California Gas Prices Could Top $8

by Jay Young | Investing, Oil & Gas, Tax Savings, Taxes, The Upside

Newsletter No. 116

Good evening,

It’s Thursday, May 15, 2025. In this edition of The Upside, we’ll cover the latest news from the oil and gas industry, along with important updates from King. As always, my goal is to keep you informed on the trends shaping our industry. Thanks for reading.

      

This Week's Headlines

  • California Gas Prices Could Top $8 Without Policy Shift
  • Buyers Rush In as Gas Demand is Rising
  • U.S. Speeds Up Federal Oil and Gas Leasing Process
  • EU Targets 189 More Tankers in New Russia Sanctions
  • OPEC+ Output Drops in April Despite Pledge to Raise Production
  • Last Chance to Watch These Upcoming Webinars 
  • TXO Buys White Rock’s Williston Assets for $350M
  • Permian Resources Buys APA’s Delaware Basin Assets for $608M
          

Oil & Gas News
   

California Gas Prices Could Top $8 Without Policy Shift
California faces a serious fuel supply crunch that could push gas prices above $8 per gallon by 2026 if two major refineries close as planned. These facilities supply about 20% of the state’s gasoline, and their loss would tighten an already isolated market constrained by strict environmental rules, taxes, and unique fuel requirements. Experts say the high prices aren’t due to corporate greed, but state policies that discourage in-state refining. Lawmakers are urging action—like tax breaks and regulatory relief—to avoid major job losses, increased fuel imports, and skyrocketing prices at the pump.

Buyers Rush In as Gas Demand is Rising

Natural gas demand is rising fast—thanks to new LNG export terminals, data centers, and power needs. That’s sending investors scrambling to buy what little is left in the Haynesville Shale, a key gas-producing region near the Gulf Coast.

In April, TG Natural Resources bought most of Chevron’s East Texas gas assets, strengthening its position as the top producer in that area. Hedge fund giant Citadel also jumped in earlier this year, buying Paloma Natural Gas for $1.2 billion.

 

U.S. Speeds Up Federal Oil and Gas Leasing Process
The U.S. Department of the Interior has updated the Bureau of Land Management (BLM) policy to accelerate oil and gas lease reviews on public lands, aiming to complete the process within six months—down from 8–15 months. The policy is designed to boost job creation, lower energy costs, and reinforce U.S. energy dominance by reducing bureaucratic delays and increasing land availability for leasing. Lease parcel reviews will now run concurrently with environmental assessments to streamline approvals and ensure timely public participation.

       
EU Targets 189 More Tankers in New Russia Sanctions

The EU has approved its 17th sanctions package against Russia, this time targeting nearly 200 tankers in Moscow’s shadow fleet used to bypass oil price caps and export restrictions. The new measures build on earlier efforts to curb Russia’s energy revenues and include penalties against individuals tied to cyberattacks and human rights violations. European leaders say the pressure on the Kremlin will continue until Russia agrees to peace talks and a ceasefire, with the next round of negotiations set to take place in Turkey.

 

OPEC+ Output Drops in April Despite Pledge to Raise Production

OPEC+ oil production unexpectedly fell by 106,000 barrels per day (bpd) in April, even though eight key members had pledged to begin increasing output for the first time since 2022. Saudi Arabia, the group’s top producer, modestly raised production, but declines in Iran, Venezuela, Nigeria, and Kazakhstan offset those gains. The group had planned to add 138,000 bpd but managed less than 30,000 bpd in reality.
      

Move to Watch

TXO Buys White Rock’s Williston Assets for $350M
TXO Partners is expanding in the Williston Basin with a $350 million deal to acquire oil-producing assets in Montana’s Elm Coulee Field from White Rock Energy. The acquisition adds about 6,800 Barrels of Oil Equivalent Per Day (BOEPD) and 25 million barrels of proven reserves. With an estimated 4 billion barrels of oil in place and 190,000 productive acres, the field offers strong long-term potential. TXO’s partner, North Hudson Resource Partners, is also investing $125 million for a 30% non-operated stake. The deal is set to close in Q3 2025.

Permian Resources Buys APA’s Delaware Basin Assets for $608M
Permian Resources has acquired 13,320 net acres and 8,700 net royalty acres from APA Corp. in the northern Delaware Basin for $608 million. The deal adds around 100 new high-quality drilling locations, primarily in Eddy County, NM, and is expected to boost production by 12,000 BOEPD in the second half of 2025. In response, Permian is trimming its capital budget by $50 million while maintaining full-year production guidance of 360,000–380,000 BOEPD, signaling confidence in the new assets’ efficiency and return potential.

 

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.

Thank you for your continued support, and if you have any questions for myself or any member of the King team, please don't hesitate to reach out to us.
  

All the best,
Jay

15301 Dallas Parkway, Suite 900
Addison, TX 75001

(214) 420-3000

California Gas Prices Could Top $8

by Jay Young | Investing, Oil & Gas, Tax Savings, Taxes, The Upside

Newsletter No. 116

Good evening,

It’s Thursday, May 15, 2025. In this edition of The Upside, we’ll cover the latest news from the oil and gas industry, along with important updates from King. As always, my goal is to keep you informed on the trends shaping our industry. Thanks for reading.

      

This Week's Headlines

  • California Gas Prices Could Top $8 Without Policy Shift
  • Buyers Rush In as Gas Demand is Rising
  • U.S. Speeds Up Federal Oil and Gas Leasing Process
  • EU Targets 189 More Tankers in New Russia Sanctions
  • OPEC+ Output Drops in April Despite Pledge to Raise Production
  • Last Chance to Watch These Upcoming Webinars 
  • TXO Buys White Rock’s Williston Assets for $350M
  • Permian Resources Buys APA’s Delaware Basin Assets for $608M
          

Oil & Gas News
   

California Gas Prices Could Top $8 Without Policy Shift
California faces a serious fuel supply crunch that could push gas prices above $8 per gallon by 2026 if two major refineries close as planned. These facilities supply about 20% of the state’s gasoline, and their loss would tighten an already isolated market constrained by strict environmental rules, taxes, and unique fuel requirements. Experts say the high prices aren’t due to corporate greed, but state policies that discourage in-state refining. Lawmakers are urging action—like tax breaks and regulatory relief—to avoid major job losses, increased fuel imports, and skyrocketing prices at the pump.

Buyers Rush In as Gas Demand is Rising

Natural gas demand is rising fast—thanks to new LNG export terminals, data centers, and power needs. That’s sending investors scrambling to buy what little is left in the Haynesville Shale, a key gas-producing region near the Gulf Coast.

In April, TG Natural Resources bought most of Chevron’s East Texas gas assets, strengthening its position as the top producer in that area. Hedge fund giant Citadel also jumped in earlier this year, buying Paloma Natural Gas for $1.2 billion.

 

U.S. Speeds Up Federal Oil and Gas Leasing Process
The U.S. Department of the Interior has updated the Bureau of Land Management (BLM) policy to accelerate oil and gas lease reviews on public lands, aiming to complete the process within six months—down from 8–15 months. The policy is designed to boost job creation, lower energy costs, and reinforce U.S. energy dominance by reducing bureaucratic delays and increasing land availability for leasing. Lease parcel reviews will now run concurrently with environmental assessments to streamline approvals and ensure timely public participation.

       
EU Targets 189 More Tankers in New Russia Sanctions

The EU has approved its 17th sanctions package against Russia, this time targeting nearly 200 tankers in Moscow’s shadow fleet used to bypass oil price caps and export restrictions. The new measures build on earlier efforts to curb Russia’s energy revenues and include penalties against individuals tied to cyberattacks and human rights violations. European leaders say the pressure on the Kremlin will continue until Russia agrees to peace talks and a ceasefire, with the next round of negotiations set to take place in Turkey.

 

OPEC+ Output Drops in April Despite Pledge to Raise Production

OPEC+ oil production unexpectedly fell by 106,000 barrels per day (bpd) in April, even though eight key members had pledged to begin increasing output for the first time since 2022. Saudi Arabia, the group’s top producer, modestly raised production, but declines in Iran, Venezuela, Nigeria, and Kazakhstan offset those gains. The group had planned to add 138,000 bpd but managed less than 30,000 bpd in reality.
      

Move to Watch

TXO Buys White Rock’s Williston Assets for $350M
TXO Partners is expanding in the Williston Basin with a $350 million deal to acquire oil-producing assets in Montana’s Elm Coulee Field from White Rock Energy. The acquisition adds about 6,800 Barrels of Oil Equivalent Per Day (BOEPD) and 25 million barrels of proven reserves. With an estimated 4 billion barrels of oil in place and 190,000 productive acres, the field offers strong long-term potential. TXO’s partner, North Hudson Resource Partners, is also investing $125 million for a 30% non-operated stake. The deal is set to close in Q3 2025.

Permian Resources Buys APA’s Delaware Basin Assets for $608M
Permian Resources has acquired 13,320 net acres and 8,700 net royalty acres from APA Corp. in the northern Delaware Basin for $608 million. The deal adds around 100 new high-quality drilling locations, primarily in Eddy County, NM, and is expected to boost production by 12,000 BOEPD in the second half of 2025. In response, Permian is trimming its capital budget by $50 million while maintaining full-year production guidance of 360,000–380,000 BOEPD, signaling confidence in the new assets’ efficiency and return potential.

 

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.

Thank you for your continued support, and if you have any questions for myself or any member of the King team, please don't hesitate to reach out to us.
  

All the best,
Jay