M&A

Anadarko | Chevron | Energy Companies | Industrywide Issues | M&A

Chevron Leaves the Altar with $1B, Waves Goodbye to Anadarko
May 9, 2019May 10, 2019

Whew, that was close. We’ve had a concern that if Chevron ended up buying Anadarko Petroleum (for Anadarko’s Permian Basin oil assets), it might lead to Chevron pulling back from their drilling program in the Marcellus/Utica (see Permian Love Story: Chevron Buying Anadarko in $50B Megamerger). We don’t have to worry any more. Even though Anadarko signed a deal to sell itself to Chevron, Occidental Petroleum made a bid to buy the company too (see Occidental Petroleum Offers 14% More than Chevron to Buy Anadarko). There’s a breakup clause in the signed Chevron deal. Anadarko would have to pay Chevron $1 billion for leaving them at the altar.
Read More “Chevron Leaves the Altar with $1B, Waves Goodbye to Anadarko”
Anadarko | Chevron | Energy Companies | Industrywide Issues | M&A

Anadarko Leaves Chevron at the Altar to Elope with Occidental
May 7, 2019May 7, 2019

The battle to buy Anadarko Petroleum by Chevron and Occidental Petroleum (Oxy) has taken an interesting turn. Over the weekend Oxy revised its offer. It will still pay Anadarko shareholders $57 billion (as before), but the offer was revised to dial up the amount of cash and dial down the amount of stock swaps. Never hurts to use cash as a sweetener. The new offer did the trick. Although Anadarko previously signed an agreement to sell itself to Chevron, Anadarko announced yesterday they are leaving Chevron at the altar and riding off into the sunset to elope with Oxy.
Read More “Anadarko Leaves Chevron at the Altar to Elope with Occidental”
Anadarko | Chevron | Energy Companies | Industrywide Issues | M&A

Occidental Petroleum Offers 14% More than Chevron to Buy Anadarko
April 25, 2019April 25, 2019

Less than two weeks ago Chevron announced a deal to buy Anadarko Petroleum for $33 billion plus assuming outstanding debt, a deal worth $50 billion (see Permian Love Story: Chevron Buying Anadarko in $50B Megamerger). At the time we told you about a potential cloud on the horizon–that Occidental Petroleum had offered more for Anadarko. Indeed, Oxy wants Anadarko too, and a full-blown bidding war has now erupted. Yesterday Oxy made it’s offer public, an offer 14% higher than Chevron’s offer: $57 billion.
Read More “Occidental Petroleum Offers 14% More than Chevron to Buy Anadarko”
Chevron | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Statewide PA

Will Chevron Dump its M-U Assets to Chase Permian Black Gold?
April 22, 2019April 22, 2019

A week ago MDN brought you the news that Chevron has cut a $50 billion deal to buy Anadarko Petroleum (see Permian Love Story: Chevron Buying Anadarko in $50B Megamerger). Although Chevron will benefit in a number of ways from the transaction, as we indicated in the headline, the primary motivator is to gain valuable acreage in the oily Permian Basin of West Texas. The question now becomes, will Chevron hold on to its Marcellus/Utica assets? Or sell them in order to concentrate on the Permian?
Read More “Will Chevron Dump its M-U Assets to Chase Permian Black Gold?”
Anadarko | Chevron | Energy Companies | Industrywide Issues | M&A

Permian Love Story: Chevron Buying Anadarko in $50B Megamerger
April 15, 2019April 15, 2019

Another truly huge merger/buyout was announced Friday when Chevron said it is buying Anadarko Petroleum for $33 billion. When you factor in Chevron assuming Anadarko’s debt, the total deal is valued at $50 billion, a number hard to wrap your brain around. The key question for us is: What does this mean for Chevron’s drilling program in the Marcellus/Utica?

UPDATE: See our note below about Anadarko in PA.
Read More “Permian Love Story: Chevron Buying Anadarko in $50B Megamerger”
Energy Companies | Industrywide Issues | M&A | Penn Virginia Corporation

Denbury/Penn Virginia Merger Aborted – PV Shareholder Resistance
March 22, 2019March 22, 2019

Penn Virginia, an oil and gas driller headquartered in Radnor, PA (near Philadelphia) announced last October it had found someone to buy the company–Denbury Resources (see Penn Virginia Finally Sells Itself, Denbury Buys for $1.7 Billion). As of a few weeks ago both companies filed proxy statements with the Securities and Exchange Commission to announce a final merger vote set for April 17. That’s now off–because some Penn Virginia shareholders got cold feet.
Read More “Denbury/Penn Virginia Merger Aborted – PV Shareholder Resistance”
Energy Services | Equitrans/EQT Midstream | Eureka Midstream | Industrywide Issues | M&A | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Equitrans Buys 2 Pipeline Systems in Marcellus/Utica for $1B
March 15, 2019March 15, 2019

Equitrans Midstream, which used to be called EQT Midstream, yesterday announced they have cut their first big deal since separating from EQT last year. Equitrans is buying a 60% stake in Eureka Midstream, a 190-mile pipeline system in Ohio and West Virginia serving both the Marcellus and Utica, and a 100% stake in the tiny 15-mile Hornet Midstream, a gathering system in WV that connects to Eureka.
Read More “Equitrans Buys 2 Pipeline Systems in Marcellus/Utica for $1B”
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!
Read More “Encino Takes Over from Chesapeake in Ohio Utica; Big Plans”
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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