Denver-based SM Energy Co. is expanding its footprint in the Midland Basin through the acquisition of 35,700 net acres in Howard and Martin counties in Texas. After closing, SM Energy will hold about 82,450 net acres in the sub-basin of the Permian.
Articles from Midland
Diamondback Energy Inc. has boosted its 2016 production for the second time since July and now expects 2017 output to be up by double-digits, the Permian Basin pure-play said Monday.
Sunoco Logistics Partners LP has struck a $760 million deal to acquire Vitol Group’s Permian Basin crude oil system in West Texas that is set to close by the end of the year. The transaction includes a 2 million bbl crude oil terminal in Midland and an oil gathering and mainline pipeline system in the Midland sub-basin, which includes an acreage dedication from a Permian producer. Also included are Vitol’s oil purchasing and marketing business in West Texas. The acquisition also would provide Sunoco Logistics 100% of SunVit Pipeline LLC, a 50-50 joint venture with Vitol that connects the Midland terminal to the partnership’s Permian Express 2 pipeline. In connection with the acquisition, Energy Transfer Partners LP and Energy Transfer Equity LP, owners of the partnership’s general partner Sunoco Partners LLC, agreed to reduce incentive distributions by $60 million over a two-year period. The financial assistance “provides us with expected accretive economics for this strategic acquisition,” Sunoco Logistics CEO Michael J. Hennigan said.
Callon Petroleum Co. late Tuesday struck a $327 million deal to acquire more land in the red-hot Permian Basin, which has overtaken every onshore area for merger activity to date.
The “great land grab,” a hallmark of the early onshore unconventional renaissance, is making a big-time comeback in the Permian Basin, even with commodity prices still low.
The outlook for onshore U.S. exploration companies is becoming “incrementally positive” for 2017 and beyond, as supply/demand fundamentals correct and commodity prices begin to move higher, analysts with Raymond James & Associates Inc. are predicting.
Permian Basin pure-play Concho Resources Inc. agreed Monday to pay $1.625 billion in cash and stock to Reliance Energy for 40,000 net acres in the Midland sub-basin.
After bolting on more than 30,000 net acres in the second quarter, Permian pure-play operator Parsley Energy Inc. saw oil production surge more than 80% and the company raised its full-year production guidance for the second time this year.
Water Midstream Partners LLC has completed the southern extension to its Midland County, TX, commercial pipeline system, connecting new oil and gas wells inside and adjacent to the city of Midland to its saltwater disposal well (SWD) on SH 158, north of the Nadine and Tom Craddick Highway.