Columbia Pipeline Shareholders Sue re 2016 Sale to TransCanada

TransCanada Corporation, which renamed itself TC Energy earlier this year, made a play for and bought out/merged in U.S.-based Columbia Pipeline Group in 2016 (see TransCanada and Columbia Pipeline Tie the Knot Today). TransCanada paid $13 billion for Columbia, including assumption of $2.8 billion of debt. Columbia has major pipeline operations throughout the Marcellus/Utica region.
Continue reading

Chevron Leaves the Altar with $1B, Waves Goodbye to Anadarko

Whew, that was close. We’ve had a concern that if Chevron ended up buying Anadarko Petroleum (for Anadarko’s Permian Basin oil assets), it might lead to Chevron pulling back from their drilling program in the Marcellus/Utica (see Permian Love Story: Chevron Buying Anadarko in $50B Megamerger). We don’t have to worry any more. Even though Anadarko signed a deal to sell itself to Chevron, Occidental Petroleum made a bid to buy the company too (see Occidental Petroleum Offers 14% More than Chevron to Buy Anadarko). There’s a breakup clause in the signed Chevron deal. Anadarko would have to pay Chevron $1 billion for leaving them at the altar.
Continue reading

Anadarko Leaves Chevron at the Altar to Elope with Occidental

The battle to buy Anadarko Petroleum by Chevron and Occidental Petroleum (Oxy) has taken an interesting turn. Over the weekend Oxy revised its offer. It will still pay Anadarko shareholders $57 billion (as before), but the offer was revised to dial up the amount of cash and dial down the amount of stock swaps. Never hurts to use cash as a sweetener. The new offer did the trick. Although Anadarko previously signed an agreement to sell itself to Chevron, Anadarko announced yesterday they are leaving Chevron at the altar and riding off into the sunset to elope with Oxy.
Continue reading

Occidental Petroleum Offers 14% More than Chevron to Buy Anadarko

Less than two weeks ago Chevron announced a deal to buy Anadarko Petroleum for $33 billion plus assuming outstanding debt, a deal worth $50 billion (see Permian Love Story: Chevron Buying Anadarko in $50B Megamerger). At the time we told you about a potential cloud on the horizon–that Occidental Petroleum had offered more for Anadarko. Indeed, Oxy wants Anadarko too, and a full-blown bidding war has now erupted. Yesterday Oxy made it’s offer public, an offer 14% higher than Chevron’s offer: $57 billion.
Continue reading

Will Chevron Dump its M-U Assets to Chase Permian Black Gold?

A week ago MDN brought you the news that Chevron has cut a $50 billion deal to buy Anadarko Petroleum (see Permian Love Story: Chevron Buying Anadarko in $50B Megamerger). Although Chevron will benefit in a number of ways from the transaction, as we indicated in the headline, the primary motivator is to gain valuable acreage in the oily Permian Basin of West Texas. The question now becomes, will Chevron hold on to its Marcellus/Utica assets? Or sell them in order to concentrate on the Permian?
Continue reading

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.
Continue reading

Denbury/Penn Virginia Merger Aborted – PV Shareholder Resistance

Penn Virginia, an oil and gas driller headquartered in Radnor, PA (near Philadelphia) announced last October it had found someone to buy the company–Denbury Resources (see Penn Virginia Finally Sells Itself, Denbury Buys for $1.7 Billion). As of a few weeks ago both companies filed proxy statements with the Securities and Exchange Commission to announce a final merger vote set for April 17. That’s now off–because some Penn Virginia shareholders got cold feet.
Continue reading

Equitrans Buys 2 Pipeline Systems in Marcellus/Utica for $1B

Equitrans Midstream, which used to be called EQT Midstream, yesterday announced they have cut their first big deal since separating from EQT last year. Equitrans is buying a 60% stake in Eureka Midstream, a 190-mile pipeline system in Ohio and West Virginia serving both the Marcellus and Utica, and a 100% stake in the tiny 15-mile Hornet Midstream, a gathering system in WV that connects to Eureka.
Continue reading

NGL Energy Buys Northeast Propane Terminals from DCP Midstream

We spotted an interesting announcement from NGL Energy Partners that the company has just closed on the purchase of seven natural gas liquids terminals in the Eastern United States, purchased from DCP Midstream for an undisclosed amount. What’s interesting is that some of the terminals, most of them located in the Marcellus/Utica region, are capable of exports. NGL Energy says they plan to export butane from one of them. Might that be M-U butane?
Continue reading

Blue Ridge Merges with Eclipse, Renamed to Montage Resources

Yesterday was an eventful day for the former Blue Ridge Mountain Resources (nee Magnum Hunter Resources) and Eclipse Resources. We’ve been telling you since last August that the two companies are merging, with Blue Ridge Mountain essentially buying out Eclipse. The deal is done as of yesterday and there is A LOT of news to share–including a name change for the newly combined entity.
Continue reading

Blue Ridge Mountain Resources Shareholders Approve Eclipse Merger

Last August Eclipse Resources announced it had sold itself to Blue Ridge Mountain Resources, the renamed remnant of Magnum Hunter Resources (see Eclipse Resources Merging with Former Magnum Hunter). Although Eclipse shareholders have approved the deal, not until today was there official approval by the shareholders of Blue Ridge Mountain Resources.
Continue reading

Blackstone Buys Controlling Interest in Tallgrass Energy

Tallgrass Energy, builder and operator of the mighty Rockies Express (REX) pipeline which is a critical link that flows Marcellus/Utica gas to Midwestern markets, dropped a bombshell announcement yesterday. The company said that investment firm Blackstone is buying a “controlling” interest in the company. Which raises the question, will Blackstone indeed “control” the company?
Continue reading

National Truck Stop Chain Buys M-U Wastewater Hauler

You know those Pilot Flying J truck stops you sometimes visit to fill up as you’re traveling along our nation’s interstate highways? They’re not just big gas stations with convenience stores. Pilot Flying J has its own fleet of trucks. One of the divisions of Flying J targets the exploration and production (E&P) sector, i.e. drillers. Flying J has just announced it has bought out Equipment Transport, LLC, which hauls shale wastewater in the Marcellus, Utica and Permian Basin. Now your favorite truck stop is also your favorite wastewater hauler!
Continue reading

Dominion One Step Away from Closing on SCANA Merger

In January Dominion Energy announced a deal to buy out and merge in South Carolina-based SCANA Corporation (see Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC). SCANA is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. In other words, the local electric and gas company for much of South Carolina. When Dominion’s Atlantic Coast Pipeline gets built and expanded into South Carolina, it will flow Marcellus/Utica gas to SCANA customers–an important and huge new market for our molecules. Hence our interest in this merger. Dominion announced yesterday that North Carolina has now signed off on the merger, and all that remains is one final regulatory approval. Dominion expects the merger to be done this year.
Continue reading

Encino Takes Over from Chesapeake in Ohio Utica; Big Plans

The deal is done. On Monday, Encino Acquisition Partners completed its purchase of all of Chesapeake Energy’s Ohio Utica Shale assets for $2 billion, originally announced in July (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B). The deal includes all of Chesapeake’s 933,000 Ohio acres (with 320,000 net Utica acres) and 920 operated and non-operated Ohio Utica wells. With the deal now done, Encino is signaling good things are ahead. The company will keep its Utica regional headquarters in Louisville, OH–right where Chesapeake had it. Encino has and will continue to operate two active drilling rigs in the Utica this year, and add a third rig next year. Encino CEO Hardy Murchison recently spoke about the company’s Utica plans moving forward. It has folks in Ohio excited!
Continue reading