M&A

Allegheny County | Electrical Generation | Industrywide Issues | M&A | Pennsylvania

Pittsburgh Airport NatGas Microgrid & Two Others Sold for $165M
January 31, 2024January 31, 2024

In early 2013, the Pittsburgh International Airport and Allegheny County, PA, signed a deal with CONSOL Energy (now CNX Resources) to lease 9,000 acres surrounding the airport for natural gas drilling (see $50M Check in the Mail: Pittsburgh Airport Lease a Done Deal). The airport added an electric microgrid that burns Marcellus gas from airport property, and since July 2021, the airport has produced all of its own electricity (see Pittsburgh Airport Now Generates All Its Power Using Marcellus Gas). The microgrid was built and is owned by the utility company Peoples Gas (now called Essential Utilities). Essential announced yesterday it is selling the airport microgrid and two other microgrids it owns in the Pittsburgh region to Cordia for $165 million.
Read More “Pittsburgh Airport NatGas Microgrid & Two Others Sold for $165M”
Industrywide Issues | M&A | Pipelines

Spire Connects Midwest Customers to M-U Molecules w/Pipe Deals
January 22, 2024January 22, 2024

Spire Inc. is the owner and operator of the Spire STL Pipeline, a 65-mile pipeline that connects to and flows Marcellus/Utica gas from the Rockies Express (REX) pipeline in Scott County, IL, to residents and businesses in the St. Louis, MO area. Spire STL has been up and running since 2019 (see Spire Pipeline Ready to Flow Marcellus/Utica Gas to St. Louis). Spire announced on Friday the company has completed its acquisition of MoGas Pipeline (MoGas), an interstate natural gas pipeline, and Omega Pipeline (Omega), a connected gas distribution system, from CorEnergy Infrastructure Trust, Inc.
Read More “Spire Connects Midwest Customers to M-U Molecules w/Pipe Deals”
Chesapeake Energy | CNG/LNG | Energy Companies | Exporting | Industrywide Issues | M&A | Southwestern Energy

Haynesville & LNG the Main Driver of Chesapeake/Southwestern Deal
January 12, 2024January 12, 2024

Even though separately (and together) Chesapeake Energy and Southwestern Energy own MORE assets in the Marcellus/Utica than in the Haynesville shale play, the main driver to do a merger between the two companies is the Haynesville and that play’s close proximity to LNG export facilities along the Gulf Coast. That is the conclusion of most analysts based on comments made yesterday by Chesapeake and Southwestern in announcing a $7.4 billion deal to combine the companies (see Deal is Done! Chesapeake & Southwestern Announce $7.4B Merger). So, the big question is, What does that mean for the Marcellus/Utica?
Read More “Haynesville & LNG the Main Driver of Chesapeake/Southwestern Deal”
Chesapeake Energy | Energy Companies | Industrywide Issues | M&A | Southwestern Energy

Deal is Done! Chesapeake & Southwestern Announce $7.4B Merger
January 11, 2024January 11, 2024

This morning, Chesapeake Energy Corporation and Southwestern Energy Company announced that the two companies agreed to merge in an all-stock transaction valued at $7.4 billion, or $6.69 per share, based on Chesapeake’s closing price on January 10, 2024. Under the terms of the agreement, Southwestern shareholders will receive 0.0867 shares of Chesapeake common stock for each share of Southwestern common stock outstanding at closing. Chesapeake shareholders will own roughly 60% of the combined company, and Southwestern shareholders will own 40%. In other words, Chessy is buying out Southwestern.
Read More “Deal is Done! Chesapeake & Southwestern Announce $7.4B Merger”
Chesapeake Energy | Energy Companies | Industrywide Issues | M&A | Southwestern Energy

Chesapeake + Southwestern Merger Would Face Regulatory Hurdles
January 10, 2024January 10, 2024

Interest in and speculation about a potential mega-merger between Chesapeake Energy (CHK) and Southwestern Energy (SWN) continues to build. On Monday, MDN told you about a story in the Wall Street Journal citing sources who say a merger is close and could be announced this week (see Chesapeake & Southwestern Very Close to Announcing $17B Merger). Let’s put a little context around such a merger. Both companies have major assets in both the Pennsylvania Marcellus and Louisiana Haynesville shale plays. A combined company would catapult over EQT to become the largest shale gas producer in the country.
Read More “Chesapeake + Southwestern Merger Would Face Regulatory Hurdles”
American Energy Partners Inc. | Energy Companies | Industrywide Issues | M&A

American Enviro. Reverse Merger w/Hospital Supply Chain Co Coming 1Q
January 10, 2024January 10, 2024

Last October, MDN told you that American Energy Partners, Inc. (AEPT), based in Allentown, PA, with its fingers in several different pies, including subsidiaries in drilling, remediation, water, and more, changed its name to American Environmental Partners, Inc. (see American Energy Partners Changes Name, Swaps Enviro. for Energy). A few days later, MDN exclusively broke the news that American Environmental Partners would merge with a hospital supply chain company called SCWorx, a company that has nothing whatever to do with shale energy (see American Energy Announces Reverse Merger w/Hospital Supply Chain Co). Now comes word the merger will likely happen before the end of March (or maybe early April).
Read More “American Enviro. Reverse Merger w/Hospital Supply Chain Co Coming 1Q”
Chesapeake Energy | Energy Companies | Industrywide Issues | M&A | Southwestern Energy

Chesapeake & Southwestern Very Close to Announcing $17B Merger
January 8, 2024January 8, 2024

In mid-October, the rumor mill kicked into high gear with talk that Chesapeake Energy was sniffing around a merger with Southwestern Energy (see Chesapeake Energy Exploring a Merger with Southwestern Energy). Both Chesapeake and Southwestern have significant, long-time Marcellus assets (in Pennsylvania), and both have added new assets in the Louisiana Haynesville in recent years. They are on parallel tracks with their strategy of using Marcellus assets as a cash cow to fund more drilling in Haynesville, with an eye on grabbing higher prices in foreign markets by exporting Haynesville gas as LNG. It certainly makes sense that one company would be interested in combining with the other. Last Friday, the Wall Street Journal reported the two are very close to a deal — a deal that could be announced as early as this week.
Read More “Chesapeake & Southwestern Very Close to Announcing $17B Merger”
Industrywide Issues | M&A

U.S. Natural Gas Mergers & Acquisitions “Scarce” and “Uneven”
January 8, 2024January 8, 2024

Apart from today’s news that Chesapeake Energy and Southwestern Energy (two huge gas drillers) are close to announcing a merger (see today’s lead story), it is oil companies in U.S. shale that seem to be at the epicenter of a hot M&A market. According to an analyst writing for Argus Media, “meaningful consolidation among US natural gas producers looks unlikely to take place soon owing to historically low, volatile commodity prices and a dearth of large privately-held operators.” The best opportunities lie with companies that have assets in the Haynesville, says the analyst. Perhaps uncoincidentally, both Chesapeake and Southwestern have major assets in the Haynesville (and the Marcellus/Utica).
Read More “U.S. Natural Gas Mergers & Acquisitions “Scarce” and “Uneven””
Industrywide Issues | LDCs | Lewis County | M&A | West Virginia

Hope Gas Continues to Expand – Seeks to Buy 2 Small WV Utilities
January 5, 2024January 5, 2024

Hope Gas provides natural gas service to approximately 131,000 residential, industrial, and commercial customers in thirty-five West Virginia counties. In October, Hope closed on acquiring the West Virginia division of Peoples Gas for an undisclosed amount, giving the company another 13,000 customers (see Hope Gas Closes Acquisition of Peoples Gas WV – Adds 13K Customers). The company also closed on a deal to buy Southern Public Service Company with another 6,400 customers across six WV counties in December (see WV’s Hope Gas Buys Southern Public, Adds 6,400 Customers). Hope is growing yet again…
Read More “Hope Gas Continues to Expand – Seeks to Buy 2 Small WV Utilities”
CNG/LNG | Energy Services | Exporting | Industrywide Issues | M&A | Pipelines | Storage | Transco | Williams

Williams Buys Gulf Storage & Pipes, Connects to Transco for LNG
January 4, 2024January 4, 2024

Wow! That was fast! On Dec. 27, pipeline giant Williams issued a press release to announce a deal to buy six underground natural gas storage facilities located in Louisiana and Mississippi with a total capacity of 115 billion cubic feet (Bcf), as well as 230 miles of gas transmission pipeline and 30 pipeline interconnects, for $1.95 billion. Some of the interconnections connect to the Williams Transco pipeline system, a huge system that transports Marcellus/Utica gas to the Gulf Coast area. One of the big reasons for the deal, according to Williams, is to connect more gas supplies to LNG export markets. Yesterday, Williams issued a second press release to say the deal is already done! Williams now owns the assets.
Read More “Williams Buys Gulf Storage & Pipes, Connects to Transco for LNG”
Industrywide Issues | LDCs | M&A | Statewide WV | West Virginia

WV’s Hope Gas Buys Southern Public, Adds 6,400 Customers
December 4, 2023December 4, 2023

Hope Gas provides natural gas service to approximately 131,000 residential, industrial, and commercial customers in thirty-five West Virginia counties. In October, Hope closed on the acquisition of the West Virginia division of Peoples Gas for an undisclosed amount, giving the company another 13,000 customers (see Hope Gas Closes Acquisition of Peoples Gas WV – Adds 13K Customers). Hope is growing again! The company has just closed on a deal to buy Southern Public Service Company with another 6,400 customers across six WV counties.
Read More “WV’s Hope Gas Buys Southern Public, Adds 6,400 Customers”
Industrywide Issues | M&A

Allied Resources Group Buys O&G Engineering Division from STV
November 22, 2023November 22, 2023

STV, a New York City-based professional services firm that plans, designs, and manages infrastructure projects across North America, recently announced that it will exit servicing the midstream oil and gas market after signing an agreement with Pennsylvania-based Allied Resources Group (ARG). ARG is acquiring STV’s midstream oil and gas business operations for an undisclosed price, effective November 30, 2023.
Read More “Allied Resources Group Buys O&G Engineering Division from STV”
Commodity Price | Industrywide Issues | M&A | Research

5 Trends Poised to Have Biggest Impact on Energy Sector in 2024
November 22, 2023November 22, 2023

Veteran equity oil and gas analyst Jeff Robertson, managing director with Water Tower Research (WTR), recently compiled an outlook report with the 5 trends he says are poised to have the biggest impact on the energy sector next year. WTR was kind enough to share it with MDN. One of Robertson’s predictions involves a Henry Hub price prediction (which immediately caught our eye). Other predictions involve world tensions, the consolidation trend, and more. It’s a short and enlightening read.
Read More “5 Trends Poised to Have Biggest Impact on Energy Sector in 2024”
Chesapeake Energy | Energy Companies | Industrywide Issues | M&A | Southwestern Energy

Corporate Raider Kimmeridge Likes a Chesapeake/Southwestern Merger
November 21, 2023November 21, 2023

A month ago, MDN shared the rumor that Chesapeake Energy Corporation is sniffing around Southwestern Energy, looking to buy out and merge in its closest O&G peer (see Chesapeake Energy Exploring a Merger with Southwestern Energy). One of Chesapeake’s largest investors, Kimmeridge Energy Management Co. — what the financial industry calls an “activist investor” (which we call by the old term “corporate raider”) — says a merger between the two would create one of the industry’s most sought-after stocks. Kimmeridge is pushing to make it happen.
Read More “Corporate Raider Kimmeridge Likes a Chesapeake/Southwestern Merger”
Greene County (PA) | Industrywide Issues | Lease & Royalty Payments | M&A | Pennsylvania | Washington County

WhiteHawk Energy Spends $54M to Grow M-U Mineral & Royalty Assets
November 16, 2023November 16, 2023

WhiteHawk Energy, headquartered in Philadelphia with ownership of mineral and royalty interests for 850,000 gross unit acres and over 2,500 producing horizontal shale wells between the Marcellus and the Haynesville, announced yesterday the acquisition of additional Marcellus Shale natural gas mineral and royalty assets for a total purchase price of $54 million. WhiteHawk owns mineral and royalty rights across nearly half a million M-U acres. The deal does not increase WhiteHawk’s total acreage but does increase the company’s percentage of ownership across that acreage.
Read More “WhiteHawk Energy Spends $54M to Grow M-U Mineral & Royalty Assets”
Energy Services | Industrywide Issues | M&A | Summit Midstream

Summit Midstream Reports Significant Interest by Others in M&A
November 7, 2023November 7, 2023

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil, and produced water gathering (pipeline) systems in several unconventional shale plays, including the Marcellus and Utica. Last week, Summit issued its third quarter 2023 update. We previously reported on an early release of Summit’s 3Q operational update, which revealed the company is considering selling part or all of the company (see Summit Midstream 3Q Update – Considers Selling Part or All of Co.). Summit CEO Heath Deneke provided an update last week on the process of finding a potential suitor.
Read More “Summit Midstream Reports Significant Interest by Others in M&A”