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Oil and Gas Investor Cover Story: Midland Basin's Major Mojo


Thu, 07/01/2021 - 03:00 AM
[Editor s note: A version of this story appears in the July 2021 issue of Oil and Gas Investor magazine.]
“Hands up! We’ve got you surrounded,” the marshal shouted out in the Old West. Today, acquisitive CEOs are shouting that in the Midland Basin. The flat, dry landscape hasn’t changed in decades, but what goes on underneath, and who controls that, surely has.
To assess the quality of the Midland Basin, one has only to look at the many recent transactions there, and to what extent public companies tout enormous returns. As operators push lateral lengths out further, yet wells get spaced further apart, companies do not have as much inventory in the Midland Basin as they once assumed, so they need to acquire more acreage. ....

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Diamondback Sees No 'Clear Signal' to Boost Permian Output - Natural Gas Intelligence


Diamondback Sees No ‘Clear Signal’ to Boost Permian Output
Diamondback Energy Inc. CEO Travis Stice said until there’s a “clear signal” to increase oil output, there are no plans to expand volumes this year in the Permian Basin.
Stice and his management team discussed first quarter performance and the outlook for the oil and gas market during a conference call. The CEO pointed to the bump in global oil output underway by the Organization of the Petroleum Exporting Countries and its allies, better known as OPEC-plus. That’s reason enough to remain cautious, he said.
“Even though oil demand has shown signs of recovery from the depths of the global pandemic, oil supply is still purposely being withheld from the market primarily through the actions of OPEC-plus,” Stice said. “As a result, we continue to believe we do not need production growth and we’ll hold our pro forma fourth quarter 2020 oil production flat through 2021.” ....

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