Reese Energy Consulting

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.

Should I Stay or Should I Go? For oil and gas producers in the DJ Basin, Colo’s regulatory framework is a drilling hurdle perhaps second only to Calif. Just ask top operators like Oxy, Chevron, Civitas Resources, and Bayswater Exploration and Production. Navigating the complexities, delays, and compliances in the Mile High State continues to grow more complicated, leading many producers to question the bottom-line economics moving forward, others reaping handsome rewards, and still others staking more claims. Reese Energy Consulting today is following the latest news from the DJ Basin, where For Sale signs and new buyers are out to reshuffle the producer deck. At last week’s NAPE, an OXY panelist confirmed the company was selling its “vast minerals position” in the DJ for $900 million to $1 billion. Denver-based Civitas announced last month it was eyeing an exit sign for part or all of its DJ assets valued at $4+ billion. Bayswater, which has operated in the DJ since 2009, has now sold part of its Weld County assets to Houston-based Prairie Operating Company. The $603 million cash-and-stock deal includes 24,000 acres, 300 producing horizontal wells, and 25 MBOED. It’s important to note that OXY, Chevron, Civitas, and Bayswater also hold sizeable Permian positions. And just by chance, Fort Worth-based Double Eagle Energy Holdings IV LLC has reminded us it’s in search of a buyer amid the amped up production of its Permian Midland assets for $6.5 billion. What do you think? Learn more about REC and our range of crude oil, natural gas, NGL, and LNG services at https://lnkd.in/ewhkGFa. For info about our online natural gas training courses, visit https://lnkd.in/ggd3UkJM. ??

Welcome, Cris Reese Energy Consulting today is delighted to introduce the latest addition to our growing team—this one on the international side. Cristobal (Cris) Fernandez-Salgado joins REC as our business development representative in Latin America where he will oversee new client engagements as well as our current upstream, midstream, NGL, and LNG projects. Cris brings more than 25 years of experience in the oil and gas industry and process engineering to his position with a long history of success in connecting producers and midstream operators with top-tier collaborators. Born in Spain and a Venezuelan citizen since age seven holding dual citizenship, Cris graduated from Universidad de Oriente in Venezuela with a degree in chemical engineering. Throughout his career, he has overseen projects in Venezuela, Ecuador, and Europe. He and his family reside in Caracas, Venezuela. Learn more about the REC team and our range of crude oil, natural gas, NGL, and LNG services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, please visit https://lnkd.in/ggd3UkJM.

Hello, NAPE Expo We are totally jazzed today to welcome our guests and NAPE Expo visitors across the nation inside Reese Energy Consulting’s booth #3856. The mood here is electric this year. And why wouldn’t it be? ?Natural gas is retaking center stage in the energy landscape for what could be the most opportune time in decades for producers and midstream operators. Here’s what we’re talking and meeting about today: -?????????Audits. REC has recovered more than $20 million in lost revenues for our clients -?????????LNG. REC is working with the nation’s largest natural gas suppliers to flow supplies from the U.S. to international destinations -?????????Data Centers. REC is engaged with numerous operators to build natural gas connections and supply the energy needed to host AI powerhouses -?????????Training. REC offers real-world knowledge across the spectrum of natural gas Please join us here to celebrate this amazing time for natural gas and learn more about REC’s upstream and midstream services. Learn more about us at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit https://lnkd.in/ggd3UkJM. ?

NAPE Expo LP Bound and Transporting Precious Cargo Reese Energy Consulting today is putting the final touches on our expanded exhibit for NAPE Expo, February 6-7 in Houston, with every intention of making a big splash. For REC, NAPE Expo is a ground-zero exchange to talk all-things natural gas, share insight on the projects we’re working on at home and abroad, and learn more about the extraordinary opportunities that await. We’ve got a lot going on. So, of course, we’re unleashing our A-team at Booth #3856. Make a point to stop by and slap palms with these intrepid gas players: Stormi Normand, Executive VP Kimberly Page, Senior Director – Business Development Phil Nickel, Director – Producer Services Rick O’Bannon, Chief Commercial Officer Julius Leitner, Business Development Philip Lawrence, Lead Measurement Engineer Learn more about REC and our natural gas services and expertise at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.

Get Your Motor Running. It’s Full Speed Ahead for Natural Gas Four days now into a new Administration and a whirlwind of Executive Orders, the nation’s oil and gas industry—in a great exhalation—appears newly charged. Especially for natural gas, where the U.S. sits as chairman of the board of world production and exports as global demand is expected to rise with historic volumes. With an energy cheerleader back in office projects are being reawakened. The ongoing, massive growth of data centers and record-breaking LNG exports begs for more natural gas and pipeline infrastructure—and the timing couldn’t be more serendipitous. Reese Energy Consulting today is following the latest news from Houston-based Kinder Morgan, Inc., which is geared up and full speed ahead to move more natural gas from the Permian to the Texas Gulf’s LNG corridor with the newly announced $1.7 billion Trident Intrastate Pipeline. The 216-mile natural gas line will flow 1.5 BCFD from Katy, Texas, to Port Arthur, Texas. KM, in its recently announced 4Q 2024 release, reiterated its gas-focused strategy to stay ahead of demand from LNG terminals, power plants, data centers, crypto-mining, and industrial re-shoring, committing 89% of its project backlog and $8.1 billion. The lift of export permits has LNG project developers and terminals in expansion feeling some acceleration of their own. Those hamstrung up until now include Commonwealth LNG’s 9.5 MTPA in La..; Energy Transfer’s Lake Charles 15.5 MTPA terminal in La.; Cheniere’s 3 MPTA expansion in Texas; and six other LNG export terminals set to fire up their engines. What do you think? Learn more about REC and our natural gas and LNG expertise and services at https://lnkd.in/ewhkGFa. For more info about our natural gas and LNG training courses, visit us at https://lnkd.in/ggd3UkJM.