Upstream Updates - Tuesday, July 30, 2024

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Upstream Updates
July 30, 2024

| Today’s Upstream Updates

  • Both oil and natural gas sold off yesterday, crude seems to have settled though is near 2-month lows

  • Post Oak Minerals and SandRidge Energy announced transactions yesterday - deal summaries provided below

  • Earnings Today (7/30): CRK amc, NOG amc, OVV amc

| Markets - Energy Prices

Product

Close

$ Change

% Change

WTI Oil

$75.67

-$0.14

-0.18%

Brent Crude

$79.61

-$0.17

-0.21%

HH Natural Gas

$2.061

+$0.025

+1.23%

XOP

$143.34

-$1.81

-1.25%

Note: pricing is as of time of publishing.

| Daily Energy News

  • Oil prices near 2-month low as China concerns weigh (Reuters)

  • Oil and Natural Gas forecast, is more sell off coming (FX Empire)

  • Post Oak Minerals announced a series of Permian deals (Release)

  • Asian LNG imports set for 6-month high in July (OilPrice)

  • Permian Resources announces pricing of its equity offering (Release)

  • Crescent Energy shareholders approve SilverBow merger (Release)

  • Fracing costs to drop 10% this year, Wood MacKenzie (World Oil)

  • Biden administration buys 5 MM bbls for SPR (World Oil)

  • Permian Resources upsizes senior note offering (Release)

  • Why falling US inventories fail to lift oil price (OilPrice)

  • TX crude oil pipelines full to the brim, getting worse (Bloomberg)

  • Why Citi thinks Trump is bearish for oil (OilPrice)

| X (Twitter) Energy - Insightful Posts

  • Copper tight supply impacts refined production (Link)

  • Vitol traders record $6.5 BN payout following profit boom (Link)

| Post Oak Minerals Acquires $475 MM of Deals

  • Post Oak Minerals announced it has completed 10 acquisitions with a total value of over $475 MM since the beginning of 2024

  • Post Oak Minerals is backed by Post Oak Energy Capital

  • Assets include 28,400 net royalty acres (NRA), with 27,400 NRA located in the Permian Basin and the remaining NRA located in the Eagle Ford and Haynesville

  • ~24,000 NRA was acquired from Apache in the Midland Basin with the other sellers being Hunt Oil, family offices and private individuals

  • Following the deals, Post Oak Minerals now manages more than 80,000 NRA with the Permian Basin representing the largest percent

| SandRidge Acquires Western Anadarko Assets

  • SandRidge Energy (SD) has entered into an agreement with Upland Operating to acquire Western Anadarko assets for $144 MM

  • Net production of ~6 Mboe/d (40% oil) and includes 42 producing wells and 4 DUCs scheduled to be turned to production soon

  • Implied production multiple of $24,000/boe/d

  • Acquisition adds inventory of up to 22 two-mile laterals in the Cherokee play in 11 DSUs

  • Joint development of DSUs with a partner who will drill and complete wells and turn operatorship over to SandRidge at production

  • Leasehold is spread across Ellis and Roger Mills Counties, Oklahoma

| 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. Offering was issued to the public at a price of $15.30/share.

  • Debt 7/29/24 - Permian Resources (PR) has upsized its $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.

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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