When crude oil prices tank, US energy company is left out of a historic deal

The price of oil has plunged in recent weeks as crude prices slump, forcing companies to rethink the value of their contracts.

Now a major oil company in the US, US Energy Transfer Partners, is trying to save itself by working with a rival oil producer.

The oil price drop has pushed up US Energy Transporters (ETP) stock by more than 30% in the past three months, according to Bloomberg, with analysts saying the company has the potential to become the next Exxon Mobil or Chevron.

ETP shares have surged nearly 300% since March 21.

The company announced it had struck a deal with a competitor, Texas-based Continental Resources, that will allow the two companies to share oil and gas revenues.

ETT said it would share $20 billion in revenues with the competitor and would have a net income of $1.6 billion for the fiscal year ended Sept. 30, a 10% gain over the previous year.

The deal also includes a $3 billion royalty payment from the company’s subsidiary, Continental Resources LP, that is expected to be paid over five years.

ETI said it is working with the rival to provide the infrastructure needed to increase production.

“This partnership represents an opportunity to accelerate production of our most valuable oil and natural gas resource, the Bakken shale formation in North Dakota, while enhancing our ability to compete in an industry where competition is fierce,” CEO Michael Reynolds said in a statement.

ETB CEO Doug Hall said the deal is designed to reduce energy costs and “bring us into a higher-cost environment for our customers.”

The deal is the latest in a string of deals that have made companies rethink how they manage their finances and how they invest their cash.

ETBP is a private company that makes and distributes oil and other natural gas, and has about 40,000 employees.

The Houston-based company has $7 billion in cash and investments, and is expected for the latest earnings report next week.

Continental Resources has $10 billion in assets, and about 2,200 employees, according, to the company website.

Hall said he expects to work with the company to share the revenue generated by the transaction.

“We believe the Continental Resources partnership will be beneficial to our companies,” Hall said.