| Today’s Upstream Updates

• We’re dedicating today’s newsletter to 3 notable deals all announced yesterday, Thursday we’ll return to our normal template….we think!

• Here are the 3 deals with write ups below the Energy Prices

  • TXO Partners (Bob Simpson’s group) enters the Williston

  • Quantum Capital to buy Caerus Oil

  • Kimmeridge buy-out of the founder of Commonweath LNG

| Markets - Energy Prices

Note: pricing is as of time of publishing.

| TXO Partners Enters Williston Basin

• TXO Partners has agreed to acquire assets in the Elm Coulee field in Montana and the Russian Creek field in North Dakota from Eagle Mountain Energy and Kaiser-Francis Oil (Release)

• Transaction value is $243 million cash, plus 2.5 million common units

• Total consideration estimated to be ~$295 million

• TXO Partners is a publicly-traded MLP with assets in the Permian, San Juan Basin and now Williston Basin

• Eagle Mountain Energy is backed by Pearl Energy Investments and acquired the majority of their assets from Enerplus

• Net production of the assets is 4,500 boe/d

• TXO has also commenced a public offering of 5 million common units to help fund the cash portion of the consideration

• Below is a list of recent publicly disclosed Williston Basin transactions:

| Quantum Capital To Acquire Caerus Oil

• Quantum Capital has agreed to buy the Rocky Mountain assets of Caerus Oil in a deal valued at $1.8 billion

• Quantum is buying Caerus from backers Oaktree Capital, Anschutz Investment and Old Ironsides Energy

• Caerus assets consist of more than 7,400 wells in the Piceance Basin and Uinta Basin in Colorado and Utah

• It also has infrastructure including 2,400 miles of gas and water pipelines and a number of water treatment and storage facilities

• Additionally details not disclosed, link to article 

| Kimmeridge Takes Control of Commonweath

• Kimmeridge has bought out Commonweath LNG founder Paul Varello

• Paul announced his retirement with the transaction

• In addition, Kimmeridge has appointed David Lawlor as CEO of Kimmeridge Texas Gas

• Lawlor was previously president of BP America

• Strategy is to become fully integrated provider of LNG from well-head to water

• Commonwealth LNG facility in Cameron Parish, Louisiana anticipates FID in 1H 2025

• Commonweath LNG Link

• Kimmeridge Texas Gas Link

| Monthly Upstream Deals

| Monthly Capital Markets

• IPO Equity 6/17/24 - Tamboran Resources (TBN) launched its initial public offering of 6,500,000 shares of common stock. IPO is expected to price between $24 and $27 per share. Underwriters will have a 30-day option to purchase 975,000 shares at the IPO price, less the underwriting discount. TBN shares will be listed on the NYSE.

• Debt 6/13/2024 - Crescent Energy (CRGY) announced the pricing of $750 million senior notes due 2033. Notes will pay an interest rate of 7.375% per year and were priced at par. Proceeds will be used to fund the cash portion of the consideration of the previously announced merger with SilverBow Resources. Should the merger not happen, CRGY will redeem the notes for their full value and unpaid accrued interest (Link).

• Debt 6/03/2024 - Diversified Energy (DEC) announced it has closed on an ABS refinancing. The $610 million principal notes with net proceeds of $592 million (net of fees, expenses and interest reserve) carry a blended fixed coupon of 7.28%. Proceeds to refinance existing ABS and reduce borrowings on Company RBL. Financing is also part of the Oaktree WI purchase. DEC noted the offering was oversubscribed with over $1.7 billion in orders from 18 investors (Link).

| Partnerships

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Disclaimer - The information provided in this newsletter is for informational purposes only and should not be construed as investment advice. The contents and references herein do not constitute a recommendation to buy, sell, or hold any securities. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions based on the information provided herein. The authors and publisher of this newsletter are not liable for any actions taken by readers based on the information contained herei