Exploring Deals, Wells, and Industry Insights

Newsletter No. 33

Good evening,

 Hope everyone had a great week. I have so many updates to share with you.


This Week’s Headlines

  • NAPE: The Show Where Deals Happen 

  • News From the Field

  • Oil and Gas Industry Update

  • Ask Jay

  • Giving Something Back

NAPE: The Show Where Deals Happen

I recently had the opportunity to have some special guests join me in the new podcast studio built at our office.  

I sat down with the VP of AAPL & NAPE, Le’Ann Callihan, as well as the Director at NAPE Expo LP, Drew Guntert. NAPE is the show where deals happen in the oil and gas industry, where global dealmakers are brought together. This podcast was an opportunity to get the inside scoop on the NAPE Summit. We are proud to be long-time sponsors of this expo, which is coming up in February in Houston.

We discussed everything from Bitcoin miners to international bidding wars. It’s a revealing look at how personal connections and in-the-flesh events streamline the oil & gas industry. You can listen to this as well as previous episodes on Apple Podcasts at The Jay Young Show. 

Check out the episode here.

News From the Field

Believers #1: This is the vertical Wolfcamp well. Following a substantial frac operation, we drilled out the plugs and will hook up the ESP next week for full flowback. 

Believers #2: The Ellenberger well continues to produce oil as we await electricity installation, aiming to boost production with a pumping unit.

Believers #3: We are swabbing the well on Tuesday.

Believers #4: The frac is scheduled to take place in the next couple of weeks.

Believers #5: The frac involved stimulating 28 stages using 230,000 barrels of water and 10 million pounds of sand.

Stay tuned for more updates.

Oil and Gas Industry Update

Hess Unit Buyback: Hess Midstream is in the news this week, announcing it has agreed to repurchase some of its own units for about $100 million from its parent companies. This deal was expected to be completed this week.

After this buyback, Hess Midstream will have more than $1 billion available to use until 2025. This money can be used for more buybacks in the future.

The subsidiary of Hess Midstream, called Hess Midstream Operations LP, will buy back about 3.3 million units, which is a small part of the whole company. They are buying these units for about $30.29 each.

This decision was approved by the company’s board, and it’s part of their strategy to give money back to their investors. The company’s CFO, Jonathan Stein, says this buyback will be good for the shareholders.

Aramco and Exxon CEOs: We Need Oil for a Long Time: The CEOs of two major oil companies, Saudi Aramco and Exxon Mobil, spoke at an industry event and said that while they support cleaner energy, they think we still need oil for a long time. They believe we should capture and store carbon to reduce pollution from burning oil. They also said that if we stop using oil too quickly, there might not be enough of it, and prices could go up a lot.

They also argued that the oil industry is important for meeting the world’s energy needs. They expect people will still use a lot of oil in the future, so they want to keep investing in more production.

Some people are worried that the shift to cleaner energy will hurt economies, especially in developing countries. They think it’s not fair to ask these countries to stop using oil quickly because they didn’t cause most of the pollution.

Giving Something Back

Last Monday, members of our team were able to participate in two phenomenal charity golf tournaments. Our CFO Graham Patterson and I joined forces on a team, as we competed in the Alzheimer’s Pro-Am Golf Tournament. SVPs Tom Gray and Cole Oliver teamed up with basketball great Spud Webb in the Nancy Lieberman Charities Golf Classic.

Sponsoring these charities is not only fulfilling but is a rewarding experience on multiple levels. We had the opportunity to enjoy a game we all love, and also got to support meaningful causes and make a positive impact on our community. 

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 SVP’s here and someone will reach out. 

Recommended Reads

Oil Jumps As Crude Inventories Draw

Saudi Energy Minister Sets Record Straight On Oil Prices

Exxon Mobil Pushing Ahead with CCS and Direct Air Capture

 All the best,