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- Upstream Updates - Wednesday, July 10, 2024
Upstream Updates - Wednesday, July 10, 2024
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Upstream Updates
July 10, 2024
| Today’s Upstream Updates
Oil prices holding firm as OPEC keeps demand forecasts unchanged
Natural Gas prices steady as heatwave continues to loom
A&D News - Diversified Energy announced it was acquiring East Texas assets adjacent to its exiting operations for $106 million from Crescent Pass Energy (write up below)
| Markets - Energy Prices
Product | Close | $ Change | % Change |
|---|---|---|---|
WTI Oil | $81.48 | -$0.85 | -1.0% |
Brent Crude | $84.72 | -$1.04 | -1.2% |
HH Natural Gas | $2.34 | -0.02 | -0.9% |
XOP | $142.57 | -$0.07 | -0.05% |
Note: pricing is as of time of publishing.
| Morning News - Energy
BP releases its 2024 Energy Outlook Report (Release)
OPEC sticks to 2024 demand forecast (Reuters)
Countries increase coal dependency despite pledges (OilPrice)
Utah approves Enbridge natural gas rate cut (KSL)
Aramco raises $12.35 BN after upping share sale (Reuters)
Oxy strikes carbon credit deal with Microsoft (Release)
Phasing out oil & gas? How realistic? (Fortune)
BPX expands its US shale game (Hart Energy)
Honeywell to buy Air Products LNG business (Release)
Petrochemicals is big oil’s next profit hedge (OilPrice)
| X (Twitter) Energy - Insightful Posts
| Diversified Energy Acquires East Texas Assets
Diversified (DEC) announced this morning it has entered into an agreement to acquire East Texas gas assets adjacent to its existing operations
Deal is valued at $106 MM and will be financed through the issuance of 2.4 million new US dollar-denominated shares to the seller
Seller is Crescent Pass Energy which is backed by Talara Capital
Asset Overview
Net production - 38 MMcfe/d
Annual decline of 9%
Net purchase price equivalent to PV-20
92% gas-weighted production
NTM EBITDA - $26 million
PDP-10 - $155 million
Deal Metrics
Production multiple ($/Mcfe/d) = ~$2,800
Cash flow multiple = 4.1x
PDP PV-10 multiple = 0.7x
| July Capital Markets Activity
Pending
| 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