Permian this and Permian that. For several years now, acreage and production in that sprawling, crude-oil-focused shale play in West Texas and southeastern New Mexico have been at the center of so much M&A activity. And the deals keep coming! Just last week, APA Corp. — the international E&P formerly known as Apache — announced that it will be acquiring Callon Petroleum, which in recent years has become a Permian pure play with significant holdings in both the Delaware and Midland basins. In today’s RBN blog, we discuss the APA/Callon deal, the drivers behind it, and why the acquisition makes sense for both companies.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
The list of multibillion-dollar M&A deals involving assets in the U.S.’s dominant crude oil play continues to grow. Here’s just a sampling of the larger deals announced over the past couple of years:
- ConocoPhillips’s $13.3 billion acquisition of Concho Resources and $9.8 billion purchase of Shell’s Permian assets.
- Chevron’s $13 billion purchase of Noble Energy.
- Cabot Oil & Gas’s $9.3 billion buy of Cimarex Energy (the combined company is now known as Coterra Energy).
- Pioneer Natural Resources’ $7.6 billion acquisition of Parsley Energy and $6.4 billion purchase of DoublePoint Energy.
- Civitas Resources’ acquisition of Tap Rock Resources’ Delaware Basin assets and Hibernia Resources’ Midland Basin assets for a total of $4.7 billion.
- Permian Resources’ $4.5 billion buy of Earthstone Energy.
- Ovintiv’s purchase of “substantially all” of the Permian assets held by EnCap Investments’ Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources for just under $4.3 billion.
- Diamondback Energy’s acquisition of FireBird Energy and Lario Permian (a subsidiary of Lario Oil & Gas) for a total of $3.1 billion.
As it turned out, all that was just a teaser for two Permian-focused megadeals this past fall: ExxonMobil’s October announcement that it had agreed to acquire Pioneer Natural Resources for $64.5 billion and Occidental Petroleum’s December announcement that it will be buying CrownRock LP — a leading privately held producer in the Midland — for $12 billion. The Exxon/Pioneer deal holds the distinction of being the largest-ever upstream transaction in the U.S.
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About the song
“Texas on My Mind” was written by Django Walker and appears as the 13th song on Pat Green's debut album, Three Days. It is a long dusty Texas trail from the song’s origins to its appearance on Green’s major-label debut album. The song’s writer, Django Walker, is the son of Texas country music legend Jerry Jeff Walker. He wrote the song in the late 1990s while he was attending the Liverpool Institute for Performing Arts (founded by Paul McCartney), hence the line: “All the morning it was raining on the streets of Liverpool.” Django Walker would release the song on his 2002 indie album, Down the Road. Walker’s dad, Jerry Jeff, recorded the song, and it appears on his May 2001 album, Gonzo Stew. Pat Green and Cory Morrow recorded their version, and it appears on their indie release LP, Songs We Wish We'd Written, released in February 2001. Green and Morrow’s version, produced by Lloyd Maines, appears again on Green’s debut album. It was released as a single in October 2001 and went to #60 on the Billboard Country Singles chart. Personnel on the record were: Pat Green (lead vocals, acoustic guitar), Cory Morrow (harmony vocals), Lloyd Maines (acoustic guitar, pedal steel guitar, baritone guitar), Glenn Fukunaga (bass), Justin Pollard (drums), Brendon Anthony (fiddle), and Brett Danaher (lead guitar).
Three Days is the major-label debut album by alt-country music artist Pat Green. Containing tracks recorded and produced in Austin by Lloyd Maines, and tracks recorded and produced in Los Angeles by Greg Ladanyi, Universal/Republic Records released the album in October 2001. It went to #7 on the Billboard Top Country Albums chart and #86 on the Billboard 200 Albums chart. Three singles were released from the LP.
Pat Green is an American country music artist raised in Waco, TX. He has released 12 studio albums, two live albums, and 20 singles. He continues to record and tour and will begin a series of concerts in Texas beginning in February.
