PWC Sells U.S. Magnolia LNG to U.K. Company for $2.25M

LNG Limited (LNGL), based in Australia, has been working on a couple of North American LNG export projects over the past half-decade or more. One of them, Magnolia LNG, is located in Louisiana will potentially export M-U molecules. Magnolia has all of its permits and is ready to build–if someone has the money to build it. It won’t be LNGL. The company recently imploded and ended up in the hands of a bankruptcy administrator who is now selling off the assets.
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Fire Sale: Shell Sells All Remaining PA M-U Assets for $541M

A major announcement yesterday from both Shell and National Fuel Gas Company (NFG) says Shell has cut a deal to sell all of its remaining Appalachian assets, which includes 450,000 acres and some 350 producing M-U shale wells along with pipeline assets, to NFG for $541 million. The deal is expected to close by the end of July.
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Blackstone Takes Over Tallgrass Energy, Stock Stops Public Trading

Last December MDN told you that investment firm Blackstone Infrastructure Partners, a major investor in pipeline company Tallgrass Energy, pursued and caught the company, tentatively convincing Tallgrass to sell its public shares of stock to Blackstone, which will take the company “private” –meaning no publicly traded shares of stock (see With Tallgrass Founder/CEO Gone, Blackstone Forces Sale/Merger). We incorrectly implied Blackstone had forced out founder and CEO David Dehaemers. It seems it was Dehaemers’ desire to cash in his chips and retire. The sale of the company was amicable and not forced. At any rate, last Thursday company shareholders voted to approve the deal and as of Friday, Tallgrass stock no longer trades on the New York Stock Exchange.
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Investor Bails on Nova Scotia Bear Head LNG Export Project

LNG Limited (LNGL), based in Australia, has been working on a couple of North American LNG export projects over the past half-decade or more. One of them, called Bear Head, would be built in Nova Scotia, Canada and (potentially) export Marcellus/Utica molecules. The other, Magnolia LNG, would be located in Louisiana and yes, potentially export M-U molecules as well. LNGL was in the process of selling itself and its LNG projects to Singapore investor LNG9 PTE for $75 million. LNG9 has just canceled the deal, leaving the future both the Bear Head and Magnolia projects in question.
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Large Banks Get Ready to Seize U.S. Shale Company Assets

Reuters is reporting a disturbing allegation that Big Banks, including JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup, are each in the process of setting up shell companies that can own shale oil and gas assets. Why? Because of a coming wave of bankruptcies. The banks, with big loans to a number of oil companies, plan to take ownership of the companies or their assets (foreclosure) as repayment of the loans owed. In other words, Big Banks are planning to get into the oil and gas business as a form of self-defense, so they don’t take a bath on the value of the assets they’ve helped underwrite.
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Calling Out API & Big Oil as Enemies of Independent Shale Cos.

The gloves are off. Today we’re calling out the American Petroleum Institute and the Big Oil supermajors that control the API for their selfishness and shortsightedness. Apparently the supermajors have long wanted American shale and the plethora of smaller independents to just go away–so they (Big Oil) could once again control the world market for oil. The result of that philosophy, whether intentional or not, will be to allow foreign countries like Saudi Arabia and Russia to buy up OUR American shale companies, for themselves (see U.S. in Danger of Losing Our Shale Oil Industry to Other Countries). The API hides under the covering of “don’t interfere in free markets” in advising President Trump to not do anything to help American shale. That’s bunkum.
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U.S. in Danger of Losing Our Shale Oil Industry to Other Countries

America is in danger of losing ownership of our shale oil companies to bad actors including Saudi Arabia, Russia and other foreign countries. Those countries are actively, aggressively, purposely waging a price war against us, trying to drive American shale companies into bankruptcy. Why? So they can turn around and buy up our companies and once again control the world market for oil. It is a *hostile* action. President Trump, please don’t let it happen!
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CARBO Ceramics Files Prepackaged Bankruptcy, Selling to Wilks

Oil billionaire Dan Wilks is going discount shopping. He’s buying up companies in the oil and gas space that are struggling. One of them is CARBO Ceramics, a company that provides a ceramic alternative to sand for use as a proppant in hydraulic fracturing. Proppants, for those new to MDN, “prop open” the fractures created during the fracking process to allow natural gas and natural gas liquids (even oil) to drain out of shale. A special kind of sand called silica, mined mostly in the Midwest is the most prevalent proppant used. However, CARBO has an innovated a ceramic substance–tiny little beads–used as an alternative.
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5 Yrs Later Williams, ET Still Arguing over Botched Merger

In 2015 Kelsy Warren and his Energy Transfer Equity (now just Energy Transfer) company pursued Williams, wanting to merge Williams into its own operation. Williams initially fought ET tooth and nail, but in the end, cut a deal (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Without recounting all the sordid details, ET got cold feet and left Williams at the alter, and Williams sued (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). The merger never happened. Believe it or not, lawsuits over that merger continue. ET says Williams CEO Alan Armstrong covertly worked to tank the deal. Williams says it was all ET’s fault and ET still owes it $410 million.
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Deloitte Oil & Gas M&A – Looking Back at 2019, Forward to 2020

Powerhouse consulting firm Deloitte released its “2020 Oil and Gas M&A Outlook” report yesterday (full copy below). In something of a surprise (for us), the experts at Deloitte found that the number of mergers and acquisitions in the oil and gas space went DOWN in 2019, although the value of the deals was up (due to big deals like Occidental’s $55 billion buyout of Anadarko). What’s ahead in 2020? More of the same, according to Deloitte. Wait–aren’t drillers dropping like flies, not able to turn a profit so they’re selling and merging? No, not really.
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American Energy Partners Adds O&G Education Co. to Portfolio

American Energy Partners, Inc. (AEPT), based in Allentown, PA, has just added a fifth subsidiary/division to the company. AEPT agreed to acquire 100% of the membership units of Oilfield Basics, LLC in exchange for 1,000,000 shares of American Energy’s common shares. Oilfield Basics is an educational company, providing courses and training in the oil and gas space. It’s an interesting addition to a portfolio of companies that includes drilling, remediation, water, and valuation services.
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Bankrupt EdgeMarc Sells Butler, PA Assets to KeyBank for $70M

click for larger version

EdgeMarc Energy, headquartered in Canonsburg, PA (once with 50,000 acres of Marcellus/Utica leases), filed for Chapter 11 bankruptcy last May, looking to sell all of the company’s assets (see EdgeMarc Energy Files for Bankruptcy, Blames Revolution Pipe). Diversified Gas & Oil picked up EdgeMarc’s Ohio Utica assets for $50 million in August (see Bankrupt EdgeMarc Sells Ohio Utica Assets to Diversified for $50M). And now, the balance of EdgeMarc’s assets–located in Butler County, PA– is slated to be sold too.
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PA PUC Approves Aqua America Purchase of Peoples Gas for $4.3B

Aqua America, the nation’s second-largest water/wastewater utility company headquartered near Philadelphia, announced in October 2018 it would buy Peoples Gas, the nation’s fifth-largest natural gas utility company headquartered in Pittsburgh, for $4.275 billion (see Aqua America Buys Peoples Gas for $4.3B – Old Pipes, Similar Nature). It took a while, but the last hurdle was cleared yesterday when the Pennsylvania Public Utility Commission gave its blessing on the deal.
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Corning Gas Buys Out JV Partner in PA Leatherstocking Gas & Pipe

Corning Natural Gas (based in Corning, NY) has a 50% joint venture partnership in Leatherstocking Gas Company and Leatherstocking Pipeline Company with another Upstate NY-based company, Mirabito. Leatherstocking runs gas mains to residents and businesses in small, mainly rural communities–like Montrose, PA (see PA Rural Residents Burn Marcellus Gas, Save Big Bucks on Heating). Corning announced yesterday they are buying out Mirabito’s 50% interest on the PA side of the border.
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NEXUS Pipe Gets Fed Approval to Buy Toledo Pipe for $160M

Generation Pipeline map (click for larger version)

Here’s one we had not previously heard (or reported) on: NEXUS Pipeline, built and operated by DTE Energy and Enbridge, wants to buy a small 23-mile pipeline in the Toledo area that connects to local utility companies in the region. The smaller pipeline is called the Generation Pipeline and is owned by North Coast Gas Transmission, which in turn is owned by Somerset Gas Transmission.
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