Latest news with #MidlandBasin
Yahoo
08-08-2025
- Business
- Yahoo
Occidental Unloads $950M in Assets--Debt Drop Could Signal Major Comeback
Occidental (NYSE:OXY) is quietly making big moves. Since April, the company has inked four separate deals to offload select Permian Basin assetspulling in around $950 million. That cash is earmarked for one thing: chopping down debt. Among the transactions, a $580 million sale to an affiliate of Enterprise Products Partners targets gas gathering assets in the Midland Basin. The deal is still pending regulatory green lights but could be finalized soon. The rest came from smaller, non-core and non-operated Permian assets no longer in the company's immediate plans. Warning! GuruFocus has detected 4 Warning Sign with OXY. This is all part of Occidental's broader post-CrownRock cleanup. Since July 2024, it has repaid roughly $7.5 billion in debta figure that could jump even higher once the $580 million sale closes. That brings total divestitures since the CrownRock acquisition to nearly $4 billion. The pace and scale of deleveraging suggest a company that's not just managing its balance sheetbut reshaping it entirely. CEO Vicki Hollub is playing a long game. She believes the current asset base is the strongest in Occidental's history and plans to keep trimming what's unnecessary. Her goal? A leaner, sharper portfolio that can generate sustainable value for shareholders. With core positions in the Permian, DJ Basin, and Gulf of Mexico still intact, Occidental could be positioning itself for stronger capital returns once the dust settles. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-08-2025
- Business
- Yahoo
This Nearly 7%-Yielding Dividend Stock Is Making Another Splash to Boost Its Upcoming Growth Wave
Key Points Enterprise Products Partners is buying a gas-gathering system from Occidental Petroleum. It's also building a new gas-processing plant to support the oil company's growing output. These catalysts add to the MLP's already robust near-term growth outlook. 10 stocks we like better than Enterprise Products Partners › Enterprise Products Partners (NYSE: EPD) is on the cusp of a major growth wave. The master limited partnership (MLP) anticipates that approximately $6 billion of major capital projects will enter commercial service in the second half of this year. These and other projects should fuel accelerated growth well into 2027. The MLP's impending growth wave isn't stopping it from adding even more fuel to its earnings growth engine. It recently inked a deal with oil giant Occidental Petroleum (NYSE: OXY) to enhance its operations and growth profile. As a result, the midstream giant should have even more fuel to continue increasing its nearly 7%-yielding distribution, which it has done for 26 straight years. Drilling down into the Oxy deal Enterprise Products Partners has signed a deal with Occidental Petroleum to acquire a natural gas-gathering affiliate from the oil company. It will also provide natural gas-gathering and processing services to Occidental. The MLP will acquire certain gas-gathering systems in the Midland Basin from Occidental Petroleum for $580 million. It intends to fund the deal with its strong balance sheet. These assets include 200 miles of gas-gathering pipelines that support the oil and gas company's production in the region. Occidental has agreed to a long-term dedication of 73,000 acres across four counties in the Midland Basin region of Texas. This area contains more than 1,000 future drillable locations. As part of the deal, Enterprise Products Partners will build a new natural gas-processing plant (Athena) to support Occidental's growing output in the region. The plant will have the capacity to process 300 million cubic feet of gas per day and extract up to 40,000 barrels of natural gas liquids (NGLs) per day. Enterprise expects to complete this plant by the end of 2026. The Occidental deal will provide Enterprise Products Partners with incremental cash flow from the acquired gathering system when the sale closes this quarter. Additional cash-flow growth will begin when the Athena plant comes online at the end of 2026. As Occidental expands its output on the dedicated acreage, Enterprise may have opportunities to expand the gathering system and processing capacity, creating further growth beyond 2026. Adding to the growth wave The Occidental deal will enhance Enterprise's already robust near-term growth outlook. It's wrapping up construction on $6 billion of major capital projects this year. The MLP has already completed the Mentone West 1 and Orion gas-processing plants, significantly expanding its capacity in the Permian Basin. Additionally, it recently completed the first phase of its Neches River Terminal (NRT). Meanwhile, it expects to complete its Bahia Pipeline, Fractionator 14, and Morgan's Point Enhancements in Q4. The MLP has several more expansion projects on track to enter service in 2026. These projects now include two more gas-processing plants (Mentone West 2 and Athena), the second phase of NTR, an expansion of the Enterprise Hydrocarbon Terminal, and additional gas-gathering, compression, and treating projects in the Permian. Enterprise continues to expect its capital spending to be $4 billion to $4.5 billion this year. Meanwhile, the addition of Athena will boost its 2026 range to between $2.2 billion and $2.5 billion (up from $2 billion to $2.5 billion). With its cash flow expected to rise as expansion projects enter commercial service, and its capital spending on track to decline significantly next year, Enterprise appears poised to generate substantially more excess free cash flow in the coming year. Given that Enterprise already has the strongest balance sheet in the midstream sector, it can use its increased flexibility to continue growing shareholder value. The MLP could deliver a higher distribution growth rate (the company has increased its payment by 3.8% over the past year), make additional unit repurchases ($170 million through the first half of this year), approve new capital projects, and make additional acquisitions. Accelerated growth in the coming quarters Enterprise Products Partners is adding to an already robust growth wave by making a deal with Occidental. It will generate incremental cash flow from the purchase of the gathering system and additional growth from the newly approved Athena gas-processing plant, which should be operational late next year. Those catalysts add to the huge wave of expansion projects coming down the pipeline over the next year and a half. They'll give it a lot more fuel to continue increasing its high-yielding distribution. It makes the MLP a very attractive option for income-seeking investors as long as they're comfortable receiving the Schedule K-1 federal tax form it sends each year. Should you buy stock in Enterprise Products Partners right now? Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Matt DiLallo has positions in Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners and Occidental Petroleum. The Motley Fool has a disclosure policy. This Nearly 7%-Yielding Dividend Stock Is Making Another Splash to Boost Its Upcoming Growth Wave was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-08-2025
- Business
- Yahoo
Enterprise Products Partners to buy Occidental's Midland Basin affiliate
Enterprise Products Partners' affiliates have executed an agreement to acquire a natural gas-gathering affiliate from Occidental. The acquisition includes a long-term dedication of approximately 73,000 acres across four counties in the Midland Basin, with assets comprising around 200 miles (321.8km) of natural gas-gathering pipelines. The pipelines support Occidental's production activities and offer Enterprise more than 1,000 drillable locations, providing long-term development visibility and an immediate expansion of its natural gas-gathering footprint. The $580m debt-free cash deal will also see Enterprise Products build the new Athena natural gas processing plant, enhancing its processing capacity in the region. The Athena plant, which is expected to start service in the fourth quarter of 2026 (Q4 2026), will have the capacity to process 300 million cubic feet per day (mcf/d) of natural gas and extract up to 40,000 barrels per day (bpd) of natural gas liquids (NGLs). Upon completion, Enterprise's Midland Basin assets will be capable of processing 2.2 billion cubic feet per day of natural gas and extracting 310,000bpd of NGLs. Enterprise's general partner co-CEO A.J. Teague said: 'These agreements with Occidental are consistent with Enterprise's focus on expanding our Midland Basin franchise through organic investments in our midstream network and through targeted acquisitions that bolt-on to our existing infrastructure. 'To accommodate production growth in this area of the basin, Enterprise will build its ninth Midland Basin natural gas processing plant and expand its natural gas-gathering system. The Permian Basin is responsible for approximately 90% of domestic liquid hydrocarbons growth and our continued investment in natural gas processing infrastructure supports Enterprise's producer customers and brings additional volume into the company's integrated natural gas liquids value chain.' The strategic investments in the Athena plant and expansions of Enterprise's Midland Basin gathering system are part of the company's estimated growth capital expenditures of $4bn–4.5bn for 2025 and $2.2bn–2.5bn for 2026. The deal is subject to customary regulatory approvals and is expected to close in Q3 2025. In February 2025, Occidental also agreed to divest certain upstream assets for a combined value of $1.2bn. These assets included non-operated assets in the Rockies and select Permian Basin assets not included in Occidental's immediate development plans. "Enterprise Products Partners to buy Occidental's Midland Basin affiliate" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
11-07-2025
- Business
- Yahoo
Rising Phoenix Capital Expands Midland Basin Position with Strategic Maroon Bells Fund Acquisition
DALLAS, July 11, 2025--(BUSINESS WIRE)--Rising Phoenix Capital, a boutique investment firm specializing in oil and gas mineral royalty acquisitions, today announced a new strategic acquisition in the Midland Basin. The mineral rights, located in Ector and Midland Counties, TX, are operated by ConocoPhillips and were acquired through the firm's Maroon Bells Fund, an income-focused mineral portfolio that has delivered consistent cash distributions. The acquisition includes both producing wells and near-term permitted development, increasing Rising Phoenix's footprint in the country's most prolific basin and aligning with its mission to deliver monthly income and long-term capital preservation for accredited investors. "We underwrite for predictability, not hype," said Jace Graham, CEO and Founder of Rising Phoenix Capital. "Our focus remains on acquiring top-tier mineral assets in core basins, leased to highly capable operators. This deal strengthens our position in the heart of the Midland and supports our strategy of dependable cash flow and upside potential." This marks the firm's fourth Midland Basin acquisition in 2025, building on a disciplined acquisition strategy that emphasizes direct sourcing and in-house underwriting, without the use of leverage. For accredited investors seeking exposure to energy income, Rising Phoenix Capital is currently accepting subscriptions into its newest fund, La Plata Peak Fund — a diversified mineral portfolio offering immediate cash flow and long-term upside. Learn more at or call 214.214.4268. About Rising Phoenix Capital Rising Phoenix Capital is a privately held investment firm specializing in direct, alternative asset investments across oil and gas minerals, royalties, non-operated working interests, and real estate. With four generations of experience in energy and real estate, we combine industry expertise with a hands-on approach to deliver strong, stable returns. Our in-house team sources, analyzes, and acquires high-value assets, leveraging off-market deal flow to uncover the best opportunities. By focusing on cash-flowing mineral rights and strategic investments, we provide investors with consistent income and long-term financial growth. At Rising Phoenix Capital, we believe in transparency, efficiency, and integrity—ensuring that every investment decision is backed by data, experience, and a commitment to delivering real value. Photography, B roll, and additional assets are available on the company's Media Kit here. View source version on Contacts Media Contact:Aquila Mendez-Valdezaquila@ 210.606.5251
Yahoo
28-06-2025
- Business
- Yahoo
Jim Cramer Says SM Energy is 'Doing Not Well'
SM Energy Company (NYSE:SM) is one of the 11 stocks Jim Cramer put under the microscope recently. When a caller inquired about the company during the lightning round, Cramer commented: 'The old St. Mary Energy. Alright, listen to me. This thing, I saw it downgraded today. They are doing not well. Okay, I think you should go buy Coterra if you want an oil. That is not a company that you want to own right now. I'm sorry.' A large oil tanker on the horizon, highlighting the wealth of resources this company brings. SM Energy (NYSE:SM) is an independent energy company involved in acquiring, exploring, developing, and producing oil, gas, and natural gas liquids, with operations concentrated in the Midland Basin and South Texas. On June 26, the company announced a quarterly cash dividend of $0.20 per share, payable by August 4, to shareholders of record on July 18. While we acknowledge the potential of SM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
