6.085 million barrels in March. Gas production is forecasted at 24.628 billion cubic feet in February and 24.762 billion cubic feet in March.
ExxonMobil announced in October 2023 that it plans to acquire Pioneer Natural Resources in an all-stock deal valued at $59.5 billion, or $253 per share. Pioneer shareholders will get 2.3234 ExxonMobil shares for each of their shares. The total value of the deal, including debt, is about $64.5 billion.
In December 2023, Occidental revealed plans to buy Midland-based CrownRock L.P. for around $12 billion in cash and stock, taking on CrownRock's debt in the process.
This month, Diamondback and Endeavor made public their merger agreement. The deal, worth about $26 billion, includes Endeavor's debt and merges the two into a major player in the Permian with an estimated enterprise value of $60 billion and daily production of 816,000 barrels of oil equivalent.
ExxonMobil's acquisition of Pioneer Natural Resources for $64.5 billion in October was highlighted by Rystad Energy as the start of a new phase in shale sector deals, termed 'Shale 4.0'. The following months have seen a surge in large deals in the Permian, speeding up the consolidation of this key oil-producing region.
“It became apparent that public producers were willing to pay top dollar for private E&P acquisitions that could both move the needle in terms of total inventory scale and position them for the long run in the Permian’s commercial heart”, Rystad representative noted (Occidental’s recent purchase of CrownRock).
The merger between Diamondback Energy and Endeavor Energy Resources, valued at $26 billion, is a significant part of this trend. This merger is set to create the largest independent Permian producer by output and the second-largest in terms of undeveloped drilling locations, trailing only behind the ExxonMobil-Pioneer combo, according to Rystad Energy.
About Rystad Energy
Rystad Energy is an independent advisory, research, and business intelligence company focused on the energy sector. With its headquarters in Oslo, Norway, it stands as the largest independent energy consultancy in the country and a leading analysis company for the global energy industry. Rystad Energy offers in-depth analysis and insights into the oil and gas sector, with a growing focus on renewable energy and carbon emissions analyses. Their services are vital for a range of clients including oil, oil services, finance companies, and institutions like OPEC, the International Energy Agency, and the World Bank.
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.
Welcome 2024: A Look Back at 2023 Top Oil and Gas Sector Deals
2023 was quite a year for the oil and gas sector, with some big deals making the news. In the US, giants like ExxonMobil and Chevron grabbed headlines with their plans to acquire companies like Pioneer and Hess. Internationally, ADNOC wasn't left behind, expanding its reach as well. As we ring in the new year, let's recap the biggest oil and gas deals of 2023.
Occidental, CrownRock Merger Under Regulatory Review: 2024 Update
CrownRock's 94,000+ net acres acquisition complements Occidental's Midland Basin operations, valued at $12.0 billion. This expansion enhances Occidental's Midland Basin-scale and upgrades its Permian Basin portfolio with ready-to-develop, low-cost assets. The deal is set to add around 170 thousand barrels of oil equivalent per day in 2024, with high-margin, sustainable production.
OXY has been the leader in Permian Basin production for the past five years. Currently, the Houston-based oil and gas company is deepening its presence in the basin with a $12 billion acquisition of CrownRock, adding over 94,000 acres in the Midland Basin and increasing its oil output by about 170,000 barrels per day. Occidental announced an increase in its proved reserves to 4.0 billion barrels of oil equivalent by the end of December 2023, up from 3.8 billion the previous year. Activities in the Permian largely fueled this rise. Occidental added approximately 303 million barrels through infill development projects as well as new discoveries and the further development of existing fields brought in another 153 million barrels.
TotalEnergies kicked off 2024 with a net income of $5.7 billion in the first quarter, marking a modest 3% increase from the same period last year and a 13% rise from the previous quarter. This growth occurred despite experiencing drops in both the volume and price of gas sales over the year and the quarter. Their adjusted net earnings, which exclude one-time or unusual items, were $5.1 billion. This represents a significant 22% decline compared to last year and a slight 2% drop from the last quarter. The company's earnings before tax, depreciation, and amortization reached $11.5 billion, while their cash flow from operations significantly decreased to $2.2 billion, falling by 58% from last year and a steep 87% from the previous quarter. TotalEnergies also recorded $644 million in impairments.
New Mexico leads the Rockies region in gas production and ranks as the sixth-largest in terms of active gas wells in the U.S. Last year, the state's gas well count slightly increased by 0.2% to 30,699, with new additions in both the northwestern San Juan Basin and the southeastern Permian Basin. Meanwhile, just to the north in Colorado, gas producers grew by a modest 0.1% to 30,322, primarily due to increased drilling activity in the DJ and Piceance basins. Wyoming saw a decline in its active gas wells by 3.7%, down to 17,006, with production mainly in Sublette, Sweetwater, and Converse counties reflecting stable or slightly reduced drilling activity. Utah also experienced a slight decrease of 0.2% in its number of gas wells, totaling 6,463. In Q1 2024, oil and gas industry activity in Oklahoma, Colorado, and northern New Mexico experienced a decline. This marks the fifth consecutive quarter of contraction in drilling and business activities within these regions. According to a survey that included responses from 33 firms operating in the Rockies, this downtrend is expected to continue over the next six months.