Crosstex Energy Gets a Name Change, Merger with Devon Proceeds
In October, Devon Energy (a major shale driller in several plays with midstream assets) and Crosstex Energy (a sizable midstream company) announced they will merge their midstream operations into a new company (see Devon Energy & Crosstex Energy Form New Midstream Company in JV). Both companies have major operations in the Marcellus/Utica. At the time of the announcement the new company was unnamed. No longer. Yesterday Devon and Crosstex announced that Crosstex would change its name to the name of the newly combined venture (which is majority owned by Devon). The new name is EnLink Midstream. Barry Davis, CEO of Crosstex will become (or remain) CEO of EnLink.
May we net-net this? Essentially Devon has purchased Crosstex and turned it into a semi-autonomous subsidiary, keeping the Crosstex management team in place. Here’s the statement issued yesterday with details of the legal structure for the new company, which on paper will be two companies for investment purposes–an LLC and an LP (master limited partnership)…
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An important development in two New York court cases that potentially impacts shale drilling in the state–and no, neither is (directly) about the Dryden or Middlefield town ban cases currently before New York’s highest court, the Court of Appeals. The two cases we’re referring to are (1) the City of Binghamton and their ill-fated “moratorium” thrown out by a lower court judge in 2012 and subsequently appealed, and (2) a similar moratorium in the Town of Sidney, NY.
MDN has previously told you, on a number of occasions, that an early indicator of where drilling will soon heat up is to watch the local county land recorder’s office–the place where they keep official copies of property deeds. If it’s crowded in the local land records office, that means drillers are ready to make offers to landowners and want to start drilling. Of course they first have to figure out who owns the mineral rights, hence the activity in title searchers and abstactors checking deeds.