Just found this on the Texas Workforce Commission's WARN list:

JOB_SITE_NAME....................TOTAL_LAYOFF_NUMBER
Chevron (Deauville Blvd)...........................185
Chevron (S. County Rd.).............................1
Chevron (N. FM 1788)................................14

wow... EOG is buying Encino

EOG Resources (NYSE: EOG) is making a bold move into the Utica Shale with its $5.6 billion acquisition of Encino Acquisition Partners (EAP), a joint venture between Encino Energy and Canada Pension Plan Investment Board.

This transformational deal marks EOG's strategic expansion into Appalachia, adding 675,000 net acres to its portfolio and positioning the company as one of the leading producers in the region.

I honestly don't think price has anything to do with it.

Interesting. U.S. Department of Commerce's Bureau of Industry and Security intends to deny Enterprise's request to export ethane to China....

https://ir.enterpriseproducts.com/news-releases/news-release-details/bis-issues-notice-intent-deny-applications-licenses-export-three

It's not just Enterprise!

Correct. I saw Energy Transfer as well last night. Haven't looked around for others. Likely will make for an interesting Q2 earnings call.

Did I read this correctly in Diamondbacks letter to investors?

Cost per barrel of oil was $49.40?

Quote:

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As a reminder, we measure our capital efficiency using oil barrels produced divided by total capital spent. Our updated guidance implies full year 2025 oil production per million dollars of cash capital expenditures ("MBO per $MM of CAPEX") of 49.4, ~10% better than the Company's original full year 2025 guidance.

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It's definitely not a cost per barrel. Just a lagging indicator on sustained production vs. CAPEX. Their actual cost per barrel is way lower than 49.40. I suspect their ROR is still pretty healthy at these prices.

Anyone know who the buyer was of this?


Canadian firm Vermilion Energy is selling assets in Wyoming's Powder River Basin for $88 Million

Hope so, cause I think that's where oil is heading.

It's a ratio.

Also a production break even is different than a new drill breakeven.

I get that.

But if they are saying it's the total number of barrels produced in a year vs how much they spent that year, would that not be their cost of oil that year?

Yes I know the money spent isn't going directly to the wells producing as it lags. Yes I know it's not an accounting principle. But if they are saying they are spending x dollars this year and getting x barrels this year, it's a pretty big indicator of where they are as a business. And they're making it sound like that's an impressive number. That's a chart I'd like to see over the last 10 years.

Comeby! said:

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It's a ratio.

Also a production break even is different than a new drill breakeven.

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That's true, and I can tell you their new drill breakeven ain't 49.40. That's not to say folks will still decide to deploy capital at 49.40, but you know this.

AgLA06 said:

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I get that.

But if they are saying it's the total number of barrels produced in a year vs how much they spent that year, would that not be their cost of oil that year?

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No, it's just a ratio of the production they've made to the CAPEX they've decided to spend that year. It's related, of course, but nowhere near the same number. I mean - I guess it depends on what you're using that number for. There's a lot that goes into the profitability of a company far beyond oil vs. capex. I'm assuming this is an actual oil number and not BOE? If so (or even if it was a BOE) it would ignore regional gas and gas liquids pricing, JV projects, land value, and all kinds of other things.

As long as that production is only associated with the capex of those drill wells then it holds other than the 'turn to sales' timing.

AgLA06 said:

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I get that.

But if they are saying it's the total number of barrels produced in a year vs how much they spent that year, would that not be their cost of oil that year?

Yes I know the money spent isn't going directly to the wells producing as it lags. Yes I know it's not an accounting principle. But if they are saying they are spending x dollars this year and getting x barrels this year, it's a pretty big indicator of where they are as a business. And they're making it sound like that's an impressive number. That's a chart I'd like to see over the last 10 years.

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The equation you are describing has the $ in the denominator. In a breakeven the cost of WTI is in the numerator, not the denominator. You are also applying the capex as the $ used in a breakeven, which is not the $ used in breakeven's. The $ in a breakeven is the $ of WTI that it will take for the cash flow to be $0 based on capital, differentials, marketing, transportation, opex, taxes, etc. Also, breakeven's do not factor in PDP. You are not correct in saying this number is reflective of a breakeven.

nosoupforyou said:

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Anyone know who the buyer was of this?


Canadian firm Vermilion Energy is selling assets in Wyoming's Powder River Basin for $88 Million

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Did you ever figure out who bought Vermilion's acreage?

Eagle Mountain

Oil fires in Iran and Texas City tonight.

techno-ag said:

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Oil fires in Iran and Texas City tonight.

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https://www.linkedin.com/pulse/fire-breaks-out-marathon-oil-refinery-texas-city-prompting-hammer-gsnoc?utm_source=share&utm_medium=member_ios&utm_campaign=share_via

Mitsubishi targeting Aethon

https://www.hartenergy.com/exclusives/reports-mitsubishi-targeting-haynesville-ep-aethon-8b-deal-213225?utm_source=breaking-news&utm_medium=email&utm_content=read-more&mkt_tok=NDMzLU9ESy04ODkAAAGbGS28krwQrGk9r3eB_rB-mZrlKT_E5KW4XrJm48QZD8ef9_i06G69WtS3tqcFelHw4R0qNE0eIgmEj6ztNXQ88rs_Rwfe7x83HxNTURUvFC6O

How's everyone holding up in this wacky ass industry?

Wish you had stars so I could PM

Yeah, it's unfortunate they gate messaging behind a paywall. I am far too poor for such things.

#API Inventory moves 6/17#Crudeoil -10.133 million (exp -600,000)#gasoline -202,000#distillates +318,000#Cushing -800,000#oott

— Julianne Geiger (@JuliOnTwtr) June 17, 2025

As a current Cactus employee, this is an exciting announcement.

https://www.reuters.com/business/energy/oilfield-equipment-maker-cactus-buy-controlling-interest-baker-hughes-unit-2025-06-02/

Comeby! said:

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How's everyone holding up in this wacky ass industry?

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over worked and underpaid

Told by some midland office Chevron folks that this week has been a 'bloodbath.' Many will have to relocate to Houston over next year to keep their job.

Houston office will be renovated to 'open concept' to accommodate the additional employees.