Worth a Share…

Worth a Share…

With all the talk about sending the fossil fuels industry packing in favor of renewables, a reminder is in order of what even one day without oil and gas would look like. No question, fracking and horizontal drilling have led to our nation’s energy independence from rogue characters and, in turn, protects our national security. American energy is the bedrock of virtually every industry, including the manufacture of “green” components like solar panels and wind turbines. You have to look mighty close at the raw materials used to make even the most common household items—from toothbrushes, tires, and athletic shoes, to eyeglasses, clothing, computers, and cell phones—to find one that doesn’t require hydrocarbons to produce. A single day without oil and gas, never mind their position as the dominant fuels to power vehicles, warm/cool homes, cook, and generate electricity, would eliminate hundreds if not thousands of goods and materials we depend on to live, work, and sustain industries. While the combustion engine will one day face its maker, the death of crude oil and natural gas is not as imminent as one might believe.

What do you think?

Visit us at www.ReeseEnergyConsulting.com.

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A TKO Looms in Appalachia

A TKO Looms in Appalachia

In what could be a stunning one-two punch, Pittsburgh-based natural gas giant EQT looks to score two big prizes that would mark CEO Toby Rice’s first deals since being named to his post in July last year. The 38-year-old Rice already presides over the largest supplier of natural gas in the nation. With more than 1 million gross acres in the Marcellus and Utica, EQT is the undeniable juggernaut in Appalachia producing 4.1 BCFD and holding 15.1 TCF of proved reserves. Reese Energy Consulting today is following the latest news from EQT, which has announced it will acquire Chevron’s upstream and midstream assets in the Appalachian Basin for $735 million. EQT’s first offer was $750 million. The bolt-on deal includes 335,000 net acres in the Marcellus, 100 wells, a 31% interest in Laurel Mountain Midstream, and two water systems. Current net production is 450 MMCFD. But wait, there’s more. EQT also has made a takeover offer for CNX Resources that would make EQT the largest price setter in the region. With a market cap of $2.6 billion, CNX produces 1.38 BCFD. Can’t wait to watch this prize fight.

EQT

EQT Corporation is a company engaged in hydrocarbon exploration and pipeline transport. It is headquartered in EQT Plaza in Pittsburgh, Pennsylvania.

www.eqt.com

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Learn more about our natural gas services at www.ReeseEnergyConsulting.com.

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A Contango Fandango?

A Contango Fandango?

In its figurative term, “fandango” is a synonym to describe a “brilliant exploit.” For Houston-based Contango Oil and Gas, that may well sum up its rationale to scoop up Tulsa-based Mid-Con Energy in an all stock merger valued at $400 million. Reese Energy Consulting today is following the latest news from Contango, which will assume ownership of Mid-Con’s assets in Okla., and Wyo., after replacing Mid-Con as the operator of those assets in July. The deal is expected to close by early 2021, and pairs an E&P with a stated goal of “consolidating a sector that is in dire need of it” with another that offers high-value, low-decline oil and gas properties but has financially struggled. Mid-Con issued a “going concern” in August and posted an $11.9 million loss in 2Q. Contango also has reported a private-equity capital raise of $39.7 million from the sale of 26,451,988 shares of common stock to fund the Mid-Con acquisition. The company says it will relocate its headquarters to the DFW area. Contango’s onshore operations include 7,719 net acres primarily in Texas and Okla.

 

Contango Oil and Gas

Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company whose business is to maximize production and cash flow from its offshore properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana and Wyoming and, when determined appropriate, to use that cash flow to explore, develop, and increase production from its existing properties, to acquire additional PDP-heavy crude oil and natural gas properties or to pay down debt.

contango.com

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Learn more about Reese Energy Consulting and our A&D services at www.ReeseEnergyConsulting.com.

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We Heard It Through the Pipeline

We Heard It Through the Pipeline

The state of Texas lays claim to the nation’s largest pipeline infrastructure at 479,798 miles. As a point of comparison, the circumference of Earth is about 24,901 miles. This means the amount of pipe sprawled beneath the surface of the Lone Star State alone could wrap around the globe more than 19 times. Those of us who run in midstream circles love sharing these kinds of impressive stats with friends and neighbors who try and picture just exactly how immense our national pipeline system really is. But in Texas, where everything is bigger right down to the chicken-fried steak, pipelines wear the coveted crown. Reese Energy Consulting today is studying the new updated report from the Texas Pipeline Association, which outlines the extraordinary economic benefits Texas pipelines generated in 2019. In short, of the 1,458 operators there contributing to $48.6 billion in overall economic impact, pipeline operations and construction accounted for 238,000+ high-paying jobs, $29.3 billion in gross state product, and an added infusion of $2.7+ billion in government revenues. We’re having a moment now.

What do you think?

Learn more about REC and our midstream services at www.ReeseEnergyConsulting.com.

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