Gas Gets its Moment in the Sun

Gas Gets its Moment in the Sun

Natural gas is enjoying a spectacular moment as prices inch closer to the $4 mark–and, boy, are we in our element. Call it a celestial event of sorts when all the planets perfectly align, particularly in the Haynesville gas basin. The Reese Energy Consulting team is all hands on deck right now for our Haynesville clients, who continue to rev up drilling and well completions there to satisfy LNG’s appetite on the Gulf Coast. Let’s review this Haynesville constellation: Gas production this month surpassed 13 BCFD vs 11 BCFD last July. Feed gas demand from the Gulf’s four LNG terminals now averages 9.35 BCFD—more than three times the 3 BCFD in 2020. Fifty well completions and 99 new wells were drilled in May and June. The rig count is close to doubling from 2020—now at 55 vs 31 last May. On the midstream side, expanded pipeline infrastructure now offers more producer access to premium markets, enabling Haynesville production to grow unconstrained to about 14.3 BCFD which it’s expected to reach by year end. A starry turnabout to be sure.

What do you think? Learn more about REC and our natural gas marketing and contract audit expertise at www.ReeseEnergyConsulting.com.

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Landing the Eagle

Landing the Eagle

After securing more than $1 billion in financing two years ago to acquire and exploit underdeveloped oil and gas assets, Houston-based newcomer Wildfire Energy has landed its first smokin’ hot deal—this one in the Eagle Ford. Reese Energy Consulting today is following the latest news from Wildfire which will purchase Denver-based Hawkwood Energy in agreements valued at $650 million. Hawkwood shareholders will retain a 50% equity interest in Wildfire with the other 50% held by Wildfire’s management team and capital backer Kayne Anderson. Hawkwood operates 170,000 contiguous net acres in the Eagle Ford, including more than 375 wells, 19 MBOED in production, and 750+ future net locations. Founded in 2012, the company shifted focus two years later to East Texas, accumulating Eagle Ford assets in 30 transactions that also included the 2017 acquisition of Halćon Resources’ EF subsidiaries. That deal gifted Hardwood 81,000 net acres, 170 wells, and 9+ MBOED.

What do you think? Learn more about Reese Energy Consulting and our energy services at www.ReeseEnergyConsulting.com.​

Wildfire Energy

WildFire Energy is an independent energy company focused on the acquisition, exploitation, and production of oil and natural gas properties in the United States through the application of modern technology and production optimization. The company is led by Chief Executive Officer Anthony Bahr, the former President of WildHorse Resource Development, and President & Chief Operating Officer, Steve Habachy, former Chief Operating Officer of WildHorse Resource Development. WildFire Energy is funded by management, Warburg Pincus, and the Kayne Private Energy Income Funds platform.

www.wildfire-energy.com

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Howdy, Pardner

Howdy, Pardner

Tulsa pipeline giant Williams earlier this year made it crystal clear that the company was in search of “the right partner” to operate its newly acquired upstream assets in Wyo.’s Green River Basin. The strategy was equally transparent: Quickly develop those high-valued properties in the gas-rich Wamsutter Field and transition them into fee-based “customers” for Williams’ Western midstream infrastructure. Looks like they found that partner. Reese Energy Consulting today is following the latest news from Williams, which has formed a new joint venture with Denver-based Crowheart Energy. Pure player Crowheart owns 165,000 acres of leasehold across the Wamsutter where it operates more than 650 wells. Williams’ upstream assets there include two properties the company purchased from BP and Southland Royalty. The joint venture will consolidate all three operating assets into one contiguous footprint that spans 1.2+ million acres, 3,500+ operating wells, and 3,000+ potential development locations. Williams operates 3,700 miles of natural gas and NGLs pipelines in Wyo., as well as two gas processing plants.

What do you think? Learn more about REC’s natural gas services at www.ReeseEnergyConsulting.com.

The Williams Companies

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets. A Fortune 500 company, its common stock is a component of the S&P 500.

www.williams.com

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