US Upstream week in brief: Déjà vu in the Delaware as Marathon strikes a second Permian deal

Cheniere announces the launch of binding open season for its 200-mile Midship Pipeline project, offering SCOOP/STACK natural gas a new pipeline route to the Gulf Coast. Inadequate takeaway capacity for rising associated gas production in the SCOOP/STACK has been a challenge for operators ramping up activity in the region. The opening of the Midship Pipeline project will alleviate some of these concerns and open up new markets to feed the growing Gulf Coast region. Could this spark a new beginning of pipeline development in the Mid-Continent region? In the Delaware Basin, Marathon fortifies its position with the acquisition of Black Mountain's 21,000 net acres, its second Permian deal this month. M&A activity in the Permian through Q1 2017 is up to ~$16B and shows no signs of slowing down. Other stories covered this week include: Cautious optimism returns to deepwater GoM in Central Lease Sale 247 Pioneer sheds non-core acreage in the northeast Midland Basin ProPetro announces IPO plans