January 2024

SPE PERMIAN BASIN SECTION

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SPE Renewal Technical Tour January Sec on Mtg Volunteer Opportunity

Courtesy of Chevron —Photo by: Dwight Alworth

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SPE Permian Basin Calendar of Events…………………………..……………………………………………………………………………….3 Chairman’s Corner……..…………………………………….…………………………………………………………………………………………….4 SPE PB General Sec on Mee ng…….....…………………..………………………..……………………………..….….………………………6 SPE PB: Data Analy cs Study Group Mee ng...………………………………..……………………………..….….………………………8 Volunteer Opportunity—Young Women’s Leadership Academy (YWLA) STEM Event……………………………………10 Technical Tour...……………………...……..……………………....……………….…….....…………………..……………………………………16 SPE Permian Basin 2024 Scholarships……………….......……..….………….…….....………………………………….…………………20

SPE Membership Renewal...……………………...…………....……………….…….....…………………..……………………………………23 Midland PPDC 2023 Course Schedule……....……..…….……….……….…….....…………………………………………………………24 SPE Permian Basin Board………………………..…….………………………………………………………………………………………………27

ADVERTISE IN THE PIPELINE Contact Miles Landry for affordable pricing!

Miles.Landry@permianres.com

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Save The Date!

SPE PB General Sec on Mtg: Jan 16, 2024 SPE PB Data Analy cs Study Group Mtg: Jan 18, 2024 Volunteer Opportunity—YWLA STEM Event: Jan 24-25, 2024 Texas Tech SPE Clay Shoot: Feb 23, 2024

Publica on of the SPE-PB Sec on

www.spepb.org

4 CHAIRMAN’S CORNER

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Taylor Montoya SPE-PB Chairman 2023-2024

Fellow SPE Permian Basin Sec on Members,

Happy New Year! I hope you all were able to take some me for yourself over the past couple of weeks for rest, recovery, and reflec on. You all deserve it. It is easy to take our health for granted and be consumed by the nonstop, exci ng, and challenging work projects in the Permian.

I always look forward to January. The beginning of the year is a fresh start, untouched PTO to plan, and endless possibility if you put your mind to it. The world is your oyster as my uncle Kenny always says. Take a moment to visualize what you want your 2024 to look like and write it down; whether it’s a new habit you want to build, a network you want to tap into, a career path you want to explore, or a friendship you want to strengthen. Goals can o en be in mida ng and uncomfortable when you begin brainstorming. I found if you start small and create tangible, less overwhelming goals, you’ll ul mately head in the direc on of the larger goals. You’ll be amazed how your goal se ng efforts combined with building sound and consistent habits around them can quickly domino. I heard recently on one of my favorite podcast channels that you should live your life in a way that makes your 8 year old and 80 year old self proud. What does that look like to you?

If part of your 2024 vision is to con nue developing as a professional and giving back to the community, SPE is a wonderful professional community to lean into. Whether you enjoy a ending technical luncheons, fundraising spor ng events, networking socials, or volunteering at the community service ac vi es, there are countless ways to get involved this year. If you have ambi on to take on more of a leadership role or present your work to the sec on, we have room to plug you in this upcoming year (contact informa on below and on the last page). Please reach out if interested. Any of the current officers would be happy to discuss their experience and how to get more involved.

No one company holds all the answers. If you want to gain exposure to other ways of thinking and approaches to problem solving that can impact your business, make a point to a end (Con nued on Next Page)

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5 CHAIRMAN’S CORNER

one of our upcoming events. On Tuesday, January 16th, the sec on will be hos ng my good friends, mentors, and past colleagues Anthony Allison and Courtney Richardson, currently Oxy’s Senior Ar ficial Li Advisor and Quality Assurance Lead. They’ll be reviewing a paper they co-wrote recently on electromagne c (EMI) tubing scanning at the wellhead. They are familiar faces at the Southwestern Petroleum Short Course, Ar ficial Li Forum, and other West Texas produc on communi es. If you haven’t yet had the pleasure of listening to one of their presenta ons, I highly recommend it. They are engaging, passionate and intelligent professionals who draw on real life field examples frequently in their animated talks. Please mark your calendars if you can make it and want to learn more about Oxy’s ar ficial li best prac ces in the basin. This is one you don’t want to miss!

Furthermore, the data analy cs study group will be hos ng David Thul with Geolumina, who will be presen ng on how mul modal ar ficial intelligence is changing work in heavy industry on January 18th. Last but certainly not least, the sec on will be hos ng our biggest service event of the year with the Young Women’s Leadership Academy (YWLA). YWLA is a Midland ISD school of choice, serving grades 6-11, with a focus on college preparatory academics, leadership development, and health and wellness. The program emphasizes science, mathema cs, engineering, and technology (STEM) material. We will need several volunteers per hour over the course of the two-day event from January 23-24th. Volunteers are needed to lead various STEM demonstra ons and assist the students. Please sign up for at least one hour long volunteer slot if your work schedule allows. Many thanks to Endeavor Energy Resources for sponsoring this year’s event!

As always, be on the lookout in your email inbox and LinkedIn feed for event updates and registra on details. If you would like to sponsor, collaborate, or provide feedback, feel free to reach out to us at spepb@outlook.com.

Cheers,

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8 SPE PB—DASG

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10 SPE PB—Volunteer

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12 SPE—Awards

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16 Technical Tour

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TECHNICAL TOUR US Lower 48: 4 Things to Know for 2024 (excerpt) Wood Mackenzie (December 2023) After market-moving events in 2023, there’s no reason not to expect that 2024 will have its fair share of twists and turns. Record-setting M&A consolidation and a reversal of the investment trajectory of private exploration and production companies altered the shale narrative completely last year.

Some underlying themes are non-negotiable for US shale in 2024. Cost deflation will only be modest as the oilfield service providers add little capacity, return of capital remains the financial priority for public E&Ps and more companies will consolidate than will be created. But capex steals the macro spotlight. This will be the second year in a row in which total upstream spending won’t rise.

Alongside those momentum-led themes, four topics deserve specific attention.

1. Consolidation momentum: Buyers can easily become sellers after Pioneer Natural Resources’ landmark merger with ExxonMobil. Watch for more equity deals between the large and mid-cap peer groups.

2. Exploration and appraisal stay quiet: Deeper Permian zones and step-out appraisal acreage in the Haynesville and Utica show promise, but capex breakthroughs aren’t likely.

3. Private E&Ps stretch OFS less: There’s no return to 2022 activity levels for the private equitybacked peer group. This year’s pullback defines the new standard as M&A shrunk the private playing field.

4. Efficiency gains but supply headwinds: Most public E&P budgets will stay flat or even trend down year over year in part due to spending efficiency. And with the activity pullback in the second 1. Consolidation momentum With ExxonMobil and Chevron’s recent acquisitions resetting expectations for transactions, every option is on the table. The megadeals for Pioneer and Hess have driven speculation that additional large-cap exits are possible as more buyers flip to sellers. The consensus from management teams is that further consolidation throughout the shale patch is inevitable, as Wood Mackenzie has been forecasting.

Using these two deals as benchmarks, boards will act when valuations appear as good as it gets from a seller’s perspective. Both deals were agreed at a healthy premium to our base case asset valuations.

A growing concern over a lack of long-term growth opportunities will also put pressure on management teams. The current Lower 48 consolidation cycle has, in many ways, been underway since late 2020, underpinned by the market’s preference for scale. EV/EBITDA multiples favor the largest and most robust upstream portfolios.

NAMES ON THE BOARD

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A rumored Chesapeake Energy and Southwestern Energy tie-up would create the largest Lower 48 gas producer, unseating long-standing leader EQT. The combination would also create a new top-five Lower 48 producer to compete with ConocoPhillips and Devon Energy and provide much-needed Haynesville consolidation.

The resulting combination would be better positioned to pursue large-scale global LNG ambitions, as evidenced by Chesapeake’s evolving strategy and its marketing arrangements with Gunvor and Vitol. Other potential deals involving the likes of Marathon Oil, Diamondback Energy, Permian Resources or Apache could also reset Lower 48 scorecards.

Whispered sales of large Permian privates also have merit. The “good as it gets” thesis will play into boardroom decisions. Mewbourne Oil is often mentioned in the same vein as CrownRock was, but that sale is much less likely. Public companies looking to reload Permian inventory will be evaluating bid options. With Oxy purchasing CrownRock in December 2023, the buyer list for private E&Ps has thinned.

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17 Technical Tour

Post-deal portfolio pruning from ExxonMobil, Chevron and Oxy could present opportunities outside the Permian, particularly in the Bakken and Rockies. Chevron wants to complete US$10 billion to $15 billion in asset sales by 2028. Chevron will look to take unique shale expertise from Hess and deploy it in the Permian but do so quickly. ExxonMobil has already sold part of its Bakken project to Chord Energy. And with the purchase of CrownRock, Oxy has outlined a US$4-6 billion asset divestment program for non-core US assets.

2. Exploration and appraisal stays quiet Operators have a growing desire to refresh inventory organically. This isn’t necessarily because of a renewed interest in exploration; rather, acquiring high-quality locations is becoming increasingly expensive and scarce.

But E&Ps also must contend with the new reality. Even after considering better technology, efficiencies and existing facilities, returns on deeper zones and fringe areas won’t be as high as current drilling opportunities.

This will limit any material E&A budget increases.

Look for operators to focus more on highlighting the results and potential of appraisal targets. Ultimately investors need to understand how secondary opportunities can extend their runways.

Diamondback has already signaled during third quarter 2023 earnings that some Wolfcamp D locations are becoming primary development targets. And there’s been positive reports of Oxy drilling some large Mississippian wells.

Why now? The need for more locations isn’t imminent for many companies. In fact, Wood Mackenzie models many public E&Ps with at least 10 years of inventory life. However, progress will be slow with fewer private companies engaging in step-out activity or delineating new zones. Public company exploration budgets aren’t increasing either. So if operators are only going to drill a few E&A wells each year, they need to start as soon as possible to prove up any additional opportunities to develop later this decade.

Note: rest of article can be found through WoodMackenzie

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20 SPE PB—Scholarship

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23 SPE Membership

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Midland College PPDC

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PPDC Courses

Midland College PPDC 221 N. Main Street Midland, TX 79701 (432) 683-2832 h ps://mcce.midland.edu > Oil & Gas Training

Basic Life Support - American Heart Associa on Instructor: R. Glen Gann November 28, 2023, Tuesday, 8:00 a.m. – 12:00 p.m.

Cost: $60; Out of State $85 OSHA 10-Hour General Industry Training Instructor: R. Glen Gann November 29-30, 2023, Wednesday, 8:00 a.m. – 4:00 p.m. and Thursday 8:00 a.m. – 11:00 a.m.

Cost: $100; Out of State $125 Online Division Order Cer ficate Program: Module 3 of 6 - Land and Leasing Instructor: Alyce Hoge December 1-29, 2023 Cost: $612.50, Out of State: $637.50 Online Lease Cer ficate Program: Module 3 of 6 - Land & Leasing Instructor: Alyce Hoge December 1-29, 2023 Cost: $612.50, Out of State: $637.50 Online PLM Cer ficate Program: Module 3 of 6 - Oil & Gas Lease Interpreta on, Nego a on & Interest Calcula ons Instructor: Alyce Hoge December 1-29, 2023 Cost: $612.50, Out of State: $637.50 Petroleum Geology for Non-Geologists Instructor: Paul Pausé December 4-7, 2023, 8:00 am to 4:30 pm Cost: $1835, Out of State $1860

Well Service and Workover Pressure Control Instructor: Louie M. Cure December 5, 2023, 8:00 a.m. to 5:00 p.m.

Cost: $475, Out of State: $500 Adult & Pediatric CPR, AED, and First Aid Instructor: R. Glen Gann December 6, 2023 Wednesday, 8:00 a.m. – 12:00 p.m.

Cost: $50; Out of State $75 Petroleum Engineering for Non-Engineers Instructor: Dr. Jennifer Miskimins December 6-7, 2023 Cost: $695, Out of State: $720

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SafeLand USA (Veriforce/PEC) Instructor: R. Glen Gann December 11, 2023, 8:30 a.m. – 5:00 p.m.

Cost: $200; Out of State $225 Basic Life Support - American Heart Associa on Instructor: R. Glen Gann December 12, 2023, Tuesday, 8:00 a.m. – 12:00 p.m.

Cost: $60; Out of State $85 Permian Basin STEPS Mee ng December 12, 2023, Tuesday, 8:30 a.m. – 11:00 a.m.

Open to the public!

2024: Online Division Order Cer ficate Program: Module 4 of 6 - Oil & Gas Calcula ons Instructor: Alyce Hoge January 4-31, 2024 Cost: $612.50, Out of State: $637.50 Online Lease Cer ficate Program: Module 4 of 6 - Oil and Gas Law and Its Impact on Land Prac ces Instructor: Alyce Hoge January 4-31, 2024 Cost: $612.50, Out of State: $637.50 Online PLM Cer ficate Program: Module 4 of 6 - Oil and Gas Law and Its Impact on Land Prac ces Instructor: Alyce Hoge January 4-31, 2024 Cost: $612.50, Out of State: $637.50 Forkli Operator Training Instructor: R. Glen Gann January 23, 2024, 8:00 a.m. – 5:00 p.m.

Cost: $0 Generously funded by Texas Mutual Insurance Intro to ArcGIS Pro Instructor: Andrew Bohnhoff January 25-26, 2024, 8:30 a.m. to 5:00 p.m.

Cost: $550, Out of State: $575 OSHA 30-Hour General Industry Training Instructor: R. Glen Gann January 29 – February 1, 2024, 8:30 a.m. – 5:00 p.m.

Cost: $0 Generously funded by Texas Mutual Insurance Introduc on to Oilfield Opera ons Instructor: Albert Garza February 6-7, 2024, 8:30 am to 5:00 pm Cost: $625, Out of State $650

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SPE PB Board

2023-2024 SPE Permian Basin Board Members Posi on Chairman Vice-Chairman Treasurer Secretary Past Chair Awards Banquet Chair Clay Shoot Chair CO2 Conference Chair Community Rela ons Chair Golf Tournament Chair Marke ng Chair

Board Member Name Employer Taylor Montoya Tyler Yancey Chevron Paul Brown Chevron Ma hew Farris Core Lab Shivani Vyas Odessa Separator Inc Aylin Ordonez DHI Dalton Kille Extract Companies Pamela Boring Baker Hughes

Email - Primary taylormmontoya33@gmail.com Yanceyty@chevron.com Paulbrown@chevron.com Ma hew.Farris@corelab.com Shivanivy928@gmail.com aordonez@Dalboholdings.com Dkille@extractproduc on.com Pamela.Boring@bakerhughes.com

Heidi Higginson

Endeavor Energy Resources Heidih@eeronline.com

Jeane e Reyes Sara Booth

Endeavor Energy Resources Jreyes@eeronline.com SCI Sara.f.foster@gmail.com

Member at Large

Libby Einhorn

Angelo State

Libbyeinhorn@aol.com

Newsle er Chair Programs Chair Public Rela ons Chair Scholarship Chair Student Chapter Chair (UTPB & TTU) Study Group Chair Vice-Treasurer Young Professionals Chair

Ryan Smith Andrea Switzer Miles Landry Ma hew Watson

Chevron Velocity Insight Permian Resources ConocoPhillips

Ryan.a.smith@chevron.com Andrea.e.switzer@gmail.com Miles.Landry@permianres.com Ma hew.a.watson@conocophillips.com

Victoria Kuzmich

Community Na onal Bank

Vkuzmich@cnbtx.com

Gustavo Gonzalez Raul Paz

Odessa Separator Inc ConocoPhillips

Ggonzalez@odsep.com Raul.Paz@conocophillips.com

Andrew Carpenter

Diamondback Energy

ACarpenter@diamondbackenergy.com

Study Group Chairs Data Analy cs Study Group Comple ons & Operaons Study Group Comple ons & Operaons Study Group Reservoir Study Group Produc on & Facili es Study Group

Chair Person Name

Employer

Email

Vincent Doczy

ConocoPhillips

Vince.Doczy@conocophillips.com

Erica Sledge

Erica.sledge411@gmail.com

Jesse Street

Universal Pressure Pumping Jesse.Street@patenergy.com

Johan Daal

ConocoPhillips

Johan.a.Daal@conocophillips.com

Mar n Lozano

Diamondback

mlozano@diamondbackenergy.com

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