Sam Scofield

This week, Sparta’s Senior Oil Market Analyst, Gaik June Goh, made her podcast debut! A seasoned expert in refining, trading, and strategy, June dives deep into the Eastern crude trading cycle for January loaders. Key takeaways: > Asian refineries are ramping up purchases for January loaders, driven by low inventories and reduced Saudi term allocations, tightening supply. > Cash premiums for AG crudes are climbing amid a bullish market outlook. > Spot demand surges, with Qatar Energy’s larger Al-Shahin tender leading the way. > Limited carry cargoes and WTI’s timing constraints further fuel the bullish sentiment. Listen here: https://lnkd.in/eFSsYG3N SUBSCRIBE: Spotify: https://lnkd.in/dzNTiPWk Apple Podcasts: https://lnkd.in/dYscqbEa Amazon Music: https://lnkd.in/dkk9WXW6 #oott #oilandgas #commoditytrading #fintech #trading #crude #insight #data

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Another day, another M&A announcement -- what does it mean for ComboCurve users? "As majors continue the consolidation trend and double down on their core acreage, they'll continue to shed anything they deem as "non-core," presenting unique opportunities for smaller players. We will continue to see these smaller players shine as they move more quickly on growing their acreage positions. And as for ComboCurve users, they have the tools they will require when the need to be competitive and stay agile is at an all-time high as M&A is not slowing down," says VP of Customer Experience Allyson Kidwell, PMP, CSM. How are you seeing the effects of M&A's? Weigh in in the comments! https://lnkd.in/gWFD9c9U

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Deal Background: The borrower is an established (2014) and profitable Texas-based O&G field equipment supplier with a $44.5M annual run rate providing equipment solutions to exploration enterprises working the Permian Basin fields. The borrower needed working capital to support its growth. The borrower was willing to pledge all of its current and unencumbered assets to lock in a large-scale funding. Their assets include $11.7M of receivables of which $5.85M are either current or within 0 - 30 days aged. 1 Umbrella Funding instantly recognized the lending bona fides of this deal and quickly put together a $2.7M short-duration term loan secured by all current assets, while paying the broker an attractive commission. Sizing and Structuring of the Loan: $2,700,000, self-amortizing remits, over 10.16 months. Underwriting / Due Diligence: 1 Umbrella Funding's underwriting team vetted this deal as follows: borrower's P&L financials to confirm the necessary conservative income coverage ratio, borrower's balance sheet to assess existing debt loads and liquidity ratios and the coverage of their A/R versus their A/P, deep dive of the borrower's A/R ledger including independent BCR credit checks of its largest accounts, Ocrolus-verified reviews of the latest 90 days of banking to assess tracking run rates of revenues, cash balances and treasury management, Experian BIQ report to confirm reported lending, trade credit and leasing histories along with checking for reported credit derogs, verification of the borrower's ownership cap table, plus the standard slate of updated KYC-KYB docs and stips reviews on the borrower including proof of ownership, criminal background checks, national lawsuit database review, final banking verification, etc. FOR MORE INFORMATION ON OUR PRODUCTS AND TO GET ONBOARD AS A REFERRAL PARTNER, RESPOND TO THIS EMAIL OR CONTACT SHAWN AT [email protected]

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Oil majors have to manage sections of their shareholder roster that would balk at any deal that increases upstream production. Smaller exploration and production companies also are in the mood to sell, rather than buy. Witness, for instance, Energean itself. It has chosen to unlock value for non-core assets, which it in turn picked up cheaply. Instead it will focus on its big Israeli project, return $200mn to shareholders, and amass some firepower for its next big venture.

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#US_pipeline US pipeline operator ONEOK Inc. agreed to buy a Permian Basin rival and a controlling stake in another company in two transactions valued at a combined $5.9 billion. ONEOK will acquire Global Infrastructure Partners’ entire interest in EnLink Midstream LLC and also buy GIP’s equity interests in Medallion Midstream, the largest closely held crude gathering and transportation system in the Permian, it said in a statement late Wednesday. The move expands ONEOK’s presence in the most prolific US oil and gas basin. It’s the latest in a spate of deals in the industry as private equity firms offload assets to corporate buyers. Operators of oil and gas assets are looking to scale up as cash-flush fossil fuel companies consolidate and look to refresh their drilling inventory. New York-based Global Infrastructure Partners is a private equity firm specializing in energy, transportation, water and waste management. ONEOK shares gained 0.8% in New York. EnLink surged 11%. https://lnkd.in/dCFiT6nS

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Importance of Skilled Labor to Critical Minerals Establishing a robust domestic midstream for critical minerals is important, and something I'm often asked about. Recently, I published a paper on the topic for the Bipartisan Policy Center (linked below). A key factor to overcome, and one of the most cited by project owners, is the significant recruiting and retaining challenges due to severe labor shortages and intense competition for skilled workers. The U.S. industrial manufacturing sector, which had a shortfall of over 600,000 workers in 2023, is expected to see this gap widen to 2.1 million positions by 2030. This shortage directly impacts critical minerals projects that rely on similar skill sets, exacerbating the pressure on the industry. Critical minerals projects compete with semiconductor and battery manufacturing companies for skilled positions such as machinists, electricians, maintenance staff, equipment operators, and construction workers. Additionally, there is a notable shortage of individuals qualified for specialized roles essential for operational efficiency and quality control, including chemists, quality control analysts, and laboratory technicians. The talent pool is further strained by a 39% decline in mining engineering graduates since 2016, limiting the availability of essential professionals like mining engineers, metallurgists, and geologists. The construction sector, vital for building and maintaining critical minerals processing facilities, is also experiencing a severe labor shortage, with a deficit of 650,000 workers as of July 2023. This shortage impacts infrastructure development in regions where midstream operations are necessary, often requiring significant relocation efforts. To address these challenges, strategic investments in training programs, relocation incentives, supportive immigration policies, and advanced manufacturing technologies are essential. By establishing industry-specific training initiatives and partnering with educational institutions, the sector can develop a pipeline of skilled labor but it will take time a forward-thinking. We must grow the potential pool of interested professionals, with efforts like Project MFG. The topic of skilled labor is one I intend to evaluate deeper to consider what must be done to establish these projects successfully while growing the quality of life for American workers. Link to my recent report: https://lnkd.in/gSy7WSau

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Given the current global landscape and the geopolitical risks that exist today, we believe Occidental Petroleum (Ticker: OXY) is a compelling investment opportunity. “Investors seem to be somewhat ignoring energy right now,” said Brian Krawez, CFA, president and lead portfolio manager at Scharf Investments during an appearance on Reuters TV on December 10, 2024. Brian shared that OXY is highly levered to U.S. oil production and has roughly 80% of its energy reserves in the U.S. This is a reasonably priced stock, and we believe OXY could benefit from the incoming Trump administration’s plans to reduce regulations around drilling. Thanks Reuters TV for a great conversation. https://lnkd.in/gcDrqEXN Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #geopoliticalrisk #energy #oxy

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The Dallas Fed Energy Survey reveals industry expectations for WTI crude prices, with a 2025 average forecast of $71.13 per barrel. 📈 From shifting politics to production challenges, the energy landscape keeps evolving. While the industry navigates fluctuating costs and international politics, resilience and adaptability remain key. 🌍 Read more: https://lnkd.in/gR4PvTCR #OilAndGas #EnergyForecast #WTICrude #DallasFed #IndustryInsights

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Permian M&A: Oxy Shops Delaware Assets, Family Oil Cos. Stand Out As operators scour the Permian Basin for M&A opportunities, they’re keeping an eye on a tepid divestiture market. Family-owned oil companies also stand out among the pack of private inventory holders remaining in the Permian, according to Enverus Intelligence Research. Read more: https://lnkd.in/gVz63U-n

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Enterprise Products, a provider of midstream energy services to producers and consumers of natural gas, completed the acquisition of Piñon Midstream LLC, a gas company, from Black Bay Partners, a private equity firm, for $950m. “Congratulations to the Enterprise team on a smooth and successful transaction. We were pleased to have acquired an approximate 19% ownership interest in the parent company of Piñon in connection with our recent Ameredev acquisition that closed in September 2024. We look forward to working with Enterprise going forward as we develop our assets in southern Lea County, New Mexico. We plan to use the approximate $113m in sales proceeds to pay down our $980m in current outstanding borrowings under our $2.25bn credit facility,” Joseph Wm. Foran, Matador Founder, Chairman and CEO. Piñon Midstream (led by Steven Green) was advised by Piper Sandler and Kirkland & Ellis (led by Alec Manzer and Bill Benitez). Enterprise Products (led by Jim Teague) was advised by Locke Lord LLP (led by Joe Perillo, Rachel Fitzgerald and Terry Radney) and Sidley Austin LLP (led by Corey Roush). You can submit deals you were involved with here: https://lnkd.in/dpH2DbpP #MergersAcquisitionsDivestitures #NaturalGas #Midstream

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Energy Transfer LP announced that it has reached a positive final investment decision (FID) for the construction of an intrastate natural gas pipeline connecting Permian Basin production to premier markets and trading hubs. Read the full story here: https://lnkd.in/gHf73Hbw #BICMagazine #Pipeline #Permian

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In this edition of our Weekly Spotlight newsletter, Asal Rahimi Zeynal covers Diamondback Energy's recent $238 million acquisition of TRP Energy, LLC's Midland Basin assets. Following its merger with Endeavor Energy Resources, LP, Diamondback has added 15,000 net acres in key areas of Upton and Reagan counties, strengthening its Midland Basin footprint and enhancing cash flow with high-potential locations. Read the full article to see how TGS Well Data Analytics provides valuable insights using the world’s largest and most accurate well data library. Quickly identify high-performing formations, estimate production potential in undeveloped locations and conduct comparative analysis to optimize capital allocation and target high-yield areas in the Midland Basin and beyond: https://hubs.ly/Q02XKB7R0 #TGS #WellDataAnalytics #WellData #EnergySector

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DT Midstream has entered into a definitive agreement to acquire three FERC-regulated interstate natural gas pipelines from ONEOK for $1.2 billion. The pipelines involved are the Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission, which collectively span approximately 1,300 miles and have a total capacity exceeding 3.7 billion cubic feet per day. This strategic acquisition aligns with DT Midstream's focus on expanding its natural gas infrastructure and is expected to enhance its pipeline segment's scale and revenue. The transaction is anticipated to close by the end of 2024, subject to customary regulatory approvals. For ONEOK, this sale is part of a broader strategy to optimize its asset portfolio and concentrate on its integrated operating footprint. Recently, ONEOK completed the acquisition of Medallion Midstream, a significant crude oil gathering and transportation system in the Permian Basin, for approximately $2.6 billion. These developments reflect ongoing consolidation and strategic realignment within the midstream energy sector, as companies seek to enhance operational efficiencies and focus on core assets.

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The US oil and gas sector is witnessing a surge in mergers and acquisitions, nearing record levels for 2023. According to Rystad Energy, the focus is shifting away from the Permian Basin, with companies exploring new opportunities in other regions. This trend highlights the dynamic nature of the industry and the strategic moves companies are making to adapt to changing market conditions. https://lnkd.in/gqS9NPfg

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Diamondback Energy, Kinetik Holdings and EPIC Midstream Announce Transformative Transactions for EPIC Crude - Diamondback Energy and Kinetik Holdings have acquired a 30% equity interest in EPIC Crude Holdings. - Both partners now hold 27.5% ownership in EPIC Crude, while EPIC Midstream maintains a 45% equity interest. - Diamondback is increasing its crude commitment to 200 MBpd following its merger with Endeavor Energy Resources. - Kinetik is establishing a new transportation arrangement and connection between its gathering system and the EPIC pipeline. - The partners' long-term volume commitments are set to begin in 2025 and will last until 2035, covering over 33% of EPIC Crude’s capacity. - EPIC Crude is focusing on reducing costs and enhancing returns to benefit all stakeholders. - These transactions aim to secure EPIC Crude's success and strengthen ties with Diamondback and Kinetik. - EPIC Crude is currently transporting over 600 MBpd and has secured contracts for about 90% of its total 2025 volumes. - The entity emphasizes its ability to access various markets through its pipeline and dock facilities in Corpus Christi. - EPIC Crude's financial profile is improving, supported by strong credit ratings and a solid contract portfolio. - The potential for a large-scale pipeline expansion within the Permian region exists, primarily needing additional pumps. - EPIC Midstream was established in 2017 to manage midstream infrastructure in key Texas basins. - EPIC Crude, formed the same year, operates a 700-mile crude oil pipeline servicing multiple Texas basins. - Diamondback Energy focuses on unconventional oil and gas reserves primarily in the Permian Basin. - Kinetik Holdings provides a range of midstream services for natural gas, liquids, and crude oil producers. https://lnkd.in/gyyTB3pw

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"If you've only ever traded LNG, you haven't necessarily experienced the freedom of optimizing a position without necessarily knowing where that cargo is going to have to go." On the series finale of Markets in Transition, EQT Corporation's Head of LNG Trading, Brad Hitch, sits down with David Greely to discuss the rapid development of the Gulf of Mexico #LNG market, what it means for pricing dynamics, and how tools like physically deliverable futures contracts can empower traders to manage risk and unlock value.

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