| | |

New Fortress Energy Sells Small Miami LNG Plant to Pennybacker

Miami LNG (click for larger version)

We’ve talked plenty about the big LNG export facilities scattered along the Gulf Coast that export a fair amount of Marcellus/Utica molecules (and the two LNG export sites on the East Coast, both of which export 100% M-U molecules). We now and again talk about some of the smaller LNG export operations, including a couple of small operations along the Atlantic Coast of Florida. This story is about one of the latter. Last week, investment firm Pennybacker Capital Management announced it had closed on purchasing New Fortress Energy’s (NFG) Miami (Florida) LNG business for an undisclosed amount. We don’t have proof, but we suspect that at least some Marcellus/Utica molecules flow to the facility, making this transaction of interest to the MDN audience. Read More “New Fortress Energy Sells Small Miami LNG Plant to Pennybacker”

| | | | | |

Reuters Was Right – Blackstone Paying EQT $3.5B for Pipeline Stake

Just about one month ago, Reuters reported that sources “familiar with the matter” whispered to its reporters that private equity firm Blackstone is “in advanced talks” to acquire minority stakes in the interstate natural gas pipelines now owned by EQT Corp. (following its purchase of Equitrans Midstream) for a whopping $3.5 billion (see Blackstone Seeks to Buy Pipeline Stake from EQT for $3.5 Billion). The sources were right! This morning, EQT issued a press release to announce a deal for Blackstone to invest $3.5 billion in the company’s midstream (pipeline) assets. Read More “Reuters Was Right – Blackstone Paying EQT $3.5B for Pipeline Stake”

| | | |

DT Midstream Buys 2 Interstate Pipelines with M-U Connections

DT Midstream (DTM), headquartered in Detroit, owns major assets in the Marcellus/Utica region and in other regions, such as Haynesville. Yesterday, DTM announced it had cut a deal to buy three FERC-regulated interstate pipelines from Oklahoma-based ONEOK, Inc. for $1.2 billion. Two of the three pipelines flow Marcellus/Utica molecules to Midwestern markets. Read More “DT Midstream Buys 2 Interstate Pipelines with M-U Connections”

| |

PHX Response to WhiteHawk Energy’s Latest Marriage Proposal: NO!

Runaway Bride

Our observation is that WhiteHawk Energy is smitten with PHX Minerals. For the last 15 months, WhiteHawk has been trying to get PHX down the marriage aisle in any way it can. PHX has repeatedly given WhiteHawk the cold shoulder. WhiteHawk’s latest attempt, which we told you about yesterday, was an appeal to PHX shareholders to pressure the board to sell at $4 per share (see WhiteHawk Energy Keeps Up Public Pressure to Make PHX Merge). PHX didn’t waste any time responding. It was a resounding NO! Read More “PHX Response to WhiteHawk Energy’s Latest Marriage Proposal: NO!”

| | |

Siren Song: Coterra Energy Buys Permian Assets for $4 Billion

We continue to mourn the loss of Cabot Oil & Gas (100% focused on the Marcellus in northeastern PA) following its merger with Cimarex Energy (an oil driller focused on the Permian and Anadarko basins) in 2021 (see Cimarex Takes Over Cabot, Merged Co. Called “Coterra Energy”). The time and focus and creative thinking and MONEY that could have gone into more (or better) Marcellus drilling now goes to other plays. Case in point: Yesterday Coterra Energy, the new name of the merged Cabot and Cimarex, announced it will buy “certain assets of Franklin Mountain Energy and Avant Natural Resources” located in the Permian for $3.95 billion. That’s $3.95 billion that could have bought a Marcellus or Utica driller instead. Bummer. Read More “Siren Song: Coterra Energy Buys Permian Assets for $4 Billion”

| |

WhiteHawk Energy Keeps Up Public Pressure to Make PHX Merge

Some 15 months ago, WhiteHawk Energy, headquartered in Philadelphia with ownership of mineral and royalty interests for over 1 million gross unit acres and over 3,400 producing horizontal shale wells between the Marcellus and the Haynesville, proposed marriage to PHX Minerals, based in Fort Worth, Texas, owner of 75,000 leased mineral acres principally located in the SCOOP and Haynesville plays (see WhiteHawk Energy Proposes Forced Merger with PHX Minerals, Inc.). WhiteHawk’s original overtures went unanswered, so it issued a public proclamation of its intent to get PHX down the aisle, willingly or not. PHX answered in August 2023 with a very public “get lost” message (see PHX Minerals Says WhiteHawk Marriage Proposal “Grossly Inadequate”). WhiteHawk is baaaaaccccck! Read More “WhiteHawk Energy Keeps Up Public Pressure to Make PHX Merge”

| | |

DUG Appalachia: Range Resources Gives a Hard Pass on Pursuing M&A

We have a second post about yesterday’s Hart Energy DUG Appalachia event held in Pittsburgh. One of the sessions was an interview with Dennis Degner, CEO of Range Resources, the very first company to drill a Marcellus well back in 2004. Range is a “pure play” company focusing 100% on the Marcellus/Utica. Over the past couple of years, we’ve seen a flurry of mergers and acquisitions, not only here in the M-U but across other plays as well (particularly in the Permian). During the Q&A discussion with Degner, the topic of M&A came up. Degner explained why he and his company have, and will continue, to sit on the sidelines of the M&A craze. Read More “DUG Appalachia: Range Resources Gives a Hard Pass on Pursuing M&A”

| | |

Deep Well Services Sold to United Arab Emirates for $223 Million

The privately-held Deep Well Services (DWS), headquartered in Butler County, PA, is one of our favorite oilfield services companies. DWS was born right here in the Marcellus/Utica in 2008. DWS specializes in “snubbing” work—completing those super-long laterals you read about. Although the company rarely brags publicly about the work it does on behalf of drillers, we happen to know that it has drilled the longest onshore wells in the world Lower 48 states. Great company, great people. However, the news broke yesterday that the company is being sold—to the United Arab Emirates (UAE), a country that is a longstanding member of OPEC+.

PLEASE NOTE: Our original post has been edited to correct a few factual errors.

Read More “Deep Well Services Sold to United Arab Emirates for $223 Million”

| | | | | |

EQT Sells Remaining Nonop Assets in NE Pa. for $1.25 Billion

As part of its third quarter update, EQT Corporation, now the second-largest natural gas producer in the U.S., dropped the bombshell that it has completely divested from the remaining non-operated wells it owns in northeastern Pennsylvania, selling the assets to Norwegian company Equinor (formerly known as Statoil) for $1.25 billion. You may recall in April, EQT did a deal with Equinor to swap land in Pennsylvania and Ohio, plus receiving $500 million from Equinor to sweeten the pot (see Equinor Swaps Acreage with EQT in PA & OH, Exits Operated US Shale). Yesterday’s deal is for the remainder of the wells where EQT doesn’t own the full rights but only a portion of them and doesn’t run the operations. The wells are majority-owned and operated by Expand Energy, the successor to Chesapeake Energy, following the merger of Chesapeake with Southwestern Energy. Read More “EQT Sells Remaining Nonop Assets in NE Pa. for $1.25 Billion”

|

WhiteHawk Energy Renews Public Proposal to Acquire PHX Minerals

Some 15 months ago, WhiteHawk Energy, headquartered in Philadelphia with ownership of mineral and royalty interests for over 1 million gross unit acres and over 3,400 producing horizontal shale wells between the Marcellus and the Haynesville, proposed marriage to PHX Minerals, based in Fort Worth, Texas, owner of 75,000 leased mineral acres principally located in the SCOOP and Haynesville plays (see WhiteHawk Energy Proposes Forced Merger with PHX Minerals, Inc.). WhiteHawk’s original overtures went unanswered, so it issued a very public proclamation of its intent to get PHX down the aisle, willingly or not. PHX answered in August 2023 with a very public “get lost” message (see PHX Minerals Says WhiteHawk Marriage Proposal “Grossly Inadequate”). Since that time, it’s been quiet, at least publicly. Behind the scenes, it’s been busy. Read More “WhiteHawk Energy Renews Public Proposal to Acquire PHX Minerals”

| | | |

Chesapeake & Southwestern Complete Merger; Now #1 U.S. Gas Driller

Move over EQT Corporation, there’s a new number one natural gas producer in the U.S. Yesterday, Chesapeake Energy announced that its buyout of and merger with Southwestern Energy in a $7.4 billion deal was completed. The newly merged company was renamed Expand Energy Corporation and will begin trading on the NASDAQ stock market today under the ticker “EXE”. As of today, Expand produces more natural gas than EQT. The big difference is that Expand’s production comes from both the Marcellus/Utica and the Haynesville, whereas EQT’s production is 100% from the M-U. Read More “Chesapeake & Southwestern Complete Merger; Now #1 U.S. Gas Driller”

|

Axis Merges with Brigade to Form #1 U.S. Well Services Co.

Two oilfield services companies—Axis Energy Services LLC and Brigade Energy Services LLC—jointly announced the closing of an agreement to merge and form the nation’s largest well servicing company. The new company will retain the Axis Energy name and will remain headquartered in Dallas, TX. According to Axis, the transaction creates the nation’s leading company for completion services, workover solutions, and plug and abandonment operations. The newly combined company boasts more than 1,700 employees and 200 active and marketable workover rigs—the largest single fleet in the industry. The company has a “strong presence” in the Marcellus/Utica. Read More “Axis Merges with Brigade to Form #1 U.S. Well Services Co.”

| | | | | |

Sale of 3rd & Final LDC from Dominion to Enbridge Now Complete

In September 2023, Dominion Energy and Enbridge co-announced that Dominion had agreed to sell the company’s remaining natural gas local distribution companies (LDCs) that Dominion owns to Enbridge for $14.0 billion, which includes $9.4 billion in cash plus the assumption of debt (see Dominion Energy Loses Mind – Sells Remaining LDC NatGas Businesses). The deal includes three LDCs (local utility companies)—The East Ohio Gas Company, Public Service Company of North Carolina, and Questar Gas Company (along with Wexpro Company). The first of the three deals, the East Ohio Gas Company, officially changed hands in March of this year (see Sale of East Ohio Gas Co. from Dominion to Enbridge Now Complete). The second deal, Questar Gas (serving customers in the western U.S.), closed in June of this year (see Enbridge Completes Acquisition of Questar Gas Company). The third and final LDC deal, Public Service Company of North Carolina (PSNC), closed yesterday.
Read More “Sale of 3rd & Final LDC from Dominion to Enbridge Now Complete”

| | | |

Chesapeake & Southwestern Merger to Close Next Week; New Name

It’s the end of an era. Chesapeake Energy was founded in 1989 by Aubrey McClendon and Tom L. Ward with an initial investment of $50,000. The flamboyant McClendon, who became the CEO, named the company after the Chesapeake Bay due to his love of the region. He rapidly grew his company, headquarter in Oklahoma City, by doing big, audacious deals to lock up large tracts of acreage for gas drilling. Chesapeake, now helmed by one of McClendon’s old friends and lieutenants, Nick Dell’Osso (formerly CFO), announced a deal to buy out and merge with Southwestern Energy earlier this year (see Deal is Done! Chesapeake & Southwestern Announce $7.4B Merger). Yesterday, Dell’Osso announced the final merger, which the Bidenistas had delayed, will close soon, likely next week. The combined company will no longer be called Chesapeake Energy or Southwestern Energy but will be rebranded as (trumpet fanfare)…Expand Energy Corporation. Read More “Chesapeake & Southwestern Merger to Close Next Week; New Name”

| | | |

Chesapeake CEO Says Southwestern Buyout Will Close Early 4Q

In January, Chesapeake Energy, now helmed by Nick Dell’Osso, announced a deal to buy out and merge with competitor Southwestern Energy for $7.4 billion (see Deal is Done! Chesapeake & Southwestern Announce $7.4B Merger). In April, the Bidenistas at the Federal Trade Commission (FTC) and Dept. of Justice (DOJ) sent the dreaded “Second Request” for information (see Bidenistas Delay Chessy/Southwestern Merger, Request More Info). The Second Request automatically delayed the merger from the first half of 2024 to the second half. We are finally near the tail end of the government’s delay tactics. At yesterday’s Gastech event in Houston, Dell’Osso said the merger deal will close “early in the fourth quarter.” Read More “Chesapeake CEO Says Southwestern Buyout Will Close Early 4Q”

| |

Paret Mining Buys 10K Acres of Leases, 150 O&G Wells in Kentucky

We spotted a press release about a “wealthy Haitian-American businessman” buying “a vast 10,000-acre oil reserve in Bowling Green Kentucky.” What caught our eye was the location and the extra detail that the assets purchased included “150 oil and natural gas wells.” A few bells began to go off for us. Kentucky is not known as a hotbed of shale drilling activity. The Marcellus/Utica does not extend under the Bluegrass State. However, as we wrote back in 2017, Kentucky has the Berea Sandstone, which contains oil deposits (see Fracking Comes to Kentucky – Encore Drills First Horizontal Oil Wells).
Read More “Paret Mining Buys 10K Acres of Leases, 150 O&G Wells in Kentucky”