M&A

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.
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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.
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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”
Dominion Energy | Enbridge | Energy Services | Industrywide Issues | LDCs | M&A

Dominion Energy Loses Mind – Sells Remaining LDC NatGas Businesses
September 6, 2023September 6, 2023

Yesterday, Dominion Energy and Enbridge co-announced that Dominion has agreed to sell what we think (not 100% sure) are the 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. The deal includes three LDCs–The East Ohio Gas Company, Public Service Company of North Carolina, and Questar Gas Company (along with Wexpro Company). The three LDCs serve about 3 million homes and businesses in Ohio, North Carolina, Utah, Wyoming, and Idaho and include 78,000 miles of natural gas distribution, transmission, gathering, and storage pipelines and more than 62 Bcf of working underground and LNG storage capacity. Dominion wants to shed its natgas businesses and focus solely on electrifying everything.
Read More “Dominion Energy Loses Mind – Sells Remaining LDC NatGas Businesses”
Berkshire Hathaway | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | M&A

Berkshire Hathaway Energy Now Owns 75% of Cove Point LNG
September 5, 2023September 5, 2023

In July 2020, Dominion Energy announced it had decided to exit the natural gas pipeline business by selling it to Warren Buffett’s Berkshire Hathaway Energy (see Dominion Cancels Atlantic Coast Pipe, Sells Pipe Biz for $9.7B). Part of the deal involved selling a 25% interest in the Cove Point LNG export facility to Berkshire Hathaway, transferring responsibility for operations to Berkshire (see Warren Buffett’s Berkshire Hathaway Now Runs Cove Point LNG!). In July, both Dominion and Berkshire announced a deal for Berkshire to buy out Dominion’s remaining 50% share in Cove Point for $3.3 billion (see Dominion Sells Remaining 50% Share in Cove Point LNG to Buffett). According to a Berkshire announcement issued Friday, the deal is now down.
Read More “Berkshire Hathaway Energy Now Owns 75% of Cove Point LNG”
Energy Companies | EQT Corp | Industrywide Issues | M&A | Statewide WV | Tug Hill Operating | West Virginia

EQT Finally Completes Acquisition of Tug Hill and XcL Midstream
August 23, 2023August 23, 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 is finally done. EQT announced yesterday it had closed on the purchase (revised price ~$4.6 billion), adding roughly 90,000 acres and 800 million cubic feet per day (MMcf/d) of production in West Virginia to EQT’s existing (massive) portfolio. EQT also scores an extra 145 miles of natgas gathering pipelines.
Read More “EQT Finally Completes Acquisition of Tug Hill and XcL Midstream”
Energy Companies | EQT Corp | Industrywide Issues | M&A | Marshall County | Tug Hill Operating | West Virginia | Wetzel County

EQT/Tug Hill Deal Came Only After PA AG, FTC Changed Deal Terms
August 18, 2023August 18, 2023

We should have known there was a price to pay, a “pound of flesh” to be exacted, when we read the announcement that the Bidenistas of the FTC (Federal Trade Commission) had approved EQT’s deal to buy Tug Hill’s West Virginia assets. Two days ago, EQT issued a press release to announce the deal had been blessed by the FTC and would happen within the next seven days (see Bidenistas at FTC Clear EQT to Complete Buyout of Tug Hill & XcL). A day later, yesterday, the Pennsylvania Attorney General’s office issued its version of the news, stating approval by the FTC (and the AG’s office) came only after both the FTC and the AG screwed with the deal and changed the terms of the deal. We should have known.
Read More “EQT/Tug Hill Deal Came Only After PA AG, FTC Changed Deal Terms”
Energy Companies | Energy Services | EQT Corp | Industrywide Issues | M&A | Marshall County | Regulation | Tug Hill Operating | West Virginia | Wetzel County | XcL Midstream

Bidenistas at FTC Clear EQT to Complete Buyout of Tug Hill & XcL
August 17, 2023August 17, 2023

Last September, EQT Corporation announced it was buying privately-owned Tug Hill Operating’s West Virginia shale assets for $5.2 billion (see Confirmed: EQT Buys Tug Hill’s THQ Appalachia for $5.2 Billion). However, the Bidenistas at the Federal Trade Commission (FTC) got involved slowing down the deal. Because of the FTC dragging its feet, EQT and Tug Hill renegotiated the timeline adding a full year–to the end of 2023 (see EQT $5.2B Deal to Buy Tug Hill Extended Additional Year to Close). Good news: After delaying the deal by nearly a year, the Bidenistas at the FTC have given their blessing on the deal. The deal is expected to close within seven days.
Read More “Bidenistas at FTC Clear EQT to Complete Buyout of Tug Hill & XcL”