Permian Love Story: Chevron Buying Anadarko in $50B Megamerger
Another truly huge merger/buyout was announced Friday when Chevron said it is buying Anadarko Petroleum for $33 billion. When you factor in Chevron assuming Anadarko’s debt, the total deal is valued at $50 billion, a number hard to wrap your brain around. The key question for us is: What does this mean for Chevron’s drilling program in the Marcellus/Utica?
UPDATE: See our note below about Anadarko in PA.
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The Pennsylvania Dept. of Conservation and Natural Resources (DCNR) is grabbing more money that we think belongs to private landowners. This time from leasing land underneath the Youghiogheny River and Little Pine Creek. DCNR has leased 124.2 acres for a signing bonus of $496,800 (or $4,000 per acre). Plus the state’s customary royalty rate of 20% on anything produced. And no, the state does not allow post-production deductions–they get their full 20% royalty.
Energy Solutions Consortium (ESC), based in Buffalo, NY, will begin construction on West Virginia’s very first Marcellus gas-fired electric generating plant sometime “this summer.” The exact date has not yet been set, but should be announced soon. However, in a bit of a surprise (for us), the state’s first natgas-fired plant to get built will not be (as we thought) in Brooke County. Instead, it will be in Harrison County.
According to Anne Blankenship, executive director of the West Virginia Oil & Natural Gas Association (WVONGA), “We have only begun to scratch the surface of developing this enormous resource beneath us,” referring to shale oil and gas in the state. As part of a larger interview with WV media, Blankenship shared a list of the 10 biggest natural gas producers in the state, along with the top 10 biggest oil producers in the state. We always dig that kind of information and thought you would too.
MARCELLUS/UTICA REGION: India’s GAIL puts up Cove Point LNG cargo for sale; Foe of Mountain Valley Pipeline allowed to participate in Roanoke Gas rate increase case; OTHER U.S. REGIONS: Congress measures conflict over drilling near sacred sites; FSU professor: Eversource pipe proposal is not necessary; Negative Permian prices a positive for some; NATIONAL: Green New Deal has a dirty secret; Tellurian’s CEO Meg Gentle is on a mission to change how the world gets its natural gas; INTERNATIONAL: All aboard! Treasure on the high seas for gas dealers; LNG investment needed as oversupply turns to shortfall; Keppel Gas makes first LNG import from North America; Coast Guard finds 200kg of cocaine tied to Teekay’s LNG carrier; Nord Stream 2: Can Denmark make Berlin and Moscow tremble?