M&A

Energy Companies | Industrywide Issues | M&A | Northern Oil & Gas

Northern Oil and Gas Investing $160M in Marcellus/Utica in 2025
December 13, 2024December 13, 2024

Yesterday, Northern Oil and Gas, Inc. (NOG) announced it had entered a Joint Development Program with an unnamed Marcellus/Utica driller to invest $160 million in 2025 for new well drilling. In return, NOG will receive a 15% working interest (i.e., ownership) in the assets. NOG did not identify the driller but called it “one of Appalachia’s most capital efficient operators.” Read More “Northern Oil and Gas Investing $160M in Marcellus/Utica in 2025”
Apex Energy | CNX Resources | Energy Companies | Industrywide Issues | M&A | Pennsylvania | Westmoreland County

CNX Resources Buys Apex Energy for $505M, Adds Pa. M-U Assets
December 6, 2024December 6, 2024

CNX Resources announced yesterday it had struck a deal to buy the assets of Apex Energy II, LLC, a portfolio company of funds managed by Carnelian Energy Capital Management, for $505 million. Apex owns wells, acreage, and pipelines in Westmoreland County, PA. The Apex assets are close to, in some cases adjacent to, CNX’s considerable assets in the region. The deal is expected to close in the first quarter of 2025. Read More “CNX Resources Buys Apex Energy for $505M, Adds Pa. M-U Assets”
CNG/LNG | Exporting | Industrywide Issues | M&A

New Fortress Energy Sells Small Miami LNG Plant to Pennybacker
November 27, 2024November 27, 2024

Miami LNG (click for larger version)

We’ve talked plenty about the big LNG export facilities scattered along the Gulf Coast that export a fair amount of Marcellus/Utica molecules (and the two LNG export sites on the East Coast, both of which export 100% M-U molecules). We now and again talk about some of the smaller LNG export operations, including a couple of small operations along the Atlantic Coast of Florida. This story is about one of the latter. Last week, investment firm Pennybacker Capital Management announced it had closed on purchasing New Fortress Energy’s (NFG) Miami (Florida) LNG business for an undisclosed amount. We don’t have proof, but we suspect that at least some Marcellus/Utica molecules flow to the facility, making this transaction of interest to the MDN audience. Read More “New Fortress Energy Sells Small Miami LNG Plant to Pennybacker”
Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | M&A | Pipelines

Reuters Was Right – Blackstone Paying EQT $3.5B for Pipeline Stake
November 25, 2024November 25, 2024

Just about one month ago, Reuters reported that sources “familiar with the matter” whispered to its reporters that private equity firm Blackstone is “in advanced talks” to acquire minority stakes in the interstate natural gas pipelines now owned by EQT Corp. (following its purchase of Equitrans Midstream) for a whopping $3.5 billion (see Blackstone Seeks to Buy Pipeline Stake from EQT for $3.5 Billion). The sources were right! This morning, EQT issued a press release to announce a deal for Blackstone to invest $3.5 billion in the company’s midstream (pipeline) assets. Read More “Reuters Was Right – Blackstone Paying EQT $3.5B for Pipeline Stake”
DT Midstream | Energy Services | Industrywide Issues | M&A | Pipelines

DT Midstream Buys 2 Interstate Pipelines with M-U Connections
November 20, 2024November 20, 2024

DT Midstream (DTM), headquartered in Detroit, owns major assets in the Marcellus/Utica region and in other regions, such as Haynesville. Yesterday, DTM announced it had cut a deal to buy three FERC-regulated interstate pipelines from Oklahoma-based ONEOK, Inc. for $1.2 billion. Two of the three pipelines flow Marcellus/Utica molecules to Midwestern markets. Read More “DT Midstream Buys 2 Interstate Pipelines with M-U Connections”
Industrywide Issues | Lease & Royalty Payments | M&A

PHX Response to WhiteHawk Energy’s Latest Marriage Proposal: NO!
November 15, 2024November 15, 2024

Runaway Bride

Our observation is that WhiteHawk Energy is smitten with PHX Minerals. For the last 15 months, WhiteHawk has been trying to get PHX down the marriage aisle in any way it can. PHX has repeatedly given WhiteHawk the cold shoulder. WhiteHawk’s latest attempt, which we told you about yesterday, was an appeal to PHX shareholders to pressure the board to sell at $4 per share (see WhiteHawk Energy Keeps Up Public Pressure to Make PHX Merge). PHX didn’t waste any time responding. It was a resounding NO! Read More “PHX Response to WhiteHawk Energy’s Latest Marriage Proposal: NO!”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | M&A

Siren Song: Coterra Energy Buys Permian Assets for $4 Billion
November 14, 2024November 14, 2024

We continue to mourn the loss of Cabot Oil & Gas (100% focused on the Marcellus in northeastern PA) following its merger with Cimarex Energy (an oil driller focused on the Permian and Anadarko basins) in 2021 (see Cimarex Takes Over Cabot, Merged Co. Called “Coterra Energy”). The time and focus and creative thinking and MONEY that could have gone into more (or better) Marcellus drilling now goes to other plays. Case in point: Yesterday Coterra Energy, the new name of the merged Cabot and Cimarex, announced it will buy “certain assets of Franklin Mountain Energy and Avant Natural Resources” located in the Permian for $3.95 billion. That’s $3.95 billion that could have bought a Marcellus or Utica driller instead. Bummer. Read More “Siren Song: Coterra Energy Buys Permian Assets for $4 Billion”
Industrywide Issues | Lease & Royalty Payments | M&A

WhiteHawk Energy Keeps Up Public Pressure to Make PHX Merge
November 14, 2024November 14, 2024

Some 15 months ago, WhiteHawk Energy, headquartered in Philadelphia with ownership of mineral and royalty interests for over 1 million gross unit acres and over 3,400 producing horizontal shale wells between the Marcellus and the Haynesville, proposed marriage to PHX Minerals, based in Fort Worth, Texas, owner of 75,000 leased mineral acres principally located in the SCOOP and Haynesville plays (see WhiteHawk Energy Proposes Forced Merger with PHX Minerals, Inc.). WhiteHawk’s original overtures went unanswered, so it issued a public proclamation of its intent to get PHX down the aisle, willingly or not. PHX answered in August 2023 with a very public “get lost” message (see PHX Minerals Says WhiteHawk Marriage Proposal “Grossly Inadequate”). WhiteHawk is baaaaaccccck! Read More “WhiteHawk Energy Keeps Up Public Pressure to Make PHX Merge”
Energy Companies | Industrywide Issues | M&A | Range Resources Corp

DUG Appalachia: Range Resources Gives a Hard Pass on Pursuing M&A
November 8, 2024November 8, 2024

We have a second post about yesterday’s Hart Energy DUG Appalachia event held in Pittsburgh. One of the sessions was an interview with Dennis Degner, CEO of Range Resources, the very first company to drill a Marcellus well back in 2004. Range is a “pure play” company focusing 100% on the Marcellus/Utica. Over the past couple of years, we’ve seen a flurry of mergers and acquisitions, not only here in the M-U but across other plays as well (particularly in the Permian). During the Q&A discussion with Degner, the topic of M&A came up. Degner explained why he and his company have, and will continue, to sit on the sidelines of the M&A craze. Read More “DUG Appalachia: Range Resources Gives a Hard Pass on Pursuing M&A”
Deep Well Services | Energy Services | Industrywide Issues | M&A

Deep Well Services Sold to United Arab Emirates for $223 Million
November 7, 2024November 7, 2024

The privately-held Deep Well Services (DWS), headquartered in Butler County, PA, is one of our favorite oilfield services companies. DWS was born right here in the Marcellus/Utica in 2008. DWS specializes in “snubbing” work—completing those super-long laterals you read about. Although the company rarely brags publicly about the work it does on behalf of drillers, we happen to know that it has drilled the longest onshore wells in the ~~world~~ Lower 48 states. Great company, great people. However, the news broke yesterday that the company is being sold—to the United Arab Emirates (UAE), a country that is a longstanding member of OPEC+.

PLEASE NOTE: Our original post has been edited to correct a few factual errors.

Read More “Deep Well Services Sold to United Arab Emirates for $223 Million”
Energy Companies | EQT Corp | Equinor/Statoil | Industrywide Issues | M&A | Pennsylvania | Statewide PA

EQT Sells Remaining Nonop Assets in NE Pa. for $1.25 Billion
October 30, 2024October 30, 2024

As part of its third quarter update, EQT Corporation, now the second-largest natural gas producer in the U.S., dropped the bombshell that it has completely divested from the remaining non-operated wells it owns in northeastern Pennsylvania, selling the assets to Norwegian company Equinor (formerly known as Statoil) for $1.25 billion. You may recall in April, EQT did a deal with Equinor to swap land in Pennsylvania and Ohio, plus receiving $500 million from Equinor to sweeten the pot (see Equinor Swaps Acreage with EQT in PA & OH, Exits Operated US Shale). Yesterday’s deal is for the remainder of the wells where EQT doesn’t own the full rights but only a portion of them and doesn’t run the operations. The wells are majority-owned and operated by Expand Energy, the successor to Chesapeake Energy, following the merger of Chesapeake with Southwestern Energy. Read More “EQT Sells Remaining Nonop Assets in NE Pa. for $1.25 Billion”
Industrywide Issues | M&A

WhiteHawk Energy Renews Public Proposal to Acquire PHX Minerals
October 15, 2024November 14, 2024

Some 15 months ago, WhiteHawk Energy, headquartered in Philadelphia with ownership of mineral and royalty interests for over 1 million gross unit acres and over 3,400 producing horizontal shale wells between the Marcellus and the Haynesville, proposed marriage to PHX Minerals, based in Fort Worth, Texas, owner of 75,000 leased mineral acres principally located in the SCOOP and Haynesville plays (see WhiteHawk Energy Proposes Forced Merger with PHX Minerals, Inc.). WhiteHawk’s original overtures went unanswered, so it issued a very public proclamation of its intent to get PHX down the aisle, willingly or not. PHX answered in August 2023 with a very public “get lost” message (see PHX Minerals Says WhiteHawk Marriage Proposal “Grossly Inadequate”). Since that time, it’s been quiet, at least publicly. Behind the scenes, it’s been busy. Read More “WhiteHawk Energy Renews Public Proposal to Acquire PHX Minerals”
Chesapeake Energy | Energy Companies | Industrywide Issues | M&A | Southwestern Energy

Chesapeake & Southwestern Complete Merger; Now #1 U.S. Gas Driller
October 2, 2024October 2, 2024

Move over EQT Corporation, there’s a new number one natural gas producer in the U.S. Yesterday, Chesapeake Energy announced that its buyout of and merger with Southwestern Energy in a $7.4 billion deal was completed. The newly merged company was renamed Expand Energy Corporation and will begin trading on the NASDAQ stock market today under the ticker “EXE”. As of today, Expand produces more natural gas than EQT. The big difference is that Expand’s production comes from both the Marcellus/Utica and the Haynesville, whereas EQT’s production is 100% from the M-U. Read More “Chesapeake & Southwestern Complete Merger; Now #1 U.S. Gas Driller”
Industrywide Issues | M&A

Axis Merges with Brigade to Form #1 U.S. Well Services Co.
October 2, 2024October 2, 2024

Two oilfield services companies—Axis Energy Services LLC and Brigade Energy Services LLC—jointly announced the closing of an agreement to merge and form the nation’s largest well servicing company. The new company will retain the Axis Energy name and will remain headquartered in Dallas, TX. According to Axis, the transaction creates the nation’s leading company for completion services, workover solutions, and plug and abandonment operations. The newly combined company boasts more than 1,700 employees and 200 active and marketable workover rigs—the largest single fleet in the industry. The company has a “strong presence” in the Marcellus/Utica. Read More “Axis Merges with Brigade to Form #1 U.S. Well Services Co.”
Dominion Energy | Enbridge | Energy Services | Industrywide Issues | LDCs | M&A | North Carolina

Sale of 3rd & Final LDC from Dominion to Enbridge Now Complete
October 2, 2024October 2, 2024

In September 2023, Dominion Energy and Enbridge co-announced that Dominion had agreed to sell the company’s remaining natural gas local distribution companies (LDCs) that Dominion owns to Enbridge for $14.0 billion, which includes $9.4 billion in cash plus the assumption of debt (see Dominion Energy Loses Mind – Sells Remaining LDC NatGas Businesses). The deal includes three LDCs (local utility companies)—The East Ohio Gas Company, Public Service Company of North Carolina, and Questar Gas Company (along with Wexpro Company). The first of the three deals, the East Ohio Gas Company, officially changed hands in March of this year (see Sale of East Ohio Gas Co. from Dominion to Enbridge Now Complete). The second deal, Questar Gas (serving customers in the western U.S.), closed in June of this year (see Enbridge Completes Acquisition of Questar Gas Company). The third and final LDC deal, Public Service Company of North Carolina (PSNC), closed yesterday.
Read More “Sale of 3rd & Final LDC from Dominion to Enbridge Now Complete”
Chesapeake Energy | Energy Companies | Industrywide Issues | M&A | Southwestern Energy

Chesapeake & Southwestern Merger to Close Next Week; New Name
September 27, 2024September 27, 2024

It’s the end of an era. Chesapeake Energy was founded in 1989 by Aubrey McClendon and Tom L. Ward with an initial investment of $50,000. The flamboyant McClendon, who became the CEO, named the company after the Chesapeake Bay due to his love of the region. He rapidly grew his company, headquarter in Oklahoma City, by doing big, audacious deals to lock up large tracts of acreage for gas drilling. Chesapeake, now helmed by one of McClendon’s old friends and lieutenants, Nick Dell’Osso (formerly CFO), announced a deal to buy out and merge with Southwestern Energy earlier this year (see Deal is Done! Chesapeake & Southwestern Announce $7.4B Merger). Yesterday, Dell’Osso announced the final merger, which the Bidenistas had delayed, will close soon, likely next week. The combined company will no longer be called Chesapeake Energy or Southwestern Energy but will be rebranded as (trumpet fanfare)…Expand Energy Corporation. Read More “Chesapeake & Southwestern Merger to Close Next Week; New Name”