Don P. Martone, CFP®, CPWA®, ChFC®, CLU®

Energy Transfer’s plan to buy WTG Midstream, a West Texas-based and private equity-backed natural gas gatherer and processor, just got a bit less expensive — and not quite so comprehensive. Energy Transfer will still acquire WTG’s network of more than 6,000 miles of gas pipelines, eight processing plants and more, but WTG’s 20% stake in the joint-venture (JV) BANGL pipeline system is no longer part of the deal. In today’s blog, we’ll take a look at the detour from the original transaction. https://lnkd.in/gQxanMKr

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Pembina Pipeline Corp. (PPL.TO) has once again achieved Favored Green status in the SIA S&P/TSX 60 Report, now positioned at 14th place, climbing 7 spots in the past quarter and 3 spots just in the past week. The stock has steadily strengthened since last fall, entering the Neutral Yellow Zone in early September 2023 when it traded at $40.  Click on the link for full report: #SIACharts #bigdata #datascience #Ai #investing #fintech #wallstreet #wealth #stockmarket #profit #leadership #innovation #analytics #productivity #money #markets #technology

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🎙️ Excited to share that I recently joined Grayson Brulte on The Road to Autonomy® podcast! We had an insightful discussion about key political and economic events impacting the oil markets, including the upcoming U.S. Presidential election, FED rate decisions, and geopolitical factors. We also delved into Texas' significant contribution to oil production and exports, the global demand for oil and natural gas, and the economic impact on Texas' economy. Tune in to hear our thoughts on how these factors could affect consumers and shape the future of the oil and gas industry! #RoadToAutonomy #OilAndGas #Economy #Podcast #EnergyMarkets #Texas #OilProduction #TXOGA

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The median deal size in the Permian Basin skyrocketed to $4.5B, a 9.5x increase despite a 53% drop in transaction activity. Major deals like ExxonMobil's acquisition of Pioneer Resources are reshaping how the market does business. Discover how this may affect deals to come. https://lnkd.in/gTprgiCb | #energy #permianbasin #acquisitions #transaction

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An increase in ownership by large publicly traded energy companies in the Permian is driving their smaller peers to look for acquisitions in less-favored areas, creating sale opportunities for private-equity sponsors. Private-equity firms specializing in energy have secured a number of the largest exit deals in the Permian in recent years, but have found it more difficult to sell assets in less-popular areas, industry analysts said. SM Energy’s operations today are concentrated in the Midland Basin, a subregion of the broader Permian in West Texas, and the Eagle Ford shale region in South Texas.

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More Smokin’ Hot Deals to Be Had in the Lone Star State Reese Energy Consulting today is following the latest buzz from the nation’s largest oil-producing state where the Texas horse trading continues among midstreamers and Eagle Ford producers. First up is Houston-based Phillips 66 (PSX), which operates a midstream powerhouse with 72,000 miles of crude oil, natural gas, and NGL pipelines, along with fractionation and gas processing—all of which serve its diverse business segment to include chemicals and refining. After a years’ long JV courtship, PSX last year acquired DCP Midstream for $3.8 billion to further beef up its NGL business following record fractionated volumes and growing export demand. The company will now add even more meat to its NGL bones in the Permian Midland with the pick-up of Pinnacle Midstream for $550 million. The deal includes the Dos Pico processing complex with 220 MMCFD of capacity, ample space for a second 220 MMCFD gas plant, and 80 miles of pipeline. In short order Houston-based WildFire Energy LLC has shrewdly executed its pure-play South Texas strategy to create the largest consolidated acreage position in the Eagle Ford. The company has now landed its fourth acquisition in three years, this time in a deal with Apache Corporation. The price was not disclosed but wraps up Apache’s non-core asset sale that fetched a total $750 million. Wildfire will gain 237,000 net acres, 11 MBOED, and interests in 465 wells. Pro forma, the company will operate 850,000 net acres, 50 MBOED, and more than 2,000 gross wells. What do you think? Learn more about REC and our crude oil, natural gas, and NGL consulting services at https://lnkd.in/ebXT2mS. #energy #midstream #naturalgas #ngls #gasprocessing #reeseenergyconsulting

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Exciting News from SM Energy Company and Schaper Energy Consulting is here with the scoop! SM Energy Company (NYSE: SM) has announced a game-changing $2.0 billion acquisition of Uinta Basin oil and gas assets from XCL Resources, LLC, backed by EnCap Investments L.P. and Rice Investment Group. This strategic move enhances SM Energy's position in the market and drives significant growth potential. Key Highlights: Acquisition Details: SM Energy will acquire 80% of the XCL assets for $2.04 billion, expanding its footprint with approximately 37,200 net acres and significant oil production capacity. Growth Potential: Post-acquisition, SM Energy's 2025E net production is expected to rise to approximately 195 MBoed, with oil comprising over 50% of the commodity mix. The acquisition is set to increase SM Energy's proven reserves by about 18%. Why It Matters: Financial Strength: SM Energy plans to finance the acquisition through a combination of debt and cash reserves, ensuring operational flexibility and maintaining a strong balance sheet. Return to Shareholders: With an 11% increase in the fixed quarterly dividend and a new $500 million share repurchase program, SM Energy demonstrates its commitment to shareholder value. What do you think? Learn more about Schaper Energy Consulting and our engineering services at https://schaperintl.com/.

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📢 I'm honored to testify today (May 2, 2024) before the Texas House Select Committee on Protecting Texas LNG Exports. Thanks to Speaker Dade Phelan for convening the committee. In my address, I will challenge the current federal pause on LNG export approvals, citing substantial evidence and research to highlight the critical role of Texas' LNG exports in both global environmental sustainability and local economic growth. Environmental impact. Did you know Texas LNG exports could offset more emissions than the total annual CO2 output of economies like Australia, Spain, or The Netherlands? Our ability to replace coal in global power generation not only demonstrates leadership in environmental stewardship but also emphasizes the geopolitical significance of Texas in global energy markets. Economic contributions. The federal pause of LNG export approvals threatens upwards of $200 billion in potential direct investments and could hinder a projected 20% expansion in Texas' natural gas production. The stakes are high, and the economic implications are extensive, affecting communities and industries across Texas and Louisiana. Research insights. My recent research, published by U.S. LNG Allies and updated by the Texas Oil & Gas Association, shows that LNG exports have not significantly influenced domestic natural gas prices and have contributed to increased market responsiveness and lower prices for U.S. consumers. Join me as I discuss these points and the need for a strategic reevaluation of the federal LNG export pause. This discussion is not just about energy; it's about securing a sustainable and prosperous future for Texas and advancing global energy security and environmental progress in the process. #LNGExports #EnergyPolicy #EconomicImpact #EnvironmentalSustainability #TexasEnergy #TXOGA

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More Smokin’ Hot Deals to Be Had in the Lone Star State  Reese Energy Consulting today is following the latest buzz from the nation’s largest oil-producing state where the Texas horse trading continues among midstreamers and Eagle Ford producers. First up is Houston-based Phillips 66 (PSX), which operates a midstream powerhouse with 72,000 miles of crude oil, natural gas, and NGL pipelines, along with fractionation and gas processing—all of which serve its diverse business segment to include chemicals and refining. After a years’ long JV courtship, PSX last year acquired DCP Midstream for $3.8 billion to further beef up its NGL business following record fractionated volumes and growing export demand. The company will now add even more meat to its NGL bones in the Permian Midland with the pick-up of Pinnacle Midstream II LLC for $550 million. The deal includes the Dos Pico processing complex with 220 MMCFD of capacity, ample space for a second 220 MMCFD gas plant, and 80 miles of pipeline. In short order Houston-based WildFire Energy LLC has shrewdly executed its pure-play South Texas strategy to create the largest consolidated acreage position in the Eagle Ford. The company has now landed its fourth acquisition in three years, this time in a deal with Apache Corporation. The price was not disclosed but wraps up Apache’s non-core asset sale that fetched a total $750 million. Wildfire will gain 237,000 net acres, 11 MBOED, and interests in 465 wells. Pro forma, the company will operate 850,000 net acres, 50 MBOED, and more than 2,000 gross wells. What do you think? Learn more about REC and our crude oil, natural gas, and NGL consulting services at https://lnkd.in/ewhkGFa.

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This week, Devon Energy announced it has entered into a $5B deal to acquire Grayson Mill Energy’s Williston basin business. While it’s difficult to predict corporate consolidation, we believe public companies in the energy sector will continue to buy private assets and that some public companies will continue to streamline their operations by selling non-core assets. Read more about the deal in The Wall Street Journal: https://on.wsj.com/4f12bOH #Energy #M&A #Oil #NaturalGas

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Grayson Mill Energy, an oil and gas exploration firm based in Houston, has been supported by private equity firm EnCap Investments since 2016. The sale of the Williston Basin assets suggests that EnCap is gradually retreating from the energy sector. #energy #mergersacquisitions #oilandgas #texas #antitrust #antitrustlaw #competitionlaw

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The world will need to replace more than 70% of oil and gas production by 2040 to meet global demand. During discussion on an RIA Channel webcast, Senior Vice Presidents and Portfolio Managers Ted Gardner and Parag Sanghani share that underinvestment in oil and gas is not an option without dramatic output declines. Learn more about investing in energy: https://lnkd.in/gSNxDWug. #Oil #NaturalGas #Investing

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𝙋𝙝𝙞𝙡𝙡𝙞𝙥𝙨 66 𝙩𝙤 𝘽𝙪𝙮 𝙋𝙀-𝙊𝙬𝙣𝙚𝙙 𝙋𝙞𝙣𝙣𝙖𝙘𝙡𝙚 𝙈𝙞𝙙𝙡𝙖𝙣𝙙 𝙛𝙤𝙧 $550 𝙢𝙡𝙣 Phillips 66 has announced its acquisition of Pinnacle Midland, a midstream company owned by Energy Spectrum Capital, for $550 million in cash. This purchase aims to enhance Phillips 66's natural gas gathering and processing operations in the Midland Basin, a major U.S. oil and gas production area. The deal aligns with Phillips 66’s strategy to expand its natural gas liquids (#NGL) value chain, complementing its existing infrastructure of 11 NGL fractionation plants, extensive storage facilities, and 22,000 miles of pipelines. Pinnacle's assets include the Dos Picos natural gas complex, which has a processing capacity of 220 million cubic feet per day and 80 miles of pipelines, with potential for further expansion. The transaction is expected to close in mid-2024, continuing the trend of significant acquisitions in the U.S. energy sector. #Energy #Acquisition #NaturalGas #Phillips66 #MidlandBasin #OilAndGas https://lnkd.in/g8HfrVy2

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Permian Resources continues to make moves in its core acreage areas in the Delaware Basin and progress realizing synergies related to its $4.5 billion acquisition of Earthstone Energy, the company said in a May 7 earnings release. The company raised its tally of first-quarter acquisitions to about $270 million. In January, the company said it would acquire Delaware leasehold in two bolt-on deals. The two transactions added 11,500 net leasehold acres and 4,000 net royalty acres in Eddy County, New Mexico, for $175 million. Permian Resources said it continues to strengthen its acreage position in the core of the Delaware through bolt-on acquisitions and additional properties acquired through its ongoing grassroots program. The bolt-on deals, from undisclosed third-party sellers, consist of predominantly undeveloped acreage offset by Permian Resources' “highly capital efficient Parkway asset,” the company said. Inventory on the acquired acreage comprises two-mile locations with high net revenue interests, which the company said would immediately compete for capital. The company closed one transaction during the first quarter. The second is pending and expected to close late in the second quarter. "The acquired acreage is analogous to our high-quality Parkway position. This area represents one of the highest returning assets within our portfolio, with returns driven by reduced D&C costs and strong oil cuts. We are excited to begin development on the acquired acreage later this year," said Co-CEO Will Hickey. Permian Resources also continues to execute on its ground game through smaller grassroots acquisitions and leasehold transactions. During the first quarter, the company completed approximately 150 grassroots leasing and working interest acquisitions. The majority of these acquisitions are slated for near-term development, making them highly accretive, the company said. Through the combined efforts, the company said it had added approximately 11,200 net leasehold acres and 4,500 net royalty acres—slightly less leasehold and more royalty acres than disclosed in January. Permian Resources said the acquisitions were transacted at approximately $9,500 per net leasehold acre and approximately $5,000 per net royalty acre after adjusting for production value. Permian Resources has identified approximately 110 gross operated locations on the acquired properties. In total, these acquisitions contributed less than 100 boe/d of total production in the first quarter. Permian Resources additionally reported that the integration of its $4.5 billion Earthstone deal is ahead of schedule. Permian Resources, which acquired Earthstone in November, upped its annual synergy target from the deal by $50 million to $225 million.

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EAG's latest thoughts on the continued consolidation in O&G business...

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