• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days Does Toyota Know Something That We Don’t?
  • 3 hours America should go after China but it should be done in a wise way.
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
How To Play The Nuclear Power Renaissance

How To Play The Nuclear Power Renaissance

A nuclear renaissance seems likely,…

Oil Prices Remain Rangebound As Volatility Fades

Oil Prices Remain Rangebound As Volatility Fades

Oil price volatility has fallen…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Chevron’s Permian Deal with Cimarex Lines up Infrastructure

Chevron USA Inc., a subsidiary of Chevron Corporation, has inked a deal with Cimarex Energy Co. in the Permian Basin, giving the supergiant access to infrastructure to boost the value of its assets there.

Chevron and Denver-based Cimarex signed the joint development deal on Monday for 104,000 acres in Culberson Country, Texas, which will be operated by Cimarex, according to company statements.

The deal has Chevron paying out $60 million to acquire 50% of Cimarex’s Triple Crown gathering system, in addition to a 50% interest in well drilled by Cimarex in 2013, Reuters reported.

This is an 8-year agreement that gives Chevron access to Cimarex’s infrastructure, including roads and utilities necessary to develop assets.

Related article: How to Profit from the Developing Shift in the Natural Gas Market - Interview

Chevron owns (both fully and partly) 1 million gross acres in the Permian’s Delaware Basin.

Cimarex is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the United States.

“After the market close yesterday, Cimarex Energy (XEC-$64.72: Hold) announced that it entered into a joint development agreement (JDA) across its acreage in the Culberson County, Texas with Chevron (CVX-$116.82: NR),” analysts from Topeka Capital Markets said.

Related article: This Week in Energy: Why Now is a Great Time to be Getting into Oil Stocks

“We view the JDA as a slight positive, as it should allow XEC to more efficiently develop its acreage via optimal well placement in the 2nd Bone Spring and with longer laterals in the Wolfcamp. After spending some time re-assessing XEC’s inventory in Permian Basin and Cana Woodford and with our lower long-term NGL price assumption, we are reducing our RNAV to $83.00 per share from $89.00 per share. As a result, we are reducing our price target to $74.00 per share from $80.00 per share.”

ADVERTISEMENT

By. Charles Kennedy of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Donnie Trevino on August 05 2013 said:
    Is cheveron corp. looking to buy cimarex energy or just partner up with them on the100000 acres in Orla

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News