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• Oklahoma Gross Receipts Poised to Fall
  The latest revenue figures announced by Oklahoma Treasurer Randy McDaniel show a decline...

  The latest revenue figures announced by Oklahoma Treasurer Randy McDaniel show a decline of oil and gas gross production for the month of March, but he also suggests it is “the calm before the storm.”

  
  

  McDaniel knows the coronavirus effects combined with the drastic impact of the global oil price war will only be worse in April and maybe May.

  
  

  “This month marks the end of almost three years of economic growth,” said Treasurer McDaniel. “I expect to see a much different picture emerge in the coming months.”

  
  

  Gross production taxes on oil and natural gas total $78.9 million in March, a decrease of $17.3 million, or 18 percent, from last March. Compared to February 2020 reports, gross production collections are down by $6 million, or 7 percent.

  
  

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• Patterson-UTI Energy Cuts CAPEX
  Patterson-UTI Energy (PTEN) announced that is was reducing 2020 CAPEX to ~$140MM,...

  Patterson-UTI Energy (PTEN) announced that is was reducing 2020 CAPEX to ~$140MM, representing a 44% decline from original guidance of $250MM due to weak market conditions. Additionally, the company announced a series of unquantified cost savings initiatives that were headlined by a more than 50% reduction in executive group compensation for 2020. PTEN also provided a brief operational update that noted that Q1 drilling activity was in line with expectations but the company expects meaningful declines in April (no surprise there). The pressure pumping business declined more quickly with significant declines in the latter part of Q1 (again, no surprise there).

  
   
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• US oil and gas industry sees 28.2% drop in deal activity
  The US oil and gas industry saw a drop of 28.2% in overall deal activity during...
  
  
  The US oil and gas industry saw a drop of 28.2% in overall deal activity during February 2020, when compared with the last 12-month average, according to GlobalData’s deals database.
  
  

  
  A total of 56 deals worth US$2.69 billion were announced in February 2020, compared to the 12-month average of 78 deals.
  
  Mergers and acquisitions (M&A) was the leading category in the month in terms of volume with 32 deals which accounted for 57.1% of all deals.
  
  In second place was venture financing with 20 deals, followed by private equity with four transactions, respectively accounting for 35.7% and 7.1% of overall deal activity in the country’s oil and gas industry during the month.
  
  In terms of value of deals, M&A was the leading deal category in the US oil and gas industry with total deals worth US$2.04 billion, while private equity and venture financing deals totalled US$400 million and US$248.85 million, respectively.
  
  The top five oil and gas industry deals accounted for 76.5% of the overall value during February 2020.
  
  The combined value of the top five oil and gas deals stood at US$2.06 billion, against the overall value of US$2.69 billion recorded for the month.
  
  The top five oil and gas industry deals of February 2020 tracked by GlobalData were:
  

  
  
  • Eversource Energy’s US$1.1 billion acquisition of Columbia Gas of Massachusetts.
  
  
  • The US$400 million private equity deal with CenterPoint Energy Services by Energy Capital Partners.
  
  
  • WaterBridge Resources’ US$225 million asset transaction with Centennial Resource Development.
  
  
  • The US$175 million acquisition of Atlantic Coast Pipeline by Dominion Energy.
  
  
  • Schweitzer-Mauduit International’s asset transaction with Tekra and TRIENT for US$155 million.
  
  
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• Natural Gas – Prices Drop Following EIA Inventory Report
  Natural gas prices moved lower on Thursday, declining slightly more than 2% following a smaller...
  Natural gas prices moved lower on Thursday, declining slightly more than 2% following a smaller than expected draw in natural gas inventories. The weather is expected to be warmer than normal in the United States for the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration.
  
  The Energy Information Administration reported that working gas in storage was 1,986 Bcf as of Friday, March 27, 2020. This represents a net decrease of 19 Bcf from the previous week. Expectations were for a 24 Bcf draw according to the survey.
  
  Today, cash prices at the Henry Hub lost another 11 cents, tumbling to a preliminary 21-year low settlement price at just $1.48/MMBtu. Since November, the benchmark US gas index has given up more than $1.35, or nearly 48%,
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• Oil Surges as Trump Says Russia and Saudi Arabia Ready to Cut 10 Million Barrels From Crude Production Rates
  Global oil prices rallied Thursday after President Donald Trump said ...
  Global oil prices rallied Thursday after President Donald Trump said Russia and Saudi Arabia were ready to "significantly" reduce production rates and planned a White House summit to address a market he said was 'ravaged' by the coronavirus pandemic. The President said he would broker a deal between Saudi Arabia and Russia, the world's second and third-largest producers, that would end the ongoing price war that followed the collapse of OPEC's three-year production cut agreement last month in Vienna. Trump also tweeted Thursday that he expects Russia and Saudi Arabia "will be cutting back approximately 10 million barrels", although it was unclear as to when that would begin and over what time frame if any, the cuts would take place.
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