M&A

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…
Read More “Repsol Eyes Talisman Energy for “Assets” – Takeover Target?”
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…
Read More “3 Investment Cos Buy Fluid Delivery Solutions – Terms Not Disclosed”
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?…
Read More “Fluid Delivery Solutions Gets New Owner: Trilantic Capital”
Access Midstream Partners | Energy Services | Industrywide Issues | M&A | Pipelines | Processing Plants | Williams

Williams/Access Midstream Deal Continues to Reverberate
June 17, 2014June 17, 2014

The news continues to roll in about the proposed merger/buyout between Williams and Access Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). As MDN reported yesterday, such a merger has the potential to create the country’s largest midstream company (by market capitalization), potentially displacing Kinder Morgan from that lofty throne. The stock market certainly likes what it sees in the proposed merger. Williams’ stock ended trading yesterday up 19% in a single day, closing at $56.02 per share. More on the proposed deal and what Williams CEO Alan Armstrong said yesterday about it…
Read More “Williams/Access Midstream Deal Continues to Reverberate”
Access Midstream Partners | Energy Services | Industrywide Issues | M&A | Williams

Big News: Williams Partners Buying Access Midstream for $6B
June 16, 2014June 16, 2014

Really big news in the midstream (pipelines & processing plants) world, not only for the Marcellus and Utica Shale, but for other major U.S. shale plays as well. Williams announced yesterday (Sunday!) that they are buying Access Midstream for $6 billion (actually $5.995B, but we’re rounding it up). Access, you may recall, is the renamed and former division of Chesapeake Energy called Chesapeake Midstream (see Chesapeake Midstream Changes Name to Access Midstream).Williams says they will pay for half of the purchases with “equity,” meaning ownership via stock and shares in Williams, and the other half with debt borrowing and cash on hand in the kitty. The proposed merger is expected to be completed later this year. What does it mean for the Marcellus/Utica?…
Read More “Big News: Williams Partners Buying Access Midstream for $6B”
Belmont County | EMG | Energy Services | Guernsey County | Harrison County | Industrywide Issues | M&A | MarkWest Energy | Noble County | Ohio | Pipelines | Processing Plants | Summit Midstream

Summit Midstream Cuts $377M Check for 40% of Ohio Gathering
June 4, 2014June 4, 2014

Ohio Gathering is a midstream (pipelines and processing plants) company operating in the southeastern Ohio area–Harrison, Guernsey, Belmont, Noble and Monroe counties. It is a joint venture owned by MarkWest, EMG and until recently, Gulfport Energy. In January MDN told you that Summit Midstream would be buying Gulfport’s 40% ownership interest (see Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering). These things take time with lots of lawyers and due dillgence and enough paperwork to re-paper the walls in a dozen homes. The paperwork is done and Summit has cut the check–a $377 million check that will go into the bank account of MarkWest and EMG…
Read More “Summit Midstream Cuts $377M Check for 40% of Ohio Gathering”
American Energy Partners | Chesapeake Energy | Energy Companies | Industrywide Issues | M&A

Rumor Mill: Aubrey McClendon Buying Enduring Resources
May 12, 2014May 12, 2014

Reuters is reporting the rumor that Aubrey McClendon, former CEO of natgas behemoth Chesapeake Energy and current CEO of a new startup–American Energy Partners–is close to sealing a deal to buy Enduring Resources. Enduring is a shale driller with active rigs in both Utah and Texas. Rumor has it that the deal values Enduring at $2 billion, which is about how much money Aubrey has raised so far for his drilling program in the Utica Shale.

We told you before and will tell you again–never sell Aubrey McClendon short. Chesapeake (and corporate raider Carl Icahn) will come to rue the day they booted Aubrey out the door. Here’s what Reuters says about the rumor…
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Anchor Drilling Fluids | Energy Services | Industrywide Issues | M&A

Downstream Petrochemical Co Buys Upstream Frack Fluid Co
March 27, 2014March 27, 2014

Calumet Specialty Products Partners, a company that processes crude oil and other feedstocks into customized lubricating oils, solvents, waxes and asphalt used in consumer, industrial and automotive products, has just purchased Anchor Drilling Fluids outright for $235 million in cash. 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. It certainly makes sense for Calument, a huge chemical company already in the “downstream” petrochemical space to move into chemical manufacturing for the “upstream” exploration and production space.

You may recall Calument is also building a gas-to-liquids (GTL) plant at their Karns, PA location to convert Marcellus Shale gas to diesel fuel (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA). Here’s yesterday’s announcement that Calumet has plunked down $235 million for Anchor Drilling Fluids…
Read More “Downstream Petrochemical Co Buys Upstream Frack Fluid Co”