M&A

Industrywide Issues | M&A | NGLs

NGL Energy Buys Northeast Propane Terminals from DCP Midstream
March 5, 2019March 5, 2019

We spotted an interesting announcement from NGL Energy Partners that the company has just closed on the purchase of seven natural gas liquids terminals in the Eastern United States, purchased from DCP Midstream for an undisclosed amount. What’s interesting is that some of the terminals, most of them located in the Marcellus/Utica region, are capable of exports. NGL Energy says they plan to export butane from one of them. Might that be M-U butane?
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Blue Ridge Mtn Res/Magnum Hunter | Eclipse Resources | Energy Companies | Industrywide Issues | M&A | Montage Resources

Blue Ridge Merges with Eclipse, Renamed to Montage Resources
March 1, 2019March 1, 2019

Yesterday was an eventful day for the former Blue Ridge Mountain Resources (nee Magnum Hunter Resources) and Eclipse Resources. We’ve been telling you since last August that the two companies are merging, with Blue Ridge Mountain essentially buying out Eclipse. The deal is done as of yesterday and there is A LOT of news to share–including a name change for the newly combined entity.
Read More “Blue Ridge Merges with Eclipse, Renamed to Montage Resources”
Blue Ridge Mtn Res/Magnum Hunter | Eclipse Resources | Energy Companies | Industrywide Issues | M&A

Blue Ridge Mountain Resources Shareholders Approve Eclipse Merger
February 11, 2019February 11, 2019

Last August Eclipse Resources announced it had sold itself to Blue Ridge Mountain Resources, the renamed remnant of Magnum Hunter Resources (see Eclipse Resources Merging with Former Magnum Hunter). Although Eclipse shareholders have approved the deal, not until today was there official approval by the shareholders of Blue Ridge Mountain Resources.
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Energy Services | Industrywide Issues | M&A | Pipelines | Tallgrass Energy

Blackstone Buys Controlling Interest in Tallgrass Energy
February 1, 2019February 3, 2019

Tallgrass Energy, builder and operator of the mighty Rockies Express (REX) pipeline which is a critical link that flows Marcellus/Utica gas to Midwestern markets, dropped a bombshell announcement yesterday. The company said that investment firm Blackstone is buying a “controlling” interest in the company. Which raises the question, will Blackstone indeed “control” the company?
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Dominion Energy | Energy Services | Industrywide Issues | M&A

Dominion/SCANA Merger Complete, Creating New M-U Market
January 3, 2019January 3, 2019

One year ago, in January 2018, Dominion Energy announced a deal to buy out and merge in South Carolina-based SCANA Corporation (see Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC). That merger, a year later, is now complete.
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Industrywide Issues | M&A | Wastewater

National Truck Stop Chain Buys M-U Wastewater Hauler
November 29, 2018November 29, 2018

You know those Pilot Flying J truck stops you sometimes visit to fill up as you’re traveling along our nation’s interstate highways? They’re not just big gas stations with convenience stores. Pilot Flying J has its own fleet of trucks. One of the divisions of Flying J targets the exploration and production (E&P) sector, i.e. drillers. Flying J has just announced it has bought out Equipment Transport, LLC, which hauls shale wastewater in the Marcellus, Utica and Permian Basin. Now your favorite truck stop is also your favorite wastewater hauler!
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Dominion Energy | Energy Services | Industrywide Issues | M&A

Dominion One Step Away from Closing on SCANA Merger
November 20, 2018November 20, 2018

In January Dominion Energy announced a deal to buy out and merge in South Carolina-based SCANA Corporation (see Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC). SCANA is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. In other words, the local electric and gas company for much of South Carolina. When Dominion’s Atlantic Coast Pipeline gets built and expanded into South Carolina, it will flow Marcellus/Utica gas to SCANA customers–an important and huge new market for our molecules. Hence our interest in this merger. Dominion announced yesterday that North Carolina has now signed off on the merger, and all that remains is one final regulatory approval. Dominion expects the merger to be done this year.
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Chesapeake Energy | Encino Energy | Energy Companies | Industrywide Issues | M&A | Ohio | Statewide OH

Encino Takes Over from Chesapeake in Ohio Utica; Big Plans
November 6, 2018November 6, 2018

The deal is done. On Monday, Encino Acquisition Partners completed its purchase of all of Chesapeake Energy’s Ohio Utica Shale assets for $2 billion, originally announced in July (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B). The deal includes all of Chesapeake’s 933,000 Ohio acres (with 320,000 net Utica acres) and 920 operated and non-operated Ohio Utica wells. With the deal now done, Encino is signaling good things are ahead. The company will keep its Utica regional headquarters in Louisville, OH–right where Chesapeake had it. Encino has and will continue to operate two active drilling rigs in the Utica this year, and add a third rig next year. Encino CEO Hardy Murchison recently spoke about the company’s Utica plans moving forward. It has folks in Ohio excited!
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Energy Services | Industrywide Issues | M&A | U.S. Well Services

Electric Fracker U.S. Well Services Begins Public Trading Friday
November 6, 2018November 6, 2018

If all goes as planned, this Friday U.S. Well Services (USWS), a company that specializes in fracking shale wells using gas-fired electric (as opposed to diesel) engines, will begin to trade its stock publicly. USWS has operations in the Marcellus/Utica, as well as other plays. Does the company sound familiar? Last week we told you that Pittsburgh-based driller Huntley & Huntley has contracted with USWS to frack the wells it is drilling (see Huntley & Huntley to Use Gas-Powered Electric Fracking in SWPA). Although USWS is “going public,” it’s not doing so via an IPO (initial public offering). Instead, “blank check” firm Matlin & Partners Acquisition Corp. is investing in (essentially buying out) USWS and taking it public. Top management at USWS will mostly stay in place. What’s that? What’s a “blank check” company?
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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | M&A | Pipelines

Dominion Sells Its 50% Share in Blue Racer Midstream for $1.5B
November 2, 2018November 2, 2018

In September, MDN told you that Dominion Energy had sold two “merchant” (non-regulated) natural gas-fired electric generating plants for $1.23 billion to Starwood Energy. And at the same time, Dominion announced it was shopping its 50% ownership stake in Blue Racer Midstream (see Dominion Sells 2 Gas-Fired Plants; Blue Racer Midstream For Sale). The sale of the power plants and potential sale of Blue Racer is aimed at helping Dominion pay down debt. The Blue Racer sale is no longer a potential, but a reality. Yesterday Dominion announced it is selling its share in Blue Racer to private equity investment firm First Reserve for $1.5 billion.
Read More “Dominion Sells Its 50% Share in Blue Racer Midstream for $1.5B”
Chesapeake Energy | Energy Companies | Industrywide Issues | M&A

Chesapeake Now Gone from Ohio Utica; Spends $4B in Eagle Ford
October 31, 2018October 31, 2018

Chesapeake Energy has just blown the minds (and confidence) of investors by plunking down $4 billion in cash and stock to buy WildHorse Resource Development Corp, a driller with big-time assets in the oily Eagle Ford Shale play in Texas. Investors didn’t like the news, punishing the stock by sending it 12% lower. Chesapeake Energy today is definitely not the same company it was even five years ago. Chessy was co-founded by the flamboyant Aubrey McClendon (God rest his soul). Aubrey, a landman by profession, founded the company as a natural gas driller–building it into the largest onshore natural gas-drilling company in the U.S. Today Chessy’s focus on gas is pretty much gone. While they still drill and maintain wells in both the Marcellus (in PA) and Haynesville (in Louisiana), most of the talk in Chessy’s 3Q18 update, which was issued yesterday, was oil, oil, oil.
Read More “Chesapeake Now Gone from Ohio Utica; Spends $4B in Eagle Ford”
Energy Companies | Industrywide Issues | M&A | Penn Virginia Corporation

Penn Virginia Finally Sells Itself, Denbury Buys for $1.7 Billion
October 29, 2018October 29, 2018

Penn Virginia is an oil and gas driller headquartered in Radnor, PA (near Philadelphia). Although it’s based in the Keystone State, Penn Virginia has only a small presence in the Marcellus Shale–21,700 net acres with no drilled wells (at last check). They concentrate on oil drilling the Texas Eagle Ford Shale play. In July we told you the company is once again trying to sell itself (see Penn Virginia Puts Itself Up for Sale – Again). In September they added a new board member to help the process along (see Penn Virginia Hires New Board Member to Help Sell the Company). Looks like it worked. Penn Virginia is selling itself to driller Denbury for $1.7 billion.
Read More “Penn Virginia Finally Sells Itself, Denbury Buys for $1.7 Billion”
Aqua America | Energy Services | Industrywide Issues | M&A | Pipelines | Wastewater

Aqua America Buys Peoples Gas for $4.3B – Old Pipes, Similar Nature
October 24, 2018October 24, 2018

Aqua America, the nation’s second largest water/wastewater utility company headquartered near Philadelphia, announced it is buying Peoples Gas, the nation’s fifth largest natural gas utility company headquartered in Pittsburgh, for $4.275 billion. This story interests us because the buyer, Aqua America, provides services to Marcellus/Utica shale drillers, and because Peoples Gas is a buyer of Marcellus/Utica gas. The combined company will both serve the shale industry as part of the supply chain, and buy the output of the shale industry as a customer. How cool is that? What made Aqua interested in Peoples? It has to do with old pipes in the ground. And similar natures.
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Sunoco Logistics

Energy Transfer Partners & Equity Merging into One Company Today
October 19, 2018October 19, 2018

Energy Transfer is, on paper, several different companies. Energy Transfer Equity (ETE) is the mother ship–the main holding company. Energy Transfer Partners (ETP) is and has been (for us) the main company, builder of Rover Pipeline, among other projects. Nearly two years ago Sunoco Logistics Partners, a subsidiary of ETE, was merged into ETP (see ETE Merging Sunoco Logistics and Energy Transfer Partners). Sunoco, aka ETP, is building the Mariner East 2 NGL pipeline project. Although technically ETP is the builder, we still call the company doing the work Sunoco, because that’s what everyone else does. Confusing! Hopefully that confusion ends today. ETE announced yesterday that following a vote of unitholders (i.e. shareholders), as of today ETE and ETP are merged, and the new name is simply, Energy Transfer.
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Energy Services | Industrywide Issues | M&A | Nine Energy Services

Nine Energy Buying Magnum Oil Tools for $493M
October 16, 2018October 16, 2018

Nine Energy Service, an oilfield services company that competes with companies like Halliburton and Baker Hughes, operates in a number of shale basins, including the Marcellus/Utica. Magnum Oil Tools is a “downhole technology” company providing completions products including dissolvable frac plugs and a number of other patented inventions. Magnum also has operations in the Marcellus/Utica. Yesterday Nine announced it is buying out and merging in Magnum in a deal worth $493 million.
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Diversified Energy | Energy Companies | Industrywide Issues | Kentucky | M&A | Statewide VA | Statewide WV | Virginia | West Virginia

Diversified Gas & Oil Buys Core Appalachia for $183M
October 12, 2018October 12, 2018

Diversified Gas & Oil continues its mission to buy as many non-shale (conventional) oil and gas wells as it can in the Appalachian Basin. In June, MDN brought you the exclusive news that Diversified had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million (see Diversified Gas & Oil Adds to Conventional Assets in KY, VA, WV). They’ve just done it again. This week Diversified announced a deal to buy out Core Appalachia for $183 million, which includes ~5,000 producing wells (90% of production is natgas) and 1.3 million acres in West Virginia, Kentucky and Virginia.
Read More “Diversified Gas & Oil Buys Core Appalachia for $183M”