M&A

Economic Impact | Industrywide Issues | M&A

KKR Launches New $2B Fund – Now in Hunt for NA Shale Investments
March 6, 2014March 6, 2014

Kohlberg Kravis Roberts (KKR) is a bigtime global investment firm. KKR was founded by Henry Kravis and George Roberts in 1976 and is still led by them. They have gobs of money that they invest, and according to a press release they issued yesterday, they have a nice pile of money they want to invest in shale plays–$2 billion of cash. KKR has just launched their Energy Income and Growth Fund I, or EIGF for short. The I seems to indicate there may at some point be a II and so on. The aim of the new fund is to invest the money in North American unconventional oil and gas resources. (Calling Aubrey McClendon…We’ve spotted another pile of cash that’s yours for the takein’!)

Here’s the announcement from KKR about the fund and the types of shale investments they’re looking to make…
Read More “KKR Launches New $2B Fund – Now in Hunt for NA Shale Investments”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues | M&A

Crosstex, Devon Name Names of Board & Leaders for New EnLink
February 28, 2014February 28, 2014

MDN has chronicled the marriage of Crosstex Energy (a midstream company) and Devon Energy’s midstream division (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds). The new entity will take on the name EnLink Midstream and will continue to have major operations in the Marcellus/Utica region. Not every t has been crossed and i dotted, yet. The two are close to tying the knot–the shareholders of both companies need to approve the deal. But it’s a foregone conclusion that the deal is happening and will happen very soon.

It comes as no surprise that the two companies have today announced who will be on the board of directors for the new EnLink operation, and who will lead it as executive management. Here is the announcement that names names for the coming EnLink when the merger is finalized:
Read More “Crosstex, Devon Name Names of Board & Leaders for New EnLink”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues | M&A | Pipelines | Processing Plants

A Peek Behind the Curtain of Crosstex/Devon Midstream Marriage
February 4, 2014February 4, 2014

For a number of months, MDN has told you the story/news of the merger between Crosstex Energy (a Dallas, TX company) and Devon Energy (Oklahoma City, OK company). It’s an important story because both have a major presence in the Marcellus/Utica region. Essentially Devon Energy, a driller with a major midstream division, bought out Crosstex, a midstream company, and merged the two operations leaving Crosstex in command of the newly created midstream entity. The newly formed subsidiary company was recently named EnLink Midstream (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds).

An article in the Dallas Morning News about the merger caught our eye because it profiles the people involved and how the merger happened. We’re not sure that the story reveals any new, salient news about the deal–but it does reveal the depth of experience and character of the people involved. And it inspires confidence that this particular merger, a merger in which no one lost their job, portends very good things for the northeast where EnLink will continue to grow and expand. We’d call it a “here’s why you should feel good about this merger and doing business with these guys” kind of story…
Read More “A Peek Behind the Curtain of Crosstex/Devon Midstream Marriage”
Energy Companies | Energy Services | Gulfport Energy | Industrywide Issues | M&A | MarkWest Energy | Ohio | Ohio Gathering | Pipelines | Processing Plants | Statewide OH | Summit Midstream

Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering
January 29, 2014January 29, 2014

Last December MDN told you that Summit Midstream was buying out Gulfport Energy’s share of the Ohio Gathering pipeline and processing system (see Summit Midstream Buys Gulfport’s Interest in Ohio Gathering). As we said at the time, the deal appears complicated on paper with multiple names (like Blackhawk Midstream), but the bottom line was/is that Summit will be the 40% owner and MarkWest Energy will remain the 60% owner of the Ohio Gathering system.

Yesterday, in an announcement by Summit that’s equally dense with details (likely written by lawyers), Summit announced they’ve closed the Ohio Gathering deal. That’s the sum total of this announcement–that the deal is now done:
Read More “Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering”
Industrywide Issues | M&A

PwC: Marcellus, Other Shale Play M&A Deals Heat Up in 2013
January 29, 2014January 29, 2014

According to one of the top accounting/consulting firms in the world, PricewaterhouseCoopers (PwC), mergers & acquisitions (M&A) activity in the oil and gas sector in the U.S. heated up in 2013 and “included a strong uptick in the last three months of the year.” Overall there were 182 total deals accounting for $115.9 billion in total deal value for 2013. Also according to PwC, shale was an important part of that–in particular the Marcellus Shale.

PwC tracks M&A deals worth $50 million or more. During 4Q13, there were four such deals in the Marcellus, totaling $1.1 billion. The Utica had two deals in 4Q13 worth $263 million. For all of 2013, there were 79 shale deals (across all shale plays) that contributed $53.2 billion–that is, shale deals represented half of all oil & gas M&A deals during 2013. Here’s the announcement and analysis from PwC (sorry, we couldn’t score a copy of the full report, just the summary):
Read More “PwC: Marcellus, Other Shale Play M&A Deals Heat Up in 2013”
Industrywide Issues | M&A | Supply Chain

Oilfield Services Company Canary Buys Wellhead Competitor
January 24, 2014January 24, 2014

Canary says it is the country’s largest “independent” wellhead services company. They rent equipment and personnel to help energy companies frack wells, and they install wellheads on those wells. Canary, now a $100 million company, announced yesterday that they’ve bought out a smaller competitor: American Wellhead. American has a strong operation in the Permian Shale basin (Texas) which Canary wanted.

So why is this news for MDN? Because Canary has extensive operations in both the Marcellus and Utica Shale, servicing drillers in the northeast. And because when a company like Canary expands the way they have been expanding, it may mean opportunity for other businesses that work with, or sell to, companies like Canary. And because drillers in the northeast may be interested in knowing what their vendor is up to. For a variety of reasons, we thought this press release from Canary might be interesting for our readers…
Read More “Oilfield Services Company Canary Buys Wellhead Competitor”
Dominion Energy | Energy Services | Industrywide Issues | M&A | NiSource

Midstream Melee: Dominion in the Hunt to Buy NiSource?
January 21, 2014January 21, 2014

The rumor mill is buzzing with speculation that NiSource, a $10.6 billion utility and midstream company with major operations in the Marcellus and Utica Shale, is the object of desire for Dominion, a powerhouse utility and midstream company worth $38 billion. Everyone’s denying everything, but “inside sources” assure the Associated Press that Dominion is in “advanced stages” of raising the $10B+ they need to make a purchase, and that’s causing NiSource’s stock to skyrocket.

Here’s the rumor, speculation and (very few) facts as we know them:
Read More “Midstream Melee: Dominion in the Hunt to Buy NiSource?”
Crime | Industrywide Issues | M&A | Mahoning County | Ohio

Denver Co Buys OH Wastewater Polluter D&L Energy for $20.7M
November 21, 2013

MDN has long chronicled the bad actions of Ben Lupo, the guy who directed one of his employees to dump thousands of gallons of frack wastewater down a drain that eventually ended up in the Mahoning River near Youngstown, OH (see Youngstown Business Dumped >200K Gal of Untreated Wastewater). The business that did the dumping was Hardrock Excavating, but because Lupo owns several businesses and because they’re all so intertwined together, another of his businesses, D&L Energy, got caught in the mess and ended up in bankruptcy (see OH Wastewater Dumper D&L Energy Gets Business Death Sentence).

For a time, the Ohio Dept. of Natural Resources would not let D&L sell off it’s assets (see D&L Wants to Sell Remaining Assets at Auction, ODNR Says No). However, they finally agreed to a plan for D&L to auction its assets and that happened last week. The U.S. Bankruptcy Court of the Northern District of Ohio approved the auction yesterday. Who bought D&L? And what does it mean for landowners who signed with D&L (the company owned over 30,000 acres of shale drilling leases)? Read on…
Read More “Denver Co Buys OH Wastewater Polluter D&L Energy for $20.7M”
Industrywide Issues | M&A | Ohio | Statewide OH

Latest Shale M&A Mania to Hit Ohio…Banks?!
November 18, 2013November 18, 2013

It doesn’t surprise when we hear about mergers and acquisitions (M&As) between “producers” (i.e. drillers) in the Marcellus and Utica Shale–for example the recent purchase of Oxford Oil by Eclipse Resources (see Eclipse Resources buys Oxford Oil, Adds Another 49K Utica Acres). Nor does it surprise when we hear about M&As between midstream–pipeline and processing plants–companies (see Crestwood/Inergy Complete Their Merger Today, Worth $8B).

However, what may surprise you is to hear that the Marcellus/Utica is also driving an increase of M&As among banks–particularly in eastern Ohio…
Read More “Latest Shale M&A Mania to Hit Ohio…Banks?!”
Cameron County | Endeavour International | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Samson Investment Co

Endeavour Intl & Samson Exploration Form 50/50 Marcellus JV
November 14, 2013November 14, 2013

One of the Marcellus Shale’s smaller drilling/midstream companies is Endeavour International, with 15,800 acres of leased Marcellus acreage according to NaturalGasIntel.com. Endeavour announced yesterday they’ve sold a 50% stake in their Marcellus assets to Samson Exploration, forming a joint venture with Samson. The amount of cash involved in the transaction was undisclosed.

According to the announcement, Endeavour will use the money from Samson to complete three previously drilled Marcellus wells in Cameron County, PA and hook them up to an EQT Corp. gathering pipeline. The wells should be online by the middle of 2014…
Read More “Endeavour Intl & Samson Exploration Form 50/50 Marcellus JV”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | Industrywide Issues | M&A | Pipelines | Processing Plants

Devon Energy & Crosstex Energy Form New Midstream Company in JV
October 21, 2013October 21, 2013

Devon Energy (driller with midstream assets) and Crosstex Energy (midstream company) announced today they are merging their midstream operations into a new company. The new midstream company, which will have assets in both the Marcellus and Utica Shale (as well as other shale basins) will be majority owned by Devon. In fact, the biggest customer for the new joint venture will be…Devon itself. The announcement says Devon will dedicate drilling from 800,000 of its leased acres to the new (and as yet unnamed) midstream company.

The boards of directors for both Devon and Crosstex have already voted to OK the merger. Here’s the extensive announcement issued today, which contains details of the somewhat complicated corporate structure of the new company:
Read More “Devon Energy & Crosstex Energy Form New Midstream Company in JV”
Energy Services | Industrywide Issues | M&A | PVR Midstream | PVR Partners | Regency Energy Partners

Marcellus/Utica Midstreamer PVR Bought by Regency Energy for $5.6B
October 11, 2013October 11, 2013

PVR Partners, formerly known as Penn Virginia Resource Partners, will now just be formerly. Period. PVR is a major midstream company (pipelines and processing plants) with big operations in the PA Marcellus Shale after buying Chief Gathering last year (see PVR Buys Chief Gathering/Marcellus Pipelines for $1B). They also announced last year that they would spend $380 million to expand pipelines in NE PA (see PVR Announces $380 Million Investment in NE PA Marcellus), and very recently PVR announced a deal with Hess to build a pipeline system in eastern OH (see PVR Partners to Build $150M Utica Shale Pipeline System for Hess).

Yesterday Texas-based Regency Energy Partners and PVR announced that Regency will buy out PVR for $5.6 billion. Regency, also a midstream company, owns some assets in the Marcellus/Utica, but most of their operations are in the Southwest and West, so this purchase gives them a major presence in the rapidly-expanding midstream sector of the Marcellus/Utica. After the buyout is completed, the PVR name will be no more…
Read More “Marcellus/Utica Midstreamer PVR Bought by Regency Energy for $5.6B”
Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | M&A

Crestwood/Inergy Complete Their Merger Today, Worth $8B
October 7, 2013October 7, 2013

MDN told you last week that Crestwood Midstream and Inergy Midstream were close to consummating the merger of their two companies and that it would be coming soon (see Crestwood/Inergy $7B Merger Update: Combined Boards Announced). Looks like soon is today.

A press release from Friday says today, Monday, the final paperwork will be filed and the two companies will officially be merged. The new company will take the name Crestwood Midstream Partners and starting tomorrow it will trade on the New York Stock Exchange with the ticker symbol of CMLP. The two companies together, contrary to previous estimates, will be worth $8 billion (not $7B previously reported), a true midstream giant…
Read More “Crestwood/Inergy Complete Their Merger Today, Worth $8B”
Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | M&A

Crestwood/Inergy $7B Merger Update: Combined Boards Announced
October 4, 2013October 4, 2013

In May, MDN told you that Crestwood Midstream, with pipelines and processing plants in the Marcellus, and Inergy Midstream, America’s fourth largest propane retailer, trying to establish a new underground propane storage facility near Watkins Glen, NY but is being frustrated by the state’s DEC, would merge to form a $7 billion midstream behemoth (see M&A Mania: Crestwood Midstream & Inergy will Merge). In June the two companies tied 2/3 of the knot (see Crestwood Midstream & Inergy Tie 2/3 of the Merger Knot).

The companies remain at a 2/3 merger–at this stage. However, they have announced the composition of the boards of directors (plural) for Inergy. There is Inergy GP the parent/umbrella company, and Inergy Midstream GP, which will merge with Crestwood. Both boards of directors (see below) contain Crestwood people on them starting next week. So it appears the consummation of this merger marriage will happen soon…
Read More “Crestwood/Inergy $7B Merger Update: Combined Boards Announced”
Eclipse Resources | Energy Companies | Industrywide Issues | M&A | Ohio | Oxford Oil Company | Statewide OH | Utica Shale

Eclipse Resources buys Oxford Oil, Adds Another 49K Utica Acres
June 28, 2013

State College-based Eclipse Resources, previously with 41,000 Utica Shale acres in eastern Ohio, has just picked up another 184,000 acres in Ohio by buying out The Oxford Oil Company. Some 49,000 of those new acres are in Belmont, Guernsey, Monroe and Noble counties–Utica-rich areas in the eastern part of the state.

According to the Eclipse announcement, Oxford Oil will be renamed Eclipse but will become a subsidiary, continuing to function as before. According to Eclipse CEO Ben Hulburt, this purchase makes Eclipse one of the largest acreage holders in the “core” of the Utica Shale play…
Read More “Eclipse Resources buys Oxford Oil, Adds Another 49K Utica Acres”
Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | M&A

Crestwood Midstream & Inergy Tie 2/3 of the Merger Knot
June 20, 2013June 20, 2013

In early May, MDN told you that Crestwood Midstream (with pipelines and processing plants in the Marcellus) and Inergy Midstream will merge to form a $7 billion midstream behemoth (see M&A Mania: Crestwood Midstream & Inergy will Merge). Yesterday, the first step along the road to marital bliss was completed when Crestwood paid $80 million cash for Inergy, L.P. and both Crestwood and Inergy did a complicated stock swap. The third and final step on the merger road will happen in the third quarter when Crestwood Midstream will be formally merged into a subsidiary of Inergy Midstream.

The announcement from yesterday updating us on Crestwood and Inergy’s elaborate dance:
Read More “Crestwood Midstream & Inergy Tie 2/3 of the Merger Knot”