Topping news last week was Diamondback Energy and here we are again. The Midland-based company said it will acquire Birmingham, Alabama-based Energen in an all-stock deal valued at $9.2 billion. Diamondback shares initially fell roughly 10% following the announcement. Energen shares rose nearly 4%. The acquisition will add 179,000 net acres to Diamondback’s position across the Midland and Delaware Basins. The company has been very active lately, having announced more than $10 billion worth of acquisitions in the span of a week. The company purchased Ajax Resources last week to add to its Northern Midland position. Meanwhile, Diamondback’s Rattler Midstream filed its IPO paperwork on August 7th.
In other A&D news, Carrizo Oil and Gas said it has acquired Delaware Basin acreage from Devon Energy for $215 million in cash. Carrizo president and CEO Chip Johnson said the 9,600 net-acre deal increases the company’s acreage position in the Delaware and offers an excellent fit with its phantom-area acreage. “The acquisition materially increases our inventory of derisked drilling locations in the area, as well as offers significant upside potential from delineating the entire position and testing additional zones,” said Johnson.
Oil companies bid on less than 1% of the parcels offered during Wednesday’s U.S. Gulf of Mexico lease auction. Exxon Mobil came away with the most block, 25 to be exact, followed by BP with 19 high bids. Hess and Equinor each had 16. Exxon Mobil bid $40.5 million for its parcels, which is the most of any company. Hess had the highest bid for a single block at $25.9 million. Smaller companies including Talos Energy and W&T Offshore were among the top 10 high bidders according to the U.S. Bureau of Ocean Energy Management. In all there were $178 million dollars’ worth of high bids. That’s up from $124 million dollars in the last auction in March.
Recommended Reading
August Well Permits Rebound in August, led by the Permian Basin
2024-09-18 - Analysis by Evercore ISI shows approved well permits in the Permian Basin, Marcellus and Eagle Ford shales and the Bakken were up month-over-month and compared to 2023.
Now, the Uinta: Drillers are Taking Utah’s Oily Stacked Pay Horizontal, at Last
2024-10-04 - Recently unconstrained by new rail capacity, operators are now putting laterals into the oily, western side of this long-producing basin that comes with little associated gas and little water, making it compete with the Permian Basin.
EOG Resources Wildcatting Pearsall in Western Eagle Ford Stepout
2024-07-17 - EOG Resources spud the well June 25 in Burns Ranch with rights to the Pearsall well about 4,000 ft below the Eagle Ford, according to myriad sources.
Powder in the Hole: Devon May Fire up its PRB in Coming Years
2024-08-23 - Devon Energy is perfecting its spacing and completion recipe in Wyoming’s Powder River Basin play to possibly unleash full-field development later this decade.
Crackin’ It at Kraken: Inside the Bakken’s Ramped-up Private E&P
2024-07-24 - Kayne Anderson-backed Kraken Resources is producing more than 80,000 boe/d today and has a new Fitch Ratings credit score to take to the M&A bank.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.