A Super Bowl game (and halftime show) for the ages followed up only hours later by a made-in-heaven combination of two of the largest, most admired E&Ps in the super-hot Permian? It doesn’t get any better than this, unless you’re a Taylor Swift fan too — in which case, it may be impossible for you to “shake it off.” In today’s RBN blog, we examine the newly announced plan by Diamondback Energy and Endeavor Energy Resources to combine into a Travis Kelce-sized Permian pure play with more than 800 Mboe/d of crude oil-focused production and more than 6,000 well locations with breakevens of $40/bbl or less.
Super Bowl
Sunday, 2/03/2013
Back in October we posted a blog forecasting that the Brent/WTI price spread (at that time $22.76/Bbl) would narrow by the time of the Super Bowl (see Place Your Bets on Narrow Brent /WTI Spread for the Super Bowl). That turned out to be true (it is now $18.99/Bbl) but no Lambeau Leap for the RBN team. A $19 differential is still a big number, and the crude supply congestion in the Midwest that led to a wide WTI discount to Brent in the first place continues. Last week the congestion showed every sign of moving to Houston and staying there at least until the end of the year. Today we present our post-Super Bowl Brent/WTI spread analysis.