American Oil and Gas Reporter - November 2023 - 21

opportunities to deploy our
technologies, delivering operating and
capital efficiency as well as significantly
increasing production. "
" The combination of ExxonMobil
and Pioneer creates a diversified energy
company with the largest footprint of
high-return wells in the Permian Basin, "
relates Pioneer CEO Scott Sheffield.
" As part of a global enterprise, Pioneer,
our shareholders and our employees
will be better positioned for long-term
success through a size and scale that
spans the globe and offers diversity
through product and exposure to the full
energy value chain. The consolidated
company will maintain its leadership
position, driving further efficiencies
through the combination of our
adjacent, contiguous acreage in the
Midland Basin and our highly talented
employee base, with the improved
ability to deliver durable returns,
creating tangible value for shareholders
for decades to come. " ❒
Kimmeridge Adds
Upstream Assets
In South Texas
NEW YORK-An affiliate of
energy-focused investment firm
Kimmeridge, Kimmeridge Texas Gas
(KTG), is expanding its footprint in the
Eagle Ford Shale by signing a definitive
agreement to acquire upstream assets
from a private seller. According to
Kimmeridge, the assets include
approximately 30,000 acres and
production of 65 million cubic feet
equivalent a day, and have a strong
degree of overlap with KTG's existing
75,000-acre position in the play.
KTG says it plans to continue its
multirig program focused on the Eagle
Ford and Austin Chalk, with a target of
delivering more than 500 MMcfe/d net
on a pro forma basis in 2026.
Kimmeridge indicates it also has
signed a definitive multiyear
transportation agreement with Kinder
Morgan Texas Pipeline LLC to secure
midstream takeaway for its Eagle Ford
natural gas, which enables KTG to deliver
natural gas across multiple LNG facilities
along the Gulf Coast. Combined with
Kimmeridge's previously announced
investment in the Commonwealth LNG
export terminal project on the Calcasieu
River at the Gulf of Mexico near
Cameron, La., Kimmeridge says, the
investments deepen the company's South
Texas foothold, and will position KTG to
deliver natural gas and LNG from the
wellhead to the water.
According to Kimmeridge CoFounder
and Managing Partner Ben
Dell, the acquisition and transportation
agreement will advance KTG's
ambitions of becoming fully integrated
from source to sink and providing
reliable, secure and clean energy to
global markets.
" Kimmeridge has always sought to
be a pioneer in the energy space, first
with the ideation and implementation of
a new exploration and production
business model, followed by the
formation of Civitas Resources,
Colorado's first carbon-neutral energy
company, and now as we build a leading
international LNG platform, " Dell says.
" Through our investments in South
Texas, we believe we will be able to
deliver net-zero LNG, where all Scope
1 and 2 emissions will be offset by a
combination of mitigation,
sequestration and carbon removal. " ❒
Acquisition Of Hess
Includes Bakken Assets
For Chevron Corp.
SAN RAMON, CA.-Chevron
Corp. has agreed to acquire Hess Corp.
in an all-stock transaction valued at $53
billion, and a total enterprise value,
including debt, of $60 billion.
The purchase upgrades and
diversifies an already strong portfolio,
Chevron says, explaining that Hess'
Bakken assets provide it with another
leading U.S. shale position that
complements operations in the DenverJulesburg
and Permian basins.
Those Bakken assets include
465,000 net acres of high-quality,
long-duration inventory supported by
the integrated assets of Hess
Midstream, Chevron describes. The
major also touts Hess's
complementary Gulf of Mexico
holdings, as well as the cash margins
and low carbon intensity of Hess's
Stabroek assets in Guyana, where it
has 30% ownership in more than 11
billion barrels of oil equivalent
discovered recoverable resource.
" This combination positions
Chevron to strengthen our long-term
performance and further enhance our
advantaged portfolio by adding worldclass
assets, " says Chevron Chairman
and Chief Executive Officer Mike
Wirth. " Importantly, our two
companies have similar values and
cultures, with a focus on operating
safely and with integrity, attracting
and developing the best people,
making positive contributions to our
communities and delivering higher
returns and lower carbon. "
Chevron mentions that it expects
Hess CEO John Hess to join Chevron's
Board of Directors. " This strategic
combination brings together two strong
companies to create a premier
integrated energy company, " he says. " I
am proud of our people and what we
have achieved as a company, which has
one of the industry's best growth
portfolios, including Guyana, the
world's largest oil discovery in the last
10 years, and the Bakken Shale, where
we are a leading oil and gas producer.
" Chevron has a world-class
diversified portfolio of assets and one of
the industry's strongest balance sheets
and cash return profiles, " Hess adds. " I
believe our strategic combination
creates a company that is stronger in
every respect, with the leadership, asset
portfolio and financial resources to lead
us through the energy transition and
deliver significant shareholder value for
years to come. " ❒
Gas Storage Volumes
Hit 3.7 Tcf In October
WASHINGTON-Underground
natural gas storage in the United States
stood at 3.700 trillion cubic feet on Oct.
20, 5.2% above the five-year average,
according to the U.S. Energy
Information Administration. That was
up 341 billion cubic feet from the 3.359
Tcf in storage on September 22, and
313 Bcf more than a year ago, when gas
storage stood at 3.387 Tcf.
Gas storage in the East Region was
908 Bcf on Nov. 20, 4.1% above the
five-year average, and up 85 Bcf from a
year ago, EIA reports.
In the Midwest, gas storage stood at
1.075 Bcf on Oct. 20, 3.9% above the
five-year average and 71 Bcf more than
a year ago.
In the Mountain Region, EIA
continues, gas storage was 252 Bcf on
Oct. 20, 21.2% above the five-year
average and 55 Bcf more than a year ago.
The Pacific Region's gas in storage
was 283 Bcf on Oct. 20, 2.2% above the
five-year average and up 35 Bcf from a
year ago.
In the South-Central Region, gas
storage levels on Oct. 20 were 1.182
Tcf, 5.1% above the five-year average
and up 68 Bcf from a year ago. ❒
View the industry's latest
leading indicators at
www.aogr.com!
NOVEMBER 2023 21
http://www.aogr.com
American Oil and Gas Reporter - November 2023

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