M&A

Carbon Capture | Energy Companies | Exxon Mobil | Industrywide Issues | M&A

Exxon Buys Carbon Capture Business Denbury for $4.9 Billion
July 14, 2023July 14, 2023

Exxon Mobil Corporation announced it is buying Denbury Inc., a developer of carbon capture, utilization, and storage solutions and enhanced oil recovery, for $4.9 billion in an all-stock transaction. Denbury currently focuses on the Gulf Coast and Rocky Mountain region. Presumably, Exxon plans to expand Denbury’s technology to other regions, including the Marcellus/Utica.
Read More “Exxon Buys Carbon Capture Business Denbury for $4.9 Billion”
Berkshire Hathaway | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | M&A | Maryland

Dominion Sells Remaining 50% Share in Cove Point LNG to Buffett
July 11, 2023July 11, 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!). Yesterday both Dominion and Berkshire announced a deal for Berkshire to buy out Dominion’s remaining 50% share in Cove Point for $3.3 billion.
Read More “Dominion Sells Remaining 50% Share in Cove Point LNG to Buffett”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Litigation | M&A | TC Energy/TransCanada

Court: Columbia Pipe Shareholders Shafted in Sale, TC Energy Liable
July 3, 2023July 3, 2023

TransCanada Corporation, which renamed itself TC Energy in 2019, 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 the assumption of $2.8 billion of debt. TransCanada paid Columbia shareholders $25.50 per share in cash. However, some Columbia shareholders were not happy with the price paid and said the deal was all hush-hush until it was simply popped on everyone at the last minute. Nobody else had a chance to bid up the price, and the price did not reflect the company’s true value, according to the disgruntled shareholders. So they sued. And on Friday, they won.
Read More “Court: Columbia Pipe Shareholders Shafted in Sale, TC Energy Liable”
Energy Services | Industrywide Issues | M&A | Pipelines | Superior Appalachian Pipeline

Tulsa-Based Superior Pipeline Changed Ownership and Name
July 3, 2023July 3, 2023

Superior Pipeline, headquartered in Oklahoma, operates in the following geographic areas: the Texas/Oklahoma panhandle, Central/Western Oklahoma, Southeastern Oklahoma, Southeast Texas, Kansas, and Appalachia, including Pennsylvania and West Virginia. Superior owns and operates natural gas gathering and processing facilities, natural gas treating plants, and over 3,700 miles of pipeline. Unit Corporation, which had owned 50% of Superior, recently finished selling its 50% share to OPTrust and Partners Group. With the sale, the new 100% owners have changed the name of the company from Superior Pipeline to Superior Midstream.
Read More “Tulsa-Based Superior Pipeline Changed Ownership and Name”
Industrywide Issues | M&A

Drilling Tools Intl Merges with ROC Energy Acquisition, Goes Public
June 21, 2023June 21, 2023

Drilling Tools International (DTI) has just received a major cash infusion of $40.8 million to expand and begin trading as a public company. DTI is a Houston, Texas-based oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. DTI, a private company until now, operates from 22 locations across North America, Europe, and the Middle East, including a location in Charleroi (Washington County), PA, where it services Marcellus/Utica drillers.
Read More “Drilling Tools Intl Merges with ROC Energy Acquisition, Goes Public”
Energy Services | Industrywide Issues | M&A | Patterson-UTI

Patterson-UTI & NexTier to Merge, Bigger Fracker than Halliburton
June 16, 2023June 16, 2023

In the summer of 2021, Patterson-UTI Energy, which operates 21 active rigs in the Marcellus/Utica (out of 49 active M-U rigs, nearly half of all active M-U rigs!), announced it was buying a smaller competitor, Pioneer Energy Services Corp. (see Patterson-UTI Energy Buying Pioneer Energy Services for $295M). Patterson added Pioneer’s fleet of 16 super-spec drilling rigs to Patterson’s (at that time) fleet of 150 super-spec drilling rigs in the U.S. Big news! Yesterday Patterson announced it is expanding again by combining with NexTier Oilfield Solutions in a “merger of equals.”
Read More “Patterson-UTI & NexTier to Merge, Bigger Fracker than Halliburton”
Electrical Generation | Industrywide Issues | M&A

NET Power Completes $1.5B Merger with Rice Acquisition Corp.
June 9, 2023June 9, 2023

Last December, Rice Acquisition Corp II, a special purpose acquisition company (SPAC) started by the Rice brothers (Danny, Toby, and Derek), announced a deal to acquire NET Power–an electric power developer with revolutionary new technology to capture every last molecule of carbon dioxide from natural gas-fired power plants (see Dan Rice Buys Co. that Builds Zero-Carbon Gas-Fired Electric Plants). The Rice deal to buy NET Power happened yesterday, and Danny Rice is the new CEO of NET Power.
Read More “NET Power Completes $1.5B Merger with Rice Acquisition Corp.”
Energy Services | Equitrans/EQT Midstream | Industrywide Issues | LDCs | M&A | Pipelines | Statewide WV | West Virginia

Equitrans Selling 900 Miles of WV Gathering Pipes to Hope Gas
June 6, 2023June 6, 2023

Farm tap

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. Hope Gas just received approval from the Public Service Commission (PSC) of West Virginia to acquire nearly 900 miles of gathering pipelines in northern West Virginia from Equitrans Midstream. Sitting along those 900 miles of pipes are approximately 4,900 farm tap customers served by Hope, Peoples Gas, and Mountaineer Gas Company.
Read More “Equitrans Selling 900 Miles of WV Gathering Pipes to Hope Gas”
Chesapeake Energy | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | M&A | Southwestern Energy

Citi Analyst Talks Up Southwestern Energy as Takeover Target
June 6, 2023June 6, 2023

An advisory note from Citi analyst Paul Diamond, picked up by the Seeking Alpha investor website, says U.S. natural gas producers are “primed for a wave of consolidation” in the medium term. Near the top of the list of potential takeover targets is, according to Diamond, Southwestern Energy, which had concentrated mainly on the Marcellus/Utica region until 2021, when it went wandering into Haynesville drilling. Who might be interested in buying Southwestern?
Read More “Citi Analyst Talks Up Southwestern Energy as Takeover Target”
Electrical Generation | Energy Companies | Industrywide Issues | M&A | Rice Energy

Dan Rice’s Net-Zero CO2 Co. Merger Due to Close on June 8
June 6, 2023June 6, 2023

Last December, Rice Acquisition Corp II, a special purpose acquisition company (SPAC) started by the Rice brothers (Danny, Toby, and Derek), announced a deal to acquire NET Power–an electric power developer with revolutionary new technology to capture every last molecule of carbon dioxide from natural gas-fired power plants (see Dan Rice Buys Co. that Builds Zero-Carbon Gas-Fired Electric Plants). The Rice deal to buy NET Power will finally consummate this Thursday.
Read More “Dan Rice’s Net-Zero CO2 Co. Merger Due to Close on June 8”
ESG | Industrywide Issues | M&A | McKean County | Pennsylvania

Canadian Methane Offsets Co. Buys Northwest Pa. Well Plugging Co.
May 17, 2023May 17, 2023

Zefiro Methane Corp., a private “methane offsets originator” (we will explain) headquartered in Vancouver, British Columbia, has acquired a majority ownership stake in Plants & Goodwin (P&G), an OFS and oil well-plugging company located in Bradford (McKean County), Pennsylvania, for an undisclosed sum. It appears P&G will continue as its own standalone company, but its services of plugging abandoned and orphan wells will be joined with the services Zefiro offers in methane emission offsets–also known as carbon offset credits.
Read More “Canadian Methane Offsets Co. Buys Northwest Pa. Well Plugging Co.”
Energy Companies | Industrywide Issues | M&A | Pennsylvania | Potter County | Seneca Resources | Southwestern Energy | Tioga County (PA)

Seneca Resources Buys Southwestern Assets in Tioga County, PA
May 5, 2023May 5, 2023

National Fuel Gas Company (NFG), headquartered in Buffalo, NY, is the parent company for Marcellus/Utica driller Seneca Resources and the parent of midstream company Empire Pipeline. Earlier this week, NFG issued its latest quarterly update. NFG operates on a weird fiscal year system. This latest update is for the company’s second quarter, which would be everybody else’s first quarter update. The big news from the update is that Seneca Resources has agreed to acquire upstream assets in northwestern Pennsylvania from Southwestern Energy for $127 million.
Read More “Seneca Resources Buys Southwestern Assets in Tioga County, PA”
Energy Companies | EQT Corp | Industrywide Issues | M&A | Tug Hill Operating

EQT Seeks to Extend Note Redemption Extra 6 Mos. for Tug Hill Deal
May 4, 2023May 4, 2023

Last September, EQT Corporation announced it is 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). The deal adds 90,000 acres and 800 MMcf/d (million cubic feet per day) of production to EQT’s existing, massive, portfolio. But 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 recently 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). Now EQT needs to extend the timeline for notes it issued as part of the purchase.
Read More “EQT Seeks to Extend Note Redemption Extra 6 Mos. for Tug Hill Deal”
ConocoPhillips | Energy Companies | Exxon Mobil | Industrywide Issues | M&A

Bloomberg: Shale in Midlife Crisis, Big Oil Rides in to Save Day
April 27, 2023April 27, 2023

Credit: MY21 Photography. FLFBS.

We spotted an article by a Bloomberg opinion columnist that says American shale energy is in a “midlife crisis.” The article pictures Big Oil (companies like Exxon and ConocoPhillips) as riding in on Harley Davidson motorcycles to save shale. It’s something of a twisted and mixed metaphor (old guys with money in a midlife crisis ride Harleys), but humorous nonetheless. The larger point of the article, which IS worth pondering, is whether or not the era of independent shale drillers is drawing to a close. The author offers evidence and analysis that such is the case–or should be.
Read More “Bloomberg: Shale in Midlife Crisis, Big Oil Rides in to Save Day”
BKV/Banpu | Commodity Price | Energy Companies | Industrywide Issues | M&A | Meetings

BKV IPO On Hold, M&A Deals Falling Apart Due to Low Gas Prices
March 9, 2023March 9, 2023

CERAWeek, happening this week in Houston, Texas, is one of (perhaps THE) premier oil and gas conferences held each year. Everybody who’s anybody attends, except for yours truly. Sometimes it’s the things you (over)hear around the proverbial water cooler at such events that are more interesting than what is said from the stage or in media interviews. For example, Banpu’s BKV, with major assets in the northeast Pennsylvania Marcellus, filed plans with the Securities and Exchange Commission late last year to launch an initial public offering (see Northeast PA Marcellus Driller BKV/Banpu Files with SEC for IPO). According to whispers Reuters heard at CERAWeek, the current low commodity price of natgas has put BKV’s IPO plans on hold.
Read More “BKV IPO On Hold, M&A Deals Falling Apart Due to Low Gas Prices”
Energy Companies | Industrywide Issues | M&A | Range Resources Corp

Range Resources Addresses Pioneer M&A Rumor on 4Q Conference Call
March 1, 2023March 1, 2023

Range Resources Corporation, the very first driller to sink a Marcellus shale well back in 2004 in western Pennsylvania, issued its fourth quarter and full-year 2022 update yesterday. During 2022, Range generated record cash flow from operations of $1.9 billion and produced an average of 2.1 billion cubic feet equivalent per day (Bcf/d) of natural gas. The company spent $492 million on drilling in 2022. Of keen interest to us was a response by Range’s CEO about the rumors that Pioneer Natural Resources is interested in buying or merging with Range.
Read More “Range Resources Addresses Pioneer M&A Rumor on 4Q Conference Call”