| Today’s Upstream Updates (details below)

• Oil prices steady as US crude demand offsets rate concerns

• Natural gas prices trade off on cooler weather

• May has been an active month for oil & gas deal making

| Markets - Energy Prices

Note: pricing is as of time of publishing.

| Deal Review - Aethon Energy to acquire the upstream assets of Tellurian

• Potentially lost in the shuffle of the COP-MRO deal announcement!

• Overview

  • Aethon Energy has agreed to acquire the integrated upstream assets of Tellurian

  • The companies also agreed to a Heads of Agreement for Aethon to purchase two million tons per annum of LNG from Tellurian’s Driftwood LNG plant

• Deal terms:

  • Cash purchase for $260 Million

  • 31,000 net acres in the Haynesville and Bossier plays

  • Gathering and treating systems with capacity of 100 MMcf/d

  • Heads of Agreement for 20-years indexed to Henry Hub plus a liquefaction fee

  • Net production ~170 MMcfe/d (est.)

  • ~400 gross drilling locations

  • Closing in second quarter

• Implied Deal Metrics

  • ~$1,500 Mcfe/d (note - net production is estimated)

• Background

  • Tellurian entered the Haynesville through two key acquisitions

  • 2017 acquired assets from Rockcliff Energy for $85 Million

  • 2022 acquired assets from EnSight Energy for $125 Million

| Morning News - Energy

• Oil prices steady as US crude demand offset rate concerns (Reuters)

• Natural gas futures decline amid cooler weather, production boost (NGI)

• Double Eagle to explore sale of its Permian assets, $6.5 BN (Reuters)

• Catalysts behind oil industry consolidation (Yahoo)

• Diversified Energy to join Russell 2000 index (Release)

• Exxon suit threatens to silence shareholders Calpers says (Yahoo)

• White House to support new nuclear power plants (CNBC)

• Tipping point approaching Permian Basin (Oilprice.com)

• Guyana becomes key contributor to global crude oil supply (EIA)

• California suspends natural gas bans on new buildings (Planetizen)

• Asian imports hit 12-month high driven by India (Reuters)

• US crude inventories fall 6.5MM barrels last week (Investing.com)

• Regulator seeks new emissions data from Venture Global LNG (Reuters)

| Noteworthy from Energy X (Twitter)

• Japanese auto makers to develop new ICE that can combine with electrical motors to produce next-generation hybrid electric vehicles (HEVs) (Link)

• US imports of biodiesel have doubled (Link)

| Transactions - Monthly Upstream Deals

| Capital Markets - Energy Debt & Equity

• Debt 5/22/2024 - Cheniere Energy (LNG) completed a private placement of $1.2 BN senior secured notes. Notes carry an interest rate equal to 5.75% and mature in 2034 (Link).

• Debt 5/21/2024 - California Resources Corp (CRC) announced the pricing and upsized private offering of $600 MM in 8.25% senior unsecured notes due 2029. CRC estimates the net proceeds will be approximately $590 MM after purchaser’s discount and expenses indicating a 98% discount. New notes will be used to repay the existing indebtedness of Aera Energy, LLC in connection with the pending business combination (Link).

• Equity 5/15/24 - Civitas Resources (CIVI) announced a secondary public offering by an affiliate of Canada Pension Plan Investment Board (CPPIB). Offering is for 6,956,520 shares of common stock at a price to the public of $73.80 per share (~4% discount). CIVI will not receive any proceeds from the offering. Underwriters will offer the shares from time to time and have a 30-day option to purchase up to an additional 1,043,478 shares (Link).

• 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)

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