M&A

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”
Energy Services | Industrywide Issues | M&A | Millennium Pipeline | Pipelines | TC Energy/TransCanada

TC Energy Looking to Sell Share in Millennium, PNGTS, Other Pipes
October 30, 2023November 2, 2023

TransCanada Corporation, which renamed itself TC Energy in 2019, bought out and merged in U.S.-based Columbia Pipeline Group (now Columbia Gas Transmission) in 2016 (see TransCanada and Columbia Pipeline Tie the Knot Today). TransCanada paid $13 billion for Columbia, including the assumption of $2.8 billion of debt. In July, TC Energy announced it was selling a 40% stake in Columbia for US$3.9 billion (C$5.2 billion) to investment firm Global Infrastructure Partners. TC completed the sale earlier this month (see TC Energy Completes Sale of 40% Interest in Columbia Pipe to GIP). Looks like TC isn’t done yet with selling pieces of assets. Secret sources whispering to Bloomberg say that TC wants to sell minority (or all) interests in four pipeline systems, three of which move Marcellus/Utica molecules.
Read More “TC Energy Looking to Sell Share in Millennium, PNGTS, Other Pipes”
American Energy Partners Inc. | Energy Companies | Industrywide Issues | M&A

American Energy Announces Reverse Merger w/Hospital Supply Chain Co
October 24, 2023October 24, 2023

This is one of those times where we scratch our heads and say, Huh? Just last week, we brought you the news 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, is changing its name to American Environmental Partners, Inc. (see American Energy Partners Changes Name, Swaps Enviro. for Energy). This week, another company, a hospital supply chain company by the name of SCWorx, announced it is buying out and merging with American Environmental Partners in an all-stock transaction. But here’s the thing…even though SCWorx is buying AEPT (on paper), when the two companies are merged, SCWorx shareholders will own 17% of the company, and AEPT shareholders will own 83%. Which means this is really the other way around — that AEPT is the one doing the buying.
Read More “American Energy Announces Reverse Merger w/Hospital Supply Chain Co”
Chevron | Energy Companies | Hess | Industrywide Issues | M&A

Another Powerhouse Merger: Chevron Buying Hess for $53 Billion
October 23, 2023October 23, 2023

Not even a full two weeks ago, MDN brought you the news that Exxon Mobil, the #5 oil producer in the Permian Basin, is buying Pioneer Natural Resources, the #1 oil producer in the Permian, in an all-stock deal valued at $59.5 billion, plus assuming $5 billion in debt, for a total deal value of $64.5 billion (see Shale Megadeal: Exxon Buys Pioneer Natural Res. for $64.5 Billion). We told you that experts were predicting Exxon’s megamerger with Pioneer would touch off more mergers. And it has. Chevron announced via press release this morning that it is buying Hess Corporation in an all-stock transaction valued at $53 billion. Chevron doesn’t want to be left behind in the oil drilling wars.
Read More “Another Powerhouse Merger: Chevron Buying Hess for $53 Billion”
Chesapeake Energy | Energy Companies | Industrywide Issues | M&A | Southwestern Energy

Chesapeake Energy Exploring a Merger with Southwestern Energy
October 18, 2023October 18, 2023

Oh boy, here we go again. The rumor mill is in overdrive. Reuters (which is pretty reliable with these kinds of reports) is reporting that Chesapeake Energy Corporation is sniffing around Southwestern Energy, looking to buy out and merge in its closest O&G peer. 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. If the two do combine, it would become the #1 shale gas driller in the U.S., surpassing EQT (in market value).
Read More “Chesapeake Energy Exploring a Merger with Southwestern Energy”
Energy Companies | Exxon Mobil | Industrywide Issues | M&A

Pioneer CEO Waves White Flag, Says Days of Independent Shale Over
October 12, 2023October 12, 2023

Do you know what the single most responsible force was in liberating the United States from the grip of the dictator thugs of OPEC? Independent shale oil companies. Over the past decade, companies like EOG Resources, Apache, Continental Resources, Concho Resources, and Pioneer Resources broke the grip of OPEC over U.S. oil supplies. Pioneer, as we told you yesterday, has agreed to sell itself to Exxon Mobile for $64.5 billion (see Shale Megadeal: Exxon Buys Pioneer Natural Res. for $64.5 Billion). A few hours after that major announcement, Pioneer CEO Scott Sheffield said in an interview, “Shale companies cannot survive on their own long term,” and “They’re going to have to merge up, consolidate, and be part of diversified companies.” Et tu, Brute? Sheffield has raised the white flag of surrender and plunged a dagger in the back of shale. What a shame.
Read More “Pioneer CEO Waves White Flag, Says Days of Independent Shale Over”
Energy Companies | Exxon Mobil | Industrywide Issues | M&A

Shale Megadeal: Exxon Buys Pioneer Natural Res. for $64.5 Billion
October 11, 2023October 11, 2023

Sometimes, news comes along in the oil and gas world that is so big, even when it doesn’t directly involve the Marcellus/Utica, we feel a responsibility to report it. Today is one of those days. The rumor mill has been swirling for weeks that Exxon Mobil is interested in buying Pioneer Natural Resouces, the number one producer in the Permian Basin. Exxon is currently the number five Permian producer. This morning, a deal was announced. Exxon is buying Pioneer in an all-stock deal valued at $59.5 billion, plus assuming $5 billion in debt, for a total deal value of $64.5 billion.
Read More “Shale Megadeal: Exxon Buys Pioneer Natural Res. for $64.5 Billion”
Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Williams Finally Wins Case Against ET Aborted Merger – $495 Million
October 11, 2023October 11, 2023

In 2015, Kelsy Warren and his Energy Transfer Equity (now just Energy Transfer) company pursued Williams, wanting to merge Williams into its operation. Williams initially fought ET tooth and nail, but in the end, caved and 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 altar. Williams sued to recoup a contractual breakup fee (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). A number of lawsuits ensued, and finally, after more than six years, a Delaware Court of Chancery judge ruled last December that ET must pay Williams a $410 million breakup fee provided for in the signed deal (see Judge: Energy Transfer Must Pay Williams $410M for Aborted Merger). ET should have been happy with the decision…
Read More “Williams Finally Wins Case Against ET Aborted Merger – $495 Million”
Energy Companies | EQT Corp | Industrywide Issues | M&A | Statewide WV | Tug Hill Operating | West Virginia

FTC Finalizes Consent Order from EQT Purchase of Tug Hill WV Assets
October 11, 2023October 11, 2023

Nearly one year after EQT announced a deal to buy privately-owned Tug Hill Operating’s West Virginia shale assets for roughly $5.2 billion (see Confirmed: EQT Buys Tug Hill’s THQ Appalachia for $5.2 Billion), the deal was finally completed in August (see EQT Finally Completes Acquisition of Tug Hill and XcL Midstream). Both EQT and Tug Hill’s backer, Quantum Energy Partners, announced the deal was consummated. But was it?
Read More “FTC Finalizes Consent Order from EQT Purchase of Tug Hill WV Assets”
Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | Pipelines | TC Energy/TransCanada

TC Energy Completes Sale of 40% Interest in Columbia Pipe to GIP
October 5, 2023October 5, 2023

TransCanada Corporation, which renamed itself TC Energy in 2019, bought out/merged in U.S.-based Columbia Pipeline Group (now Columbia Gas Transmission) in 2016 (see TransCanada and Columbia Pipeline Tie the Knot Today). TransCanada paid $13 billion for Columbia, including the assumption of $2.8 billion of debt. In July, TC Energy announced it was selling a 40% stake in Columbia for US$3.9 billion (C$5.2 billion) to investment firm Global Infrastructure Partners (see TC Energy Sells 40% Interest in Columbia Pipeline to Investor GIP). TC will retain majority ownership and operate the Columbia assets, which include 11,899 miles of pipeline extending from New York state to the Midwest and Southeast, along with dozens of storage fields in multiple states. As of yesterday, the deal is done and TC has a new partner.
Read More “TC Energy Completes Sale of 40% Interest in Columbia Pipe to GIP”
Industrywide Issues | LDCs | M&A | Statewide WV | West Virginia

Hope Gas Closes Acquisition of Peoples Gas WV – Adds 13K Customers
October 4, 2023October 4, 2023

Hope Gas, a Local Distribution Company (LDC), otherwise known as a utility company, provides gas service to approximately 112,000 residential, industrial, and commercial customers in thirty-five West Virginia counties. In January, Hope announced it was buying the West Virginia division of Peoples Gas, currently owned by Essential Utilities, for an undisclosed amount (see Hope Gas Cuts Deal to Buy Peoples Gas of West Virginia). The deal will add another 13,000 customers to Hope’s customer base. The Hope/Peoples deal finally closed yesterday.
Read More “Hope Gas Closes Acquisition of Peoples Gas WV – Adds 13K Customers”
Erie County (NY) | Industrywide Issues | LDCs | M&A | New York

Western NY NatGas Utility EnergyMark Buys Crown Energy Services
October 3, 2023October 3, 2023

Local natural gas utility EnergyMark, LLC located in Williamsville, NY (provider of natgas to the Buffalo Bills stadium), announced the acquisition of the assets of another gas utility, Crown Energy Services, Inc. of West Seneca, NY. The two energy supply companies are among the longest-standing suppliers of natural gas in Western New York. Both companies have provided natural gas supply service to industrial, commercial, and residential clients in New York and Pennsylvania for over 20 years.
Read More “Western NY NatGas Utility EnergyMark Buys Crown Energy Services”
Industrywide Issues | M&A

Major Shareholder Pressures PHX for Transparency re Merge Offers
September 12, 2023September 12, 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, 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. PHX rebuffed the proposal (see PHX Minerals Says WhiteHawk Marriage Proposal “Grossly Inadequate”). A second company, a major shareholder in PHX that owns 4% of the company’s stock, is now also pressuring PHX.
Read More “Major Shareholder Pressures PHX for Transparency re Merge Offers”
Energy Services | Industrywide Issues | M&A | Pipelines | Williams

Williams CEO Talks Down Enbridge/Dominion Deal, Talks Up Gas Pipes
September 7, 2023September 7, 2023

Williams CEO Alan Armstrong spoke at the Barclays CEO Energy-Power Conference in New York City yesterday. Certain members of the press were invited to attend (but sadly, not MDN). Armstrong had some interesting things to say at the Barclays soiree. Armstrong engaged in a little smack talk about the recently announced Enbridge deal to buy Dominion Energy’s remaining gas utility businesses for $14 billion (see Dominion Energy Loses Mind – Sells Remaining LDC NatGas Businesses). Another thing Armstrong said is that the crazy “electrify everything” movement will lead to the use of MORE natural gas and LNG, not less.
Read More “Williams CEO Talks Down Enbridge/Dominion Deal, Talks Up Gas Pipes”