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A major U.S. shale oil producer is looking to start a land selloff in the lone star state

Pioneer Natural Resources Co PXD.N, one of the nation's largest oil companies by output, has put up for sale its onshore assets in the Delaware basin of Texas intending to raise over $2 billion.

This move comes to light following crude oil prices rebound after last year's pandemic-induced crash. Gas and oil are hiking to new heights as the demand for exports is rising. The price of West Texas Intermediate Crude is now at about $70 per barrel. As a result of the recovery, producers are finally able to shed some underperforming properties, igniting a shale consolidation wave.

In the event of a successful sale, Pioneer would be left concentrating on the Midland Permian, its traditional base of operation.

Through divestment, Pioneer likely wants to streamline its upstream portfolio. Since at present, investors are pressing more and more upstream companies for a higher shareholder value, not production, so they are forced to focus on finding profitable resources instead.

The need for Pioneer to restructure its business and reduce debt is understandable, giving a big splurge earlier this year when it completed two acquisitions valued at over $1 billion each. The oilfield services business was already sold by Pioneer for an undisclosed sum in March to kickstart the process. As speculated, the company has agreed to sell approximately 20,000 net acres in western Glasscock County, Texas, to Laredo Petroleum for as much as $230 million under its assets sale plan.

Pioneer paid $6.2 billion for Midland-basin rival DoublePoint Energy after closing the Parsley deal in January. As a result of the deals, companies’ total debt amounted to no less than $6.9 billion at the end of June, spiking more than 100% up from $3.1 billion six months prior.

With this convenient acquisition, the company now owns 97,000 acres in the Permian Basin, making it one of the biggest producers there. Through the transaction, the acquirer now controls approximately 1 million acres of basin land.

Apart from offsetting its debt, Pioneer also recently pushed forward with the notion of paying a variable quarterly dividend starting in September instead of the first quarter of 2022 as was planned earlier. Not surprising, considering boosted buybacks and dividends are part of the wider effort of shale companies to improve investor confidence following years of sub-par returns compared to other industries.

Therefore a detailed analysis of such intel becomes a useful necessity for any financial endeavor. The map-based asset intelligence provided by Rextag, as shown, allows business development teams to rapidly and accurately analyze and grab all and any opportunities such as Pioneer's proposed sale from a holistic standpoint, including midstream.

If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.

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Restructuration is in a full-speed: Comstock to sell Bakken for $154 million

Comstock Resources decided to go through with asset divestment, selling its Bakken Shale actives for $150M to Northern Oil and Gas. The proceeds from these sales will be reinvested by Comstock Resources Inc. into the Haynesville Shale, at which point the company may acquire additional leasehold and fund drilling activities starting in 2022. Meanwhile, Northern clearly gunning for the pack leading position in the Texas shale play, but whether they succeed or not is remains to be seen.

A good asset will not sit on the market for long. After a deal with Berkshire Hathaway fell through, Dominion Energy managed to secure another one for Questar Pipelines in a drop of a hat. And get that, it is better than the former one by more than half a billion! Although not everyone is happy with such decisions, it seems that even Carl Icahn’s complaints won't be able to sway Southwest Gas Holdings’ decision. Though we will have our eyes peeled in any case… If everything goes as planned, a $2 billion deal will be closed before the end of the year.

Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.

The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.

Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.

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