M&A

BP | Energy Companies | Industrywide Issues | M&A | Penn Virginia Corporation

BP Makes Offer to Buy Penn Virginia, Other Majors Interested Too
June 26, 2015June 26, 2015

Although headquartered in Radnor, Pennsylvania (near Philadelphia), Penn Virginia Corporation is an oil and gas driller (i.e. “producer”, i.e., E&P company) with only a small presence in the Marcellus Shale: 21,700 net acres with no drilled wells. They concentrate on oil drilling the Texas Eagle Ford Shale play. MDN told you in March that Democrat billionaire corporate raider George Soros, one of the most vile big money investors in the world who has repeatedly damaged not only corporations but entire country’s economies, had taken a 9.1% ownership position in Penn Virginia in order to force it to sell and was doing exactly that (see George Soros Finally Bullies Penn Virginia into Selling Itself). Since March all has been quiet, until yesterday when somebody leaked the rumor that oil and gas giant BP has made an offer to buy Penn Virginia, driving the stock price up over 20% at one point. However, another rumor says Penn Virginia rejected BP’s offer as too low and is holding out for more. In addition to BP, Exxon Mobil and Chevron are also said to be interested in buying Penn Virginia. All of this buyout talk is driving Penn Virginia’s stock price up, putting a big smile on George Soros’ face…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Q: Why is ETE Making a Play to Buy Williams? A: Marcellus/Utica
June 24, 2015June 24, 2015

On Monday, MDN brought you what has to be the biggest midstream news in the Marcellus/Utica for 2015: a proposed hostile takeover of Williams by Energy Transfer Equity (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). We’re a bit dubious about the benefits of a proposed takeover/merger because the market loses competition with such mega mergers. But Wall Street loves these kinds of deals. We see jobs lost due to consolidation and price increases due to less competition. Wall Street sees fatter profits from “economies of scale” and other euphemisms they use for lost jobs and less competition. We spotted a Reuters article that evaluates the proposed ETE deal from the perspective of what it means (for ETE) in the Marcellus/Utica. The story says the primary motivator on the part of ETE in pursuing a takeover/merger with Williams is that it would give ETE a “dominant position” in the Marcellus/Utica…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B
June 22, 2015June 22, 2015

Sunday evening MDN spotted what has to be THE biggest midstream story of 2015: Somebody wants to buy out and take over Williams Companies. The biggest midstream story of 2014 was the buyout of Access Midstream (the former Chesapeake Midstream) by Williams, creating a company that is nearly the size and certainly a worthy rival of the country’s biggest pipeline company Kinder Morgan (see Big News: Williams Partners Buying Access Midstream for $6B). Williams said at the time the “total transaction value” (or TTV) would create a combined company worth nearly $50 billion (see Deal Details for Williams/Access Midstream Merger – TTV of $50B!). Sunday evening Williams said, in a pair of prepared press releases, that somebody (they wouldn’t name who) has made an “unsolicited proposal” (almost sounding like an indecent proposal) to buy Williams for $64 per share, or a total deal worth $48 billion. Williams has rebuffed the offering, hiring some high-powered bankers to help them out of this mess. The guy and company making the offer, it has since been revealed, is none other than Kelcy Warren, CEO of both Energy Transfer Partners and Energy Transfer Equity, the main shareholder of ETP. ETP is very active in the Marcellus/Utica. We have as much as we can gather on Warren, background on ETP/ETE, his indecent proposal to Williams, and what Williams–one of if not THE largest midstream companies in the northeast–is doing in response to Warren’s proposal…
Read More “Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

ETE Says Shareholders Big Winners in Potential Williams Merger
June 22, 2015June 22, 2015

Energy Transfer Equity is offering their side of the story in the proposed merger/takeover of Williams. MDN’s lead story today is about that merger. On Sunday, Williams issued a pair of press releases refusing to name who the suitor is, but essentially said that somebody (ETE) is making an offer to buy them (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). As you know, there’s always two sides to a story. ETE, the main investor in Energy Transfer Partners, is offering their side of the story. ETE’s version is much more lengthy than Williams and includes the claim that the ETE proposal offers a 32.4% premium to Williams stockholders “with a high degree of transaction certainty”…
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BG Group | Energy Companies | Industrywide Issues | M&A | Shell

Shell-BG Megamerger Approved by US Federal Trade Commission
June 18, 2015June 18, 2015

Well that was quick! On Tuesday Shell announced they’re received approval by the U.S. Federal Trade Commission to proceed with their buyout/takeover of BG, the former British Gas. You may recall we brought you the news about the Shell-BG deal in April, pointing out at the time the deal is mainly about LNG (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). Getting approval from the FTC this fast is a good sign, according to Shell CEO Ben van Beurden. Shell needs to obtain approval from every country where BG does business–not just the U.S. According to Shell, they’re still on track to complete the merger in “early 2016″…
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Access Midstream Partners | Energy Services | Industrywide Issues | M&A | MarkWest Energy | Williams

Former Access Midstream CEO Reappears – on MarkWest Board of Dir
May 19, 2015May 19, 2015

Last June, Williams announced the biggest midstream news of the year–a deal to buy Access Midstream (the old Chesapeake Midstream) and fold it into their own operation (see Big News: Williams Partners Buying Access Midstream for $6B). After clearing all of the regulatory and financial due diligence hurdles, the two companies officially merged on February 2nd (see It’s Official: Williams and Access Midstream Tie the Knot). But before they did, Mike Stice, the CEO of Access and the President and COO of Chesapeake Midstream before it was Access, left Access as of January 1st of this year (see Access Midstream CEO Replaced by COO Under Williams Ownership). We don’t know if Stice’s departure was amicable or not. Stice’s #2 man, Chief Operating Officer Robert Purgason, took over as the head of Williams’ new Access division. Mike Stice has turned up again–this time on the board of directors for Williams’ arch competitor MarkWest Energy…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Pipelines | Regency Energy Partners

ETP Seals the Deal – Buyout of Regency Energy for $25B Complete
May 1, 2015May 1, 2015

MDN told you about the big money buyout midstream company Regency Energy by midstream company Energy Transfer Partners for $25 billion (see Energy Transfer Partners Buys Regency Energy for $25B). As we had also reported, the date for the buyout was April 28 (see ETP Buyout of Regency Energy Has a Date: April 28). The deed is now done and, at least on paper, Regency Energy is no more…
Read More “ETP Seals the Deal – Buyout of Regency Energy for $25B Complete”
Industrywide Issues | M&A

As Shale Drilling Slows, So Too Do Mergers & Acquisitions
April 16, 2015April 16, 2015

Research and consulting firm GlobalData says merger and acquisition (M&A) values in the upstream oil and gas sector (drilling) decreased significantly from $2.9 billion in February 2015 to $829.8 million in March 2015. GlobalData expects the number of deals to remain low in second quarter 2015. Here’s a high level overview of their latest report…
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BG Group | Energy Companies | Industrywide Issues | M&A | Shell

LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger
April 9, 2015April 9, 2015

It’s an LNG love story. Yesterday Shell announced they are buying BG Group, the former British Gas, for $69.7 billion dollars. To put it in perspective, in 1998 Exxon bought Mobil for $80 billion, forming what is now ExxonMobil. So this is that kind of scale–really really huge. The oil and gas industry is buzzing about the deal. Is this the first of many such consolidations, given the low price of oil? Will the Shell/BG deal impact shale drilling? What does it ultimately mean? We’ll leave it to others to discuss the broader implications. What we always wonder is, how will this affect the Marcellus/Utica? We have a few thoughts. Both Shell and BG have acreage in the Marcellus/Utica. But before we get to that, the first thing to understand about the Shell/BG deal is that it’s about LNG. This merger will make Shell the largest player in the global LNG market–easily twice the size of the nearest competitor…
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Chesapeake Utilities | Energy Services | Industrywide Issues | M&A | Ohio | Pipelines | Statewide OH

Chesapeake Utilities Completes $59M Purchase of OH Midstream Co.
April 9, 2015April 9, 2015

In February MDN told you about Chesapeake Utilities, a diversified energy company with businesses in natural gas distribution, transmission and marketing, electricity distribution, propane distribution and wholesale marketing (nothing to do with Chesapeake Energy) purchasing a small midstream company in Ohio–Gatherco, Inc (see Chesapeake Utilities Buys OH Midstream Co, Targets Shale Industry). Part of the motivation is to target the Utica Shale industry in Ohio by building gathering pipelines. Last week Chesapeake Utilities announced the deal is now done and Gatherco has been renamed and merged with Chesapeake subsidiary Aspire Energy of Ohio…
Read More “Chesapeake Utilities Completes $59M Purchase of OH Midstream Co.”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A

Halliburton Shotgun Divorce – Forced to Sell Certain Divisions
April 8, 2015April 8, 2015

Some interesting news from Halliburton concerning their takeover of Baker Hughes (see Halliburton & Baker Hughes Vote to Approve Shotgun Wedding). It seems the table has been turned on Halliburton. In order to avoid anti-trust violations, Halliburton will, grudgingly, sell off several profitable divisions: Fixed Cutter and Roller Cone Drill Bits, Directional Drilling and Logging-While-Drilling (LWD)/Measurement-While-Drilling (MWD). Yesterday Halliburton said they will likely have the merger with Baker Hughes done before selling off those divisions. They stressed it will be business as usual for customers while the divorce, er, sale proceeds…
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Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M&A | Ohio | Pipelines | Statewide OH | Williams

Williams Buys Out EVEP Interest in Utica East Ohio Midstream for $575M
April 7, 2015April 7, 2015

In early February, MDN told you that EV Energy Partners, a company with a huge amount of leased acreage in the Ohio Utica Shale region, was looking to sell its 21% interest in Utica East Ohio (UEO)–a midstream/pipeline company operating in Ohio (see EVEP Wants to Sell Interest in Utica East Ohio/More Utica Acreage). Yesterday EV announced they found a buyer–none other than Williams, EV’s partner in UEO. Williams currently owns 49% of UEO and is paying EV $575 million in cash to relieve them of their 21%, for a grand total operating interest of 70% ownership…
Read More “Williams Buys Out EVEP Interest in Utica East Ohio Midstream for $575M”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Regency Energy Partners

ETP Buyout of Regency Energy Has a Date: April 28
March 11, 2015March 11, 2015

In January MDN brought you the big news that Energy Transfer Partners (ETP) is buying/merging with Regency Energy Partners (see Energy Transfer Partners Buys Regency Energy for $25B). Both companies have meaningful operations in the Marcellus/Utica region. These mergers & acquisitions, as you know, take time. Both companies have been busy and Regency reported earlier this week they have a date to make it all final: April 28. On that date, Regency will hold a special meeting at their company headquarters in Dallas, TX to vote on the deal…
Read More “ETP Buyout of Regency Energy Has a Date: April 28”
Economic Impact | Industrywide Issues | M&A

World’s Best Investment Bank in the Oil & Gas Sector for 2015
March 10, 2015March 10, 2015

It takes a lot of money to fund an oil & gas company–whether they are drillers, pipeline companies or the myriad of associated supply chain companies. It takes millions–billions! Who has that kind of money? Investors, typically investment banks. And who is the best investment bank in the whole wide world? Obviously it’s the one that will give you money! However, Global Finance magazine conducts an annual survey and based on various criteria, they have just awarded CIBC (Canadian Imperial Bank of Commerce), Canada’s fifth largest bank, with the honor of World’s Best Investment Bank in the Oil & Gas Sector for 2015…
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Energy Companies | Industrywide Issues | M&A | Talisman Energy

Talisman Energy Sale to Repsol Takes 2 Giant Steps Closer
February 23, 2015February 23, 2015

Not that there was really any doubt, but last week the deal for Spanish oil giant Repsol to buy out Canadian shale driller Talisman Energy took a couple of big leaps forward (see Spanish Respol Buys Marcellus E&P Talisman Energy for $8/Share). Talisman has major drilling operations in the Pennsylvania Marcellus Shale. The company was having problems for some time and that invited the vultures, er, corporate raiders to show up (see Carl Icahn’s Claws Go Deeper into Talisman – 2 New Board Members). No doubt under pressure by Ichan’s lieutenants, Talisman had to either sell off key assets, or sell the whole company. They opted to do the later last December. Last week both the shareholders and the Canadian government gave it’s blessing to the sale. Now all that’s left is for the proverbial fat lady to sing…
Read More “Talisman Energy Sale to Repsol Takes 2 Giant Steps Closer”
Industrywide Issues | M&A | Research | Supply Chain

New Report on Shale Energy Deals from Top Energy Law Firm
February 17, 2015February 17, 2015

In July 2013 one of the country’s top energy law firms, Steptoe & Johnson, published a report detailing the biggest legal challenges faced by drillers that operate in shale plays (see New Report Details Top Legal Issues for Shale Drillers). Steptoe & Johnson have just published a follow-up report. Titled “Below the Surface 2: Digging Deep on Deals” (full copy embedded below), this new report takes a look at energy transactions and deals to find where natural gas producers are exploring for energy, their level of involvement, lessons they’ve learned, and what roadblocks they must overcome to succeed…
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