Range Sells Haynesville Assets to Japan for “Pennies on the Dollar”

Range Resources has cut a deal to sell its Haynesville Shale assets (220,000 acres plus the wells they’ve drilled since buying those assets) to Castleton Resources, a privately owned company majority-owned by Tokyo Gas, for $245 million (plus an extra $90 million, maybe, contingent on the price of gas). Range bought those assets in 2016 for $4.4 billion (see Range Resources Buys Louisiana Driller in Deal Worth $4.4B). Yeah, Range just took a bath, selling their Haynesville assets for pennies on the dollar…
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A Different View re CNX’s Move to Buy Rest of Pipeline Subsidiary

Yesterday MDN brought you the news that CNX Resources is buying out the balance of what they don’t own in their pipeline subsidiary CNX Midstream (see CNX’s Competitive Advantage: Owning Its Own Pipelines). Our take on the news is that by owning their own pipeline network CNX has a distinct competitive advantage. We heard in pretty short order a different view from a couple of MDN readers…
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CNX Resources Buying/Merging in Rest of CNX Midstream for $357M

CNX Midstream began life as a joint venture between CONSOL Energy (the forerunner to CNX Resources) and Noble Energy, and was called CONE Midstream (“CO” from CONSOL and “NE” from Noble Energy). Noble decided to completely exit the Marcellus/Utica and ended up selling their half of CONE to CNX for $305 million in early 2018 (see CNX to Buy Noble’s 50% Share of CONE Midstream for $305M). The company was then renamed CNX Midstream (see CONE Midstream Gets a New Name: CNX Midstream Partners). Although CNX owns a majority of CNX Midstream, there has (until now) remained a certain portion owned by outside investors. That will soon come to an end as CNX is buying out the remaining portions it doesn’t own for $357 million. CNX Midstream will now be owned 100% by CNX Resources.
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Chevron Buying Noble Energy in Deal Worth $13 Billion

Last year Chevron tried to buy Permian driller Anadarko Petroleum for $50 billion. Occidental Petroleum swooped in at the last minute and lured Anadarko away in a $57 billion deal. Chevron left the marriage altar with a cool $1 billion in breakup fees (see Chevron Leaves the Altar with $1B, Waves Goodbye to Anadarko). Chevron is now glad they got jilted because they’ve just brokered a new deal–to buy Noble Energy for $5 billion in stock and assumption of $8 billion in debt for a grand total of $13 billion. It’s a far lower amount and much more bang for the buck.
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Former EV Energy Partners Sells Appalachian Assets for $20.5M

In June 2018, EV Energy Partners (EVEP), the drilling subsidiary of EnerVest, emerged from bankruptcy court a mere two months after entering with $355 million of debt erased and sporting a new name: Harvest Oil & Gas Corp. (see EV Energy Partners Emerges from Bankruptcy with New Name). Harvest’s drilling and assets are focused in Ohio, Pennsylvania, and West Virginia where they own/operate 9,787 conventional wells on 916,832 gross leased acres. The company announced yesterday it’s selling off its Appalachian assets for $20.5 million (and no, that’s not a typo).
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Marcellus/Utica Dominates Top 5 Oil & Gas M&A Deals of Q2

Enverus (formerly called Drillinginfo) has just released a summary of its Q2 2020 U.S. upstream M&A report. The update shows upstream (drilling) deals staged a small recovery to $2.6 billion from only $770 million during Q1. However, Q2 still ranks as the third-lowest quarterly value since 2009. Of particular interest for us is that of the top five M&A deals done in Q2, three of them happened in the Marcellus/Utica.
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Thigpen & Blue Roads Merging to Form Sapphire Gas Virtual Pipe Co

This is one of those “follow the bouncing ball” stories with lots of names. Bear with us because there is a connection to the Marcellus/Utica region. BP Energy Partners, a private equity firm based in Dallas, TX, invests in (and ultimately controls) a number of companies. Two of their portfolio companies are Thigpen Solutions and Blue Roads Solutions, both virtual pipeline companies delivering CNG and LNG to different types of customers. BP is merging the two into one company and renaming it Sapphire Gas Solutions.
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Equitrans Consolidates Under Corp Umbrella, Dissolves LP

Equitrans, formerly EQT Midstream, separated from EQT in November 2018. Equitrans, via its EQM Midstream affiliate, gathers, processes, and flows most of EQT’s natural gas production, getting it to market. In February Equitrans announced it will absorb EQM, a limited partnership, into the fold (see Equitrans Merging in EQM Midstream, Lowers Fees for EQT $535M). The two entities have always operated as a single entity with the same management, but on paper they have different sets of investors and different corporate structures. As of today, the two will become one in the form of a “C” corporation.
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Summit Midstream Merges with Itself; Bob McNally Joins Board

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil and produced water gathering (pipeline) systems in six unconventional resource basins, including the Marcellus and Utica. The company concentrates its time and money on four “core focus areas” including the Utica, the Williston (i.e. Bakken), the DJ Basin, and the Permian. The company announced yesterday it has completed the buyout of a subsidiary and merged it in. Hidden in the bowels of the press release we discovered Bob McNally, former (ousted) CEO of EQT Corporation, has joined the board of directors at Summit.
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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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