Upstream Updates - Monday, July 1, 2024

| Today’s Upstream Updates

• Oil prices trade higher on summer demand hopes

• Natural gas prices run into some negative pressures and trade down

• Newsletter Note - beginning tomorrow, we plan to reset our monthly deal tracker and capital markets summaries

| Markets - Energy Prices

Note: pricing is as of time of publishing.

| Morning News - Energy 

• Repsol explores sale of minority interest in South Texas (Reuters)

• LandBridge announces pricing of IPO and private placement (Release)

• US drillers cut rigs for the fourth consecutive week (BOE Report)

• Laredo Oil subsidiary begins drilling Midfork Field in MT (Release)

• Iowa regulars approve massive CO2 pipeline (EE News)

• Aramco awards over $25 BN in contracts for gas expansion (World Oil)

• Exxon bets on lithium to complement its legacy business (OilPrice)

• Harnessing AI in the oil industry (Linkedin Article)

• Guyana boom fosters ex-pat entrepreneurs (Bloomberg)

• Sumitomo seeks US Shale oil service business (OilPrice)

| X (Twitter) Energy - Insightful Posts 

• BofA - largest outflow from energy funds sine March 2023 (Link)

• China adding solar even faster than last year - chart (Link)

• Argentina CPI continues to moderate (Link)

| June Monthly Upstream Deals 

| June Capital Markets Activity

• IPO Equity 6/27/24 - LandBridge Company (LB) priced its initial public offering of 14,500,000 class A shares at a price to the public of $17.00/share. Underwriters have been given a 30-day option to purchase up to 2,175,000 class A shares at the public offering price. Concurrent with the IPO, LB has agreed to sell 750,000 class A shares at a price of $17/share to an accredited investor. Net proceeds, before any underwriter purchases, are expected to be $236.1 million.

• Update - IPO Equity 6/27/24 - Tamboran Resources (TBN) priced its initial public offering of 3,125,000 shares of common stock at the low end of its range at $24/share. Gross proceeds raised of $75 million. Underwriters will have a 30-day option to purchase 468,750 shares at the IPO price, less the underwriting discount. TBN shares are listed on the NYSE

• Secondary Equity Offering 6/26/24 - TXO Partners (TXO) announced it has priced and upsized its common units offering. TXO offered 6,500,000 units, upsized from 5,000,000, at a price of $20/unit to the market. This represents a slight discount to the at the market price of around ~$20.50/unit. Underwriters have the option to purchase an additional 975,000 units. Total net proceeds expected to be $122.5 MM and will be used to help fund the cash portion of its recently announced acquisition of Williston Basin assets

• 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).

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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