M&A

Crestwood Midstream | Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Pipelines

Energy Transfer to Acquire Crestwood Equity in $7.1B Mega-Deal
August 17, 2023August 17, 2023

Some really big news hit yesterday. U.S. pipeline giant Energy Transfer (ET), builder of the Rover and Mariner East pipeline systems here in the Marcellus/Utica, is buying out and merging in Crestwood Equity Partners, a major pipeline company with operations in the Permian, Bakken, and Powder River Basin. ET will acquire Crestwood in an all-equity (stock-only) transaction valued at approximately $7.1 billion, including the assumption of $3.3 billion of debt. Once upon a time, Crestwood owned major assets in the Marcellus/Utica region, but as of last year, the company exited the M-U. The addition of Crestwood adds 1.4 Bcf/d of gas gathering capacity and 340,000 b/d of oil gathering capacity to ET’s existing portfolio.
Read More “Energy Transfer to Acquire Crestwood Equity in $7.1B Mega-Deal”
Industrywide Issues | Lease & Royalty Payments | M&A

PHX Minerals Says WhiteHawk Marriage Proposal “Grossly Inadequate”
August 16, 2023August 16, 2023

Last week MDN told you that 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, had 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 (see WhiteHawk Energy Proposes Forced Merger with PHX Minerals, Inc.). WhiteHawk’s original overtures went unanswered, so it issued a very public proclamation of its intent to get PHX down the aisle, willingly or not. PHX answered yesterday–with a very public “get lost” message.
Read More “PHX Minerals Says WhiteHawk Marriage Proposal “Grossly Inadequate””
Clay County | Cunningham Energy | Energy Companies | Industrywide Issues | M&A | West Virginia

Houston Natural Resources Corp. Buys WV’s Cunningham Energy LLC
August 10, 2023August 10, 2023

In 2015 Cunningham Energy, a small oil driller based in West Virginia, struck oil in the Big Injun sandstone formation in Clay County, WV (see Cunningham Strikes Oil in West Virginia’s Big Injun Territory). In 2017 the company reported producing 20,000 barrels of oil from two new shallow horizontal oil wells in Clay County, targeting the Big Injun (see Cunningham Energy Strikes More Oil in WV). Cunningham drilled two more wells on the same pad, the Lions Paw pad in 2019 (see Cunningham’s WV Lions Paw Pad Roars, Produces 100K Bbl of Oil). Since then, we haven’t heard or read any more news about Cunningham. The company is back in the news in a big way: Houston Natural Resources Corp (HNRC) has completed a 100% interest in Cunningham. That is, Cunningham was bought out by HNRC.
Read More “Houston Natural Resources Corp. Buys WV’s Cunningham Energy LLC”
Industrywide Issues | Lease & Royalty Payments | M&A

WhiteHawk Energy Proposes Forced Merger with PHX Minerals, Inc.
August 10, 2023August 10, 2023

At the end of May, 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, sent a letter to the board and management of PHX Minerals, based in Fort Worth, Texas, owner of 75,000 leased mineral acres principally located in the SCOOP and Haynesville plays. The letter proposes marriage–a combination of the two companies. WhiteHawk received no response and tried again about three weeks later. Still nothing. So WhiteHawk has gone public to catch the attention of PHX shareholders, hoping to convince them to pressure PHX’s board–the M&A equivalent of a shotgun wedding.
Read More “WhiteHawk Energy Proposes Forced Merger with PHX Minerals, Inc.”
Energy Companies | EQT Corp | Industrywide Issues | M&A | Tug Hill Operating

EQT Sets World Drilling Record; Tug Hill Deal to Close Next 30 Days
July 27, 2023July 27, 2023

EQT Corporation, the largest natural gas producer in the United States, issued its second quarter 2023 update yesterday. There was loads of news. The company reported a new world record of drilling 18,200 feet in 48 hours for a single well in Green County, PA. Also of note, CEO Toby Rice and newly appointed CFO Jeremy Knop said a long-delayed purchase of Tug Hill Operating (major new acreage for EQT in West Virginia) would be concluded within the next 30 days. Very exciting news! But it wasn’t all peaches and cream. Reading through the reports, you will discover that EQT produced 471 Bcfe in 2Q23 (an average of 5.18 Bcfe/d) versus producing 502 Bcfe in 2Q22 (an average of 5.52 Bcfe/d)–down 6% year over year. The company lost $67 million in 2Q23 versus making a profit of $891 million in 2Q22, a swing of $958 million (nearly one billion dollars). Why?
Read More “EQT Sets World Drilling Record; Tug Hill Deal to Close Next 30 Days”
Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | Pipelines | TC Energy/TransCanada

TC Energy Sells 40% Interest in Columbia Pipeline to Investor GIP
July 25, 2023July 25, 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. Yesterday TC Energy announced it is selling a 40% stake in Columbia for US$3.9 billion (C$5.2 billion) to investment firm Global Infrastructure Partners (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.
Read More “TC Energy Sells 40% Interest in Columbia Pipeline to Investor GIP”
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”