American Oil and Gas Reporter - April 2021 - 17

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IndustryDigest
Suemaur Exploration & Production
LLC. " Providing education about the
Texas oil and natural gas industry at the
community, state and national level is of
critical importance and a priority that is
central to TIPRO's mission. "
" TNG has always aimed to give a
voice to those who support Texas oil
and natural gas production, and since
its inception, TNG has given hundreds
of thousands of Texans the tools and
resources to stand up for Texas
energy, " describes TIPRO President
Ed Longanecker. " Under the TIPRO
banner, TNG will emerge as a
stronger organization that will enable
the group to better fulfill its mission
for years to come. "
According to TIPRO, the union will
fortify both organizations for a
tumultuous year, with the 87th Texas
Legislative Session, a new presidential
administration in Washington, and an
escalation of efforts designed to reduce oil
and gas production in the United States.
" Anti-oil-and-gas campaigns and
unrealistic energy policy proposals
have unfortunately increased in recent
years, which could have a devastating
impact on our nation's economy,
national security and the livelihoods
of millions of Americans that rely on
the oil and natural gas sector, "
Longanecker warns. " It's incumbent
upon our organization to provide a
credible source for anyone seeking
information about oil and natural gas
and our ongoing work to support
sound, science-based policies at all
levels of government. " ❒

Pioneer To Gain Acreage
By Acquiring DoublePoint
DALLAS-Pioneer Natural
Resources Co. announces it has entered
a definitive purchase agreement to
acquire the leasehold interests and
related assets of DoublePoint Energy in
a transaction valued at $6.4 billion as of
April 1. Payment consists of 27.2
million shares of Pioneer common
stock, $1 billion in cash and the
assumption of $0.9 billion in debt and
liabilities, Pioneer details.
" DoublePoint has amassed an
impressive, high quality footprint in the
Midland Basin, comprised of tier one
acreage adjacent to Pioneer's leading
position, " praises Scott D. Sheffield,
Pioneer's chief executive officer.

" Pioneer will incorporate these assets
into our investment model, migrating
the assets from significant production
growth to a free cash flow model,
moderating growth for the U.S. shale
industry and generating significant
value for our shareholders. "
This transaction represents a
contiguous position of 97,000 net acres
directly offsetting and overlapping
Pioneer's existing footprint, Pioneer
says. According to the company, the
acquired acreage primarily is undrilled
and increases its acreage position to
more than 1 million net acres with no
exposure to federal lands. Pioneer
indicates production from the acquired
assets should reach 100,000 barrels of
oil equivalent per day by late in the
second quarter.
The transaction will be accretive to
financial metrics, including cash flow
and free cash flow per share, earnings
per share and corporate returns in 2021
and beyond, Pioneer assures. The
company says the transaction's
accretive nature leads to an increase in
the expected per share variable dividend
beginning in 2022. ❒

Chevron Signs Deal
To Buy Noble Midstream
SAN RAMON, CA.-Chevron
Corp. and Noble Midstream Partners
LP have entered a definitive
agreement for Chevron to acquire all
publicly held common units
representing the limited partner
interests in Noble Midstream, not
already owned by Chevron and its
affiliates, in an all-stock transaction.
" We believe this buy-in transaction is
the best solution for all stakeholders,
enabling us to simplify the governance
structure and capture value in support of
our leading positions in the DJ and
Permian basins, " relates Colin Parfitt,
vice president of Chevron Midstream
and chairman of the board of the general
partner of Noble Midstream Partners LP.
According to Chevron, the Conflicts
Committee of the Board, comprised
entirely of independent directors, after
consultation with its independent legal
and financial advisors, unanimously
approved the merger. Subsequently, the
merger was approved by the board.
Chevron says it expects the transaction
to close in the second quarter of 2021,
subject to customary approvals. ❒

Tall Oak Midstream II
Acquires Redcliff
DALLAS-Midstream provider Tall
Oak Midstream has acquired Oklahoma
STACK play gas gathering, treating and
processing services provider Redcliff
Midstream. Financial terms of the
transaction were not disclosed.
Founded in 2017 as a wholly owned
subsidiary of Canyon Midstream
Partners II LLC, Redcliff Midstream
provides gas gathering, treating and
processing services in the northern
region of the STACK play. Its assets
include more than 200 miles of gathering
pipeline, five field compression stations
spread across Oklahoma's Woodward,
Dewey, Blaine and Canadian counties
and a 240 million cubic feet a day
cryogenic gas processing plant in
Woodward County, Tall Oak describes.
The company says these assets will
complement its existing asset base-
which includes more than 750 miles of
low- and high-pressure gathering lines
across seven Oklahoma counties-and
expand its infrastructure footprint in the
Northern STACK Extension region.
In January 2021, Tall Oak was
acquired by Tailwater Capital, a private
equity firm based in Dallas. The
transaction closed in February 2021.
" Redcliff Midstream's
complementary network of high-quality
assets and its diverse customer base are a
perfect fit for Tall Oak as we continue to
grow our footprint and service offerings
in the region, " affirms Tall Oak Chief
Financial Officer Max Myers. " We are
thrilled with how quickly our partnership
with the Tailwater team has presented
new opportunities, and we look forward
to continuing to work together to grow
our business while maintaining best-inclass service for our customers. "
" Redcliff brings an attractive asset
base with newly-built pipelines and
high-quality compression and
processing facilities that augment Tall
Oak's existing capabilities and grow the
existing platform, " says Tailwater cofounder and Managing Partner Jason
Downie. " The Northern STACK
Extension encompasses a robust
inventory of economic undeveloped
drilling locations and underutilized
midstream infrastructure that Tall Oak
is actively evaluating as it searches for
accretive bolt-on opportunities to
expand its regional footprint. " ❒
APRIL 2021 17
American Oil and Gas Reporter - April 2021

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