Mergers & Acquisitions

Source: Houston Chronicle

Callon makes case for Carrizo merger amid shareholder opposition

Source: Houston Chronicle Houston oil and gas producer Callon Petroleum is going on the offensive to sell its shareholders on its proposed acquisition of Carrizo Oil & Gas after one of Callon’s top shareholders came out against the deal. While Callon would acquire for $1.2 billion Carrizo, the sale is pitched as a merger of near-equals of Houston-based producers in an all-stock deal. But New York hedge fund manager Paulson & Co., which holds nearly 10 percent of Callon’s shares, is contending it’s a bad deal. “The strategic and financial benefits of Callon’s combination with Carrizo are compelling,” said Callon Chief Executive Joe Gatto. The deal would combine Callon, which focuses exclusively on the booming Permian Basin, with Carrizo’s position in both the Permian and South Texas’ Eagle Ford shale. Gatto argued that scale is needed to make Callon more competitive and that the more mature Eagle Ford production would[Read More…]

September 26, 2019 - 11:45 am Closing Bell Story, Energy News, Mergers & Acquisitions
SemGroup to be Acquired by Energy Transfer in $5 Billion Transaction

SemGroup to be Acquired by Energy Transfer in $5 Billion Transaction

  SemGroup to merge with one of the largest, diversified midstream energy companies in North America Benefits of scale will strengthen and accelerate growth opportunities for SemGroup assets and improve access to capital markets SemGroup shareholders to benefit from significant, immediate premium and future upside of combined company SemGroup® Corporation (NYSE: SEMG) today announced it has entered into a definitive merger agreement whereby SemGroup will be acquired by Energy Transfer LP (NYSE: ET) (“ET” or “Energy Transfer”) in a unit and cash transaction valued at approximately $5.1 billion, including the assumption of debt and other liabilities. Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, SemGroup shareholders will receive $6.80 per share in cash and 0.7275 of an ET common unit for each SemGroup share, or approximately 40% cash and 60% equity. The equity consideration received is expected to be treated[Read More…]

September 17, 2019 - 2:35 pm Closing Bell Story, Mergers & Acquisitions
Source Reuters

Paulson’s hedge fund calls on Callon to drop merger, sell itself

From Reuters Billionaire investor John Paulson’s hedge fund on Monday urged Callon Petroleum Co (CPE.N) to drop its proposed $3.2 billion acquisition of Carrizo Oil & Gas Inc (CRZO.O), and instead consider selling itself. Paulson & Co funds, which hold about a 9.5% stake in Callon, said in a letter to the company’s board that adding Carrizo’s “inferior Eagle Ford assets will permanently reduce the attractiveness of Callon to potential acquirers.” Callon offered Carrizo shareholders 2.05 shares for each Carrizo share held, or about $13.12 per Carrizo share based on Callon’s closing share price on July 12, representing a 25% premium. Shares of both companies have fallen since then and the deal now values each Carrizo share at $9.07. Paulson noted that paying a 25% premium for the acquisition is “unjustifiable” and said Callon will lose its standing as a Permian pure play by acquiring a company with holdings in[Read More…]

Source: Tallgrass Energy

Tallgrass Energy Receives ‘Take Private’ Proposal

By Tyler Losier, Energy Reporter, Oil & Gas 360 Tallgrass Energy receives preliminary proposal letter from Blackstone Infrastructure Partners offering to take the company private Tallgrass Energy LP (stock ticker: TGE), a midstream infrastructure company, received a non-binding preliminary proposal letter from Blackstone Infrastructure Partners (stock ticker: BX) on Tuesday, offering to acquire all of the outstanding Class A shares of Tallgrass’ stock not already owned by Blackstone and its affiliates. At a price of $19.50 per share, Blackstone’s offer would represent a 35.9% premium over Tallgrass’ closing price on August 27, and a premium of approximately 12% to its volume weighted average price during the last 30 calendar … Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

Source: Data Gumbo

Verisk to Acquire Genscape

By Tyler Losier, Energy Reporter, Oil & Gas 360 Genscape will become a part of Verisk subsidiary Wood Mackenzie Verisk (stock ticker: VRSK), a data analytics provider headquartered in New Jersey, has signed a definitive agreement to acquire Genscape, a provider of real-time data for commodity markets, from Daily Mail and General Trust (DMGT) for $364 million in cash. As a result of the transaction, Genscape will become a part of Verisk subsidiary Wood Mackenzie, which focuses on research and consultancy across various natural resource sectors. Currently, Genscape operates a private network of in-field monitors, in addition to distributing alternative energy data and delivering market intelligence to companies dealing in oil, … Login or click here to subscribe

Source: PDC Energy

PDC Energy to Acquire SRC Energy

By Tyler Losier, Energy Reporter, Oil & Gas 360 PDC Energy to acquire SRC Energy in all-stock transaction valued at approximately $1.7 billion PDC Energy Inc. (stock ticker: PDCE), an independent E&P based out of Denver, has entered into a definitive agreement to acquire SRC Energy Inc. (stock ticker: SRCI), also located in Denver, in an all-stock transaction valued at approximately $1.7 billion, including SRC’s net debt of approximately $685 million as of June 30, 2019. This consideration represents a premium of 6.8% to the 30-day average exchange ratio of 0.148x. Under the terms of the two companies’ agreement, SRC shareholders will receive 0.158 shares of PDC for each share of SRC common stock owned, representing an… Login or click here to subscribe

Source: Tyler Losier

Occidental Finance Chief Pledges to Act Quickly to Pare Acquisition Debt

From Reuters Occidental Petroleum Corp (OXY.N) expects to quickly reduce the $40 billion in debt it took on with its purchase of Anadarko Petroleum, the company’s finance chief said on Monday. Cedric Burgher, in his first public remarks since the $38 billion acquisition closed last week, told an Enercom energy conference audience, the resulting debt burden was “not that bad,” and pledged Occidental would be selective in choosing assets to sell. He defended the purchase, which has been attacked by activist Carl Icahn as “misguided and hugely overpriced,” as providing future oil production as a good valuation. Icahn is seeking to remove and replace four directors to influence the scale and pace of asset sales. “When the smoke clears, people will start to see what we’ve done,” Burgher said to an overflow crowd.     Occidental plans to be selective about what properties it puts on the market to help[Read More…]

Source: Occidental Petroleum

Occidental Closes on Anadarko

By Tyler Losier, Energy Reporter, Oil & Gas 360 Occidental Petroleum completes its $55 billion takeover of Anadarko Petroleum Occidental Petroleum Corporation (stock ticker: OXY), led by President and CEO Vicki Hollub, has completed its acquisition of Anadarko Petroleum Corporation (stock ticker: APC) in a deal worth $55 billion, including the assumption of Anadarko’s debt. The closing of the transaction follows a special meeting held earlier today by Anadarko’s shareholders, where more than 99% of the shares voted in favor of the Occidental merger. As part of the deal, Anadarko shareholders will receive $59 in cash and 0.2934 shares of Occidental stock for every share of Anadarko common stock that they own. “With Anadarko… Login or click here to subscribe

Source: Amplify Energy

Shareholders of Amplify Energy and Midstates Petroleum Greenlight Merger

By Tyler Losier, Energy Reporter, Oil & Gas 360 Amplify Energy and Midstates Petroleum to merge after receiving shareholder approval Amplify Energy Corporation (stock ticker: AMPY), a Houston-based independent E&P, has received the necessary shareholder approval for its previously announced all-stock merger-of-equals transaction with Midstates Petroleum Company (stock ticker: MPO). Likewise, Midstates’ shareholders also signed off on the deal at the company’s annual meeting late last week as well. The transaction, expected to close on August 6, will still be subject to the satisfaction of any remaining customary closing conditions. Amplify Energy’s current assets (source: Amplify Energy) As part of the transactio… Login or click here to subscribe

Oxy Earnings Dip 25%; Anadarko Megadeal Likely to Close Aug. 8

Oxy Earnings Dip 25%; Anadarko Megadeal Likely to Close Aug. 8

From The Houston Chronicle Occidental Petroleum reported a $635 million quarterly profit that dipped 25 percent from the year prior, but the focus still remains on Oxy’s $38 billion acquisition of Anadarko Petroleum that could close in August. Houston-based Oxy said it plans to close the Anadarko deal next week after the scheduled Aug. 8 vote of Anadarko shareholders to approve the deal. In a brand-new deal though, Oxy said it formed a new Permian Basin joint venture with Colombia’s state-owned oil company Ecopetrol to develop nearly 100,000 net acres in the Permian’s Midland Basin. To help Colombia develop expertise in shale oil development, Ecopetrol will pay Oxy $750 million up front and carry another $750 million in capital into the partnership. Oxy will operate the joint venture and own 51 percent of it. “As we move toward closing the acquisition of Anadarko and combining our two companies into an[Read More…]

Japan’s Osaka Gas to Acquire Haynesville Shale-Focused American E&P

Japan’s Osaka Gas to Acquire Haynesville Shale-Focused American E&P

By Tyler Losier, Energy Reporter, Oil & Gas 360 Japanese company Osaka Gas to acquire Texas-based Sabine Oil & Gas Corporation Osaka Gas, a vertically integrated Japanese energy company, has entered into a definitive agreement with Houston-based Sabine Oil & Gas Holdings to acquire 100% of the outstanding shares of its subsidiary, Sabine Oil & Gas Corporation. Should the deal close as expected, it would mark the first time in history that a Japanese company has purchased a U.S.-based shale gas developer. Source: Sabine Oil & Gas Since July of last year, Osaka has worked to acquire a 35% interest in the eastern half of Sabine’s asset base. With this latest agreement, however, the company will now own all … Login or click here to subscribe

Callon and Carrizo Merger: Conference Call Excerpts

Callon and Carrizo Merger: Conference Call Excerpts

Compiled by Bevo Beaven and Tyler Losier, Oil & Gas 360 In light of Callon and Carrizo’s $3.2 billion merger, the two companies held an investor conference call this morning. Below are notable excerpts, compiled from Bloomberg’s transcription of the call: Q: It sounds like the combination of the two companies, increases the free cash flow generation and the construction is improved. Can you talk about whether this increases your preference for returning free cash sooner or if it just accelerates your path down that higher free cash generation and more efficient growth? Callon Petroleum CEO Joseph C Gatto:  That’s good question, and like you said, this does accelerate free cash flow proposition and that’s a big part of t… Login or click here to subscribe

Source: Callon Petroleum

Upstream Oil Merger: Callon Acquires Carrizo in $3.2 Billion Texas Combo

By Tyler Losier, Energy Reporter, Oil & Gas 360 Callon adds oil-weighted assets in the Permian and Eagle Ford through all-stock transaction Callon Petroleum Company (stock ticker: CPE), an independent E&P focused on unconventional assets in the Permian, has struck a deal with Houston-based Carrizo Oil & Gas (stock ticker: CRZO) to acquire the company in an all-stock transaction worth $3.2 billion. The transaction, which will bolster Callon’s portfolio through the addition of assets in both the Permian and Eagle Ford Basins, is expected to close during Q4 2019, subject to shareholder and regulator approval. Source: Callon Acquisition of Carrizo investor presentation On a pro forma basis, Callon will now have a co… Login or click here to subscribe

Source: Lineal Industries

E&P Diversifies Through Merger

By Tyler Losier, Energy Reporter, Oil & Gas 360 Acquisition of Lineal Star completed in an all-stock transaction Camber Energy (stock ticker: CEI), an independent E&P with a new focus on adding midstream, downstream and field service activities, closed its previously announced acquisition of Lineal Star Holdings on Monday through an all-stock transaction by entry into an agreement and plan of merger. Lineal Star Holdings, based in Houston, is the parent company of Pittsburgh-based Lineal Industries and Houston-based Lineal Star Incorporated, both of which are now owned by Camber as a result of the merger. Source: Lineal Industries For the last 64 years, Lineal Industries has provided upstream, midstream, utilities p… Login or click here to subscribe

Hedge Funds Track Private Jets to Find the Next Mega-Deal 

Hedge Funds Track Private Jets to Find the Next Mega-Deal 

Where there’s a plane, there’s a data trail From Bloomberg If you have a meeting with Warren Buffett in Omaha and you want to keep it a secret, consider driving. The airports are being watched. In April, a stock research firm told clients that a Gulfstream V owned by Houston-based Occidental Petroleum Corp. had been spotted at an Omaha airport. The immediate speculation was that Occidental executives were negotiating with Buffett’s Berkshire Hathaway Inc. to get financial help in their $38 billion offer for rival Anadarko Petroleum Corp. Two days later, Buffett announced a $10 billion investment in Occidental. Where there’s a jet, there’s a data trail, and several “alternative data” firms are keeping tabs on private aircraft for hedge funds and other investors. The data on the Occidental plane came from Quandl Inc., which was acquired by Nasdaq Inc. in December. (Bloomberg LP, which publishes Bloomberg Businessweek, provides clients with reports from[Read More…]

Did GE Make a Multi-Billion Dollar Mistake? 

Did GE Make a Multi-Billion Dollar Mistake? 

From Think Progress  Last week, General Electric announced it would close a California gas plant 20 years ahead of schedule. The Inland Empire Energy Center in California, the company said, was “uneconomical to support further” in part because of outdated technology.  But California’s aggressive clean energy goals and commitment to using renewable energy was also a key determinant in GE’s decision to take the plant offline. What’s more, the closure is not just a hiccup in GE’s energy plans, but is just one small piece of the American giant’s substantial stumble on clean energy in recent years.  The company has lost hundreds of billions of dollars of investor money in just two years as its stock has plummeted. And a new report claims the downturn is in large part because the company failed to pay attention to the rise of clean energy.  “You don’t necessarily think of GE as an energy company,” said Kathy Hipple, a financial analyst at[Read More…]

June 28, 2019 - 5:12 am Closing Bell Story, Energy News, Mergers & Acquisitions
Elliott Is in Advanced Talks to Buy QEP Resources: Bloomberg

Elliott Is in Advanced Talks to Buy QEP Resources: Bloomberg

From Bloomberg    New York-based hedge fund could reach deal for QEP in weeks    Elliott Management Corp. is in advanced talks to buy QEP Resources Inc., the oil and gas explorer it offered to buy in January, according to people familiar with the matter.  Elliott could reach a deal with the Denver-based company in within weeks, said one of the people, who asked to not be identified because the matter isn’t public. No deal has been finalized and the talks could fall through, the people said. New York-based Elliott, run by billionaire Paul Singer, already owns about 5% of QEP.  A representative for Elliott declined to comment. A representative for QEP didn’t respond to requests for comment.  QEP rose as high as 17.9% on the news. The shares were up 13.7% to $6.97 at 3:18 p.m. in New York trading Wednesday, giving the company a market value of about $1.7 billion.  QEP began working with an investment bank[Read More…]

June 27, 2019 - 5:52 am Closing Bell Story, Energy News, Mergers & Acquisitions
Source: Archrock

Archrock Makes $410 Million Acquisition

By Tyler Losier, Energy Reporter, Oil & Gas 360 Archrock to purchase ~430,000 horsepower of compression from Elite Compression Services Houston-based Archrock, Inc. (stock ticker: AROC) has entered into a definitive agreement with Elite Compression Services, a JDH Capital-backed company, to purchase substantially all of Elite’s assets for $410 million, including approximately 430,000 horsepower of compression. Archrock will pay Elite through a combination of $205 million in cash, coupled with about 21.7 million shares of newly issued Archrock stock. In conjunction with the transaction, Archrock will also sell approximately 80,000 horsepower of active and idle compression to Harvest Midstream Company for $30 million cash. … Login or click here to subscribe

E&P Merger in the STACK

E&P Merger in the STACK

By Tyler Losier, Energy Reporter, Oil & Gas 360 Chisholm Oil and Gas to combine with Gastar Exploration Chisholm Oil and Gas LCC, backed by Apollo Global Management (stock ticker: APO), has entered into a definitive merger agreement with Gastar Exploration LLC, owned by private equity firm Ares Management Corporation (stock ticker: ARES).   Source: Gastar The combined company will retain the name Chisholm Oil and Gas and will occupy a position of approximately 165,000 net acres, predominantly in Kingfisher county, Oklahoma. Chisholm’s average production rate after the merge is expected to reach approximately 20,000 BOEPD. Chisholm currently operates three rigs and has a designated frac crew, which it expects to … Login or click here to subscribe

Equals to Merge

Equals to Merge

By Tyler Losier, Energy Reporter, Oil & Gas 360 Oilfield service consolidation rolls on C&J Energy Services (stock ticker: CJ) and Keane Group, Inc. (stock ticker: FRAC) have entered into a definitive agreement to combine in an all-stock merger of equals. Upon close, the merger will create a well completion and production services company with a presence in most active U.S. basins. The deal was unanimously approved by both company’s boards of directors, in addition to the special committee of the Keane board.   Personnel High-ranking personnel at the new company include: Chairman of the Board – Patrick Murray (former C&J chairman of the board) President/CEO – Robert Drummond (former Keane CEO) Exe… Login or click here to subscribe

Jerry Jones Gives his View of Haynesville’s Comstock Resources on Conference Call

Jerry Jones Gives his View of Haynesville’s Comstock Resources on Conference Call

By Bevo Beaven, Editor, Oil & Gas 360 The Haynesville Shale play drew a lot of attention early this week when Haynesville operator Comstock Resources (stock ticker: CRK) announced it was acquiring privately-held Covey Park Energy for $2.2 billion, making Comstock one of the major players in the Haynesville. But Comstock is no newcomer to the Haynesville.  The company has been acquiring and bolting on acreage for several years. According to Comstock, the big growth in natural gas production it enjoyed in 2017 was driven by the company’s successful Haynesville horizontal drilling program which started in 2015. Comstock said it produced 79 Bcfe in 2017, compared to 62 Bcfe in 2016, and with new acreage and longer laterals the company h… Login or click here to subscribe

Source: Comstock Resources

$2.2-Billion Haynesville Merger Creates New Basin Leader

By Tyler Losier, Energy Reporter, Oil & Gas 360 Comstock acquires Covey Park Energy for $2.2 billion Dallas Cowboys owner Jerry Jones and company made a deal to acquire a young, up-and-coming player last Friday, but the deal had nothing to do with football. Rather, it involved Haynesville producer Comstock Resources (stock ticker: CRK), of which Jones is a majority owner. Comstock is purchasing Covey Park Energy, a private natural gas company operating out of the north Louisiana and east Texas regions of the Haynesville. Source: Comstock Resources Jones will be personally chipping in $475 million to the $2.2 billion deal, bringing his total investment in the company to $1.1 billion. Upon closing, he will remain the larg… Login or click here to subscribe

Source: dallasnews.com

Analysts Dive into Latest Haynesville Deal

The Jerry Jones effect: the Comstock-Covey Park acquisition Securities analysts had views about today’s announced acquisition of privately held Covey Park Energy by Comstock Resources (stock ticker: CRK) for $2.2 billion. Size matters (From: EnerCom Inc. Managing Director Aaron Vandeford) This deal checks a few important boxes for the market. Post-merger, Comstock will hold approximately 374,000 net acres, 5.4 Tcf of SEC proved reserves, and 7.6 Tcf of SPE proved reserves.  Importantly, pro forma production will exceed a mental market hurtle of 1 Bcf/d allowing a broader set of investors to get comfort on the size of operations and begin to award a ‘premium’ P/CFPS multiple. Figure 1 below highlights the current market relationship between valuation and market capitalization for a group of companies with a market cap less than $11 billion. With an R2 of approximately 71%, there is a clear market bias toward larger companies as investors remain[Read More…]

Oilfield Service Companies to Combine

Oilfield Service Companies to Combine

SMG Industries Announces the Signing of a Definitive Agreement to Acquire Trinity Services LLC

Source: Occidental Petroleum

Occidental Announces Early Termination of Hart-Scott-Rodino Waiting Period

Occidental Announces Early Termination of Hart-Scott-Rodino Waiting Period

Vicki A. Hollub, CEO, Occidental Petroleum

Carl Icahn Sues Occidental for ‘Misguided’ Anadarko Takeover

Rather than plunking down tens of billions of dollars on Anadarko, Icahn argued that Occidental should instead have put itself up for sale From CNN Business New York (CNN Business) Billionaire Carl Icahn launched a legal attack on Occidental Petroleum on Thursday, arguing the oil company paid way too much money to acquire Anadarko Petroleum. Icahn, whose firms own about $1.6 billion of Occidental (OXY) stock, said that the “misguided” takeover of Anadarko (APC) “raises very real questions about the competence” of the company’s management and board. Not only was the purchase price “sky high,” Icahn’s firms said in a lawsuit, but the financing costs were “astronomical as well.” The lawsuit demands Icahn get access to “inspect” certain Occidental books and records linked to the Anadarko deal. In a statement, Occidental said it is “committed to maximizing long-term value for all shareholders” and its board and management team “continually evaluate opportunities” to do so. Occidental said it looks forward to[Read More…]

Blackstone, Whiting, Callon Consider Bids for Shale Driller QEP: Bloomberg

Blackstone, Whiting, Callon Consider Bids for Shale Driller QEP: Bloomberg

Shale driller said it would explore sale after Elliott offer of $2 billion From Bloomberg QEP Resources Inc. has attracted takeover interest from private equity giant Blackstone Group LP, as well as drillers Whiting Petroleum Corp. and Callon Petroleum Co., according to people familiar with the matter. The Denver-based natural gas and oil explorer and producer said in February that it would explore a sale after activist investor Elliott Management Corp. made a $2 billion proposal to acquire the company. Elliott remains in the bidding for the company, said the people, who asked not to be identified because the discussions are private. The process could draw to a close as soon as next month, the people said. A final decision hasn’t been made and QEP’s plans could still change, they said. Representatives for Blackstone and Elliott declined to comment. Representatives for QEP, Denver-based Whiting and Houston-based Callon didn’t respond to messages seeking comment. QEP’s shares, which fell 41% last year,[Read More…]

May 21, 2019 - 12:53 pm Closing Bell Story, Energy News, Mergers & Acquisitions
Roan Resources (stock ticker: ROAN), an independent oil and natural gas company based out of Oklahoma City,Merge, SCOOP and STACK producer Roan Resources, Inc. (stock ticker: ROAN) said it expects 2Q production to exceed 50 MBOEPD,- Oil & Gas 360

Roan Resources Exploring Strategic Alternatives

Citigroup and Jefferies enlisted to help determine strategy as to M&A, partnership options By Tyler Losier Roan Resources (stock ticker: ROAN), an independent oil and natural gas company based out of Oklahoma City, is enlisting the help of Citigroup Global Markets Inc. and Jefferies LLC to help explore strategic alternatives. Source: Roan Resources Over the last couple of months, Roan has reportedly received numerous unsolicited offers for outright purchase of the company, in addition to several inquiries for consolidation and partnership. As a result, in late April, Roan formed a transactional committee comprised of legal and financial advisors to evaluate the various options on the table, with the goal of finding the most… Login or click here to subscribe

Chevron Takes the Money and Runs

Chevron Takes the Money and Runs

$1 billion breakup fee makes easy payday for Chevron shareholders By Richard Rostad, analyst, Oil & Gas 360 Chevron (ticker: CVX) announced today it will concede to Occidental (ticker: OXY) in the bidding war for Anadarko (ticker: APC). While Chevron could theoretically outbid Oxy in its quest for Anadarko, Chairman and CEO Michael Wirth decided the price of doing so was too high. As Wirth put it, “Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal.” Wirth was referring to the company’s slogan. Instead Chevron will receive the deal’s $1 billion breakup fee, a fee that Oxy w… Login or click here to subscribe

Oxy-Anadarko Saga Accelerates

Oxy-Anadarko Saga Accelerates

“We remain perplexed at your apparent resistance to obtaining far more value for Anadarko shareholders” – Oxy CEO Hollub On earnings call, Hollub calls Anadarko “a generational opportunity” By Richard Rostad, analyst, Oil & Gas 360 Occidental Petroleum (stock ticker: OXY; $OXY) is going to great lengths to ensure it beats Chevron (ticker: CVX) in the bidding contest for Anadarko Petroleum (stock ticker: APC; $APC). Oxy has revised its offer for Anadarko, changing the composition of cash and stock. The offer has shifted from $38 cash and 0.6094 shares of Oxy to $59 cash and 0.2934 shares of Oxy, shifting the cash portion of the deal from 50% to 78%. More cash means no shareholder vote While the total compensation per share has … Login or click here to subscribe