Wesley Adams

ONEOK is buying a set of NGL pipelines for $280 million. The announcement says a lot about contemporary oil & gas strategy. Let’s start with the corporate speak: ====== "This strategic acquisition provides the quickest pipeline connectivity to and within the critical supply and demand centers for our NGLs, refined products and crude oil assets in the Gulf Coast," said Pierce H. Norton II, ONEOK president and chief executive officer. ====== The word “quickest” is incredibly important here. As I’ve remarked before, today’s oil & gas industry is all about time to value. Investors have no patience for future windfalls. The future is way too uncertain. They want to see value today, and often that value is from increased cash flows, a fraction of which go directly to shareholders. You can compare this path – buying existing assets – with the alternative of building your own new pipeline system. Building new systems can be expensive, slow (because of permitting and just general construction limitations), and risky. It’s much easier to buy something in place and integrate it in short order. That’s what ONEOK is committing to do. Another critically important part of the above quote is the mention of the Gulf Coast. Again, with uncertainty at unprecedented levels across the oil & gas landscape, investors prefer a geographical concentration in the most resilient areas of supply and demand. The Gulf Coast certainly qualifies. The Gulf Coast has existing infrastructure, access to land- and water-based distribution networks, and operational efficiencies that will allow it to remain competitive far longer than other, less favorable marketplaces. What then did we learn about contemporary oil & gas strategy from this ONEOK announcement? ➊ Moderate, tangible value today is worth much more than potentially larger, more speculative value in the future. ➋ The Gulf Coast should be one of the last regions to become stranded as decarbonization momentum builds. Investment there is preferred. ONEOK’s move here is showing us why “consolidation” is the name of the game in oil & gas today. #energy #oilandgas #ksg 𝘗.𝘚. 𝘈𝘵 𝘒𝘚𝘎, 𝘐 𝘩𝘦𝘭𝘱 𝘦𝘯𝘦𝘳𝘨𝘺 𝘢𝘯𝘥 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘪𝘢𝘭 𝘭𝘦𝘢𝘥𝘦𝘳𝘴 𝘯𝘢𝘷𝘪𝘨𝘢𝘵𝘦 𝘤𝘰𝘮𝘱𝘭𝘦𝘹 𝘮𝘢𝘳𝘬𝘦𝘵𝘴 𝘢𝘯𝘥 𝘦𝘮𝘱𝘰𝘸𝘦𝘳 𝘵𝘩𝘦𝘮 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘵𝘰𝘰𝘭𝘴 𝘢𝘯𝘥 𝘪𝘯𝘴𝘪𝘨𝘩𝘵𝘴 𝘵𝘩𝘦𝘺 𝘯𝘦𝘦𝘥 𝘵𝘰 𝘣𝘶𝘪𝘭𝘥 𝘵𝘩𝘳𝘪𝘷𝘪𝘯𝘨 𝘢𝘯𝘥 𝘳𝘦𝘴𝘪𝘭𝘪𝘦𝘯𝘵 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴𝘦𝘴. 𝘐𝘧 𝘺𝘰𝘶 𝘩𝘢𝘷𝘦 𝘯𝘦𝘦𝘥𝘴 𝘢𝘳𝘰𝘶𝘯𝘥 𝘮𝘢𝘳𝘬𝘦𝘵 𝘳𝘦𝘴𝘦𝘢𝘳𝘤𝘩, 𝘱𝘳𝘪𝘤𝘪𝘯𝘨 & 𝘱𝘳𝘰𝘧𝘪𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘢𝘯𝘢𝘭𝘺𝘴𝘪𝘴, 𝘰𝘳 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘢𝘤𝘶𝘮𝘦𝘯 𝘵𝘳𝘢𝘪𝘯𝘪𝘯𝘨 & 𝘥𝘦𝘷𝘦𝘭𝘰𝘱𝘮𝘦𝘯𝘵, 𝘴𝘦𝘯𝘥 𝘮𝘦 𝘢 𝘯𝘰𝘵𝘦. 𝘐’𝘥 𝘭𝘰𝘷𝘦 𝘵𝘰 𝘥𝘪𝘴𝘤𝘶𝘴𝘴 𝘪𝘧 𝘪𝘵 𝘮𝘢𝘬𝘦𝘴 𝘴𝘦𝘯𝘴𝘦 𝘧𝘰𝘳 𝘶𝘴 𝘵𝘰 𝘤𝘰𝘭𝘭𝘢𝘣𝘰𝘳𝘢𝘵𝘦. https://lnkd.in/gtSQCFvt

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Permian Resources Divests Delaware Basin Midstream Assets to Kinetik The deal includes approximately 60,000 gross operated acres dedicated by Permian Resources under long-term, fixed-fee agreements for natural gas gathering, compression and processing and crude oil gathering services, Kinetik said. Read the full story: https://lnkd.in/gG9QNsqh

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‘Tis the Season for Midstream Deals and Decisions in the Permian Jingle bells are ringing this week in the Land of Oil and Gas A-plenty where midstream operators are already unwrapping holiday gifts. Reese Energy Consulting today is following the latest from the Permian, starting with Midland, Texas-based rockstars Kinetik Midstream and E&P Permian Resources. Kinetik, which in short order has become the Delaware’s largest independent gatherer and processor, operates 4,600+ miles of natural gas and crude oil pipe, and six gas plants with another under construction and another one planned. The company in 3Q reported $83.7 million in net income—a 94% increase year over year—and fattened its stake in Diamondback Energy’s EPIC crude pipeline to 27.5%. Kinetik will now further expand its “super system” in a $180 million bolt-on deal for Permian Resources’ Delaware oil and gas midstream assets. Kinetik gains 60,000 gross acres dedicated by Permian Resources under long-term, fixed-fee agreements that include 150 MMCFD and an estimated 250 MBPD next year, 250 MMCFD of compression, and natural gas processing. For its part, Permian Resources is sticking to its guns to remain the Delaware’s lowest-cost operator. This, after announcing a third consecutive increase to its full-year production targets and 160.8 MBPD announced in 3Q. Rock on, rockstars. Energy Transfer meanwhile has gifted Permian producers with a FID on the formerly named Warrior natural gas pipeline project. Now known as the Hugh Brinson, the 400-mile pipeline will flow an initial 1.5 BCFD from the Waha Hub to its pipeline connection south of Fort Worth. Phase I completion is expected by year end 2026 to be followed by Phase II which will increase capacity to 2.2 BCFD. Jingle all the way. What do you think? Learn more about REC and our range of midstream services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.  

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‘Tis the Season for Midstream Deals and Decisions in the Permian Jingle bells are ringing this week in the Land of Oil and Gas A-plenty where midstream operators are already unwrapping holiday gifts. Reese Energy Consulting today is following the latest from the Permian, starting with Midland, Texas-based rockstars Kinetik Midstream and E&P Permian Resources. Kinetik, which in short order has become the Delaware’s largest independent gatherer and processor, operates 4,600+ miles of natural gas and crude oil pipe, and six gas plants with another under construction and another one planned. The company in 3Q reported $83.7 million in net income—a 94% increase year over year—and fattened its stake in Diamondback Energy’s EPIC crude pipeline to 27.5%. Kinetik will now further expand its “super system” in a $180 million bolt-on deal for Permian Resources’ Delaware oil and gas midstream assets. Kinetik gains 60,000 gross acres dedicated by Permian Resources under long-term, fixed-fee agreements that include 150 MMCFD and an estimated 250 MBPD next year, 250 MMCFD of compression, and natural gas processing. For its part, Permian Resources is sticking to its guns to remain the Delaware’s lowest-cost operator. This, after announcing a third consecutive increase to its full-year production targets and 160.8 MBPD announced in 3Q. Rock on, rockstars. Energy Transfer meanwhile has gifted Permian producers with a FID on the formerly named Warrior natural gas pipeline project. Now known as the Hugh Brinson, the 400-mile pipeline will flow an initial 1.5 BCFD from the Waha Hub to its pipeline connection south of Fort Worth. Phase I completion is expected by year end 2026 to be followed by Phase II which will increase capacity to 2.2 BCFD. Jingle all the way. What do you think? Learn more about REC and our range of midstream services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.  

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Energy Transfer LP, the Dallas-based energy infrastructure giant, is further expanding its Permian operations with a new nearly $3 billion natural gas pipeline project, named the Hugh Brinson Pipeline, in honor of Hugh Brinson. https://lnkd.in/gdTHhfVG

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Rig Count Delaware Basin by Operator and County. The Delaware Basin is a major subsurface geological formation and one of the two primary basins within the larger Permian Basin. Get the full report https://lnkd.in/gjqAEKxV

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With money being expensive, high ROI & IRR projects are in demand. Check out EAG's recent study on ReFracs in the Haynesville.

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🌟 Texas Oil and Natural Gas: Breaking Records and Leading the Charge Honored to be featured in this Midland Reporter-Telegram article by Mella McEwen, highlighting the remarkable achievements of Texas energy producers as they set new records for production and exports. The insights I shared emphasize how Texas continues to lead in meeting growing global energy demand with exceptional productivity. Amid evolving energy markets, Texas producers are rising to the challenge—powering economic growth and creating opportunities for Texans and beyond. Check out the full article here: https://lnkd.in/g39fpbmd #TexasEnergy #EnergyLeadership #OilAndGas #EnergyInnovation #EconomicGrowth

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More Smokin’ Hot Deals to Be Had in the Lone Star State Reese Energy Consulting today is following the latest buzz from the nation’s largest oil-producing state where the Texas horse trading continues among midstreamers and Eagle Ford producers. First up is Houston-based Phillips 66 (PSX), which operates a midstream powerhouse with 72,000 miles of crude oil, natural gas, and NGL pipelines, along with fractionation and gas processing—all of which serve its diverse business segment to include chemicals and refining. After a years’ long JV courtship, PSX last year acquired DCP Midstream for $3.8 billion to further beef up its NGL business following record fractionated volumes and growing export demand. The company will now add even more meat to its NGL bones in the Permian Midland with the pick-up of Pinnacle Midstream for $550 million. The deal includes the Dos Pico processing complex with 220 MMCFD of capacity, ample space for a second 220 MMCFD gas plant, and 80 miles of pipeline. In short order Houston-based WildFire Energy LLC has shrewdly executed its pure-play South Texas strategy to create the largest consolidated acreage position in the Eagle Ford. The company has now landed its fourth acquisition in three years, this time in a deal with Apache Corporation. The price was not disclosed but wraps up Apache’s non-core asset sale that fetched a total $750 million. Wildfire will gain 237,000 net acres, 11 MBOED, and interests in 465 wells. Pro forma, the company will operate 850,000 net acres, 50 MBOED, and more than 2,000 gross wells. What do you think? Learn more about REC and our crude oil, natural gas, and NGL consulting services at https://lnkd.in/ebXT2mS. #energy #midstream #naturalgas #ngls #gasprocessing #reeseenergyconsulting

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Energy Transfer Reaches FID on 2.2 Bcf/d Permian Pipeline Project Energy Transfer said the newly renamed Hugh Brinson Pipeline—formerly known as Warrior—will deliver Permian Basin gas to the Dallas/Fort Worth market and beyond. Read the full story: https://lnkd.in/ggCUfHqg

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Delek Logistics (DKL) is advancing its midstream capabilities by adding acid gas injection (AGI) to the Libby 2 gas processing plant, unlocking drilling potential in the Delaware Basin with completion expected in late 2025. The company is acquiring Gravity Water Midstream for $285 million, enhancing its water management operations in the Midland Basin and driving immediate cash flow and EBITDA growth. Additionally, DKL secured ~34,000 more acres of dedication, bringing its total in the Midland Basin to ~400,000 acres, while maintaining strong liquidity of $700 million to fund growth without external capital. https://lnkd.in/gBX3rwgX

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“This transaction optimizes our Permian NGL value chain, allows Phillips 66 to provide producers with comprehensive flow assurance, reaching fractionation facilities near Corpus Christi, Sweeny, and Mont Belvieu, Texas, and is expected to deliver attractive returns in excess of our hurdle rates.” said Mark Lashier, chairman and CEO of Phillips 66. ➡️ https://lnkd.in/gVYRnVtP #BICMagazine #MidstreamNews

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Permian Resources has taken another significant step in optimizing its portfolio by divesting a key portion of its Reeves County midstream assets to Kinetik Holdings. The $180 million transaction is part of the company’s ongoing strategy to streamline operations and focus on its core exploration and production (E&P) business in the Delaware Basin. https://lnkd.in/gCPicT3D

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Diamondback Energy stands as a premier independent oil producer in the U.S., boasting prime Permian acreage across the #Midland, #Delaware, and #Central #Basin. Last year's production hit 263,000 bbl/d, with a projected 2024 full-year guidance of 275,000 bbl/d. February saw Diamondback's announcement of a $26 billion merger with Endeavor Energy Resources, LP, expanding their net #Permian acreage to 838,000 and potentially elevating combined production to 816,000 bbl/d. Don't miss this operator spotlight featuring Kaes Van't Hof, President and CFO of Diamondback Energy, where you'll gain insights on: • The Endeavor merger's strategic benefits from an insider's perspective. • Analysis of the merger's implications for Diamondback. • Diamondback's operational roadmap for 2024 and beyond. • Potential future M&A prospects. Register now to secure your spot! https://ow.ly/wjsF50R9uVa #SUPERDUG24

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Wondering if what you've read about the Texas oil and natural gas industry is myth or fact? ✅ Clear things up and discover accurate, fact-checked information about the vital role our industry plays in powering modern life, creating jobs, and driving economic progress. 🏭 Myth: I can eliminate oil and natural gas from my everyday life. Fact: 96% of everyday essentials, from soap to electronics, are made possible by oil and natural gas. The industry fuels our economy, supports communities, and is strictly regulated at both state and federal levels to ensure safety and environmental protection. 🌍 Learn more about the real impact of Texas oil and natural gas and separate myth from fact: https://lnkd.in/eZui95-2 📖 #TexasEnergy #OilAndGasFacts #EnergyIndustry #MythBusters #ModernLife #EconomicImpact #RegulatedIndustry

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The Texas oil and natural gas industry continues to set new benchmarks for success, recently achieving an all-time high of $27.3 billion paid in state and local taxes and state royalties in fiscal year 2024. This historic milestone, highlighted in TXOGA's Annual Energy & Economic Impact Report demonstrates the industry’s role in fueling Texas’ economy and securing its position as a global energy leader. And Texas continues to cement its role as the backbone of the U.S. energy sector, producing 43% of the nation’s crude oil and nearly 30% of its natural gas. With record-breaking production in the Permian Basin and robust pipeline, refining, processing and exporting infrastructure, Texas is well-positioned to meet growing global energy demand. “Clearly, the world needs more, not less, of reliable, responsibly produced oil and natural gas, and Texas is leading the way,” TXOGA President Todd Staples said. Read more: https://lnkd.in/gfEskSpB

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Phillips 66 (NYSE: PSX) has taken a significant step to strengthen its position in the Permian Basin midstream sector by announcing a definitive agreement to acquire EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP (collectively referred to as “EPIC NGL”). The acquisition is valued at $2.2 billion in cash, subject to customary purchase price adjustments. The transaction, expected to be immediately accretive to Phillips 66’s earnings per share, is anticipated to enhance the company’s natural gas liquids (NGL) infrastructure and provide further integration opportunities across its asset portfolio. https://lnkd.in/gRbr7chS

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NOV Inc., formerly National Oilwell Varco, is a global leader in the oil and gas industry, headquartered in Houston, Texas. With roots dating back to 1862 and 1893 through its predecessor companies, Oilwell Supply and National Supply. NOV has a long history of innovation in manufacturing and distributing pumps and derricks. Today, it operates across six continents, with over 500 locations, serving the upstream oil and gas industry through equipment, components, and supply chain integration services. NOV is structured into two main reporting segments: Energy Equipment and Energy Products and Services, offering a diverse portfolio of solutions across the energy sector. Its product and service lines include: Artificial Lift and Well Completions: Enhancing production efficiency. Digital Solutions: Optimizing operations through advanced technology. Drilling and Well Construction: Delivering cutting-edge tools for exploration and development. Flowback, Stimulation, and Well Control: Supporting critical operations in well management. Energy Transition: Investing in solutions like Hydrogen, Biogas, and Carbon Capture to support sustainable energy. Geothermal and Lithium Extraction: Expanding into renewable resources. Offshore and Onshore Production: Including Offshore Wind and Repurposing Rigs for renewable uses. Industrial Products and Midstream Solutions: Addressing the needs of diverse industries and infrastructure. NOV is also recognized for its expertise in Saltwater Disposal, Service and Repair, and Offshore Construction and Engineering, providing comprehensive lifecycle support for energy projects. This extensive range of capabilities positions NOV as a trusted partner for both traditional and renewable energy solutions, bridging the gap between legacy expertise and future energy needs.

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Texas Account List Marketing Bundle Includes Operators active in the following plays/basins Midland Basin – is one of the two primary basins within the larger Permian Basin, a significant sedimentary basin located in the southwestern United States. The account list includes 167 Oil & Gas Operators. Delaware Basin – spans parts of West Texas and southeastern New Mexico. It is adjacent to the Midland Basin, which is the other primary sub-basin within the Permian Basin. The account list includes 173 Oil & Gas Operators. Eagle Ford Shale – is a significant unconventional oil and gas play located in South Texas, United States. The account list includes 117 Oil & Gas Operators. Haynesville Shale – is a significant oil and natural gas play in the United States, located primarily in the Gulf Coast region, covering parts of Louisiana, Texas, and Arkansas. The account list includes 78 Oil & Gas Operators. https://lnkd.in/gRsXjhN5

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