Proactive’s Post

On May 28, 2024, Energy Transfer Partners LP announced a definitive agreement that will see Energy Transfer acquire WTG Midstream Holdings LLC in a $3.25 billion transaction. Currently owned by Stonepeak Infrastructure, Diamondback Energy, and affiliates of the estate of J.L. Davis, the acquisition will bring a 6,000-mile natural gas pipeline system into the fold in Martin; Howard; Upton; Reagan and Irion Counties, Texas and eight gas processing plants with a total capacity of 1.3 Bcf/d of natural gas. Two more plants will open the third quarter of 2024 and the third quarter of 2025, respectively. WTG’s assets will bring increased access to growing supplies of natural gas and NGL volumes in the Midland Basin as well as a 20% interest in the 425-mile, NGL-carrying BANGL Pipeline and its access to Gulf Coast markets. The transaction is expected to close in the third quarter of 2024. #acquistion #MAPSearch #ENvision #gis #pipeline

Oklahoma Takes the Oil and Gas Stage Today – All Ya’ll Reese Energy Consulting is going full-tilt boogie Okla., for all ya’ll this Thursday. (If you’re new to this second-person plural pronoun, Okies, Texicans, and those of us in the Midcontinent tend to use it indiscriminately with zero apologies.) Okla-City-based Chesapeake Energy has announced a company name change following this year’s $7.4 billion merger with Southwestern Energy that’s expected to close next week. The combo creates the nation’s largest natural gas producer upsetting EQT’s number one position it’s held since 2017. Of all the mega merger combinations of late, Chesapeake’s name-change to now Expand Energy might be the most bittersweet for us and all ya’ll, given its beloved founder and extraordinary shale gas history. Nevertheless, time and business go on, and companies reinvent themselves to do what they do best. Meanwhile, Denver-based Validus Energy has won the lottery ticket to snap up Tulsa-based Citizen Energy in a $2 billion deal, merging the two largest Mid-Con rivals with operations in Okla., Kans., Texas, and Ark. This marks the second acquisition this year by Validus, which scooped up Mid-Con assets from Continental Resources back in February for $450 million. A little backstory here: Validus in 2022 sold its Eagle Ford position to Okla. City-based Devon Energy for $1.8 billion—more than double the price Validus paid for those assets a year earlier from Ovintiv. The same year, Citizen Energy closed two deals that gave the company “a dominant Midcontinent footprint” to include 326,000 net acres, 720 operated wells, and 86 MBOED, which set it on a trajectory to become one of the top private producers in the U.S. What do you think? Learn more about REC and our natural gas expertise and consulting services at https://lnkd.in/ewhkGFa. For more information about our latest online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.

Diversified Energy Company completes asset acquisition in East Texas @div_energy #LSE #NYSE #DEC. Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) told investors it has completed its acquisition of operated natural gas assets in East Texas, for a gross headline figure of $69 million. The net price, after adjustments, was confirmed by the company as $49 million. It adds some 70 billion cubic feet equivalent (Bcfe) of ‘proved developed producing’ (PDP) reserves, worth $89 million. Production across the acquired assets currently amounts to about 21 million cubic feet equivalent per day (mmcfepd), representing some $19 million of estimated earnings (adjusted... http://ow.ly/ypkK105NnGh

Oklahoma Takes the Oil and Gas Stage Today – All Ya’ll Reese Energy Consulting is going full-tilt boogie Okla., for all ya’ll this Thursday. (If you’re new to this second-person plural pronoun, Okies, Texicans, and those of us in the Midcontinent tend to use it indiscriminately with zero apologies.) Okla-City-based Chesapeake Energy has announced a company name change following this year’s $7.4 billion merger with Southwestern Energy that’s expected to close next week. The combo creates the nation’s largest natural gas producer upsetting EQT Corporation's number one position it’s held since 2017. Of all the mega merger combinations of late, Chesapeake’s name-change to now Expand Energy might be the most bittersweet for us and all ya’ll, given its beloved founder and extraordinary shale gas history. Nevertheless, time and business go on, and companies reinvent themselves to do what they do best. Meanwhile, Denver based Validus Energy has won the lottery ticket to snap up Tulsa-based Citizen Energy in a $2 billion deal, merging the two largest Mid-Con rivals with operations in Okla., Kans., Texas, and Ark. This marks the second acquisition this year by Validus, which scooped up Mid-Con assets from Continental Resources back in February for $450 million. A little backstory here: Validus in 2022 sold its Eagle Ford position to Okla. City-based Devon Energy for $1.8 billion—more than double the price Validus paid for those assets a year earlier from Ovintiv. The same year, Citizen Energy closed two deals that gave the company “a dominant Midcontinent footprint” to include 326,000 net acres, 720 operated wells, and 86 MBOED, which set it on a trajectory to become one of the top private producers in the U.S. What do you think? Learn more about REC and our natural gas expertise and consulting services at https://lnkd.in/ewhkGFa. For more information about our latest online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.

ONEOK announces the sale of its three interstate #naturalgas #pipelines to DT Midstream for $1.2 billion, a transaction aimed at optimizing its asset portfolio and strengthening its financial flexibility. L’article ONEOK sells three natural gas pipelines to DT Midstream for $1.2 billion est apparu en premier sur energynews.

i3 ENERGY PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) has announced its capital budget and production guidance for 2024, earmarking US$50.9 million to spend drilling 15 gross wells across its operations in Canada. The company, in a statement, told investors that his injection is expected to grow production to between 20,250 and 21,250 barrels of oil equivalent per day by year-end. "Following very successful initiatives in the first half of the year to increase our balance sheet strength and liquidity, i3 is extremely pleased to announce a substantial US$51 million capital programme for the remainder of the year, which will drill a diverse group of oil and gas wells across our portfolio in Canada,” chief executive Majid Shafiq said. More at #Proactive #ProactiveInvestors #i3energy http://ow.ly/icto105qMev

Quantum Capital Group, a private equity firm, has completed the acquisition of Caerus Oil & Gas and is dividing Caerus' assets in Colorado and Utah between two of its portfolio companies. This deal highlights the growing interest of buyout firms in the oil and gas sector, which has seen a surge in deals following the post-Covid recovery in energy prices. Notably, this transaction is a rare instance of a secondary buyout in the U.S. oil and gas industry, as corporate buyers have traditionally been the ones acquiring private equity-backed energy assets.

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has completed the acquisition of natural gas properties and related facilities in eastern Texas from Crescent Pass Energy. The purchase price of $106 million was adjusted to a net price of $101 million after customary adjustments. Acquired assets include Proved Developed Producing (PDP) reserves of approximately 170 billions of cubic feet equivalent and current net production of 38 million cubic feet per day.  The acquisition's estimated Next Twelve Months (NTM) Adjusted EBITDA is projected to be $26 million, leading to a purchase price multiple of 3.8x. Diversified is funding the acquisition through the issuance of 2.25 million new ordinary shares and $71 million in cash. These new shares represent approximately 4.77% of the company’s existing issued share capital. Diversified’s chief executive Rusty Hutson stated: "We are excited to announce the completion of... More at #Proactive #ProactiveInvestors http://ow.ly/2luF105FAk1

Sector-Focused Oil and Gas PE Firms: The Unsung Heroes of High Returns 🌟 Hats off to the sector-focused oil and gas private equity firms! 🎩 These specialized players armed with the deep-sector knowledge have been delivering stellar exits while the large generalist firms fled the sector, chasing renewables and infrastructure investments. Gone are the days of big generalist PE firms, riddled with inefficiencies and bloated with individuals more interested in salaries and bonuses from hefty management fees than in driving true value. 🚫💼 The future belongs to sector-focused PE firms, ready to outshine and outperform these mammoths. Kudos to the EnCap Investments L.L.C Quantum Capital Group and many others in supporting the Energy Industry. #OilAndGas #PrivateEquity #SectorFocused #InvestmentSuccess #SpecializedInvesting #HighReturns #EnergySector #PrivateEquityExcellence #LinkedInFinance #privateequity #energyfinance

🚨Upstream M&A Update: Vermilion Energy has agreed to acquire KKR‐backed Westbrick Energy Ltd. for C$1.075 billion (around US$748 million). Under the agreement, Vermilion will gain upstream assets covering about 770,000 net acres in the southeastern Deep Basin in #Alberta, as well as four operated gas plants with a total capacity of 102 million cubic feet per day of gas. This transaction positions Vermilion among the top five producers in the Deep Basin, increasing its pro‐forma regional output to around 75,000 #barrels of oil equivalent per day (#boepd) and increasing total #corporate production by an estimated 57% to 135,000 boepd. The deal also addresses Vermilion’s expected production decline from international assets and reliance on mature fields by adding predominantly #early #producing, #high‐growth assets. In addition, Vermilion’s proved plus probable (#2P) reserves will grow by roughly 60% to about 686 million boe, with further upside from a significant number of #unbooked #drilling #locations that boast #pre‐tax internal rates of return of 60% to 100% (compared to approximately 40% for the existing #inventory). Financially, while Vermilion’s #realized gas prices will decrease slightly with the addition of more #Canadian gas—settling around C$4 per thousand cubic feet (Mcf)—the company’s international pricing advantage is expected to remain above the domestic peer average of roughly C$1.50 per Mcf, ensuring stable free cash flow to support #dividends and #balance sheet strength. Meanwhile, the deal allows KKR to exit major part of its #upstream #investments in #Canada—thereby reducing exposure to subdued natural gas prices—and shift its focus to its #midstream dominated portfolio companies in Canada. 🔍 Looking for more insights? Explore Rystad Energy's upstream M&A solutions by reaching out to palash.ravi@rystadenergy.com