M&A

Cardinal Gas Services | Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M&A | Ohio | Pipelines | Statewide OH | Total | Utica Shale

Total, EVEP Sell Interest in Cardinal Midstream to S Koreans for $612M
September 24, 2014September 24, 2014

In August MDN told you that a pair of Korean companies were sniffing around Cardinal Midstream Services–looking to buy up to a 34% stake in the company (see Cardinal Gas Courts S Koreans to Invest in Utica JV). Cardinal is a midstream operator (pipelines and processing plants) in the Utica Shale. The Koreans are sniffing no more. Yesterday, one of the investor/owners of Cardinal, French oil giant Total, announced they’re selling their 25% stake in the company to two Korean companies…
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Industrywide Issues | M&A | Supply Chain

Big Congrats: ShaleNavigator Sells to Geospatial
September 19, 2014September 19, 2014

A hearty congratulation to MDN friend (and Databook partner) Ed Camp from ShaleNavigator. Ed has just reached an agreement to sell his company, ShaleNavigator, to Geospatial Corporation. Ed will then go to work at Geospatial and continue to run ShaleNavigator as a division of Geospatial. You may recognize the name ShaleNavigator because it is the software used to create the maps in MDN’s Marcellus and Utica Shale Databook. Have no fear, Ed will continue to generate those lovely maps that are the heart and soul of the Databook (speaking of which, Volume 2 of the 2014 series is due out in the next few weeks, stay tuned). Here’s the announcement that it’s time to pop the cork on the bubbly for a an all-around great guy, Ed Camp, and the marriage of his ShaleNavigator with Geospatial…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | M&A

Morgan Stanley Buys Partnership in Eureka Hunter for $65M
September 17, 2014September 17, 2014

Yesterday Magnum Hunter, a Marcellus/Utica driller with a number of subsidiaries, including midstream company Eureka Hunter, announced that Morgan Stanley is becoming a partner in Eureka Hunter. Price tag for becoming a partner? $65 million. According to Magnum Hunter and Morgan Stanley, Eureka Hunter is now worth $1 billion. The deal itself is complicated and includes multiple subsidiaries and names you’ve likely never heard of (like Ridgeline Midstream and ArcLight Capital Partners). We just told you the news in a nutshell. Below is the press release from Magnum Hunter announcing that news–a press release obviously written by lawyers, rendering it virtually unreadable for the rest of us…
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Chief Oil & Gas | Energy Companies | Industrywide Issues | M&A | Tug Hill Operating

Tug Hill’s Wandering Eye – JV with Quantum Targets Non-Marcellus
August 26, 2014November 13, 2014

Tug Hill, Inc., an investment firm owns an oil and gas drilling subsidiary called Tug Hill Operating. Tug Hill, to date, has been bosom buddies with Chief Oil & Gas in the Marcellus Shale region (see these MDN articles). Together Tug Hill and Chief have established a lease position of a massive 600,000 Marcellus Shale acres. But what’s this? Tug Hill has a new dance partner. While Tug Hill is not abandoning Chief and their current joint drilling program in the Marcellus, they went looking and found some big money backing from Quantum Energy Partners, a Houston, TX-based private investment firm. Quantum and Tug Hill together (mostly Quantum) is pumping $450 million into a brand new joint venture between the companies to drill in other shale (and perhaps non-shale) plays across the U.S….
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Industrywide Issues | M&A | Research

Deloitte Mid-Year Report on M&A: Shale Continues to Dominate
August 14, 2014August 14, 2014

The sharp minds at consulting firm Deloitte have once again turned in a mid-year analysis of oil & gas company mergers and acquisitions for the first half of 2014. Titled “Oil & Gas Mergers and Acquisitions Report – Midyear 2014: The deal market may be poised for a rebound” (full copy below), the report is a high level view, analyzing 299 transactions across the spectrum from upstream (drilling) to midstream (pipelines & processing plants) to downstream (refining and marketing). While Deloitte doesn’t share a list of those 299 deals (disappointingly), they do roll it all up and take the bird’s eye view to let us know what the trends have been and will likely be for the balance of 2014. It’s no surprise that shale continues to dominate the energy picture for M&A activity. Here’s the highlights…
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Energy Services | Industrywide Issues | Kinder Morgan | M&A | MarkWest Energy

MarkWest a “Prime Buyout Candidate” for Kinder Morgan?!
August 12, 2014August 12, 2014

Richard Kinder, CEO and chairman of the board at Kinder Morgan Energy Partners, is a man on the prowl. Kinder Morgan (KM), for those not familiar, is this country’s largest midstream (pipeline and processing plant) company–and by market capitalization, the fourth largest energy company in the U.S. KM has increasingly aimed its sights at the Marcellus/Utica region, including an expansion of its Tenneessee Gas Pipeline across the state of Massachusetts (see Kinder Signs up New Customers for MA Pipeline, 63% of Capacity). Richard Kinder, the man in charge, has been consolidating the different divisions and units and subsidiaries of the company and now has billions to go shopping. What’s he looking for? To purchase “rival pipeline operators,” including the biggest and best in the Marcellus/Utica…
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Access Midstream Partners | Cardinal Gas Services | Energy Companies | Energy Services | EnerVest | EV Energy Partners | Industrywide Issues | M&A | Pipelines | Total | Utica Shale

Cardinal Gas Courts S Koreans to Invest in Utica JV
August 11, 2014August 11, 2014

Cardinal Gas Services is a midstream company (pipelines and processing plants) concentrating on the Ohio Utica Shale. Cardinal is actually a joint venture between Access Midstream (formerly Chesapeake Midstream, now being bought by Williams), the U.S. subsidiary of French driller Total, and EnerVest Energy Partners. Just when you thought it couldn’t get any more complicated, it does. Reuters is reporting the rumor that a new consortium including South Korea’s National Pension Service (NPS) and South Korean gas seller E1 Corp are making a play for 34% of Cardinal…
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Industrywide Issues | M&A

Downstream Calumet Buys Upstream Specialty Oilfield Services
August 5, 2014August 5, 2014

The bigger fish keep on gobbling up the smaller fish–in the Marcellus and Utica Shale supply chain. You may recall MDN first wrote about a downstream chemical manufacturing company called Calumet back in Sept. 2012 when the company announced they are building a gas-to-liquids (GTL) plant in Karns, PA to convert Marcellus Shale gas to diesel fuel (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA). Then, in March of this year, Calumet purchased Anchor Drilling Fluids outright for $235 million in cash (see Downstream Petrochemical Co Buys Upstream Frack Fluid Co). Anchor manufactures drilling mud and frack fluids used in shale drilling in the Marcellus, Utica and just about every other major shale play across the U.S. Last Friday Calumet announced they’ve purchased Specialty Oilfield Solutions (SOS), a full service solids control and drilling fluids company with operations in the Marcellus, Eagle Ford and Utica shale plays…
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Energy Companies | Industrywide Issues | M&A | Talisman Energy

Repsol Eyes Talisman Energy for “Assets” – Takeover Target?
July 24, 2014July 24, 2014

MDN told you last October that evil corporate raider Carl Icahn had begun to sink his claws into his next shale victim. Like he had done at Chesapeake Energy, Icahn started snapping up stock in Canadian company Talisman Energy (see Carl Icahn Snaps Up 6% of His Next E&P Victim: Talisman Energy). Icahn quickly became the puppet master pulling the strings, forcing the company to begin selling assets (see Icahn Now Throwing His Weight Around at Talisman, Like Chesapeake). You knew what was coming when he scored two seats on the board of the directors just a few months later, in December 2013 (see Carl Icahn’s Claws Go Deeper into Talisman – 2 New Board Members). Indeed, what we feared is now coming true. Talisman is now actively considering a buyout/takover from Spanish oil company Repsol…
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Energy Companies | Industrywide Issues | M&A | Pennsylvania | Warren Resources | Wyoming County (PA)

Warren Resources Buys Marcellus Acreage/Wells from Citrus Energy
July 7, 2014July 7, 2014

The Marcellus Shale has a new driller in town. This morning, New York City-based Warren Resources announced they have acquired essentially all of the Marcellus assets owned by Colorado-based Citrus Energy for $352.5 million. Warren immediately takes title to several working Marcellus wells currently producing 82 million cubic feet of gas per day…
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Allegheny County | Energy Services | Fluid Delivery Solutions (FDS) | Industrywide Issues | M&A | Pennsylvania

3 Investment Cos Buy Fluid Delivery Solutions – Terms Not Disclosed
July 7, 2014July 7, 2014

Three private equity companies (investment firms) announced last week they have acquired a majority interest in Fluid Delivery Solutions (FDS), an oilfield water management company that provides fresh water transfer and storage for drillers in the Marcellus, Utica and other shale plays. Terms of the buyout were not disclosed, however, FDS’ management and staff will remain in place. Essentially FDS has transferred ownership to investors with deep pockets but have kept the keys to the company…
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Access Midstream Partners | Energy Services | Industrywide Issues | M&A | Williams

One Step Closer: Williams Update on Purchase of Access Midstream
July 2, 2014July 2, 2014

On Monday Williams issued a brief press announcement (below) to say they are one important step closer to purchasing and merging in Access Midstream–the former Chesapeake Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). In fact, they’re a LOT closer…
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C&J Energy Services | Energy Services | Industrywide Issues | M&A

2 Companies Merge to Form Top 5 Frack Services Company
June 27, 2014June 27, 2014

On Wednesday, C&J Energy Services, a smaller completion services company focused on the Permian and Eagle Ford Shale plays, announced they will merge into Nabors Industries, a completion and production company with operations in many on- and off-shore areas, including a major presence in the Marcellus Shale. The $2.86 billion deal will produce a new company using the C&J name but essentially owned by Nabors that will be in the top 5 fracking services companies in the U.S. They will compete with giants like Halliburton and Baker Hughes…
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Energy Services | Industrywide Issues | M&A | New Source Energy

Buyouts in Oilfield Services Sector Impact Marcellus/Utica
June 27, 2014June 27, 2014

A second oilfield services companies merging story today. Yesterday New Source Energy Partners announced their buying out two smaller companies–Erick Flowback Services and Rod’s Production Services. Both companies being purchased are headquartered in Oklahoma but both have meaningful operations in the Marcellus and Utica Shale. The $117 million deal means that New Source’s footprint in the Marcellus/Utica just got a lot bigger…
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Economic Impact | Energy Services | Industrywide Issues | M&A | Pennsylvania | Statewide PA | UIL Holdings

Phila. Gas Works Deal in Jeopardy Due to Vacationing City Council
June 20, 2014June 20, 2014

In March, the Democrat mayor of Philadelphia, Michael Nutter, announced a deal to sell the city-owned Philadelphia Gas Works (PGW) for $1.86 billion (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). UIL Holdings Corporation, a Connecticut-based investor-owned gas and electric utility, is the potential buyer. However, it didn’t take long for the union and a former Enron executive to make a play to screw the deal (see Former Enron Exec Makes “Unethical” Play to Derail PGW Deal). City Council has had three months to review the deal put together by Nutter, but now they’re heading out of town on summer vacation and not coming back until September. Will UIL stick around that long?…
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Energy Services | Fluid Delivery Solutions (FDS) | Industrywide Issues | M&A | Supply Chain

Fluid Delivery Solutions Gets New Owner: Trilantic Capital
June 19, 2014June 19, 2014

Fluid Delivery Solutions LLC (FDS) is an oilfield water management company primarily delivering and storing fresh water to drillers in major shale plays, including the Marcellus and Utica. Yesterday FDS announced they have a new owner: Trilantic Capital Partners, a global private equity firm. The amount of the financial transaction was not disclosed. However, FDS current CEO Dan Dunkelberg and his existing management team will remain at the helm of FDS. So why sell?…
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