All articles tagged with #permian basin
U.S. active drilling rigs fell to 550 this week (down 43 YoY), with oil rigs at 407 and gas rigs at 134. Weekly crude production slipped 33,000 bpd to 13.702 million bpd. In the Permian, rigs rose by 1 to 240 while Eagle Ford kept at 40. Oil prices advanced ahead of the data, with Brent around $72.49/b and WTI near $66.61, helping explain the pause in drilling.
Devon Energy and Coterra Energy announced an all-stock $58 billion merger to form a larger Permian-focused shale producer, with Devon owning about 54% of the combined company. The deal values equity at roughly $21.4 billion and would yield pro forma 2025 production above 1.6 million boe/d, centered in the Delaware Basin. The merged entity will be based in Houston, with Devon CEO Clay Gaspar leading and Coterra CEO Tom Jorden as non-executive chairman; closing is expected in Q2 2026.
Trump’s pledge to push oil prices to $50 a barrel could dent Texas oil production and shrink tax revenue, threatening jobs and local budgets in oil-heavy regions like the Permian Basin. Analysts say there would be winners and losers: producers may cut output and capital spending to survive, even as cheaper gas hits consumers in the short term; long‑term regional economies could face volatility. Texas needs about $62 per barrel to cover drilling costs, so a drop to $50 would squeeze profits and could trigger layoffs and lower local government revenue.
SM Energy and Civitas Resources are merging in an all-stock deal to form a $13 billion oil and gas company focused on the Permian Basin, making it one of the top 10 independent US oil producers, with the deal expected to close in early 2026.
Crescent Energy is acquiring Vital Energy in a $3.1 billion all-stock deal to strengthen its position in the Permian shale basin, with plans to improve its scale and attract investors, despite some concerns over valuation and stock performance.
Chevron has shifted from aggressive growth in U.S. shale to focusing on profitability and efficiency, leveraging scale and technology to turn shale into a cash-generating asset, while expanding internationally through acquisitions like Hess and offshore projects in Guyana, aiming to stabilize U.S. production and prioritize shareholder returns.
New Era Helium is advancing its AI infrastructure plans in the Permian Basin through its joint venture Texas Critical Data Centers, which is in active discussions with large enterprise customers and seeking land for expansion. The company is also adding new board members with expertise in energy, infrastructure, and digital innovation to support its growth strategy, aiming to leverage local energy resources to meet rising AI computing demands.
Chevron plans to slow its production growth in the Permian Basin, the largest US oil field, signaling a challenge to President-elect Donald Trump's goal of increasing American energy output. The company will reduce capital expenditures in the region by up to 10% in 2025, focusing on free cash flow over production growth. This move is expected to benefit OPEC as it struggles with a global oil glut. Despite the slowdown, Chevron aims to continue increasing production, albeit at a reduced rate, as it approaches its target of one million barrels a day.
Chevron announced it will reduce its capital spending for 2025 to $14.5bn-$15.5bn, marking the first cut since the pandemic-induced oil crash. This decision comes amid concerns of global oil oversupply and contrasts with President Trump's push for increased US energy production. Chevron plans to focus on high-return, lower-carbon projects and will continue to invest in the Permian Basin, albeit with reduced production growth. The company also plans significant cost-cutting measures, including a restructuring charge and asset impairments.
Occidental Petroleum Corporation is set to release its fourth-quarter 2023 earnings on Feb 14, with expectations of a boost from its Permian Basin assets and ongoing share repurchases. However, increased domestic operation expenses may have impacted margins. The company's total production and revenue estimates suggest a decline from the previous year. Occidental is predicted to beat earnings this quarter, and investors may also consider Energy Transfer LP, Constellation Energy Corporation, and ONEOK Inc. for potential earnings surprises in the energy sector.
Diamondback Energy, Inc. (FANG) and Endeavor Energy Resources, L.P. have agreed to merge in a $26 billion deal, creating a dominant player in the U.S. shale oil industry with significant scale and production capacity in the Permian Basin. The merger is expected to result in annual synergies of $550 million and is set to be completed in the fourth quarter of 2024, subject to regulatory approvals. The combined company aims for sustained growth, enhanced operational efficiency, and cash flow generation, with a focus on delivering value to shareholders and maintaining an investment-grade balance sheet.
Diamondback Energy has announced a $26 billion deal to acquire Endeavor Energy Resources, creating a leading producer in the Permian Basin, following similar moves by ExxonMobil and Occidental Petroleum. The merger is expected to result in significant cost savings and increased free cash flow, driving financial accretion for Diamondback. This consolidation trend in the oil industry is likely to prompt further mergers and acquisitions as companies seek to capitalize on scale advantages and enhance their growth profiles.
Autry Stephens, an 85-year-old raised by peanut-and-melon farmers, is set to become America’s richest oil tycoon with a net worth of $25.9 billion after agreeing to sell his company, Endeavor Energy Resources LP, to Diamondback Energy Inc. for $26 billion. Stephens, who founded the company in 1979, has built a fortune by acquiring drilling rights in the Permian Basin and maintaining a cash-based strategy. The sale terms allow Stephens and his family to retain a significant stake in the combined company, and he trusts the leadership of Diamondback to continue the company's ethos and maintain operations in Midland.
Diamondback Energy's $26 billion acquisition of Endeavor Energy in the Permian Basin reflects a trend of rapid consolidation in the region as oil and gas companies seek to expand their domestic acreage. The deal, which would make Diamondback the third-largest producer in the Permian Basin, comes amid a lack of reinvestment in inventory over the past decade. The consolidation is driven by the need to lower operating costs due to an oversupply of associated gas, and it is expected to shift more supply market control to larger players.
Diamondback Energy has announced a $26 billion cash-and-stock deal to acquire Endeavor Energy Partners, solidifying its position as the third-largest oil and gas producer in the Permian Basin. The consolidation trend in the industry continues, with the combined company expected to pump 816,000 barrels of oil and gas per day. The deal is aimed at boosting ongoing production and securing future drilling inventory, with Diamondback expecting $550 million in annual synergies. The acquisition is set to close in the fourth quarter, with Diamondback stockholders owning 60.5% of the combined entity and Endeavor owning the rest.