Upstream Updates - Monday, July 29, 2024

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Upstream Updates
July 29, 2024

| Today’s Upstream Updates

  • Deal Monday is back!

  • Vital Energy and Northern Oil & Gas announced they are jointly acquiring the Delaware Basin assets of Point Energy for $1.1 BN - deal write up below

  • Permian Resources announced it is buying the Barilla Draw assets from Oxy for $817.5 MM - deal write up below

  • Earnings Today (7/29): CHK amc

| Markets - Energy Prices

Product

Close

$ Change

% Change

WTI Oil

$76.68

-$0.47

-0.61%

Brent Crude

$80.68

-$0.45

-0.55%

HH Natural Gas

$1.984

-$0.022

-1.10%

XOP

$145.15

+$0.76

+0.53%

Note: pricing is as of time of publishing.

| Daily Energy News

  • Oil prices stable after Golan Heights attack (Reuters)

  • US facing energy crunch due to AI’s insatiable demand (OilPrice)

  • Kamala backs off fracing ban amid criticism (World Oil)

  • Natural gas power hits all-time high in July (Power Engineer)

  • The US with the cleanest power grid (OilPrice)

  • Zephyr Energy reports good Paradox Basin well results (World Oil)

  • US may calibrate Venezuela sanctions post-election (BOE Report)

  • Baker Hughes sees lower North America activity (Reuters)

  • Residents fight Civitas drilling plan near Aurora Reservoir (CO News)

| X (Twitter) Energy - Insightful Posts

  • Chart - US days of supply of crude oil (Link)

  • Chart - growth projections of Energy Transition minerals (Link)

| Vital Energy and NOG Make Another Acquisition

  • Vital Energy and Northern Oil & Gas have agreed to acquire the Delaware Basin assets of Point Energy for $1.1 BN

  • Vital will acquire 80% and NOG will acquire 20%

  • Transaction is an all-cash deal

Transaction Map

| Permian Resources Buys Assets From Oxy

  • Permian Resources has agreed to acquire the Barilla Draw Delaware Basin assets from Oxy for $818 MM

  • Along with the deal, Permian Resources has initiated a $750 MM private placement of senior notes and a 26.5 MM common share offering

  • Net proceeds will be used to fund a portion of the acquisitions

Transaction Map

| Upstream Earnings - Releases & Presentations

| Monthly Upstream Deals

| Monthly Capital Markets Activity

  • Equity 7/29/24 - Permian Resources (PR) announced it has commenced a public offering of 26,500,000 shares of Class A Common Stock. Company plans to use a portion of the proceeds to fund the Barilla Draw acquisition.

  • Debt 7/29/24 - Permian Resources (PR) is offering $750 MM senior notes in a private placement, notes are due 2033. Pricing not yet announced. Proceeds will be used to redeem the 7.75% Senior Notes due 2026 and to fund a portion of the Barilla Draw acquisition.

  • 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