Double Eagle Can't Lose - $1.1B from Viper

Diamondback’s Viper Buys $1.1B in Permian Mineral from Tumbleweed Royalty (Double Eagle Energy Mgmnt); Argentina anticipates $15B in energy investments due to deregulation; ONEOK offers $7B in notes to fund Enlink and Medallion acquisitions; Nearly 40% of US Gulf of Mexico crude oil shut-in by hurricane.

Author

Rob Quigley
September 12, 2024

Good morning. Happy Friday Jr (aka Thursday). Today we introduce a new weekly segment to the newsletter: Commodity Price review. Wondering how much oil and gas prices changed in the last week and why that happened? This is for you. In the news- the Double Eagle guys continue to CRUSH IT in life. Viper Minerals (FANG) bought minerals from Tumbleweed Royalty (owned by Double Eagle management) for $1.1B. Seriously guys, good job. Argentina expects $15B in energy investment in 2025 thanks to deregulation. ONEOK taps the public market with $7B in notes to their Enlink/Medallion acquisition. And finally as the hurricane rolls through, ~40% of Gulf production is offline. Let's drill down.

Forward Curve Review

Its Wednesday which means its time for our weekly review of NYMEX strip price movement:

WTI Oil: This week saw fluctuating crude oil prices driven by contrasting market forces. A notable decrease in U.S. oil inventories and a temporary halt in Libya's exports initially created upward pressure on prices. However, persistent concerns about weak global demand, stemming from economic slowdowns in key regions like the U.S. and China, outweighed these supply-side factors. Analysts suggest that while supply issues are tightening the market, demand uncertainties continue to dominate the outlook.

Natural Gas: Despite expectations for a bearish trend, natural gas prices showed strong upward movement in the early contracts, with front-month prices rising between 5-15%. This increase was driven by robust LNG export demand and storage levels that, while above the five-year average, are being drawn down more quickly than anticipated due to higher cooling demand. Additionally, concerns over potential supply disruptions in Europe provided a bullish undertone to the market, outweighing the impact of milder weather forecasts in some regions.

References:

WTI Crude Futures Strip Comparison (Time Normalized):

Henry Hub Natural Gas Futures Strip Comparison (Time Normalized)

Daily Headlines

  • Nearly 40% of US Gulf of Mexico crude oil shut-in by hurricane Oedigital.

  • O&G majors face challenges in meeting new grid demand OGJ.

  • Oil prices jump 3% as hurricane hits Gulf of Mexico OilPrice.

  • EIA forecasts spike in oil prices amid economic concerns Offshore Technology.

Deal Flow

M&A/Investment

  • Diamondback’s Viper Buys $1.1B in Permian Mineral from Tumbleweed Royalty (Double Eagle Energy Mgmnt). Hartenergy.

  • Argentina anticipates $15B in energy investments due to deregulation Oil & Gas 360.

  • ADNOC closes in on a $15.9B European acquisition Upstream Online.

  • $50mm Montney mineral rights transfer publicly revealed BOE Report.

Debt

  • ONEOK offers $7B in notes to fund Enlink and Medallion acquisitions Hart Energy.

  • Kosmos Energy announces $500M senior notes offering to repay debt Hart Energy.

VSO is the go-to consulting firm for buy-side technical due diligence. We can handle all your technical evaluations or can be your spare capacity when you need overflow help. If you’re in the deal flow, let’s work together.

Only the Finest, Refined Memes:

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