M&A

Alternative Energy | Industrywide Issues | M&A

Dan Rice’s Renewable Energy SPAC Moving to Houston, TX
February 15, 2022February 15, 2022

In December 2020, Dan Rice IV, former CEO of Rice Energy and a member of the EQT board of directors, launched a “blank check” acquisition firm, called Rice Acquisition Corp., to invest in various energy ventures. Dan found that something-to-invest-in just a few months later in the form of acquiring and merging together Archaea Energy and Aria Energy into a single company focused on providing renewable natural gas (RNG) and “green” hydrogen (see Dan Rice Bets $1 Billion that Landfill Gas is the Next Big Thing). With the merger done, the new company (using the Archaea Energy name) is moving from Pittsburgh to Houston, Texas. Because of the move, the company needs a new chief financial officer and a chief legal officer.
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Dominion Energy | Energy Services | Industrywide Issues | LDCs | M&A | Pipelines | Statewide WV | West Virginia

Dominion Selling WV Utility – Deal Incl. 2K Miles Gathering Pipes
February 14, 2022February 14, 2022

Dominion Energy is divesting itself from a natural gas utility company it owns in West Virginia–Hope Gas, Inc. Dominion is selling Hope to investment firm Ullico Inc. for $690 million. Ullico plans to combine Hope Gas with another company it owns, Hearthstone Utilities, Inc. The reason this deal caught our attention is that Hope Gas owns and operates “2,000 miles of gathering pipelines” in the Mountain State.
Read More “Dominion Selling WV Utility – Deal Incl. 2K Miles Gathering Pipes”
Diversified Energy | Energy Companies | Energy Services | Industrywide Issues | M&A | NextLVL Energy

Diversified Energy Buys Well-Plugging Co. NextLVL Energy
February 10, 2022February 10, 2022

Another genius move by Diversified Energy (formerly Diversified Gas & Oil). Diversified owns close to 8 million acres of leases with some 67,000 (mostly) conventional oil and gas wells. Most of Diversified’s assets are located in the Appalachian region. With that many old oil and gas wells, the company ends up plugging a number of them each year. In the past, one of the vendors Diversified has used to plug old wells is Next LVL Energy, headquartered in the Pittsburgh area. Diversified announced yesterday it is buying Next LVL.
Read More “Diversified Energy Buys Well-Plugging Co. NextLVL Energy”
Butler County | Energy Services | Industrywide Issues | M&A | Pennsylvania | Pipelines | Statewide PA | Stonehenge Energy | UGI Energy Services

Stonehenge Still Active in PA Following Midstream Sale to UGI
February 2, 2022February 2, 2022

A month ago MDN brought you the news that UGI Corporation, one of Pennsylvania’s largest natural gas utility companies, had cut a deal to buy the Stonehenge Appalachia Midstream natural gas gathering system in Butler County, PA, for $190 million (see UGI Buys Stonehenge’s Marcellus Midstream Assets for $190M). The Stonehenge system includes more than 47 miles of pipeline and associated compression assets, and has a gathering capacity of 130 million cubic feet per day (MMcf/d). The Stonehenge-to-UGI transaction closed yesterday. However, there is a “rest of the story”…
Read More “Stonehenge Still Active in PA Following Midstream Sale to UGI”
Chesapeake Energy | Chief Oil & Gas | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Statewide PA

Rees-Jones Says He ‘Saved the Best for Last’ with Chief O&G Sale
January 31, 2022January 31, 2022

Last week MDN brought you the news that Chesapeake Energy is buying Marcellus driller Chief Oil & Gas (plus associated non-operated assets from Tug Hill Operating) for $2 billion in cash and approximately 9.44 million common shares (see Chesapeake Buys Chief Oil & Gas & Non-op Tug Hill Assets for $2.6B). Chief is privately owned by Dallas, Texas billionaire Trevor Rees-Jones. With the deal signed, he’s talking about how he “saved the best for last” with the sale of Chief…
Read More “Rees-Jones Says He ‘Saved the Best for Last’ with Chief O&G Sale”
Bradford County | Chesapeake Energy | Chief Oil & Gas | Energy Companies | Industrywide Issues | Lycoming County | M&A | Pennsylvania | Statewide PA | Sullivan County | Susquehanna County | Tioga County (PA) | Tug Hill Operating | Wyoming County (PA)

Chesapeake Buys Chief Oil & Gas & Non-op Tug Hill Assets for $2.6B
January 26, 2022January 26, 2022

As predicted last week by Reuters, Chesapeake Energy announced yesterday it is buying Marcellus driller Chief Oil & Gas plus associated non-operated assets from Tug Hill Operating for $2 billion in cash and approximately 9.44 million common shares. The total purchase price (given the current CHK stock price of $67/share) is roughly $2.6 billion. The combination makes Chesapeake a powerhouse driller in the northeast Pennsylvania Marcellus with 653,000 acres of leases.
Read More “Chesapeake Buys Chief Oil & Gas & Non-op Tug Hill Assets for $2.6B”
Energy Services | Industrywide Issues | M&A | Nuverra Environmental | Select Energy Services

Nuverra Environmental Stockholders Agree to Select Energy Deal
January 26, 2022January 26, 2022

A song and a dance

Nuverra Environmental Solutions (formerly Heckmann) handles the transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. In December MDN brought you the news that Nuverra’s board voted to sell the company to competitor Select Energy Services (see Nuverra Environmental Selling Itself to Select Energy for $45M). Nuverra’s two largest stockholders have now endorsed the deal.
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Chesapeake Energy | Chief Oil & Gas | CNX Resources | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | HG Energy | Industrywide Issues | M&A | Range Resources Corp | Seneca Resources | Southwestern Energy | Tug Hill Operating

More M&A Coming to M-U in 2022? List of the Hunters & the Hunted
January 24, 2022January 24, 2022

In May 2021 S&P Global Market Intelligence ran an article on which Marcellus/Utica drillers are likely targets to be acquired, and which drillers are doing the targeting (see Which M-U Drillers are Likely Next Targets for Acquisition?). They were right, at least partially. Market Intelligence has just updated its list of M-U for “the hunters” and “the hunted.” Let’s have a look…
Read More “More M&A Coming to M-U in 2022? List of the Hunters & the Hunted”
Chesapeake Energy | Chief Oil & Gas | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Statewide PA

Stop Press! Chesapeake Energy in “Advanced Talks” to Buy Chief O&G
January 20, 2022January 20, 2022

According to super-secret sources talking to Reuters, Chesapeake Energy is in advanced talks to purchase Chief Oil & Gas for $2.4 billion. MDN brought you the news last October that Chief, a private company owned by Texas wildcatter Trevor Rees-Jones, was shopping itself for $3 billion (see Big News: Marcellus Driller Chief Oil & Gas Shopping Itself for $3B). It appears Chief may have found a buyer…
Read More “Stop Press! Chesapeake Energy in “Advanced Talks” to Buy Chief O&G”
Bradford County | Energy Companies | Industrywide Issues | Lycoming County | M&A | Pennsylvania | Repsol | Rockdale | Tioga County (PA)

Sale of Rockdale PA Assets to Repsol Closes – $220M Cash, $2M Debt
January 20, 2022January 20, 2022

In September MDN broke the news that Rockdale Marcellus had filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Western District of Pennsylvania (see NEPA Driller Rockdale Marcellus Files for Chapter 11 Bankruptcy). Earlier this month we told you that Repsol had won an auction to buy the assets for $220 million in cash, plus the assumption of $2 million in debt owed to trade creditors (see Repsol Buys Rockdale PA Assets Out of Bankruptcy for $222M). The deal was sealed yesterday. Repsol now owns Rockdale’s 66 producing wells on 42,897 net acres in three northeast PA counties producing ~110 Mmcf/d (million cubic feet per day).
Read More “Sale of Rockdale PA Assets to Repsol Closes – $220M Cash, $2M Debt”
Butler County | Energy Services | Industrywide Issues | M&A | Pennsylvania | Pipelines | Stonehenge Energy | UGI Energy Services

UGI Buys Stonehenge’s Marcellus Midstream Assets for $190M
January 5, 2022January 5, 2022

Last September UGI Corporation, one of Pennsylvania’s largest natural gas utility companies, completed a deal to buy Mountaineer Gas Company, one of West Virginia’s largest natural gas utility companies, for $540 million (see PA’s UGI Finally Completes Purchase of WV’s Mountaineer Gas Co.). UGI is on the hunt again. This time UGI is buying the Stonehenge Appalachia Midstream natural gas gathering system in Butler County, PA, for $190 million.
Read More “UGI Buys Stonehenge’s Marcellus Midstream Assets for $190M”
Energy Companies | EQT Corp | Industrywide Issues | Litigation | M&A | Rice Energy

EQT Sued for Securities Fraud in Rice Merger Some 3+ Yrs Later
January 5, 2022January 5, 2022

Two subsidiaries of Connecticut hedge fund Kensico Capital Management filed a lawsuit against EQT on December 28 alleging EQT committed securities fraud during its $6.7 billion acquisition and merger with Rice Energy in 2017. The suit was filed by Saxena White PA on behalf of Kensico Associates and Kensico Offshore Fund Master Ltd. Kensico is not the first large investor to sue EQT over the 2017 merger (see Judge Allows Class Action Against EQT/Rice 2017 Merger to Proceed). What does the Kensico lawsuit allege?
Read More “EQT Sued for Securities Fraud in Rice Merger Some 3+ Yrs Later”
American Energy Partners Inc. | Apex Energy | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Statewide PA

American Energy Partners Buys Apex Energy – Doubles Size & Revenue
January 4, 2022January 4, 2022

In September MDN told you about an announcement by American Energy Partners, Inc. (AEPT), based in Allentown, PA, to buy an unnamed “privately held energy services company” located in the Marcellus/Utica region (see American Energy Buys Second M-U Energy Services Co.). We now know who that mysterious unnamed company is: Apex Energy Service, LLC, headquartered in Canonsburg, PA.
Read More “American Energy Partners Buys Apex Energy – Doubles Size & Revenue”
Bradford County | Energy Companies | Industrywide Issues | Lycoming County | M&A | Pennsylvania | Repsol | Rockdale | Tioga County (PA)

Repsol Buys Rockdale PA Assets Out of Bankruptcy for $222M
January 3, 2022January 3, 2022

In September MDN broke the news that Rockdale Marcellus had filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Western District of Pennsylvania (see NEPA Driller Rockdale Marcellus Files for Chapter 11 Bankruptcy). On Dec. 16 an auction for Rockdale’s assets was held in Dallas, Texas. The highest bidder and winner was Repsol, buying substantially all of Rockdale’s assets for $220 million in cash, plus the assumption of $2 million in debt owed to trade creditors. Last Wednesday, Dec. 29, the U.S. Bankruptcy Court for the Western District of Pennsylvania approved the auction results and sale to Repsol.
Read More “Repsol Buys Rockdale PA Assets Out of Bankruptcy for $222M”
Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Judge: Energy Transfer Must Pay Williams $410M for Aborted Merger
January 3, 2022October 11, 2023

In 2015 Kelsy Warren and his Energy Transfer Equity (now just Energy Transfer) company pursued Williams, wanting to merge Williams into its own 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, and Williams sued to recoup a contractual breakup fee (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). Plenty of lawsuits ensued and finally, after more than six years, a judge ruled on Wednesday, Dec. 29, that ET must pay Williams a $410 million breakup fee provided for in the signed deal.
Read More “Judge: Energy Transfer Must Pay Williams $410M for Aborted Merger”
Energy Services | Industrywide Issues | M&A | Nuverra Environmental | Select Energy Services | Wastewater

Nuverra Environmental Selling Itself to Select Energy for $45M
December 14, 2021December 14, 2021

Nuverra Environmental Solutions (formerly Heckmann) is one of the largest companies in the United States that handles the transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. Because of the company’s major operations in the M-U, we keep track of its performance. Quarter after quarter after quarter, for well over a year, the company has lost money (see our Nuverra stories here). The company has finally decided to call it quits–as an independent company. The board has voted to sell the entire company to competitor Select Energy Services, Inc.
Read More “Nuverra Environmental Selling Itself to Select Energy for $45M”