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Hey Oil Barons.......


936horn

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11 hours ago, fattyflattie said:

For real though, what is your actual industry?  I can think of about 5 that your routinely post.  Serious question, you obv have a few irons in a few fires.  

Work in private equity.  Y'all know more about the O&G space than I do.  Why I appreciate this thread.  But yeah, we're a small shop so gotta wear a lotta hats and do mercenary work.  So in terms of deal-flow and due diligence and operational observation---I have to get into the weeds on a few different industry spaces.  Mainly real assets-O&G and Multi-Family real estate.  But we also did one decent-sized bank deal and a couple software deals (which were clearly above my head).  So I gotta know a little bit about each vertical and learn what I can.  Some E&P, midstream, royalties/minerals, and now even some micro reactors.  Never claimed to be an expert, but I have to know enough to invest properly.  We all probably have many of the same mutual friends and colleagues in the industry here in Texas. And of course, anything related to energy or real estate or banking, you're gonna encounter regulators/legislators so that's where I do my dirty work.  Also do some advisory time with the UT Energy Institute and KBH Center for Energy Law & Business (or whatever they rebranded it this year).  Would love to get some of y'all engaged as donors or mentors to students, many of 'em started out in the programs during Covid-19 and starved to get personal contact now with folks in the industry.  So yeah, I talk about O&G and the University of Texas on a forum about energy on a UT-centric website.  Shocking ;)  

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On 2/3/2024 at 1:54 PM, billfromlaketravis said:

Yeah I begged off NAPE duties this year. Our title attorney switched his dinner from Eddie V’s to Pappa Bros and it just hasn’t been the same. I’m always seated next to the most boring guy at the firm and of course they talk for 2 hours without pause. 

Yeah I made the right call. My title attorney dinner is at... Irma's. I would think their whiskey selection consists of Crown Royal, J&B, and Jack Daniels. 

The host is a smart guy. He figured out way to cut his dinner tab by 70%. No seafood towers, tomahawks, BTAC pours, or magnums of Silver Oak. I can't say I blame him. My company hasn't used his firm for a title opinion in quite a while. 

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Irma's is where we would go if we didn't have clients with us. I love their food, but yea, nothing close to Vic and Anthony's/Pappas/EV's in price or booze selection. Pitchers of margaritas are always a good idea (at the time).

I don't even really think about going to NAPE any more. The whole thing sounds like a huge asswhip to me at this point.

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6 hours ago, The Royal We said:

Irma's is where we would go if we didn't have clients with us. I love their food, but yea, nothing close to Vic and Anthony's/Pappas/EV's in price or booze selection. Pitchers of margaritas are always a good idea (at the time).

I don't even really think about going to NAPE any more. The whole thing sounds like a huge asswhip to me at this point.

You should because I’m in the process of stealing one of your clients

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1 hour ago, The Royal We said:

Jerry Seinfeld Agree GIF

How bad were you sweating and shaking this morning?

Not bad. Went to bed at 10:30 whilst the youngins did nothing good. But currently changing out of my pit stained button down.  V&A’s waiters don’t leave your glass less than 1/3 full, ever  

Im actually not kidding about one of your clients. 

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1 hour ago, Rex Kramer said:

Not bad. Went to bed at 10:30 whilst the youngins did nothing good. But currently changing out of my pit stained button down.  V&A’s waiters don’t leave your glass less than 1/3 full, ever  

Im actually not kidding about one of your clients. 

I was unaware we shared the same line of work.

Or are you stealing them from another one of YOUR competitors?

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On 2/8/2024 at 8:57 AM, The Royal We said:

Irma's is where we would go if we didn't have clients with us. I love their food, but yea, nothing close to Vic and Anthony's/Pappas/EV's in price or booze selection. Pitchers of margaritas are always a good idea (at the time).

I don't even really think about going to NAPE any more. The whole thing sounds like a huge asswhip to me at this point.

It gets worse. The dinner at Irma's was buffet style. I think I'll go ahead and lose the host's card/phone number. I like the guy, but that's unacceptable NAPE behavior. 

Back to the drawing board. If anybody knows some good Colorado title opinion attorneys based in Houston, shoot me a PM. 

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16 hours ago, DCA_HORN said:

Endeavor finally selling. 

Diamondback Energy on Monday decided to buy the largest privately held oil and gas producer in the Permian basin, Endeavor Energy Partners, in a cash-and-stock deal for about $26 billion, including debt.

The combined company would be the third largest oil and gas producer in the region behind Exxon and Chevron.

Edited by Storm the Field
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Saw that as a result of the Endeavor sale, Autry Stephens is expected to leapfrog Hildebrand and Harold Hamm to become the wealthiest oilman in America (going by the latest Forbes net worth figures), and he will now be in the Top 75 or so richest people on the planet.

Unfortunately for him, he's 86 and recently diagnosed with prostate cancer, so his reign may not last long. 

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1 hour ago, Storm the Field said:

Saw that as a result of the Endeavor sale, Autry Stephens is expected to leapfrog Hildebrand and Harold Hamm to become the wealthiest oilman in America (going by the latest Forbes net worth figures), and he will now be in the Top 75 or so richest people on the planet.

Unfortunately for him, he's 86 and recently diagnosed with prostate cancer, so his reign may not last long. 

He doesn’t give a shit about the money. But his wife does, if they’re still married. She’s crazier than a shithouse rat. 

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On 2/11/2024 at 3:22 PM, DCA_HORN said:

Endeavor finally selling. 

 

https://www.businessinsider.com/endeavor-energy-autry-stephens-net-worth-career

  • Autry Stephens is set to be one of the world's richest people after selling his oil business.
  • But the 85-year-old didn't sound very excited about his newfound billions in a recent interview.
  • The sale is set to create one of the biggest drillers poised to take advantage of Texas' oil boom
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You guys know more about this than I do, but I read that and don't understand their inflationary adjustment.  It wasn't part of the CPI but the commodity index which is a different benchmark.  But yeah, all in all---30 year low either way.  That's weird to think about considering where we were just less than a year ago.  I guess the old adage like real estate bubbles, only time you worry about a Gas one is when everybody finally quits talking about it.

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On 2/15/2024 at 5:27 PM, MAUFRAIS said:

Does that guy like football?

Let me see. Flies SWA. Drives the same car to work for a couple decades. Won’t give his daughter who sits on the company’s board control of the company. Son isn’t in the business. I’d say Autry is a grumpy, old miser. If he attends Texas games, he’s probably sneaking in snacks from home. 

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On 2/16/2024 at 5:40 PM, billfromlaketravis said:

Let me see. Flies SWA. Drives the same car to work for a couple decades. Won’t give his daughter who sits on the company’s board control of the company. Son isn’t in the business. I’d say Autry is a grumpy, old miser. If he attends Texas games, he’s probably sneaking in snacks from home. 

Autry isn’t a grumpy guy. Hes a super nice, nerdy engineer. He is notoriously cheap. I know his daughter and son-in-law (unified with Autry against his crazy wife) and not only do they not want control of the company, he just fucking announced its sale. 

I don’t know about his Horns BMD endeavors. I don’t think he’d be one that’d put up Rowling type $. 

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On 10/23/2023 at 5:59 AM, Fudge Nuggets said:

Chevron acquiring Hess for $53bln in all stock deal

https://www.reuters.com/markets/deals/chevron-buy-hess-corp-53-bln-stock-2023-10-23/.

 

This may have hit a snag. CVX warned in an investor note Monday that XOM may assert that they have a right of first refusal over Hess' 30% stake in the Guyana project, jeopardizing the acquisition. 

Edited by Storm the Field
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Thought I'd ask here as someone asked me but I didn't know as that's a different side of the business than I'm in... 

Someone approached my buddy about some of the prospects that his old man (independent geologist but now gone) had put together years ago  - he still has all the maps, logs, 3D seismic (and model) and the proposed exploration targets (deeper prospects of an existing field). Current operator is just stripping the existing reservoirs.)  What sort of ORRI should he be asking for? I've Googled and seen the 1.5-3% range but I've has someone else say 5-7%...

I figured someone here might know what he might expect/request when meeting with the potential investors... 

Plan was to just hand over all the info to the investors - with their own G&G team to review/revise existing prospects - for ORRI and some sort of "transfer" fee or signing bonus.  (And maybe the possibility buying in WI in the future if the first few wells are successful...) I didn't know what to tell him a "reasonable" request for % or $ was these days before he walks into the discussions... Anyone?

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So many factors that play in there. What is their current net revenue interest (NRI) for the working interest owners in the existing production? If new leasing is going to take place, what royalty will the Lessors get in the new lease? If it’s 25%, will the operator be okay with a sub 75% NRI if they convey out an ORRI? 

And if it were me talking, not legal advice or anything, I’d push for ORRI over WI where possible. WI can be a headache from getting billed and having to elect into proposed operations, liability, etc. ORRI is free of those headaches, mostly. 

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3 hours ago, Storm the Field said:

This may have hit a snag. CVX warned in an investor note Monday that XOM may assert that they have a right of first refusal over Hess' 30% stake in the Guyana project, jeopardizing the acquisition. 

If XOM can block the Guyana stuff, no way CVX goes through with the deal. 

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I would be shocked if XOM’s ROFR applied to an acquisition of the shares of HES. This is the type of argument made by African countries. Generally, that ROFR is only applicable to the transfer of the license or the sub holding the license. 

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I'm in the dark here on the current T&C's of the lease. Not sure what are the current lease terms so would probably require either buying out the current operators or getting new leases on the deeper rights... The current operators bought the lease 2 years ago for existing production for just over a million but production was from wells that have been producing for year (~5K bbls last year). All previous production is shallow and these prospects are deeper. 

What he was asking me is what a "reasonable" %ORRI would be to ask for as the only question to him from the investor was "what are you want for the data and prospects" and no clue on what to say...  (He was at a party and in the conversation mentioned he had cleaned out his dad's old office and found all the prospect info in a bunch of boxes and CD's when the "investor" asked...)

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On 2/5/2024 at 10:28 PM, fattyflattie said:
On 2/5/2024 at 9:01 PM, YGIFS said:

Remind me how to reconcile domestic production with higher prices for our industry again?

For real though, what is your actual industry?  I can think of about 5 that your routinely post.  Serious question, you obv have a few irons in a few fires.  

I just noticed this response. Not yours, but the name-dropping gasbag to which you responded that I’ve had on ignore since restarting this account. 

Anyone who thinks prices aren’t going significantly higher, particularly oil, doesn’t know how to analyze basic supply and demand. I’m bearish on gas in short term and maybe mid term, extremely bullish on both commodities long term, and bullish on crude NOW. 

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Okay, well keep quoting me from ignore mode.  Which is weird. 
 

but genuinely interested in y’all’s thoughts on the ramp up in cybersecurity spending from the DoE and DoD in the energy space.  Not a huge chunk of cash but not nothing either.  Over my head but seems timely as an issue

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5 hours ago, Storm the Field said:

WTI bumping up close to $80 again this morning. Would be highest closing price year to date.

Some just don’t understand “their” industry.

On 2/5/2024 at 10:28 PM, fattyflattie said:
  On 2/5/2024 at 9:01 PM, YGIFS said:

Remind me how to reconcile domestic production with higher prices for our industry again?

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Posted (edited)
On 2/28/2024 at 1:19 PM, Fudge Nuggets said:

If XOM can block the Guyana stuff, no way CVX goes through with the deal. 

Interesting. I wonder where they’ll pivot. Chevron acquiring the new FANG would be every Diamondback employee’s worst nightmare. 

Edited by billfromlaketravis
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Yet another merger.

 
Quote

 

US energy firm Chord Energy announced it would acquire Canada's Enerplus, creating a Williston basin-focused entity with an enterprise value of $11 billion.
 
The combined company is expected to be a premier operator in the Williston basin in North Dakota, with about 1.3 million net acres and 287,000 barrels of oil equivalent per day in production.

 

 
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13 hours ago, billfromlaketravis said:

Pretty nice comp conversation today. I thought there was no way I’d hit my bonus number, but I did. Best bonus in 6 years by a fairly wide margin. 

I’ll probably have enough for a steak lunch after my wife takes her cut. 

You told her you got a bonus? 

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On 3/10/2024 at 11:08 AM, billfromlaketravis said:

Is anybody else running into this? My company gives a very fair bonus, but they’re very slow on raises/promotions. Median time for promotions in my group is about 9 years. My raise this year was just a point over the COL adjustment. 

image.gif.1d3712d37128201fd923f7c347ce32a5.gif

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On 3/5/2024 at 9:16 PM, billfromlaketravis said:

Pretty nice comp conversation today. I thought there was no way I’d hit my bonus number, but I did. Best bonus in 6 years by a fairly wide margin. 

I’ll probably have enough for a steak lunch after my wife takes her cut. 


 

Texas Roadhouse HH !

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