Reese Energy Training

Lessons Learned from “Dry Hole” Slick With a nod to Energy Transfer’s triumph today, Reese Energy Consulting is reminded of the tenacity and perseverance that’s colored our oil and gas industry starting in 1859. Titusville, Pa. History shares its lessons with stories of early-day wildcatters hitting gushers while others go bust and belly up. Sometimes luck is on your side. Sometimes it’s not. Then sometimes you stick it out, go for broke, and maybe, just maybe, good fortune finds you. Such is the story of Thomas “Dry Hole” Slick in 1912. Known for his gift to win over the trust of landowners and lock down oil leases, the 21-year-old Tom Slick who also hailed from Pa., eventually found his way to Okla. With a newfound passion to find oil, Slick found a reputation instead for drilling dry holes—at least 10 of them in short order—earning him the moniker, “Dry Hole Slick”. Local media wasn’t kind, with one outlet reporting, “Few men have stuck to the wildcatting longer and harder than Slick… It is said he has spent $150,000 mostly on dry holes”. Undeterred, Slick continued his pursuits next snapping up oil leases near Cushing, Okla., from landowners who were happy to take his money given Slick’s reputation and wished him well in an area where oil discoveries were considered unlikely. But Cushing is exactly where Slick struck pay dirt, producing 400 BPD in 1913 with the first oil well in the Cushing-Drumright field and ushering in an extraordinary wave of Okla., oil and gas production. Because of Tom Slick’s tenacity and perseverance, his nickname would later be replaced with Oklahoma’s King of the Wildcatters. His legacy leaves us lessons from which we can all still learn. ?What do you think? Learn more about our oil and natural gas services at https://lnkd.in/ewhkGFa. For more information about our online natural gas courses, visit us at https://lnkd.in/ggd3UkJM. ?

Northwind Midstream Builds a Permian Delaware Treat Does anyone need to tell you this? High concentration of off-spec gas in the New Mexico Permian are a royal pain in the arse for producers. On the other hand, it’s proving to be a gift that keeps giving for Delaware midstream operators building the specialized infrastructure to clean up this gas to make it safe and marketable. Reese Energy Consulting today is following the latest from Houston-based and PE-backed Northwind Midstream Partners, which makes no bones about the bones it’s building in Lea County. Founded in 2022, Northwind’s strategy to develop, own, and operate off-spec gas infrastructure to manage produced gas with high levels of CO2 and hydrogen sulfide is gaining wind speed with the buildout of its midstream systems. The company’s gathering network includes more than 200 miles of gas pipe across 165,000 dedicated acres and five compressor stations with 400 MMCFD anchored by its Titan Treating Complex in Lea County. With a Phase I buildout slated for completion by mid-year, Titan will add a second acid injection well and increase amine treating capacity to 200 MMCFD. An FID has been reached to expand total capacity to 400 MMCFD next year. What do you think? Learn more about REC and our natural gas and Permian expertise at https://lnkd.in/ewhkGFa. For more info about natural gas processing and treating, check out our online courses at https://lnkd.in/ggd3UkJM.

Continental Leaps into an International Game Changer? For horizontal drilling and fracking pioneer Harold Hamm, turning unconventional oil and gas resources into economic gold has made him both an industry icon and shale rock star. As founder and chairman of Okla. City-based Continental Resources, Hamm was the voice yesterday at CERAWeek warning U.S. oil production is starting to plateau. He’s also the face behind a new international opportunity to apply his company’s Midas touch outside its Anadarko, Bakken, and Permian successes. Reese Energy Consulting today is following the latest news from Continental, which has entered a JV with Türkiye Petroleum and TransAtlantic Petroleum, LLC to develop untapped, unconventional oil and gas resources in Turkey’s Diyarbakir and Thrace basins. Total recoverable reserves could mean 6 Bbbl of oil and up to 65 TCF of gas. That’s sweet sugar candy for a nation that looks to build an oil and gas economy to meet its substantial energy consumption and decrease dependency on energy imports costing an annual $40 billion. Turkey calls it a game changer. Hamm happened to write the book on that very subject. For Continental, the JV is a landmark deal and its most significant international project ever. Whether this foretells future opportunities for independent oil and gas producers facing basin plateaus is something to watch. And we are. What do you think? Learn more about REC and our range of natural gas, LNG, and data center services at https://lnkd.in/ewhkGFa. Get your people smarter with our online natural gas courses at https://lnkd.in/ggd3UkJM. ????

Natural Gas Players Plot Their Data Center Strategies, Jump on Off-Grid Opportunities Romance. Intrigue. An action-packed race to a thrilling finale. Just a few takeaways from the latest news featuring natural gas players and their data center growth strategies. Reese Energy Consulting today is following the producers and pipeline operators uniquely packaging their assets, geographical footprints, and investment bucks to attract tech data center projects that require 24/7 electrical power. That last bit is the golden fleece, of course, which has given rise over the last year to behind-the-meter, gas-fired power generation. With that, we start with our first news takeaway starring Romance. As in the flourishing relationship between natural gas and electrical power to keep data center reliability at a stringent 99.999%. A new study from Rystad Energy predicts power demand from U.S. data centers will increase 1,000% over the next 10 years. Renewables can’t compete even with today’s battery backup technology. Geothermal and nuclear aren’t prime-time ready for tech companies expecting a two-year startup. Takeaway 2—Intrigue. Tulsa-based midstream giant Williams reports it will invest $1.6 billion in a natural gas and power generation project with a mystery company that’s slated for completion next year. Alabama-based producer Diversified Energy Company has formed a data center-focused partnership to deliver Appalachia natural gas and coal mine methane via pipeline to fuel cells. As for our third takeaway, it’s all about speed to build the behind-the-meter energy bones data center operators need to keep up with the competition. The key word here is “hurry.” What do you think? Learn more about REC and our natural gas services for data center operators at https://lnkd.in/ewhkGFa. For more info about our ever expanding online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM. ?

Permian E&P Goes All in on AI You might say Will Gray II kicked off 2025 on a high note. A really high note. The co-founder and CEO of New Era Helium (Nasdaq:NEHC) rang the NASDAQ opening bell on January 2 to all the fanfare that moment generates when you also become one of the first helium-focused companies to land a listing on a major U.S. exchange. Reese Energy Consulting today is following the latest news from Midland, Texas-based New Era Helium, which operates more than 137,000 acres in the Permian’s Pecos Slope gas field in Southeast N.M. with 1.5 BCF of proved and probable helium reserves. And that’s where the story gets interesting. For the uninitiated, demand for helium is huge; it’s also highly valuable. The U.S. produces 43% of the world’s supply of helium to manufacture MRI magnets, semi-conductor chips, fiber optics, and microscopes. But with the advent of AI, a whole new market has been born that’s now taking top billing for helium hunger. That would be the production of artificial intelligence chips. And Will Gray has leapt on the opportunities his Permian assets bring to the furious data center buildout. In short order, the company made a bold decision to redirect its gas and helium production with a behind-the-meter strategy to support power generation for AI data centers. After finalizing a 50/50 JV with New York-based Sharon AI, New Era Helium will build its first 250 MW net-zero energy data center in the Permian Basin in addition to a processing plant and a gas-fired power plant. What do you think? Learn more about REC and our natural gas consulting services for AI data center operators at https://lnkd.in/ewhkGFa. For information about our expanding online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.

AI’s West Texas Diamond Dog The nation’s energy big dogs are leaping on the opportunities AI data centers offer natural gas producers. Chevron in January came out swinging with plans to build scalable, natural gas-fired power plants next to data centers across the U.S. These behind-the-meter energy generation and storage systems supply power directly to a building without accessing the utility grid. Genius for big dogs with big bucks. Then there’s independent producers like Midland, Texas-based Diamondback Energy, a big dog in its own right with a data center strategy that’s custom fit for the Permian. Reese Energy Consulting today offers this satirical look at Diamondback’s offering. Dear AI Data Center Operators and Independent Power Producers: Looking for cheap land in the heart of the Permian Basin to build large-scale AI data centers? We’ve got you covered with more than 65,000 surface acres and natural gas access to keep those machines calculating, humming, and thrumming around the clock. Diamondback produces about 2 BCFD so supply won’t be an issue any time soon, plus we just made a huge acquisition that’s guaranteed to increase our gas volumes. We’re also seeking an equity stake in a large, behind-the-meter power plant in the basin fired by our own produced natural gas. If it’s not too much to ask, we’d also like to use some of that power for our own field operations. Sincerely yours. For more information about Reese Energy Consulting and our natural gas services in the Permian and the nation’s most prolific basins, visit https://lnkd.in/ewhkGFa. Learn more about our online natural gas training courses at https://lnkd.in/ggd3UkJM. ?

Targa Welcomes Back an Old Friend…for $1.8 Billion It’s safe to say Targa Resources closed the books on its fiscal 2024 with a wink and a smile—just maybe not in that order. The Houston-based midstream and infrastructure heavyweight recently signed off on its 4Q and full-year report with a long shirtsleeve of achievements worthy of today’s spotlight. Reese Energy Consulting is following the latest from Targa, which holds the largest gathering and processing position in the Permian Basin and one of the largest fractionation ownerships at Mont Belvieu, along with natural gas and NGL midstream assets across other multiple shale plays. But it’s the Permian where Targa finds its natural gas and NGL sweet spot. The company reported a series of record highs for full-year 2024 including adjusted EBITDA of $4.1 billion, and NGL transportation, fractionation, and LPG export volumes. Targa also announced the completion of its new 275 MMCFD Greenwood II plant in the Permian Midland and a 120 MBPD fractionator in Mont Belvieu, as well as the startup of two new plants in the Delaware. Three new Texas growth projects this year include expansions of Targa’s Grand Prix NGL pipeline, a 15 MBPD NGL fractionator, and added LPG export capabilities at Galena Park Marine Terminal. Smiles all around, no doubt. Then came the wink—or at least a surprise maybe no one saw coming outside of the Permian. That would be Targa’s $1.8 billion all-cash repurchase of the 45% equity stake it sold to PE partner Blackstone/GSO Blazer Holdings for the company’s Bakken Badlands midstream assets. What do you think? Learn more about REC and our natural gas and NGL services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit https://lnkd.in/ggd3UkJM. ???????

Mastering Short-Term LNG Trading Should Be on Your Spring To-Do List Reese Energy Training is thrilled today to announce our seminars will make a return this year to LDC Gas Forums & US-Mexico Natural Gas Forum & Gulf Coast Energy Forum. And we couldn’t be in better company. This is where industry leaders share real-world insight on natural gas opportunities in collaboration with fierce networking events that translate to business opportunities. ? RET will jump into spring live at the LDC Gas Southeast Forum in Savannah, Ga., on Tuesday, April 15th from 1:30 pm – 4:30 pm with our Mastering Short-Term LNG Trading. This is a deep-dive course on commercial strategies, risk management, and LNG logistics, especially designed for energy professionals, traders, and industry stakeholders. Registration is now open to hop aboard this LNG train at www.LDCGasForums.com. Learn more about Reese Energy Training’s online natural gas courses at https://lnkd.in/ggd3UkJM. ??

Of Diamonds and Eagles The wildly successful Double Eagle Energy Holdings IV LLC last May set tongues wagging on news it was exploring a sale of its Permian assets that could potentially fetch $6.5 billion. Three years into its iteration as Double Eagle IV, co-founders and co-CEOs Cody Campbell and John Sellers had built one of the most coveted, privately held positions in the Midland. This, after selling Double Eagle III in 2021 to Pioneer Natural Resources Company for $6.4 billion. Wall Street was quick to throw potential buyer names in the hat—those of producers inside and outside the basin. Reese Energy Consulting staff did the same. None were winners, of course. Because around this time last year, the eventual buyer of Double Eagle’s Midland assets already had its hands full with a mega merger. That would be Diamondback Energy and its $26 billion cash-and-stock deal for Endeavor Energy Resources, LP, crowning the former third-largest Permian producer with a total 838,000 acres and 816 MBOED. Fast-forward three months to May, tongues wagging, rumors swirling with the news Double Eagle would roll out its sales process in the last half of 2024 for the most attractive asset remaining in the Midland. The bids must’ve poured in. And then in November, the dynamic duo of Campbell and Sellers sweetened the sales pot, hitting the accelerator on production with 121 MBOED—a 177% increase from the same month a year before—growing liquids to 2.3 MMbbl—a 114% increase from the same time in 2024—and gas output rising 488% over the same period. Whether this further piqued Diamondback’s interest, some things we’ll never know. But at some point ahead of final handshakes, someone declared a done deal. ?Diamondback will pay Double Eagle $4.1 billion in cash and stock for 40,000 net acres, 27 MBOD, and 407 gross horizontal locations. What do you think? Learn more about REC and our natural gas services at https://lnkd.in/ewhkGFa. For more info about our online natural gas courses, visit https://lnkd.in/ggd3UkJM.

Validus Energy Makes a Big Validation in the Anadarko In what was described as a “surprise move” by Okla. City-based Devon Energy back in 2022, the company made a bolt-on acquisition that further expanded its Eagle Ford position with the purchase of Denver-based Validus Energy. The $1.8 billion deal included 42,000 net acres, 35 MBOED (70% oil), 350 repeatable drilling locations, and 150 refrac candidates. In an epic score, Validus pocketed double the price it paid for those assets just a year before. While it might’ve been a see-you-later-bye to South Texas, the company’s exit there hardly marked the end of Validus. Reese Energy Consulting today is following the latest from Validus, which quickly reset its sights and strategy on the Mid-Continent region, which includes Okla., Texas, Kans., and Ark. Since its South Texas exodus, Validus has made three Mid-Con acquisitions inside a year, becoming one of the largest private players there and in the Anadarko Basin. The company last February shelled out $450 million for Okla., assets from Continental Resources. Then came a biggie in September with the merger of Citizen Energy, then among the largest private oil and gas firms in the Mid-Con. The $2+ billion deal included 326,000 net acres, 720 operated wells, and 86 MBOED primarily in the Anadarko. All of which brings us to the latest acquisition by Validus, which is playing its natural gas cards with an ace on top. The ace is rival Okla. City-based 89 Energy. The $850 million deal includes 65,000 net acres in the SCOOP, more than 25 MBEOD (70% gas), and 200 operated wells. What do you think? Learn more about REC and our natural gas and supply services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.