Jennifer Hiller, Reuters Your browser does not support the audio element.
A decision by OPEC and allied countries to cut crude production through March delivered a late Christmas present for U.S. shale firms that have slashed costs, but any rise in prices spurred by the unexpected move may be just a modest stocking stuffer.
U.S. crude oil production has fallen 2 million bbl/d in the last year as low prices and demand forced shale producers to cut their losses. Investors had already been pressuring the industry to curb spending and boost returns before the pandemic hit. Shale output was quickly cut, but might return quickly if prices keep rising.
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Northern Oil and Gas Inc. expanded its footprint in the Permian Basin during fourth-quarter 2020, the company revealed in a Jan. 7 release.
In the release, the company said it had executed on 11 transactions totaling $8.4 million in the fourth quarter, inclusive of $1.8 million in equity-based consideration which was previously disclosed. Of the 11 transactions, four targeted the Permian and added about 220 net acres to Northern’s footprint in the basin.
“The Permian transactions are noteworthy as the company looks to expand operations and inventory outside of the Williston following its entrance into the Delaware in September,” Tyler Hoge, senior research associate for Enverus, wrote in a Jan. 7 research note.
Earthstone Closes $185.9 Million Acquisition of Warburg-backed Permian Operator
Earthstone Energy completed its cash-and-stock acquisition of Independence Resources Management, a Midland Basin operator backed by Warburg Pincus, previously announced on Dec. 18.
Hart Energy Staff Your browser does not support the audio element.
Earthstone Energy Inc. said Jan. 7 it had completed the acquisition of Independence Resources Management LLC (IRM), a Midland Basin operator backed by Warburg Pincus LLC.
The cash-and-stock transaction, valued at about $185.9 million, is expected to roughly double both Earthstone’s production and adjusted EBITDAX with minimal impact to leverage, said President and CEO Robert J. Anderson in a Dec. 18 release by The Woodlands, Texas-based company announcing the acquisition.
US Energy: ‘The More Ambitious Biden Tries to Be, the More Likely He Is to Fail’
Elected on a promise of a $2 trillion green energy plan, U.S. President-elect Joe Biden’s ambitions could be curtailed by political reality.
Derek Brower, Financial Times
Fri, 01/08/2021 - 03:00 AM
U.S. President-elect Joe Biden said he hoped to “transition from the oil industry” and put clean energy at the center of a $2 trillion green plan to decarbonize American electricity.
(Source: Ron Adar / Shutterstock.com)
The Dunes Sagebrush Lizard did not vote in November’s presidential election, but it had a lot riding on the outcome. In the coming months, the U.S. Fish and Wildlife Service will decide whether to list the lizard as endangered a designation that would make it an offense even to disturb its habitat.
An in-depth analysis shows what went right and what didn’t in 2020 and the game changer that could push each major North American shale basin into prosperity in 2021.