Newsletter No. 122
Good afternoon,
It’s Thursday, June 26, 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
- Upcoming Webinar with King's Chief Economist John Mauldin
- Shell Denies Report of Merger Talks with BP After Market Buzz
- Peregrine Energy Grows Its U.S. Oil and Gas Business with Big New Purchase
- China’s Electric Car Market is in Big Trouble
- Oil Prices Rebound on Strong U.S. Demand and Iran-Israel Ceasefire
-
EON Energy Buys Big Stake in New Mexico Oil Field
Oil and Gas News
Shell Denies Report of Merger Talks with BP After Market Buzz
There’s been some confusion today about whether oil giant Shell is trying to buy its rival BP.
A report from The Wall Street Journal claimed Shell and BP were in early talks about a massive merger — one that could create one of the biggest oil companies in the world. The idea was that by teaming up, they could better compete with huge U.S. companies like ExxonMobil and Chevron. After the report came out, BP’s stock jumped, while Shell’s fell slightly.
But Shell quickly responded, saying the story isn’t true. The company said clearly that it hasn’t made a bid for BP and isn’t planning to. And because of UK takeover rules, by saying this publicly, Shell is now not allowed to make an offer for BP for at least six months. However, it left the door open for future reconsideration under certain conditions.
Shell’s CEO also reminded investors that he thinks spending money to buy back Shell’s own shares is a smarter move than buying another big company like BP. Analysts continue to speculate on the potential of a Shell-BP mega-merger, driven in part by BP’s recent weak performance.
Global Market Share by Market Cap (June 2025)
Below is a breakdown of the global market share by market capitalization for Shell, BP, ExxonMobil, and Chevron, using the latest available data. It also includes what a the market share would look like if a merger did happen:
 |
| Source: Statista, WorldOStats, AlphaSense, May–June 2025 |
Peregrine Energy Grows Its U.S. Oil and Gas Business with Big New Purchase
Peregrine Energy Partners just bought a large group of oil and gas properties across several U.S. states like California, Texas, and New Mexico. This purchase includes more than 1,100 active wells and land rights in a key oil region called the Delaware Basin. Peregrine worked with different sellers, from small family groups to bigger companies, making sure the deals were fair and clear. This move fits with Peregrine’s goal to focus on steady oil production and strong cash flow, helping the company grow and create value over time.
China’s Electric Car Market is in Big Trouble
China’s electric car industry is struggling badly. Out of 500 companies, about 400 have closed down, leaving many car owners without help or support. Only a few companies, like BYD and Li Auto, are still making money. Because of so many cars and fewer buyers, prices are dropping fast, causing a big price fight. Other countries, like those in Europe, are putting extra taxes on Chinese electric cars to protect their own businesses. Even though China is still exporting a lot of electric cars, problems at home could affect markets around the world.
Oil Prices Rebound on Strong U.S. Demand and Iran-Israel Ceasefire
Oil prices rose over 1% on Wednesday, rebounding from recent lows as U.S. inventory data showed significant crude and fuel stockpile draws, signaling robust domestic demand. Brent crude climbed to $67.96 and WTI to $65.20. The market was also buoyed by hopes of a near-term Federal Reserve rate cut and a tentative ceasefire between Iran and Israel. Despite the pause in Middle East tensions, uncertainty remains, with analysts expecting oil to trade in the $65–$70 range as traders monitor further economic and geopolitical developments.
 |
Moves to Watch
EON Energy Buys Big Stake in New Mexico Oil Field
EON Energy, an oil company based in Houston, is taking over most of an oil field in Lea County, New Mexico. Instead of paying cash, EON is giving one million company shares to get 94% of the field. The site has 208 wells and is already producing some oil—about 108 barrels a day—which should bring in around $1.2 million a year. EON plans to boost production by restarting unused wells and using techniques that have worked at another nearby site.
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.
All the best,
Jay
