All articles tagged with #permian basin
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.
U.S. shale oil companies Diamondback Energy and Endeavor Energy Resources are close to finalizing a $25 billion cash-and-stock deal that would create an oil and gas company valued at over $50 billion, making it the third largest producer in the Permian Basin. The deal is expected to be announced soon and would give Diamondback's shareholders more than half of the combined companies. The consolidation reflects a trend in the industry as major players seek to secure future drilling inventory and output from the largest U.S. oilfield.
Amidst rising Middle East tensions and oil supply concerns, Houston-based oil producer APA is acquiring Permian Basin producer Callon Petroleum for $4.5 billion, shifting its focus towards U.S. assets. This move is reflective of the oil industry's trend towards more secure, domestic energy sources. APA's acquisition will increase its U.S. production from 53% to approximately 67%, while reducing its overseas production. The deal, which includes the retirement and replacement of Callon's debt, highlights APA's strategic response to geopolitical uncertainties and the potential for supply disruptions in the oil market.
Berkshire Hathaway, led by Warren Buffett, has purchased over 10 million shares of Occidental Petroleum worth $588 million, increasing its stake in the oil producer to 27%. This move signals confidence in Occidental's pending acquisition of CrownRock, a privately held oil producer in the Permian Basin. Despite Occidental taking on more debt, Buffett's share purchases indicate his belief in the deal's success. Occidental plans to reduce its debt below $15 billion by divesting non-core domestic assets.