M&A

Energy Companies | EQT Corp | Greene County (PA) | Industrywide Issues | M&A | Marion County | Marshall County | Pennsylvania | Trans Energy | Washington County | West Virginia | Westmoreland County | Wetzel County

EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M
October 26, 2016October 26, 2016

Yesterday EQT announced a pair of deals that will net the company another 60,000 Marcellus/Utica acres including 44 Marcellus wells producing a collective 44 million cubic feet equivalent per day (MMcfe/d) of natural gas. Most of the acreage (42,600) is in three West Virginia counties, with another 17,000 acres in three Pennsylvania counties. EQT is paying a total of $683 million for the two deals. In the first deal, EQT is buying Trans Energy, Inc., which will become a wholly-owned subsidiary of EQT. EQT is also buying Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (WV). In the second deal, EQT is buying 17,000 acres from an unidentified third party in southwestern PA, in Washington, Westmoreland and Greene counties. EQT describes the purchases as adding acreage to their “core development area.” You may recall that EQT closed a deal in July, just three months ago, to purchase 62,500 acres from Statoil in WV for $407 million (see Statoil Completes Sale of WV Marcellus Assets to EQT). So why is EQT once again spending money? Analysts speculate it’s because of EQT competitor Rice Energy’s recent deal to buy Vantage Energy with its 85,000 acres in Greene County (see Vantage Energy is No More – Rice Energy Completes $2.7B Buyout). Here’s the particulars about EQT’s latest acquisitions…
Read More “EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M”
Energy Companies | Industrywide Issues | M&A | Rice Energy | Vantage Energy

Vantage Energy is No More – Rice Energy Completes $2.7B Buyout
October 20, 2016October 20, 2016

Just two months ago Rice Energy announced they are buying competitor Vantage Energy for $2.7 billion (see Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres). Included in the deal are 85,000 acres of Marcellus leases in Greene County, PA, the primary reason for the deal (see Why Did Rice Energy Pay $2.7B for Vantage Energy? It’s Simple…). Also included, another 52,000 acres of Utica Shale leases. Yesterday Rice announced that the deal is done and dusted–Vantage Energy is no more. Rice now controls some 231,000 net acres in the Marcellus and Ohio Utica Shale “core” areas, with an inventory of 1,164 drilling locations. Very impressive for a company that didn’t exist 10 years ago…
Read More “Vantage Energy is No More – Rice Energy Completes $2.7B Buyout”
Industrywide Issues | M&A | Ohio | Statewide OH

Gas Natural Sells Itself to First Reserve Energy Infrastructure
October 11, 2016October 11, 2016

Gas Natural Inc., a local distribution company (LDC), or “gas utility” company has operations in four different states, including Ohio. Gas Natural also owns pipelines and processing facilities. Gas Natural has just sold itself to energy investment firm First Reserve for $139 million…
Read More “Gas Natural Sells Itself to First Reserve Energy Infrastructure”
Energy Companies | Industrywide Issues | M&A | Rice Energy | Vantage Energy

Rice Energy’s Purchase of Vantage a Way to Quickly “Scale Up”
October 6, 2016October 6, 2016

More analysis continues to roll in on Rice Energy’s plan to buy Vantage Energy for $2.7 billion (see Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres). We ran a post following the initial announcement pointing out there is one main reason why Rice is buying Vantage: 85,000 Marcellus Shale acres in Greene County, PA (see Why Did Rice Energy Pay $2.7B for Vantage Energy? It’s Simple…). We have part of another article tackling the buyout–this time from top energy analyst and Seeking Alpha writer Richard Zeits. He points out a few interesting facts, like the fact that if you do the math, Rice is essentially paying Vantage $20,000 per acre! But Zeits you have to put the price in context: Rice is using a stock swap as their currency for purchasing the acreage. In other words, this is a clever way for Rice to “scale up” quickly without breaking the bank…
Read More “Rice Energy’s Purchase of Vantage a Way to Quickly “Scale Up””
Dominion Energy | Duke Energy | Energy Services | Industrywide Issues | M&A | Pipelines

Duke Energy/Piedmont Merger Closes, Dominion Keeps Control of ACP
October 5, 2016October 5, 2016

In October of last year, MDN shared the news that Duke Energy, the largest electric power holding company in the United States and a utility with 7.3 million customers in the southeast and Midwest, announced they are buying Piedmont Natural Gas (see Duke Energy Buys Piedmont NatGas for $6.7B, Marcellus Connection). Piedmont is a midstream and natgas LDC (local distribution company, or utility) with operations primarily in North Carolina, South Carolina and Tennessee. It is a story of a big southern electric utility buying a smaller southern natural gas utility. But there’s more to the story. Part of the purchase includes ownership in two very important Marcellus pipeline projects: the Constitution Pipeline and the Atlantic Coast Pipeline (ACP). With respect to ACP, Duke was already one of the project owner/investors. Together with Piedmont’s share of ACP, Duke’s combined new ownership share (47%) threatened to be larger than the builder/sponsor of the project, Dominion (45%). The Duke/Piedmont merger happened on Monday. At the same time, Dominion exercised a clause in the partnership allowing them to purchase another 3% share, making Dominion’s new ownership stake 48%–still the top dog…
Read More “Duke Energy/Piedmont Merger Closes, Dominion Keeps Control of ACP”
Energy Companies | Greene County (PA) | Industrywide Issues | M&A | Pennsylvania | Rice Energy | Vantage Energy

Why Did Rice Energy Pay $2.7B for Vantage Energy? It’s Simple…
September 28, 2016September 27, 2016

Yesterday MDN reported the big story that Rice Energy is paying $2.7 billion to buy the assets of Vantage Energy (see Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres). Why did Rice go for the deal? It’s really quite simple. According to Rice Energy, it’s because of the 85,000 acres of Marcellus leases in Greene County, PA. That acreage is located next to Rice’s acreage in the county. The opportunity to essentially double their acreage, in their own back yard, was too good to pass up…
Read More “Why Did Rice Energy Pay $2.7B for Vantage Energy? It’s Simple…”
Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | TC Energy/TransCanada

TransCanada Makes Play to Buy “the Rest” of Columbia Pipeline
September 28, 2016September 27, 2016

Last July Canadian-based TransCanada, famously known for wanting to build the Keystone XL oil pipeline from Canada to the Gulf Coast (a plan that Obama obliterated), didn’t want to be left out of the most important midstream story of the century, so they bought Columbia Pipeline Group this year, closing on the sale in July (see TransCanada and Columbia Pipeline Tie the Knot Today). At least, that’s what everyone thought. Little known fact: third party investors still own a piece of Columbia. TransCanada has just made an offer to those third party investors to buy them out–so TransCanada can own 100% of the Columbia. The original deal cost TransCanada $10 billion (U.S. dollars). The offer just made to the investors to buy out the rest is for $848 million U.S….
Read More “TransCanada Makes Play to Buy “the Rest” of Columbia Pipeline”
Energy Companies | Industrywide Issues | M&A | Rice Energy | Vantage Energy

Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres
September 27, 2016September 27, 2016

Last week MDN reported that Vantage Energy, a Colorado company with major operations in the Marcellus, was once again attempting to float an initial public offering of stock (see Vantage Energy Tries New IPO After Striking Out 2 Yrs Ago). Must be that was a clever fake-out move because yesterday Rice Energy announced they are buying Vantage in a deal worth $2.7 billion. Included in the deal are 85,000 acres of Marcellus leases in Greene County, PA. Also included, another 52,000 acres of Utica Shale leases. Oh! And 37,000 acres of leases in the Texas Barnett Shale–meaning Rice is about to lose its laser focus on the Marcellus/Utica and will no longer be a “pure play” company. The deal instantly elevates Rice’s production predictions for 2017 by 70% over the previous guidance given. In order to pay for the deal, Rice also announced they are floating a new massive round of stock, 40 million shares, which they hope will bring in something over $1 billion in cash. Here’s the details…
Read More “Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres”
DTE Energy | Energy Services | Industrywide Issues | M&A | M3 Midstream | Momentum | Pipelines

DTE Energy Buys Marcellus/Utica Pipelines for $1.3B
September 27, 2016September 27, 2016

Click for larger version of AGS System map

The buyouts keep on rolling in. Detroit-based DTE Energy announced yesterday they are buying 100% of M3 Midstream’s Appalachia Gathering System (AGS), located in Pennsylvania and West Virginia, and 40% of M3’s Stonewall Gas Gathering (SGG), located in West Virginia. In addition DTE is buying another 15% of SGG owned by Vega Energy Partners. The combined deals will cost DTE $1.3 billion. Whew! Lots of moving parts in this story. Let’s sort it out. In April 2015 MDN told you that a section of M3 Midstream’s Appalachia Gathering System (AGS) had been spun off into its own company called Stonewall Gathering System (see M3’s New Stonewall Gathering System Extends Existing AGS in WV). At the time, plans were under way to build out gathering pipelines in West Virginia’s Harrison and Doddridge counties, running through Lewis and into Braxton County where the pipeline will connect with Columbia Transmission’s interstate pipeline. The plans came to fruition and the Stonewall Gathering System was built and now gathers 1 billion cubic feet of Marcellus Shale gas per day (see Construction on WV Stonewall Gather Pipeline Begins, Runs Thru Dec). Why does DTE want these two pipeline systems? Because they will provide a reliable source cheap, abundant, clean-burning Marcellus/Utica natural gas to DTE’s utility customers in the Midwest. These gathering systems already connect to the Columbia Gas Transmission and the Texas Eastern Transmission pipeline systems. They will also connect to the NEXUS Gas Transmission pipeline once it’s built…
Read More “DTE Energy Buys Marcellus/Utica Pipelines for $1.3B”
Energy Companies | Industrywide Issues | M&A | Range Resources Corp

Range Resources Completes Buyout/Merger with Memorial Resource
September 20, 2016September 19, 2016

As MDN previously reported, Range Resources, the very first driller in the Marcellus Shale (in 2004) and one of the largest Marcellus drillers, has decided to take advantage of the down market and branch out into another shale play (see Range Resources Buys Louisiana Driller in Deal Worth $4.4B). In May Range announced a deal to buy Memorial Resource Development Corp. (MRD) in a stock swap/debt assumption deal worth $4.4 billion. MRD holds 220,000 acres of leases and drills in the Terryville Field in northern Louisiana. Essentially Range has purchased themselves a Gulf Coast operation which sets them up nicely to export natural gas to Mexico. That’s at least part of the attraction. Perhaps another part of the attraction is that gas from Terryville Field, part of the Cotton Valley Tight Gas formation, is cheaper to drill and in many cases just as productive as shale wells in the Marcellus. Last Thursday Range reported receiving final stockholder approval for the merger/buyout, and last Friday Range reported that the deal is now done…
Read More “Range Resources Completes Buyout/Merger with Memorial Resource”
Industrywide Issues | M&A

ShaleNavigator Internet Mapping Software Service Available for Purchase
September 16, 2016September 16, 2016

MDN previously partnered with the ShaleNavigator online mapping service to produce a popular research report called the Marcellus and Utica Shale Databook. MDN editor Jim Willis did the data research and partnered with ShaleNavigator for the maps displaying that data. ShaleNavigator’s founder and owner has accepted a new job in another industry–a position that occupies most of his time–so he is looking to sell the service. Below are the details…
Read More “ShaleNavigator Internet Mapping Software Service Available for Purchase”
Dominion Energy | Energy Services | Industrywide Issues | M&A

$4.4B Dominion-Questar Merger Happens Tomorrow
September 15, 2016September 15, 2016

In February MDN told you that Dominion, with a major presence in the Marcellus/Utica region, had floated a takover offer to Questar Corporation, offering to buy the company for $4.4 billion (see Dominion Resources Makes Play for Western NatGas Company Questar). Questar is a Rockies-based integrated natural gas company operating through three principal subsidiaries. The deal is an attempt by Dominion to diversify out of the northeast/Mid-Atlantic region. It’s also a deal to bump up Dominion’s natural gas footprint, lessening the company’s reliance on electric power generation which is not growing. Since that time the deal has progressed, and tomorrow the two companies will officially tie the knot…
Read More “$4.4B Dominion-Questar Merger Happens Tomorrow”
Energy Services | Industrywide Issues | M&A | Patterson-UTI

Patterson-UTI Buys Canadian Drilling Tech Company
September 14, 2016September 14, 2016

Patterson-UTI Energy is a company we watch as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around (see Turn Around! Patterson-UTI August Rig Count Up 3rd Mo in a Row). Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States and Canada. Patterson announced this morning they have agreed to buy out Canadian-based Warrior Rig Ltd., a drilling technology company. No price was disclosed. We consider it a good sign that Patterson can scrounge up enough nickles to buy another company. A sign that things are indeed beginning to look up…
Read More “Patterson-UTI Buys Canadian Drilling Tech Company”
Energy Services | Enterprise Products Partners | Industrywide Issues | M&A | Williams

Drama: Enterprise Bails on Williams Merger, No Longer Interested
September 9, 2016September 9, 2016

The drama surrounding Williams and whether or not the company will sell itself continues. Energy Transfer Equity’s (ETE) billionaire CEO Kelsy Warren propositioned Williams for over six months before going public with his overtures last year (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams resisted, but eventually they caved and agreed to the deal, although the deal price went down by $10 billion (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Warren claims he got snookered and got cold feet, eventually bailing (see Dead as a Doornail: ETE Terminates Merger with Williams). The ink on the flurry of lawsuits filed hadn’t even dried and Enterprise Products Partners, another huge midstream company, began making overtures to Williams (see Here We Go Again: Enterprise Products Wants to Buy Williams). That was last month. Yesterday Enterprise released a statement saying they’re finished with Williams, throwing in the towel, no longer interested. To which Williams (incredibly) replied they were “surprised” at the Enterprise announcement. Frankly, we’re surprised that Williams was surprised…
Read More “Drama: Enterprise Bails on Williams Merger, No Longer Interested”
Energy Services | Industrywide Issues | M&A | Williams

Williams Reorganizes to Focus on NatGas and “Drive Value”
September 8, 2016September 8, 2016

Williams continues to tread water as it is under assault by corporate raiders who want to toss out Williams management, fire a bunch a people and sell the company. We’ve chronicled the chaos endlessly (see our Williams stories here). It seems like every day there’s something new in this soap opera. Here’s the latest: Williams announced yesterday the company is streamlining its operations by consolidating what is currently five business units into three units: (1) Atlantic-Gulf, (2) West and (3) Northeast Gathering & Processing. The stated purpose is to “advance a natural gas-focused strategy” and to “drive value.” Here’s the details…
Read More “Williams Reorganizes to Focus on NatGas and “Drive Value””
Enbridge | Energy Services | Industrywide Issues | M&A | Spectra Energy

Canadian Enbridge Buying US Spectra Energy for $28B
September 7, 2016September 7, 2016

Combined infrastructure – click for larger map

Another big hairy (midstream) deal with implications for the Marcellus/Utica. Yesterday Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy (based in Houston). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. Does a Canadian pipeline company heavily involved in shipping crude via pipelines buying a U.S. company that ships natural gas via pipelines sound familiar? It should. TransCanada bought out Columbia Pipeline Partners two months ago–another case of a Canadian company buying into the bountiful U.S. Marcellus/Utica shale midstream (see TransCanada and Columbia Pipeline Tie the Knot Today). Here’s the low down on Enbridge’s play to buy Spectra Energy, which would form another mega midstream company to rival Kinder Morgan and Williams…
Read More “Canadian Enbridge Buying US Spectra Energy for $28B”