M&A

American Energy Partners Inc. | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Statewide PA

American Energy Partners Buys 230+ SWPA Conventional Gas Wells
October 22, 2020October 22, 2020

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 yesterday to buy a producer with 230+ conventional natural gas wells in western Pennsylvania.
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Chevron | Energy Companies | EQT Corp | Industrywide Issues | M&A

What EQT Purchase of Chevron’s M-U Assets Means, IF it Happens
October 12, 2020October 12, 2020

Nearly a month ago sources talking to Reuters let it slip that EQT has offered $750 million for Chevron’s $6.5 billion worth of Marcellus/Utica assets (see Sources: EQT Offering $750M for Chevron’s Marcellus/Utica Assets). Since that time we’ve not heard a peep about negotiations and whether or not Chevron is seriously considering the offer. Let’s do a little speculating. What if Chevron does accept that offer? What does it mean for investors and others with a stake in the outcome?
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Industrywide Issues | M&A

Caterpillar Purchasing Weir Oil & Gas for $405 Million
October 8, 2020October 8, 2020

Caterpillar is expanding in the oil and gas business. Weir Group is selling its entire oil and gas division to Caterpillar for $405 million. Weir, which manufactures equipment used in fracking, has two offices in Pennsylvania and three in West Virginia to service the Marcellus/Utica.
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Dominion Energy | Energy Services | Industrywide Issues | M&A | Pipelines

Dominion Expects to Close Most (Not All) Buffet Pipe Deal Nov. 1
October 1, 2020October 1, 2020

In July Dominion Energy announced it is throwing in the towel and canceling the 600-mile Atlantic Coast Pipeline (ACP) project that would have stretched from West Virginia to North Carolina. The company also announced it is selling its pipeline business to Warren Buffett (see Dominion Cancels Atlantic Coast Pipe, Sells Pipe Biz for $9.7B). Dominion announced yesterday it expects to close on most, but not all, of its pipeline deal with Buffet on Nov. 1.
Read More “Dominion Expects to Close Most (Not All) Buffet Pipe Deal Nov. 1”
Chevron | Energy Companies | EQT Corp | Industrywide Issues | M&A

Sources: EQT Offering $750M for Chevron’s Marcellus/Utica Assets
September 17, 2020September 17, 2020

Last December Chevron announced it was writing down over $10 billion worth of its U.S. onshore shale assets, with $6.5 billion of that number coming from its Marcellus/Utica assets. Also in December, the company posted for sale ALL of their M-U assets (see Chevron Confirms M-U Assets for Sale, Asks Vendors to Avoid Media). In February Chevron hired investment bank Barclays to help shop their M-U assets with the bids due in August (see Bids for Chevron’s 550K M-U Acres & 500 Wells Due in Mid-August). “Sources” talking to Reuters have let it leak that EQT has offered $750 million for Chevron’s $6.5 billion worth of assets.
Read More “Sources: EQT Offering $750M for Chevron’s Marcellus/Utica Assets”
Allegany County | Industrywide Issues | M&A | New York | Pipelines | Supply Chain

Marcellus Pipe Builder Otis Eastern Sells Itself to Atlanta Co.
August 28, 2020August 28, 2020

Pipeline builder Otis Eastern, headquartered in Wellsville, NY (western part of Upstate) has built a lot of pipelines throughout the northeast since its founding in 1936. In recent years the company has worked on a number of Marcellus/Utica projects, including Energy Transfer’s Mariner East 2 project and National Fuel Gas Company’s Marcellus Gas to Market project. Otis is selling itself for an undisclosed amount to a much larger company, Artera Services, LLC, based in Atlanta, Georgia.
Read More “Marcellus Pipe Builder Otis Eastern Sells Itself to Atlanta Co.”
Energy Companies | Industrywide Issues | M&A | Montage Resources | Southwestern Energy

Southwestern Hits “Grand Slam” with Purchase of Montage Resources
August 18, 2020August 18, 2020

Last week, in one of the biggest news stories (for us) so far this year, Southwestern Energy announced it is buying out and merging in Montage Resources (see Stop Press! Southwestern Energy Buying Montage Resources for $857M). The combined companies will create the third-largest (by acreage) Marcellus/Utica driller. Yet investors have pretty much yawned. The company’s stock went down after the announcement. According to one analyst, Southwestern’s purchase is a “grand slam” home run and investors should sit up and take notice.
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Energy Companies | Industrywide Issues | M&A | Montage Resources | Southwestern Energy

Stop Press! Southwestern Energy Buying Montage Resources for $857M
August 12, 2020August 13, 2020

Holy smokes! We didn’t see this one coming. Just yesterday MDN brought you the second-quarter update from Montage Resources (see Montage Resources: 5 New OH Utica Wells, Profits Tumble in 2Q). Little did we know the company was in an advanced stage of negotiations to sell itself to Southwestern Energy. Perhaps “sell” isn’t quite the right word. The two companies are merging, with Southwestern taking over Montage, in an all-stock deal worth roughly ~~$204.3~~ $857 million (NOTE: We amended this article after Raymond James calculated the deal to be worth a much higher amount, see our update below). The combination will create the third-largest (by acres leased) Marcellus/Utica driller with a combined 786,187 net acres.
Read More “Stop Press! Southwestern Energy Buying Montage Resources for $857M”
Energy Companies | Industrywide Issues | M&A | Range Resources Corp

Range Sells Haynesville Assets to Japan for “Pennies on the Dollar”
August 4, 2020August 4, 2020

Range Resources has cut a deal to sell its Haynesville Shale assets (220,000 acres plus the wells they’ve drilled since buying those assets) to Castleton Resources, a privately owned company majority-owned by Tokyo Gas, for $245 million (plus an extra $90 million, maybe, contingent on the price of gas). Range bought those assets in 2016 for $4.4 billion (see Range Resources Buys Louisiana Driller in Deal Worth $4.4B). Yeah, Range just took a bath, selling their Haynesville assets for pennies on the dollar…
Read More “Range Sells Haynesville Assets to Japan for “Pennies on the Dollar””
CNX Resources | Energy Companies | Industrywide Issues | M&A | Pipelines

A Different View re CNX’s Move to Buy Rest of Pipeline Subsidiary
July 30, 2020July 30, 2020

Yesterday MDN brought you the news that CNX Resources is buying out the balance of what they don’t own in their pipeline subsidiary CNX Midstream (see CNX’s Competitive Advantage: Owning Its Own Pipelines). Our take on the news is that by owning their own pipeline network CNX has a distinct competitive advantage. We heard in pretty short order a different view from a couple of MDN readers…
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CNX Resources | Energy Companies | Energy Services | Industrywide Issues | M&A | Pipelines

CNX Resources Buying/Merging in Rest of CNX Midstream for $357M
July 28, 2020July 28, 2020

CNX Midstream began life as a joint venture between CONSOL Energy (the forerunner to CNX Resources) and Noble Energy, and was called CONE Midstream (“CO” from CONSOL and “NE” from Noble Energy). Noble decided to completely exit the Marcellus/Utica and ended up selling their half of CONE to CNX for $305 million in early 2018 (see CNX to Buy Noble’s 50% Share of CONE Midstream for $305M). The company was then renamed CNX Midstream (see CONE Midstream Gets a New Name: CNX Midstream Partners). Although CNX owns a majority of CNX Midstream, there has (until now) remained a certain portion owned by outside investors. That will soon come to an end as CNX is buying out the remaining portions it doesn’t own for $357 million. CNX Midstream will now be owned 100% by CNX Resources.
Read More “CNX Resources Buying/Merging in Rest of CNX Midstream for $357M”
Chevron | Energy Companies | Industrywide Issues | M&A | Noble Energy

Chevron Buying Noble Energy in Deal Worth $13 Billion
July 21, 2020July 21, 2020

Last year Chevron tried to buy Permian driller Anadarko Petroleum for $50 billion. Occidental Petroleum swooped in at the last minute and lured Anadarko away in a $57 billion deal. Chevron left the marriage altar with a cool $1 billion in breakup fees (see Chevron Leaves the Altar with $1B, Waves Goodbye to Anadarko). Chevron is now glad they got jilted because they’ve just brokered a new deal–to buy Noble Energy for $5 billion in stock and assumption of $8 billion in debt for a grand total of $13 billion. It’s a far lower amount and much more bang for the buck.
Read More “Chevron Buying Noble Energy in Deal Worth $13 Billion”
Energy Companies | EV Energy Partners | Industrywide Issues | M&A | Ohio | Statewide OH

Former EV Energy Partners Sells Appalachian Assets for $20.5M
July 9, 2020July 9, 2020

In June 2018, EV Energy Partners (EVEP), the drilling subsidiary of EnerVest, emerged from bankruptcy court a mere two months after entering with $355 million of debt erased and sporting a new name: Harvest Oil & Gas Corp. (see EV Energy Partners Emerges from Bankruptcy with New Name). Harvest’s drilling and assets are focused in Ohio, Pennsylvania, and West Virginia where they own/operate 9,787 conventional wells on 916,832 gross leased acres. The company announced yesterday it’s selling off its Appalachian assets for $20.5 million (and no, that’s not a typo).
Read More “Former EV Energy Partners Sells Appalachian Assets for $20.5M”
Industrywide Issues | M&A | Research

Marcellus/Utica Dominates Top 5 Oil & Gas M&A Deals of Q2
July 2, 2020July 2, 2020

Enverus (formerly called Drillinginfo) has just released a summary of its Q2 2020 U.S. upstream M&A report. The update shows upstream (drilling) deals staged a small recovery to $2.6 billion from only $770 million during Q1. However, Q2 still ranks as the third-lowest quarterly value since 2009. Of particular interest for us is that of the top five M&A deals done in Q2, three of them happened in the Marcellus/Utica.
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CNG/LNG | Industrywide Issues | M&A | Trucking

Thigpen & Blue Roads Merging to Form Sapphire Gas Virtual Pipe Co
June 30, 2020June 30, 2020

This is one of those “follow the bouncing ball” stories with lots of names. Bear with us because there is a connection to the Marcellus/Utica region. BP Energy Partners, a private equity firm based in Dallas, TX, invests in (and ultimately controls) a number of companies. Two of their portfolio companies are Thigpen Solutions and Blue Roads Solutions, both virtual pipeline companies delivering CNG and LNG to different types of customers. BP is merging the two into one company and renaming it Sapphire Gas Solutions.
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Energy Services | Equitrans/EQT Midstream | Industrywide Issues | M&A

Equitrans Consolidates Under Corp Umbrella, Dissolves LP
June 17, 2020June 17, 2020

Equitrans, formerly EQT Midstream, separated from EQT in November 2018. Equitrans, via its EQM Midstream affiliate, gathers, processes, and flows most of EQT’s natural gas production, getting it to market. In February Equitrans announced it will absorb EQM, a limited partnership, into the fold (see Equitrans Merging in EQM Midstream, Lowers Fees for EQT $535M). The two entities have always operated as a single entity with the same management, but on paper they have different sets of investors and different corporate structures. As of today, the two will become one in the form of a “C” corporation.
Read More “Equitrans Consolidates Under Corp Umbrella, Dissolves LP”