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Williams Buys Gulf Storage & Pipes, Connects to Transco for LNG

Wow! That was fast! On Dec. 27, pipeline giant Williams issued a press release to announce a deal to buy six underground natural gas storage facilities located in Louisiana and Mississippi with a total capacity of 115 billion cubic feet (Bcf), as well as 230 miles of gas transmission pipeline and 30 pipeline interconnects, for $1.95 billion. Some of the interconnections connect to the Williams Transco pipeline system, a huge system that transports Marcellus/Utica gas to the Gulf Coast area. One of the big reasons for the deal, according to Williams, is to connect more gas supplies to LNG export markets. Yesterday, Williams issued a second press release to say the deal is already done! Williams now owns the assets.
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WV’s Hope Gas Buys Southern Public, Adds 6,400 Customers

Hope Gas provides natural gas service to approximately 131,000 residential, industrial, and commercial customers in thirty-five West Virginia counties. In October, Hope closed on the acquisition of the West Virginia division of Peoples Gas for an undisclosed amount, giving the company another 13,000 customers (see Hope Gas Closes Acquisition of Peoples Gas WV – Adds 13K Customers). Hope is growing again! The company has just closed on a deal to buy Southern Public Service Company with another 6,400 customers across six WV counties.
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Allied Resources Group Buys O&G Engineering Division from STV

STV, a New York City-based professional services firm that plans, designs, and manages infrastructure projects across North America, recently announced that it will exit servicing the midstream oil and gas market after signing an agreement with Pennsylvania-based Allied Resources Group (ARG). ARG is acquiring STV’s midstream oil and gas business operations for an undisclosed price, effective November 30, 2023.
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5 Trends Poised to Have Biggest Impact on Energy Sector in 2024

Veteran equity oil and gas analyst Jeff Robertson, managing director with Water Tower Research (WTR), recently compiled an outlook report with the 5 trends he says are poised to have the biggest impact on the energy sector next year. WTR was kind enough to share it with MDN. One of Robertson’s predictions involves a Henry Hub price prediction (which immediately caught our eye). Other predictions involve world tensions, the consolidation trend, and more. It’s a short and enlightening read.
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Corporate Raider Kimmeridge Likes a Chesapeake/Southwestern Merger

A month ago, MDN shared the rumor that Chesapeake Energy Corporation is sniffing around Southwestern Energy, looking to buy out and merge in its closest O&G peer (see Chesapeake Energy Exploring a Merger with Southwestern Energy). One of Chesapeake’s largest investors, Kimmeridge Energy Management Co. — what the financial industry calls an “activist investor” (which we call by the old term “corporate raider”) — says a merger between the two would create one of the industry’s most sought-after stocks. Kimmeridge is pushing to make it happen.
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WhiteHawk Energy Spends $54M to Grow M-U Mineral & Royalty Assets

WhiteHawk Energy, headquartered in Philadelphia with ownership of mineral and royalty interests for 850,000 gross unit acres and over 2,500 producing horizontal shale wells between the Marcellus and the Haynesville, announced yesterday the acquisition of additional Marcellus Shale natural gas mineral and royalty assets for a total purchase price of $54 million. WhiteHawk owns mineral and royalty rights across nearly half a million M-U acres. The deal does not increase WhiteHawk’s total acreage but does increase the company’s percentage of ownership across that acreage.
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Summit Midstream Reports Significant Interest by Others in M&A

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil, and produced water gathering (pipeline) systems in several unconventional shale plays, including the Marcellus and Utica. Last week, Summit issued its third quarter 2023 update. We previously reported on an early release of Summit’s 3Q operational update, which revealed the company is considering selling part or all of the company (see Summit Midstream 3Q Update – Considers Selling Part or All of Co.). Summit CEO Heath Deneke provided an update last week on the process of finding a potential suitor.
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TC Energy Looking to Sell Share in Millennium, PNGTS, Other Pipes

TransCanada Corporation, which renamed itself TC Energy in 2019, bought out and merged in U.S.-based Columbia Pipeline Group (now Columbia Gas Transmission) in 2016 (see TransCanada and Columbia Pipeline Tie the Knot Today). TransCanada paid $13 billion for Columbia, including the assumption of $2.8 billion of debt. In July, TC Energy announced it was selling a 40% stake in Columbia for US$3.9 billion (C$5.2 billion) to investment firm Global Infrastructure Partners. TC completed the sale earlier this month (see TC Energy Completes Sale of 40% Interest in Columbia Pipe to GIP). Looks like TC isn’t done yet with selling pieces of assets. Secret sources whispering to Bloomberg say that TC wants to sell minority (or all) interests in four pipeline systems, three of which move Marcellus/Utica molecules.
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American Energy Announces Reverse Merger w/Hospital Supply Chain Co

This is one of those times where we scratch our heads and say, Huh? Just last week, we brought you the news that American Energy Partners, Inc. (AEPT), based in Allentown, PA, with its fingers in several different pies, including subsidiaries in drilling, remediation, water, and more, is changing its name to American Environmental Partners, Inc. (see American Energy Partners Changes Name, Swaps Enviro. for Energy). This week, another company, a hospital supply chain company by the name of SCWorx, announced it is buying out and merging with American Environmental Partners in an all-stock transaction. But here’s the thing…even though SCWorx is buying AEPT (on paper), when the two companies are merged, SCWorx shareholders will own 17% of the company, and AEPT shareholders will own 83%. Which means this is really the other way around — that AEPT is the one doing the buying.
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Another Powerhouse Merger: Chevron Buying Hess for $53 Billion

Not even a full two weeks ago, MDN brought you the news that Exxon Mobil, the #5 oil producer in the Permian Basin, is buying Pioneer Natural Resources, the #1 oil producer in the Permian, in an all-stock deal valued at $59.5 billion, plus assuming $5 billion in debt, for a total deal value of $64.5 billion (see Shale Megadeal: Exxon Buys Pioneer Natural Res. for $64.5 Billion). We told you that experts were predicting Exxon’s megamerger with Pioneer would touch off more mergers. And it has. Chevron announced via press release this morning that it is buying Hess Corporation in an all-stock transaction valued at $53 billion. Chevron doesn’t want to be left behind in the oil drilling wars.
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Chesapeake Energy Exploring a Merger with Southwestern Energy

Oh boy, here we go again. The rumor mill is in overdrive. Reuters (which is pretty reliable with these kinds of reports) is reporting that Chesapeake Energy Corporation is sniffing around Southwestern Energy, looking to buy out and merge in its closest O&G peer. Both Chesapeake and Southwestern have significant, long-time Marcellus assets (in Pennsylvania), and both have added new assets in the Louisiana Haynesville in recent years. They are on parallel tracks with their strategy of using Marcellus assets as a cash cow to fund more drilling in Haynesville, with an eye on grabbing higher prices in foreign markets by exporting Haynesville gas as LNG. It certainly makes sense that one company would be interested in combining with the other. If the two do combine, it would become the #1 shale gas driller in the U.S., surpassing EQT (in market value).
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Pioneer CEO Waves White Flag, Says Days of Independent Shale Over

Do you know what the single most responsible force was in liberating the United States from the grip of the dictator thugs of OPEC? Independent shale oil companies. Over the past decade, companies like EOG Resources, Apache, Continental Resources, Concho Resources, and Pioneer Resources broke the grip of OPEC over U.S. oil supplies. Pioneer, as we told you yesterday, has agreed to sell itself to Exxon Mobile for $64.5 billion (see Shale Megadeal: Exxon Buys Pioneer Natural Res. for $64.5 Billion). A few hours after that major announcement, Pioneer CEO Scott Sheffield said in an interview, “Shale companies cannot survive on their own long term,” and “They’re going to have to merge up, consolidate, and be part of diversified companies.” Et tu, Brute? Sheffield has raised the white flag of surrender and plunged a dagger in the back of shale. What a shame.
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Shale Megadeal: Exxon Buys Pioneer Natural Res. for $64.5 Billion

Sometimes, news comes along in the oil and gas world that is so big, even when it doesn’t directly involve the Marcellus/Utica, we feel a responsibility to report it. Today is one of those days. The rumor mill has been swirling for weeks that Exxon Mobil is interested in buying Pioneer Natural Resouces, the number one producer in the Permian Basin. Exxon is currently the number five Permian producer. This morning, a deal was announced. Exxon is buying Pioneer in an all-stock deal valued at $59.5 billion, plus assuming $5 billion in debt, for a total deal value of $64.5 billion.
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Williams Finally Wins Case Against ET Aborted Merger – $495 Million

In 2015, Kelsy Warren and his Energy Transfer Equity (now just Energy Transfer) company pursued Williams, wanting to merge Williams into its 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. Williams sued to recoup a contractual breakup fee (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). A number of lawsuits ensued, and finally, after more than six years, a Delaware Court of Chancery judge ruled last December that ET must pay Williams a $410 million breakup fee provided for in the signed deal (see Judge: Energy Transfer Must Pay Williams $410M for Aborted Merger). ET should have been happy with the decision…
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FTC Finalizes Consent Order from EQT Purchase of Tug Hill WV Assets

Nearly one year after EQT announced a deal to buy privately-owned Tug Hill Operating’s West Virginia shale assets for roughly $5.2 billion (see Confirmed: EQT Buys Tug Hill’s THQ Appalachia for $5.2 Billion), the deal was finally completed in August (see EQT Finally Completes Acquisition of Tug Hill and XcL Midstream). Both EQT and Tug Hill’s backer, Quantum Energy Partners, announced the deal was consummated. But was it?
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TC Energy Completes Sale of 40% Interest in Columbia Pipe to GIP

TransCanada Corporation, which renamed itself TC Energy in 2019, bought out/merged in U.S.-based Columbia Pipeline Group (now Columbia Gas Transmission) in 2016 (see TransCanada and Columbia Pipeline Tie the Knot Today). TransCanada paid $13 billion for Columbia, including the assumption of $2.8 billion of debt. In July, TC Energy announced it was selling a 40% stake in Columbia for US$3.9 billion (C$5.2 billion) to investment firm Global Infrastructure Partners (see TC Energy Sells 40% Interest in Columbia Pipeline to Investor GIP). TC will retain majority ownership and operate the Columbia assets, which include 11,899 miles of pipeline extending from New York state to the Midwest and Southeast, along with dozens of storage fields in multiple states. As of yesterday, the deal is done and TC has a new partner.
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