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Exxon’s Permian Strategy
Exxon Mobil, through its domestic shale subsidiary XTO Energy, is taking an innovative approach to structuring deals in the Permian Basin. Since its acquisition of XTO in 2010, the company has been committed to increasing domestic shale production. Shortly after the XTO transaction, Exxon bought Ellora Energy Inc. (Haynesville shale of North Louisiana), as well… Read More
Alta Mesa Partners
The dramatic and sustained collapse of oil prices is exacting an especially heavy toll on smaller exploration and production companies. As hedge contracts, which locked in higher prices, expire cash become harder to come by. One way to generate cash is through asset sales. Another is through reserve-based lines of credit. This involves the operator… Read More
More with Less
Oil rig counts and capital budgets have always been a leading indicator of production levels. While this is still true, a recent article in “World Oil “ contends that the correlation might be changing. The U. S. oil rig count has dropped 59% from its peak last year, but production has fallen only 5%. This… Read More
Moody’s Downgrades Majors
“Rigzone” reports that bond rating agency, Moody’s Investor Service, views the major international oil and gas companies negatively. Citing continued low oil prices through 2016, and its impact on revenues, the company lowered its outlook for almost all the sector. Moody’s noted that since the oil price collapse, companies such as Shell, ExxonMobil, and Total… Read More
Drilling Permits Down in TX
Rigzone” reports that according to Railroad Commission data for August, drilling permits in Texas are dropping along with oil prices and rig counts. Since the same month last year, the number of drilling permits has fallen by 65% to 864. This breaks down to 222 oil wells, 59 gas wells, 518 oil or gas wells,… Read More
