Bud's Offshore Energy (BOE)

• Exxon was the sole bidder on 94 tracts, all on the Texas shelf. All of the bids were $27.50/acre, just above the $25/acre minimum for shelf tracts.
• Those bids accounted for 100% of Exxon’s bids and 30.5% of the high bids for the entire sale! 
• Either Exxon sees resource potential that no one else (including Exxon) has seen for decades (I’m not discounting this possibility) or something else is going on here.
• Stay tuned!

Absent Exxon’s surprise activity, this was a pretty typical sale of recent vintage: $177 million in high bids on 214 tracts. Even with all of the Exxon bids included, only tracts totaling 1.7 million acres received bids. (See previous post.)