Cue the (Consolidation) Queue

Cue the (Consolidation) Queue

With the ink barely dry on news that ConocoPhillips and Concho resources will marry in an all-stock deal valued at $9.7 billion, two more shale producers are in line to exchange vows. Reese Energy Consulting today is following reports that Texas-based Pioneer Natural Resources and Parsley Energy may soon tie the knot in another multi-billion-dollar transfer of ownership in the Permian. The coupling would create a $10 billion operator with combined production of more than 550,000 BPD. Dallas-based Pioneer is currently the largest acreage holder in the Cline Shale, part of the Permian’s Spraberry Trend in the Midland sub-basin, with more than 680,000 highly contiguous net acres. Following the sale last year of assets in the Eagle Ford and South Texas, Pioneer has put all its chips “on the best part” of the Midland. Permian-focused Parsley, whose CEO ranks as the youngest in the industry at age 36 and who previously worked for Pioneer, operates in both the Midland and Delaware. With a market value of about $4 billion, Parsley carries more than $3 billion in debt.

 

Pioneer Natural Resources

Pioneer Natural Resources Company is a company engaged in hydrocarbon exploration in the Cline Shale, which is part of the Spraberry Trend of the Permian Basin, where the company is the largest acreage holder. The company is organized in Delaware and headquartered in Irving, Texas.

www.pxd.com

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Learn more about REC and our range of upstream, midstream, and downstream services at www.ReeseEnergyConsulting.com.

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Opportunities to the Max

Opportunities to the Max

Houston-based Max Midstream has every intention to transform the Port of Calhoun into a major crude oil export center. With $1 billion worth of plans in motion, Max recently has acquired the Seahawk Pipeline and Terminal from private equity firm Oaktree Capital with a big, bold idea to offer shippers a more economical, less congested alternative to export sites at Houston/Galveston and Corpus Christi. The newly acquired pipeline connects the Kinder Morgan Crude and Condensate Interconnect in Edna, Texas, where Max also operates a crude oil terminal, to the Seahawk Terminal. Following construction of a new pipeline and added interconnects, Seahawk will flow up to 20 million barrels of Permian and Eagle Ford crude each month to a completely revitalized terminal system that includes its Edna site by 2023. Storage will increase to 9 million Bbls at Edna and 6 million Bbls at Seahawk. Max also is investing $360 million to widen and deepen the Port to accommodate Aframax and Suezmax ships. Phase 1 of the project is slated for completion in November.

Max Midstream

Max Midstream bridges the gap between upstream and downstream with strategic partnerships in the global refining sector. From the wellhead to Gulf, they deliver consistent quality crude oil quickly and efficiently, saving both time and money. Their high-capacity network of pipelines, storage and terminal facilities offer a seamless, one-stop solution for premium midstream operations.

maxmidstream.com

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Learn more about Reese Energy Consulting and our range of oil and gas midstream services at www.ReeseEnergyConsulting.com.

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Fall Harvest

Fall Harvest

Way to celebrate arrival of the autumnal equinox. Reese Energy Consulting today is following the latest achievements by Houston-based Harvest Midstream, which has just announced commissioning of two new connections between the company’s Ingleside Pipeline and two crude oil terminals operated by Moda Midstream. The first connection will provide access to Moda’s Ingleside Energy Center. The second, bi-directional connection will enable receipt and delivery of supplies from Moda’s Taft Terminal. The pipeline also transports volumes to the Flint Hills Terminal, so this makes three. Harvest completed the 24-mile, 600,000 BPD Ingleside Pipeline in June, which originates at the company’s soon-to-be-operational Midway Terminal now slated to rock and roll Oct. 1. Roughly 380,000 BPD of crude will be sourced from Harvest’s existing Eagle Ford gathering systems. As one of the nation’s largest privately held midstreamers, Harvest operates a sprawling network of crude and gas gathering systems, storage, processing and treatment plants, and terminal assets across the Lower 48 and Alaska.

Harvest Midstream

Harvest Midstream is an entrepreneurial, privately-held midstream service provider headquartered in Houston, Texas. Harvest Midstream safely and responsibly transports and processes oil, natural gas and natural gas liquids across the United States.

www.harvestmidstream.com

​What do you think?

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

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Joint Ventures Ramp Up Activity

Joint Ventures Ramp Up Activity

​Good news from the nation’s midstream sector is a welcome respite in this uncertain time, and joint ventures between operators who offer individual strengths and share common growth strategies just make sense, maybe now more than ever. Here’s a shoutout to the JVs currently making some positive noise in the midstream space.

Open Season for San Mateo’s Pipeline Expansion Project

Formed in 2017, Dallas-based San Mateo Midstream is a joint venture between subsidiaries of Matador Resources and Five Point Energy. The JV now has announced a binding open season beginning August 7 on a proposed 19-mile expansion of the 19-mile San Mateo Black River oil pipeline system in Eddy County, N.M. The project will expand the system further north in Eddy with startup operations expected this Fall. San Mateo’s open season will conclude September 6. San Mateo owns and operates crude oil, natural gas, and water gathering and transportation systems in Eddy County and Loving County, Texas, including the Black River Processing Plant in Eddy with an inlet capacity of 260 MMCFD.

WhiteWater, MPLX, and West Texas Gas Join Forces

Back in Austin, WhiteWater Midstream, Marathon’s MPLX, and West Texas Gas (WTG) have formed a new joint venture to provide NGLs takeaway capacity from two gas processing plants in the Permian to the NGL fractionation hub in Sweeny, Texas. The processing facilities are owned by MPLX and WTG. The project will leverage existing infrastructure with limited initial construction and is supported by top-tier Permian producers. The JV also has entered into an agreement to purchase an undivided joint interest in EPIC’s 700-mile Y-Grade NGL pipeline that extends from West Texas to the Eagle Ford. EPIC recently announced commercial service on its first greenfield fractionator in Robstown, Texas.

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