Upstream Updates - Friday, July 26, 2024

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Upstream Updates
July 26, 2024

| Today’s Upstream Updates

  • Energy Debt Capital Markets

    • SM Energy earlier this month was in the market for $650 MM in senior notes and saw such strong demand, they upsized their offering by $100 MM to $750 MM - details below

    • Oxy this week has been in the market on $5 BN in aggregate senior notes. Offering was received well in the market achieving minimal market discounts of less than 50 bps - details below

    • If we are running an energy business and seeing this strong market response……speed dial the bankers!

| Markets - Energy Prices

Product

Close

$ Change

% Change

WTI Oil

$77.83

-$0.45

-0.57%

Brent Crude

$81.90

-$0.47

-0.57%

HH Natural Gas

$2.034

-$0.007

-0.34%

XOP

$144.39

+$1.81

+1.27%

Note: pricing is as of time of publishing.

| Daily Energy News

  • Oil prices set for third weekly decline (FX Empire)

  • Weekly natural gas storage report +22 Bcf (EIA)

  • Oxy in advance talks to sell Barilla Draw assets (Reuters)

  • After shutting down Wed, Freeport LNG back yesterday (Boe Report)

  • US boost nat gas power as wind slumps to 33-month low (OilPrice)

  • Permitting reform is important to energy leadership (World Oil)

  • Venezuela has a natural gas problem (OilPrice)

  • TotalEnergies working on another Texas acquisition (Reuters)

  • Trump wants to bring energy prices down (Yahoo Finance)

  • Natural gas initiatives qualify for WA ballot (Seattle Times)

  • CNX touts deep Utica wells results (Hart Energy)

  • Exxon signs carbon capture deal with CF Industries (OilPrice)

| X (Twitter) Energy - Insightful Posts

  • 1 In 10 people don’t have access to reliable energy (Link)

  • Copper prices continue to drop after run-up (Link)

  • Chart - US oil production (Link)

| Upstream Earnings - Releases & Presentations

| Monthly Upstream Deals

| Monthly Capital Markets Activity

  • Debt 7/25/24 - Oxy Petroleum (OXY) offered $600 MM senior notes, 5.00% due 2027, $1,200 MM senior notes, 5.20% due 2029, $1,000 MM senior notes, 5.375% due 2032, $1,200 MM senior notes, 5.55% due 2034 and $1,000 MM senior notes, 6.05% due 2054 for aggregate total of $5,000 MM. Notes are offers as part of Oxy’s acquisition of the CrownRock permian assets.

  • Debt 7/18/24 - SM Energy (SM) announced it has upsized its private debt placement from $1.3 billion to $1.5 billion. Offering is for $750 MM, 6.75% senior note due 2029 and $750 MM, 7.00% senior notes due 2032. SM will use the proceeds to fund the purchase of its XCL acquisition and to redeem its 5.625% Notes due 2025. The 2029 notes will only be issued if the XCL acquisition is consummated.

| 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