Reese Energy Consulting today is riding a Permian wave that illustrates what a billion will buy you if exporting crude or simply producing it is where you bet your hat.
First up is the toddler-age South Texas Gateway Terminal owned and operated by Buckeye Partners, Marathon, and Phillips 66. With the paint barely dry on the three-year-old facility, Canadian infrastructure giant Gibson Energy will add STGT to its Permian operations for $1.1 billion. The terminal is one of only two on the Gulf Coast with VLCC capabilities and the second largest with 1 MMBPD of capacity and 20 storage tanks that can hold up to 8.6 MMBbls of crude. STGT saw record volumes in March of more than 670 MBPD. Gibson also owns and operates three Permian gathering systems and the Gibson Wink Terminal.
Further upstream, The Woodlands-based Earthstone Energy has been on an acquisition roll for the last two years and now has partnered with non-operator Northern Oil and Gas in Minn., to jointly purchase Novo Oil and Gas. Okla. City-based Novo will bid farewell to its Permian Delaware assets for $1.5 billion in a deal that includes 11,300 net acres, 114 wells, and 38 MBPD in production. Earthstone, which will pay $1 billion for its 66.3% Novo stake, continues to muscle up its Permian presence with now eight acquisitions under its belt since 2021. The company expects its total near-term volumes pro forma to surpass 135 MBOED.