Axios Houston

May 30, 2024
🏃♀️➡️ It's already Thursday!
🌩️ Today's weather: Chance of storms. High of 87, low of 77.
🐾 Sounds like: "Mexican Hairless" by Toadies.
Today's newsletter is 914 words — a 3.5-minute read.
1 big thing: ConocoPhillips to buy Marathon Oil
Oil giant ConocoPhillips is acquiring big producer and fellow Houston-based company Marathon Oil in a $17 billion all-stock deal (it's $22.5 billion including debt).
Why it matters: It's the latest domino to fall in the rapid consolidation of large U.S.-based players.
- Companies are scrambling to snap up the remaining prime acreage in the prolific Permian Basin in Texas and New Mexico, as well as other shale plays.
- 2023 brought more than $190 billion in upstream deals, per Enverus Intelligence Research, and tie-ups are continuing this year.
The big picture: The Marathon deal will add "high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position," ConocoPhillips CEO Ryan Lance said in a statement.
- ConocoPhillips expects the merger to achieve $500 million in synergies within a year of closing.
- Marathon has production in Texas, New Mexico, North Dakota and Oklahoma, as well as gas assets in Equatorial Guinea.
Catch up quick: U.S. production is getting concentrated in fewer hands, though there's still a wide diversity of players.
- Exxon Mobil recently acquired Pioneer Natural Resources, Occidental Petroleum is purchasing CrownRock, and Diamondback Energy said in February it's buying Endeavor Energy Resources.
The Marathon deal is expected to close in the fourth quarter, subject to regulatory approval.
What we're watching: The Federal Trade Commission's stance on the deal as Capitol Hill Democrats press the regulator to consider thwarting the merger wave.
What they're saying: University of Houston energy economist Ed Hirs tells Yahoo Finance he doesn't see antitrust hurdles, based on the companies' size and absence of refining or retail assets.
- "The two companies together are still smaller than the majors," he noted. "They are both independent oil companies without any downstream assets for refining, distribution, and retail."
2. Whitmire defends Gulfton comments
Mayor John Whitmire defended himself yesterday after saying Gulfton residents are "largely undocumented immigrants" who may not be welcome in the posh Galleria neighborhood.
Context: Whitmire made the comments to a Houston Landing reporter May 7 while questioning the Metropolitan Transit Authority's long-planned bus rapid transit line through Gulfton, one of Houston's most severely underserved neighborhoods.
- The rapid transit line, if constructed, would provide a connection to Metro's Silver Line, which runs through Uptown and the Galleria.
The other side: Whitmire yesterday said the quote was a "wrong representation of my comments."
What happened: The mayor defended his comments after council member Edward Pollard, an often outspoken target of Whitmire's ire, said he was "disheartened" not only by the quote but by what he felt was an ongoing lack of engagement with him or his constituents.
- "What hurts me about that is we're making generalizations on a particular community that is extremely diverse," Pollard said.
What they're saying: Whitmire's office sent Axios a statement on his behalf yesterday afternoon.
- "The statement [in the Landing] was part of a broader discussion about BRT and travel patterns," Whitmire said. "We spent a lot of time in Gulfton speaking to residents about whether they have a strong demand for shopping in the Galleria area. The response was overwhelmingly no."
Of note: Leadership at the Landing declined to comment.
3. Bayou Buzz
🗳️ State Sen. Molly Cook defeated state Rep. Jarvis Johnson by 74 votes in the race to secure the Democratic nomination for the Texas Senate seat previously held by Mayor John Whitmire, according to unofficial results. (Houston Landing)
- Labor organizer Lauren Ashley Simmons unseated state Rep. Shawn Thierry in the Democratic runoff for House District 146.
Music professor William VerMeulen retired from Rice University after several former students accused him of inappropriate behavior, including allegations of sexually explicit photos being sent to students. (Houston Public Media)
🏠 Drake purchased a $15 million, 313-acre ranch northwest of Houston, midway between Navasota and Brenham. (Houston Chronicle)
4. Weekender Guide
🖊️ Get tatted at the Houston Tattoo Arts Festival, running at NRG Center tomorrow through Sunday. There will be local and international artists and vendors selling tattoo supplies.
- Day passes start at $20.
🎤 Experience Grammy Award-winning Samara Joy for free tomorrow at the Miller Outdoor Theatre.
- Show begins at 8:30pm.
🍻 Enjoy a curated selection of craft beer at Bloomfest from noon-8pm Saturday at New Magnolia Brewing.
- General admission is $40.
📄 Fold paper and learn the craft of origami at the Menil. The event, happening in conjunction with the current exhibit, is from 9:30-11am Saturday.
- Free.
5. Budget Bites: Mai Colachi
👋 Shafaq here! I grew up enjoying some exceptional Pakistani food (thanks, Mom), so I was impressed by Mai Colachi's menu.
Dig in: Mai Colachi, named after a fisherwoman who was Karachi's namesake, has a location in Sugar Land and two more in the Dallas-Fort Worth area.
- The restaurant offers an expansive Pakistani menu that highlights the various regions and surprisingly includes several vegetarian options.
What to order: The hunzai handi paneer ($15) is an absolute must. The curry, packed with spicy, complex flavors from Pakistan's Hunza Valley, was prepared perfectly, with the soft paneer soaking in the flavors of the curry. You'll find yourself savoring every last bit.
- I also tried the paneer tikka handi ($15), which was great, but the paneer 65 ($10) was OK.
- The shikanjabeen soda drink with the lychee flavor ($5, plus $1 for the flavor) was refreshing, with a minty, citrusy taste.
Plus: I admittedly teared up eating the lacha rabri, a thick, rich, milky dessert, which transported me to the streets of Karachi. Although it can't quite match the rabri in Pakistan, I'll take it, as I've struggled to find it done well in Houston.
If you go: 15425 Southwest Freeway.
Thanks to Chloe Gonzales for editing and Khalid Adad and Aurora Martínez for copy editing this newsletter.
🥘 Shafaq really hopes Mai Colachi maintains its quality because she can see herself becoming a regular.
⚡️ Jay is now officially a Celsius stan after kicking Red Bull to the curb.
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