Newsletter No. 38
Good morning,
Hope everyone is doing well. As this week comes to a close, I want to ensure you are well-informed about the latest developments around the oil and gas industry, and at King Operating Corporation.
This Week’s Headlines
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More Heartbreaking Events Unfold
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A New Rice Report
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Another Big Deal in the Oil Patch
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Ask Jay
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And Another Potential West Texas Deal …
More Heartbreaking Events Unfold
It’s been another week filled with heartbreaking news and deeply distressing events. Our hearts ache as we hear about the ongoing conflicts and senseless acts of violence that have taken place.
Our thoughts and prayers are with all those who are suffering, and we hold onto hope for a world where such sorrow and loss can be replaced with peace and healing.
A New Rice Report
King Operating Corporation’s Chief Growth Officer Eric Rice sheds light on the current market conditions, commodities, what’s happening with some banks, and he also touches on the conflicts happening globally. Watch here.
Another Big Deal While Oil Prices Surge
Chevron’s latest move to acquire Hess Corp for a staggering $53 billion is just one part of a broader trend in the energy sector. With oil prices skyrocketing due to various factors, including the conflict in Ukraine, major players are seizing opportunities to expand.
I wrote in one of my recent newsletters about how Exxon Mobil completed a $60 billion acquisition of Pioneer Natural Resources. This surge in oil prices is being driven by multiple factors, including production cutbacks from Saudi Arabia and Russia, as well as geopolitical tensions in the Middle East. While events in the region may not directly disrupt global oil supply, they add uncertainty and potential for further price increases.
This deal itself is another example of one that seems to follow many of the principles I’ve discussed in my book, “The Upside of Oil and Gas Investing,” and closely aligns with the strategies we implement here at King Operating Corporation.
If you would like to learn more about these principles, you can listen to my book here. Or, if you’d like for us to send you a signed copy of my book, send your name and address to info@kingoperating.com.
Ask Jay
I decided to expand on these recent deals and what they mean in this week’s “Ask Jay.” Watch the video here.
And Another Potential West Texas Deal …
ConocoPhillips, one of the United States’ largest oil and gas producers, is considering a bid for CrownRock LP, which is also situated in the Permian Basin. The potential deal, valued between $10 billion and $15 billion, comes amidst a surge in consolidation within the energy sector.
Other contenders, including Diamondback Energy, Devon Energy, Marathon Oil, and Continental Resources, are also exploring bids for CrownRock.
The company, led by Texas billionaire Timothy Dunn and backed by private equity firm Lime Rock Partners, owns significant acreage in the Permian. The outcome of these potential bids remains uncertain, and other interested parties may emerge as the process unfolds.
If you’d like to talk to someone about King and are an accredited investor, you can fill out your information here or schedule a Zoom conversation with one of our SVPs here and someone will reach out.
In the News
Interview with Mike Pache of LiveNOW from Fox about the fluctuating gas prices in the fall and winter months amid global disruptions.
Recommended Reads
Equinor Cuts Its Oil And Gas Output Guidance
ARC Resources Posts Record Production, but Weaker Q3 Earnings
War in Gaza threatens global oil and gas price surge
All the best,
Jay
