M&A

Alta Resources | Energy Companies | EQT Corp | Industrywide Issues | M&A

EQT Shareholders Vote July 16 on $2.9B Deal to Buy Alta Resources
June 14, 2021June 14, 2021

Toby Rice, CEO of EQT

A little over a month ago MDN brought you the big news that the voraciously hungry EQT is gobbling up the Marcellus assets of yet another driller, Alta Resources, for $2.9 billion (see EQT Buys Alta Res. PA Assets for $2.9B in “Transformative” Deal). We later told you the company is floating $1 billion in new notes to help fund the deal (see Why Did EQT Buy Alta for $2.9B? Floats $1B in IOUs to Finance Deal). Where will the other $1.925 billion come from? By floating 105,306,346 new shares of EQT common stock. Shareholders will meet on July 16 to vote on the deal to buy Alta’s Marcellus assets, including the plan to float new stock.
Read More “EQT Shareholders Vote July 16 on $2.9B Deal to Buy Alta Resources”
Energy Companies | Industrywide Issues | M&A | Southwestern Energy

Southwestern No Longer M-U Pure-Play, Buys Haynesville Driller $2.7B
June 3, 2021June 3, 2021

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The trend is disturbing–at least for us. Increasingly companies that were formerly focused 100% on the Marcellus/Utica region are now expanding beyond–often in the Haynesville Shale of Louisiana. Let’s face it: Louisiana (and eastern Texas) where the gassy Haynesville is found has several advantages over the M-U, including closeness to Gulf Coast petrochemical plants, better (lower) taxes, and far more favorable (less burdensome) regulations than M-U states. Southwestern Energy (SWN), which recently bought out and merged in Montage Resources (another M-U driller) is now buying out and merging in Indigo Natural Resources–in the Haynesville Shale.
Read More “Southwestern No Longer M-U Pure-Play, Buys Haynesville Driller $2.7B”
Crestwood Midstream | Energy Services | Industrywide Issues | Kinder Morgan | M&A | Pipelines

Crestwood/Con Ed Sell Stagecoach Gas to Kinder Morgan for $1.2B
June 2, 2021June 2, 2021

Crestwood Equity Partners and Consolidated Edison, Inc. (Con Edison) yesterday announced they are selling their 50/50 joint venture in Stagecoach Gas Services to pipeline giant Kinder Morgan for $1.225 billion in cash. Stagecoach consists of four natural gas storage facilities and 185 miles of natural gas pipelines located in the Marcellus/Utica with multiple interconnects to major interstate natural gas pipelines, including Tennessee Gas Pipeline, a Kinder Morgan subsidiary.
Read More “Crestwood/Con Ed Sell Stagecoach Gas to Kinder Morgan for $1.2B”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | M&A

What Does Cimarex Purchase of Cabot Mean for the Marcellus?
June 2, 2021June 2, 2021

Last week we shared the bombshell news that Cabot Oil & Gas, one of the premier drillers in the Marcellus, is merging with (being acquired by) Permian driller Cimarex Energy (see HUGE NEWS: Permian Driller Cimarex Buying Out Cabot Oil & Gas). We followed that story up with reaction by the markets, which (at the time) was one of bafflement (see Markets “Baffled” by “Unexpected” Cabot Merger with Cimarex). Now that analysts have had a week or so to digest the news, some are speculating on what this news may mean for the larger Marcellus region. The broader implications.
Read More “What Does Cimarex Purchase of Cabot Mean for the Marcellus?”
Diversified Energy | Energy Companies | Industrywide Issues | M&A

Diversified Expands Outside M-U Again, Buys Blackbeard in Barnett
May 27, 2021June 3, 2021

Diversified Gas & Oil recently changed its name to Diversified Energy. Along with the name change came a strategy change. Until last month Diversified had concentrated on building the company by buying older (mature) oil and gas wells in the Appalachian Basin. In April the company announced it is branching out beyond Appalachia for the first time with a purchase of ~780 net operated wells and leases in the Cotton Valley/Haynesville region of Lousiana for $135 million (see Diversified Expands Beyond Appalachia First Time, Buys La. Assets). Barely a month later and they’ve done it again, this time buying assets in the Barnett Shale.
Read More “Diversified Expands Outside M-U Again, Buys Blackbeard in Barnett”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | M&A

Markets “Baffled” by “Unexpected” Cabot Merger with Cimarex
May 25, 2021May 25, 2021

Yesterday we shared the devastating (for us) news that Cabot Oil & Gas, one of the premier drillers in the Marcellus, is merging with (being acquired by) Permian driller Cimarex (see HUGE NEWS: Permian Driller Cimarex Buying Out Cabot Oil & Gas). Now that the bombshell news has had time to sink in, it appears we were not the only ones baffled by this merger. Investors were baffled too. Cimarex shares fell 7.2% to $66.07, while Cabot’s stock fell 6.9% to $16.59. Below we have reactions to the surprise announcement.
Read More “Markets “Baffled” by “Unexpected” Cabot Merger with Cimarex”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Susquehanna County

HUGE NEWS: Permian Driller Cimarex Buying Out Cabot Oil & Gas
May 24, 2021May 24, 2021

We’re devastated. We know you’re not supposed to have favorites, but we do. Our favorite Marcellus/Utica driller for years has been Cabot Oil & Gas. We know some great folks who work for Cabot. It has been a peerless operator in the northeast Marcellus–making money when nobody else could. Cabot treats its landowners well, cares about the environment, gives big money to local nonprofit causes, and in general is the best kind of corporate citizen anybody could wish for. We suppose it was only a matter of time before Cabot became a target in this merger mania we’re currently going through. This morning Cabot announced a “merger of equals” with Cimarex, a big driller in the Permian and Midcontinent. The truth is Cimarex is buying out Cabot.
Read More “HUGE NEWS: Permian Driller Cimarex Buying Out Cabot Oil & Gas”
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

Which M-U Drillers are Likely Next Targets for Acquisition?
May 21, 2021May 21, 2021

M&A, or mergers & acquisitions, is on everyone’s mind in the oil and gas industry. Particularly in the Marcellus/Utica region. EQT, under the leadership of Toby Rice, already the largest natural gas producer in the country, has been on the prowl. In the past eight months EQT has picked up all of Chevron’s M-U assets (see EQT Buys Chevron M-U Assets for $735M, Floats $350M in New Stock) and most recently, EQT picked up all of Alta Resources’ M-U assets (see EQT Buys Alta Res. PA Assets for $2.9B in “Transformative” Deal). EQT is still in the hunt (see Even After Chevron, EQT Still in Hunt to Buy CNX, Other Producers). Who’s next on the list to get acquired? We have some possibilities.
Read More “Which M-U Drillers are Likely Next Targets for Acquisition?”
Alta Resources | Energy Companies | EQT Corp | Industrywide Issues | M&A

EQT Buys Alta Res. PA Assets for $2.9B in “Transformative” Deal
May 10, 2021May 10, 2021

Of course, there was big news to report on Friday, the day MDN took off as a brief vacation day (the graduation ceremony was great!). The big news from last Thursday afternoon and Friday was (a) EQT’s first quarter update, and (b) EQT announced it has cut a deal to buy the northeastern Pennsylvania Marcellus assets of Alta Resources for a whopping $2.9 billion–pretty close to the asking price (see Alta Resources Shopping 547K Marcellus Acres, Asking $3B). EQT’s 1Q21 update kind of got swallowed up in all the chatter about the Alta deal. We break it all down below.
Read More “EQT Buys Alta Res. PA Assets for $2.9B in “Transformative” Deal”
Energy Services | Industrywide Issues | M&A | Williams

Williams Buys Energy Trader Sequent for $50M; M-U Volume/Profits Up
May 5, 2021May 5, 2021

Pipeline giant Williams released its 1Q21 update on Monday, but it wasn’t until a conference call with analysts yesterday that CEO Alan Armstrong shared the big news that Williams has purchased Southern Company’s natural gas energy trading unit Sequent Energy Management for $50 million. The deal vastly expands Williams’ capability to market natural gas (i.e. find new customers).
Read More “Williams Buys Energy Trader Sequent for $50M; M-U Volume/Profits Up”
American Energy Partners Inc. | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Statewide PA | Statewide WV | West Virginia

American Energy Partners Buys 467 PA/WV Conv. Wells for $10.8M
April 20, 2021April 20, 2021

American Energy Partners, Inc. (AEPT), based in Allentown, PA, is a small but diversified company. They have their fingers in a number of different oil and gas pies, including subsidies in drilling, remediation, water, valuation services, and education. AEPT announced a new deal today to purchase three conventional oil and gas operators with assets in Western Pennsylvania and West Virginia for $10.8 million. The three operators (unnamed) come with a collective 467 conventional wells and 1,250 MMcfe/d of natural gas production.
Read More “American Energy Partners Buys 467 PA/WV Conv. Wells for $10.8M”
Energy Companies | Hydrogen | Industrywide Issues | M&A | Rice Energy

Dan Rice Bets $1 Billion that Landfill Gas is the Next Big Thing
April 9, 2021April 9, 2021

Dan Rice IV, former CEO of Rice Energy and a board member of EQT Corp. (where his younger brother is now the CEO), is making a big bet–we’d call it a gamble–of $1 billion on so-called renewable natural gas, mainly from landfills. Rice’s “blank-check” acquisition firm, called Rice Acquisition Corp., is acquiring and merging together Archaea Energy ($347 million) and Aria Energy ($680 million) into a single company focused on providing renewable natural gas (RNG) and “green” hydrogen.
Read More “Dan Rice Bets $1 Billion that Landfill Gas is the Next Big Thing”
Alta Resources | Chesapeake Energy | Energy Companies | EQT Corp | Industrywide Issues | M&A | Pennsylvania | Statewide PA

EQT, Chesapeake Interested in Buying M-U Driller Alta Resources
March 26, 2021March 26, 2021

We don’t write much about Alta Resources, a shale drilling company co-founded by the inventor of shale fracking, George Mitchell. But that doesn’t mean Alta doesn’t drill in the Marcellus. In 2020 Alta was in the Top 10 PA drillers list (see Top 10 Shale Drillers in PA for 2020, by Number of Wells Drilled). Alta owns some 547,000 gross (239,000 net) acres producing natural gas from approximately 900 wells in the Marcellus Shale across Bradford, Wyoming, Sullivan, Lycoming, Clinton, and Centre counties in northeast Pennsylvania. In February we told you that Alta is shopping all of their considerable Marcellus assets, looking for a buyer (see Alta Resources Shopping 547K Marcellus Acres, Asking $3B). Looks like EQT and Chesapeake Energy have both been creepin’ ’round Alta’s back stairs…
Read More “EQT, Chesapeake Interested in Buying M-U Driller Alta Resources”
Butler County | EdgeMarc Energy | Energy Companies | Industrywide Issues | LOLA Energy | M&A | Pennsylvania

LOLA Energy’s Purchase of EdgeMarc Assets – The Backstory
March 25, 2021March 25, 2021

Yesterday we brought you the news that LOLA Energy continues to transform itself with the purchase of what was EdgeMarc Energy’s shale assets in Butler County, PA (see LOLA Energy Buys Former EdgeMarc Shale Assets in Butler County, PA). LOLA picked up 22,000 net acres of Marcellus/Utica leases, 48 producing shale wells, and 18 DUCs. Ace reporter Paul Gough from the Pittsburgh Business Times spoke with LOLA CEO Jim Crockard and got the backstory behind the deal. It seems Crockard had his eye on that part of the state “for a long time.” He even considered an offer to work for EdgeMarc years ago. Good thing he didn’t take the job.
Read More “LOLA Energy’s Purchase of EdgeMarc Assets – The Backstory”
Butler County | EdgeMarc Energy | Energy Companies | Industrywide Issues | LOLA Energy | M&A | Pennsylvania

LOLA Energy Buys Former EdgeMarc Shale Assets in Butler County, PA
March 24, 2021March 24, 2021

LOLA Energy (LOLA stands for Locally Owned, Locally Accountable) continues to evolve. Or perhaps transform is a better word. LOLA announced yesterday it has closed on the acquisition of what was EdgeMarc Energy’s assets in Butler County, Pennsylvania. Those assets include 22,000 net acres of Marcellus/Utica leases, 48 producing shale wells, and 18 DUCs (drilled but uncompleted shale wells). It’s time to party, cue the Barry Manilow music!
Read More “LOLA Energy Buys Former EdgeMarc Shale Assets in Butler County, PA”
Energy Companies | EQT Corp | Industrywide Issues | M&A | Northern Oil & Gas

Northern Says EQT Buying Small Portion of Reliance JV Deal
March 10, 2021March 10, 2021

In early February, Northern Oil and Gas, Inc., a company that invests in non-operated oil and gas assets (they let others do the drilling), announced it had purchased 64,000 net acres producing ~120 MMcfe/d (million cubic feet equivalent per day) in the Marcellus/Utica from Reliance Industries Limited (see Northern O&G Buys 64K Acres of RIL’s Non-Op M-U Assets for $250M). EQT was partners with RIL in that acreage and has exercised a right to buy some of the acreage rather than let it go to Northern. EQT’s action will shave about 2,200 acres off the deal with Northern.
Read More “Northern Says EQT Buying Small Portion of Reliance JV Deal”