Page 15 - NorthAmOil Week 14 2023

NorthAmOil NEWS IN BRIEF NorthAmOil

Riley Permian announces storage levels in anticipation of a harsh winter, price of approximately $33.0mn, subject to
milder weather has left them with higher-
customary adjustments.
closing of New Mexico than-normal supplies,” says Andrew Botterill, financial advisor to the Partnership in
Piper Sandler & Co. served as the exclusive
national oil, gas & chemicals leader at Deloitte
acquisition Canada. “The North American market is also connection with the transaction. Gibson,
Dunn & Crutcher served as legal advisor to
oversupplied right now, so until that changes,
Riley Exploration Permian, today announced we’re not expecting a return to the elevated the partnership.
that it completed its previously announced price levels we saw in 2022.” USD Partners, April 03, 2023
acquisition of New Mexico oil and natural Unlike natural gas, oil prices have stabilised
gas assets from Pecos Oil & Gas, an affiliate of in the first quarter of this year and are likely to
Cibolo Energy Partners. remain stable throughout the spring according DOWNSTREAM
Consideration for the New Mexico to Deloitte’s price forecast. However, a recent
acquisition was $330mn before customary announcement by OPEC+ on April 2, may Kinder Morgan announces
purchase price adjustments. In conjunction provide upward pressure that we will continue
with the closing, the company issued $200mn to monitor. This is due in part to increased commercial in-service of
in new, senior unsecured notes and funded demand from China, which has reopened its
the balance of consideration with borrowings economy after several COVID-19 lockdowns, Southern and Northern
from the company’s existing revolving credit and steady production by OPEC countries.
facility. The senior notes will bear interest at The Deloitte forecast notes that WCS (Western California renewable diesel
an annual rate of 10.5% and will mature in Canada Select) has seen significant price
April 2028. growth as the differential with WTI (West hub projects
At the time of the acquisition, the company Texas Intermediate) has narrowed from more
also completed an amendment to its revolving than US$30 per barrel in November 2022 to Kinder Morgan, Inc. (KMI) today announced
credit facility to increase the borrowing base about US$15 per barrel in March 2023. the full commercial in-service of its Southern
by $100mn to $325mn. “There’s been increased demand for and Northern California renewable diesel
RILEY PERMIAN, April 04, 2023 Canadian oil, in part because releases from (RD) hub projects. RD is an alternative fuel
the US strategic reserve have ended and partly that allows trucks, trains and any equipment
Deloitte Canada forecasts because declining natural gas prices have that uses diesel to operate with significantly
improved the economics of refining heavier
lower life-cycle emissions. Now in full
lower natural gas prices to crude,” says Botterill. operation, Kinder Morgan’s RD hubs are
the most efficient and least carbon intensive
DELOITTE & TOUCHE, April 05, 2023
continue this year method of transporting this lower emissions
fuel from the Los Angeles refinery basin to
North American natural gas prices, which MIDSTREAM San Diego and the Inland Empire and from
dropped significantly during the first quarter the San Francisco Bay area to Sacramento,
of this year, are expected to remain lower USD Partners LP announces San Jose and Fresno. The initial phases of
through most of 2023, according to the latest both hubs are fully subscribed with customer
forecast from Deloitte Canada’s resource closing of Casper terminal commitments.
evaluation and advisory (REA) group, “We are very pleased to be advancing
“Energy M&A spotlight: Buy with strategy, sale California’s climate goals through our
sell with purpose.” High storage levels and Southern and Northern California RD hubs,”
increased production in both Canada and A wholly owned subsidiary of USD Partners said KMI’s president of products pipelines,
the United States have created an imbalance announced today that on March 31, 2023, it Dax Sanders. “These projects present a
between supply and demand that is putting closed the previously announced sale of the significant opportunity to participate in the
downward pressure on prices. Casper rail terminal to South 49 Holdings, a transition to lower emissions energy sources
“While many European countries member of the Midstream Energy Partners of the future while continuing to provide
significantly increased their natural gas group of companies, for a cash purchase fuels still in demand today. We are confident

Week 14 06•April•2023 www. NEWSBASE .com P15