Results for: Permian Basin

ExxonMobil is poised to report its third-quarter earnings on Friday, with investors keenly focused on the company’s production growth, particularly from its high-output assets in the Permian Basin and Guyana. Strong financial performance and strategic cost controls have positioned Exxon for another successful quarter, with potential for continued production growth and earnings increases. The company’s aggressive shareholder return strategy, including dividends and share buybacks, adds further weight to investor expectations.

Enterprise Products Partners L.P. (EPD) reported strong third-quarter earnings, with adjusted EBITDA and EPS exceeding last year’s figures. However, the company missed revenue expectations and saw a contraction in its operating margins. Despite this, EPD remains optimistic about future growth, highlighted by its recent acquisition of Piñon Midstream and planned investments in Permian Basin infrastructure.

Atlas Energy Solutions (AESI) is set to announce its quarterly earnings on Monday, October 28th. This article analyzes key metrics, analyst expectations, and peer comparisons to provide insights for investors. Learn about AESI’s recent performance, financial milestones, and how it stacks up against competitors in the energy sector.

Volt Lithium Corp. (VLTLF) has successfully installed its first field unit in the Permian Basin, Texas, marking a significant milestone in its direct lithium extraction (DLE) operations. This unit, capable of processing over 200,000 liters of oil field brine daily, positions Volt as a leader in North American lithium production. The company’s DLE technology, combined with its strategic location and cost-effective approach, makes Volt a compelling investment opportunity in the booming lithium market.

ONEOK, Inc. (OKE) has announced the acquisition of a 43% stake in EnLink Midstream (ENLC) from Global Infrastructure Partners (GIP) for $3 billion. Additionally, ONEOK will acquire all equity interests in Medallion Midstream, LLC for $2.6 billion. These acquisitions, totaling $5.9 billion, will significantly expand ONEOK’s Permian gas processing and crude gathering capabilities.

ExxonMobil is reportedly planning to sell conventional oil assets in the Permian Basin, valued at $1 billion, as it shifts its focus to expanding shale production following its acquisition of Pioneer Natural Resources. The move aligns with the company’s strategy to optimize its portfolio and focus on growth in its core shale operations.

Volt Lithium has made a significant step towards commercial lithium production by deploying its first Field Unit in the Permian Basin, Texas. This unit can process over 200,000 liters of oilfield brine daily, doubling the company’s previous processing capacity. Volt aims to scale up its processing capacity to 100,000 barrels per day, capitalizing on the potential of low-grade brine and achieving cost-effective lithium extraction.

The United States witnessed a record-shattering $51 billion in oil and gas acquisitions during the first quarter of 2023, predominantly focused on the prolific Permian Basin in West Texas and New Mexico. Energy companies are flocking to the Permian due to its exceptional drilling prospects and relatively low break-even costs, leading to significant investments. Top-tier deals included Diamondback Energy’s $26 billion bid for Endeavor Energy Partners and Apache Corp’s $4.5 billion acquisition of rival Callon Petroleum. Despite regulatory hurdles, including antitrust reviews that have delayed some major deals, the number of transactions surged to 27 in Q1, a 35% increase from the previous year. The strong oil price environment is enabling companies to retain non-core drilling assets, showcasing a shift towards strategic asset retention among E&P companies. The oil and gas sector experienced a banner year for mergers and acquisitions in 2023, with Exxon’s $60 billion purchase of Pioneer and Chevron’s planned $53 billion acquisition of Hess. However, Chevron’s deal has encountered obstacles, as Exxon has asserted right-of-first-refusal challenges over the transaction.

Coterra Energy (CTRA) stands out as a resilient investment in the challenging natural gas market. Its diversified portfolio, including high-performing Permian assets, provides a buffer against depressed natural gas prices. With the industry facing oversupply in 2024, CTRA’s profitability may be temporarily affected. However, a projected shift towards normalized weather patterns in 2025 and increased LNG export capacity offer a promising outlook for the company. CTRA’s strong financial position, low leverage ratio, and commitment to shareholder returns make it a compelling investment opportunity, especially below $30 per share.

U.S. oil and gas deals reached a record $51 billion in the first quarter of 2023, continuing the merger spree seen in the top U.S. shale field. Energy companies have been aggressively expanding their drilling inventories, particularly in the Permian Basin, where production costs are relatively low. The largest deal proposed last quarter was Diamondback Energy’s $26 billion acquisition of Endeavor Energy Partners, bringing together two major Permian operators. Other notable deals included Apache Corp’s $4.5 billion purchase of Callon Petroleum and Chesapeake Energy’s $7.4 billion acquisition of Southwestern Energy. However, some mergers, such as Chesapeake’s and those executed by Exxon Mobil and Chevron last year, have been delayed by antitrust reviews due to concerns about market concentration. Despite the high number of deals, analysts expect the pace to slow as strong oil prices make it more advantageous for companies to hold on to their assets.