A Smorgasbord of Industry Activity
Seems there’s something for everyone today in the energy news-verse, and because we can’t cover them all here, Reese Energy Consulting has picked three headliners to muse over.
(1) Houston-based Marathon Oil has acquired its Eagle Ford neighbor, Ensign Natural Resources, for $3 billion in cash. The deal will nearly double Marathon’s position in the basin from 160,000 to 290,000 net acres with 700 wells and 600+ undrilled locations. The company estimates production of 67 MBOED (22m oil) from its new prize in 4Q.
(2) With a $300 million cash infusion from EnCap Flatrock, Dallas-based startup Cardinal Midstream has landed Medallion Midstream’s gas gathering and processing business in the Permian’s Delaware for an undisclosed sum. The purchase includes 80 miles of gathering pipe and a 140 MMCFD processing plant serving Reeves and Loving counties.
(3) And finally, Dallas-based Denbury has doubled its CO2 transportation deal goal for the year with the sign up of Clean Hydrogen Works and its massive hydrogen-ammonia project in Ascension Parish, La. The planned complex—which will be built two miles from Denbury’s CO2 pipeline network—will produce 7.2 million tons per year of ammonia. Denbury will transport and sequester all carbon from the process.