Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B

indecent proposalSunday evening MDN spotted what has to be THE biggest midstream story of 2015: Somebody wants to buy out and take over Williams Companies. The biggest midstream story of 2014 was the buyout of Access Midstream (the former Chesapeake Midstream) by Williams, creating a company that is nearly the size and certainly a worthy rival of the country’s biggest pipeline company Kinder Morgan (see Big News: Williams Partners Buying Access Midstream for $6B). Williams said at the time the “total transaction value” (or TTV) would create a combined company worth nearly $50 billion (see Deal Details for Williams/Access Midstream Merger – TTV of $50B!). Sunday evening Williams said, in a pair of prepared press releases, that somebody (they wouldn’t name who) has made an “unsolicited proposal” (almost sounding like an indecent proposal) to buy Williams for $64 per share, or a total deal worth $48 billion. Williams has rebuffed the offering, hiring some high-powered bankers to help them out of this mess. The guy and company making the offer, it has since been revealed, is none other than Kelcy Warren, CEO of both Energy Transfer Partners and Energy Transfer Equity, the main shareholder of ETP. ETP is very active in the Marcellus/Utica. We have as much as we can gather on Warren, background on ETP/ETE, his indecent proposal to Williams, and what Williams–one of if not THE largest midstream companies in the northeast–is doing in response to Warren’s proposal…
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ETE Says Shareholders Big Winners in Potential Williams Merger

Energy Transfer Equity is offering their side of the story in the proposed merger/takeover of Williams. MDN’s lead story today is about that merger. On Sunday, Williams issued a pair of press releases refusing to name who the suitor is, but essentially said that somebody (ETE) is making an offer to buy them (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). As you know, there’s always two sides to a story. ETE, the main investor in Energy Transfer Partners, is offering their side of the story. ETE’s version is much more lengthy than Williams and includes the claim that the ETE proposal offers a 32.4% premium to Williams stockholders “with a high degree of transaction certainty”…
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PIOGA Asks Supreme Court to Stop DEP Denying Permits Using Act 13

Please see this MDN follow-up story for an important clarification/update: More on PIOGA Request to Keep DEP in its Regulatory Box

This story is why you pay MDN the “big bucks”–to break down complex issues into an easy-to-understand report. Last Friday the Pennsylvania Independent Oil & Gas Association (PIOGA) filed paperwork with the Pennsylvania Supreme Court asking for permission to, once again, intervene in the Act 13 lawsuit brought by seven selfish PA townships that resulted in portions of the Act 13 oil and gas drilling law to be struck down. Twice before PIOGA, which represents the companies directly affected by the Act 13 law, has filed to intervene and both times it was (incredibly) prevented from doing so. Apparently the people most affected by a lawsuit don’t have “standing” to defend themselves in PA courts–such is their system of “justice.” At any rate, PIOGA’s third attempt may succeed where the first two attempts failed, and that has the anti-drilling selfish towns, along with the Wolf administration, nervous. Why might PIOGA succeed this time? That’s where it gets complicated. In a nutshell, the zoning portions of the Act 13 law (Section 3304) were not the only sections to be struck down by the PA Supremes…
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Cunningham Strikes Oil in West Virginia’s Big Injun Territory

Back in 2013 we warned you that the injuns were coming–the Big Injun sandstone formation in West Virginia (see The Injuns are Coming! Injun Formation Drilling, that is). We told you then that Cunningham Energy of Charleston, WV was about to drill several shallow horizontal wells in the politically incorrectly named Big Injun Formation. We thought Cunningham was drilling for natural gas, but as it turns it, it was oil they were after. And, according to a press release, it’s oil that Cunningham has struck in the Big Injun…
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Magnum Hunter’s Bankers Say Get $65M in Cash by July 10, Or Else

Magnum Hunter Resources’ (MHR) creditors (the bankers) want to be sure the company has enough money on hand to a) pay them back, and b) stay out of bankruptcy. So the creditors gave MHR a deadline of last Friday, June 19th, to make sure they have $65 million cash on hand. MHR couldn’t do it–so the creditors gave them a new deadline–July 10th. The company says they’ve already raised $55.6 million–so they just need a measly $9.4 million to meet the requirement by the new deadline. Or else…
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Are OH Officials Worried about Shell’s PA Ethane Cracker? Nope

In April Ohio officials announced Belmont County, OH has been chosen as the site of a potential ethane cracker plant (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Which led us to admit that since we’ve been teased with a cracker for over three years now–with NO ONE actually committing to such a plant–we’re experiencing “cracker fatigue.” But not long after Shell made some serious moves toward committing to build a cracker plant in western Pennsylvania, not far from Pittsburgh. The most recent positive sign is that Shell finally, after three years of faffing about, earlier this month purchased the property the plant would be built on (see Shell Buys Beaver County, PA Property for Future Cracker Plant). Does a Shell cracker reduce the likelihood of an cracker plant being built less than two hours away in Belmont County, OH? Not according to officials in Ohio. In fact, they’re not worried at all…
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Eclipse Lowers IOU Offering Expectations – by $100M

poofLast week Eclipse Resources, a small but important driller primarily focused on the Ohio Utica Shale play, announced they are floating senior notes (IOUs) in an attempt to raise $650 million (see Eclipse Resources Floats $650M in New IOUs). Poof! There goes $100 million. On Friday Eclipse said they thought about it and they now want to raise $550 million with those notes, not $650 million as previously advertised…
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The Envrionmental Radicalization of the Anti-Drilling Movement

MDN is beginning to see a pattern. It dawned on us as we were recently listening to several news reports of why young people become “radicalized” and join forces with militant Islamists like those in ISIS (what we used to call Al-Qaeda). People who have become radicalized break laws. They often kill other people. They sometimes commit suicide by strapping bombs to themselves in an attempt to kill others. Sane people have a hard time understanding it. What drives these people to such extremes? What motivates them? Why do kids–some of them from America and other Western counties–become radicalized? Frankly, it usually (almost always) stems back to their childhood. Their heads have been crammed with liberal pap about hating America from a young age. People hate America because they hate freedom. As we were mulling this over, we had a revelation: It’s the same with some anti-drillers. In the same way some young people (and some older people) become radicalized and join ISIS, some are radicalized and join the “green” movement…
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