| Current Commodity Prices

Note: pricing is as of time of publishing.

| News - The Daily Reservoir Roundup

• OPEC remains optimistic about global oil demand (Link)

• IEA trims 2024 oil demand growth forecast (Link)

• Oil prices rise on US inventories drawdown expectations (Link)

• China LNG imports could hit record levels in 2024 (Link)

• Chevron tops Tesla as most shorted stock in April (Link)

• EIA cuts WTI oil price forecast for 2024 and 2025 (Link)

• Vital Energy and 42 horseshoe wells in the Permian (Link)

• Mineral market continues to grow, but consolidation needed (Link)

• Battalion Oil (BATL) raises $19.5 mm in preferred equity (Link)

• US LNG export capacity forecast to rise 80% by 2028 (Link)

• EVs lose market share in US as sales decline (Link)

• Biden moves ahead on new tariff hikes for Chinese goods (Link)

• Russia discovers massive oil and gas reserves in British Antarctic (Link)

| Best of Energy X (Twitter)

• Open AI releases GPT-4o yesterday and breaks the internet (Link)

• LNG feedstock at Freeport continues to increase (Link)

• BofA: electricity inflation at a 40-yr high (Link)

• Exxon make new oil discovery Angola’s Block-15 (Link)

• History of E&P companies profit margins (Link)

• Thieves steal cables from Tesla charging stations (Link)

| Recent Upstream Deals

• Warwick Investment Group has agreed to a $150 MM joint development agreement in the core Delaware Basin with a private Dallas-based operator (Link) (5/14/24).

• Pioneer Natural Resources (PXD) has divested Midland Basin assets located primarily in Regan County. No transaction or buyer were disclosed. Assets consisted of net production of 96 boe/d, 6,400 net acres and most leases covered all depths (5/10/24)

• Riley Permian (REPX) has acquired northwest shield asset for $20.5 MM. Assets consist of 1.1 Mboe/d net production and 13,900 net acres in Eddy County, New Mexico. Leasehold is adjacent to their existing assets in the area (5/08/2024).

• Permian Resources (PR) has acquired Delaware Basin assets in New Mexico and Texas from an undisclosed seller. Purchase price of $195 MM with the assets consisting of net production of 3.5 Mboe/d, 11,200 net acres and 4,500 net royalty acres. Includes 110 gross operated locations (5/07/2024).

• Dara Energy has acquired assets in Kentucky, Tennessee and Texas from Vinland Energy. Price and asset details not disclosed. Dara describes the assets as low decline, long-lived production wells.

• IOG Resources has agreed to acquire DJ Basin assets in Colorado from Civitas Resources (CIVI), assets are located in Weld County and include current net production of 4.7 Mboe/d and ~1,480 developed and undeveloped wellbores primarily operated by Oxy and Chevron. No transaction value reported (5/06/2024).

| Upstream in the Capital Markets

• Equity 5/14/24 - Magnolia Oil & Gas (MGY) reported affiliates of EnerVest agreed to sell 12,000,000 shares of class A common stock in an unregistered secondary block trade. MGY did not sell any class A shares in the block trade nor received any proceeds. Additionally, MGY agreed to purchase from EnerVest 3,000,000 shares of class B common stock at a price per share equal to that received in the class A block trade. (Link)

• Equity 5/13/24 - Permian Resources (PR) announced the pricing of 51,765,000 shares of Class A common stock at a price of $16.47 per share for affiliates of EnCap, NGP, Pearl Energy and Riverstone. Offering is a secondary public offering with Permian Resources not receiving any proceed nor selling any shares. Concurrently with the closing, PR agreed to purchase from certain of the Selling Stockholders 1,800,000 common units representing limited liability company interests in Permian Resources Operating, LLC at the same prices as the secondary offering. (Link)

• Notes 4/16/24 - Sunoco LP (SUN) priced its private senior notes due 2029 offering at 100% or 7.00% for an aggregate principal amount of $750 million. Additionally, it priced senior notes due 2032 at 7.25% for an aggregate principal amount of $750 million. Notes were issued in part of the Sunoco and NuStar merger (Link)

• Notes 4/09/24 - Diamondback Energy, Inc (FANG) issues the following notes: (1) $850 MM senior note with a coupon of 5.20% due 2027 and priced at 99.956%, (2) $850 MM senior note with a coupon of 5.150% due 2030 and priced at 99.83%, (3) $1,300 MM senior note with a coupon of 5.40% due 2034 and priced at 99.679%, (4) $1,500 MM senior note with a coupon of 5.75% due 2054 and priced at 99.957%, (5) and $1,000 MM senior notes with a coupon of 5.90% due 2064 and priced at 99.954%. (Link)

| Q1-2024 Upstream Earnings Releases and Presentations - Active Links

| Upcoming Upstream Earnings

• August 4, 2024

  • Shell Q2-2024 earnings release

| Partnerships

• Interested in promoting your business to my network? Advertise in Upstream Updates by contacting us today at [email protected]. 

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 author and publisher of this newsletter are not liable for any actions taken by readers based on the information contained here