The day is awash in 1Q report cards from producers, midstreamers, and refiners, along with a few special announcements that put the proverbial cherry on top of a spectacular first three months of 2023. While we can’t cover them all, Reese Energy Consulting has flagged three worth noting.
On the producer end, we’re skipping the heavyweights to spotlight Permian and Eagle Ford operator Callon Petroleum. The company reported $220.6 million in net income compared with a $7.7 million loss in the same period last year. Callon also is tap dancing out of the Eagle Ford to beef up its Permian position with back-to-back deals for a combined $1.13 billion. The Eagle Ford assets include 2,000 net acres and 16.3 MBOED. The bolt-on Delaware assets will add 18,000 net acres and 70 well locations to Callon’s 145,000 net acres and 1,500 locations.
Thanks to higher volumes and margins across its operating segments, midstream operator Targa hit a 1Q homerun with $947 million in net income vs $88 million in the same period last year. Continuing its buildout of Permian G&P systems to capture high supply levels, Targa also announced it will construct its 10th fractionator at Mont Belvieu.
Meanwhile, refiner Sinclair, which will now gobble up the rest of Holly Energy stock it didn’t already own, reported net income of $353 million vs $160 million in the same period last year.