Overview

Disclaimer: see "disclaimer" tab at the top of the blog.

The Permian: I track the Permian here on an intermittent basis.

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The CLR Permian Gambit

On November 4, 2021, CLR announced a $3.250 billion deal, to be paid in cash, with no stock dilution, to acquire certain Delaware assets in the Permian Basin from PXD. 

I have zero understanding of the Permian Basin and after more than a decade of blogging about the Bakken, I probably understand five percent of what there is to know about the Bakken. I do not have time to follow the Permian to the extent that I followed the Bakken. Not even close.

The purpose of this blog is to simply follow, what I call, the "CLR's Permian Gambit." 

This is absolutely huge. 

Let's start with this one statement: CLR is entering the Permian, paying another competitor $3.25 billion in cash, for 92,000 net acres. More on that later. There is no CLR stock diluton.

The question, of course, on everyone's mind is whether this will work for CLR. 

For me, I have no doubt it's going to work.

That's purely emotion, not based on reason or any meaningful rational analysis of the deal.

Harold Hamm owns 90% of the outstanding CLR stock (see disclaimer above). That's why I believe this deal is going to work.

I waffled on Vicki Hollub and OXY, a huge mistake on my part. See my note posted on April 22, 2019. Subsequently, the OXY - Anadarko deal and I bailed; huge mistake. 

Disclaimer: I "traded" OXY, never invested in it for the long term, and do not hold any OXY now. I have no plans to start a position in OXY. I have probably traded in CLR in the distant past, but I honestly forget. I could check my records, but have no reason to do so. I don't own -- directly -- any shares in CLR and have to plans to start a position in CLR.  Although that could change down the road. "Down the road" means not sooner than six months. The road ahead of me is fairly long. I have hitchhiked four times across the US (a bit of hyperbole, but not much) so I know what long roads look like. 

So, with those introductory comments and disclaimers, let's get started. Let's go, Brandon!