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

More Oil and Gas M&A: Roan Resources Confirms Indications of Interest, In-Basin Consolidation Opportunities

Roan Resources forms transaction committee Roan Resources, Inc. (NYSE: ROAN) said it has received multiple unsolicited indications of interest to purchase the company. Roan reports it has an 150,000-acre position with an estimated resource potential of more than 2 billion Boe and multiple zones. Roan is focused on developing unconventional oil and natural gas reserves in the Merge, SCOOP and STACK plays of the Anadarko Basin in Oklahoma. In addition, Roan has also received indications of interest for in-basin consolidation opportunities. In response to these unsolicited indications of interests, the company has formed a transactional working committee of its board to evaluate a potential sale or merger. The committee is considering all potential merger and acquisition opportunities to act in the best interest of all its shareholders. In order to assist the committee in evaluating any potential sale or merger of the company, Roan said it will mandate an investment[Read More…]

Anadarko Board to Consider Occidental Bid

Anadarko Board to Consider Occidental Bid

From Bloomberg Anadarko Petroleum Corp. plans to resume talks about a potential $38 billion takeover by Occidental Petroleum Corp., a move that threatens to scupper a previously agreed deal with Chevron Corp. In a unanimous decision, Anadarko’s board of directors determined the Occidental bid “could reasonably be expected to result in a superior proposal,” the company said in a statement Monday. It added that an earlier agreement to merge with Chevron remains in effect. The move sets the stage for Chevron to come back with a sweetened offer. Under the terms of the companies’ April 12 merger agreement, if Anadarko formally declares the Occidental offer to be superior, Chevron then has four days to make another proposal. While it has ample financial firepower to top Occidental’s offer, it may opt instead to avoid an expensive bidding war. Taking the $1 billion break-up fee that’s part of their accord and walking away would be[Read More…]

Anadarko Faces Investor Pressure to Explain Occidental Snub

Anadarko Faces Investor Pressure to Explain Occidental Snub

From Bloomberg Anadarko Petroleum Corp. is under pressure from investors to explain why it agreed to a takeover offer from Chevron Corp. despite it being substantially lower than Occidental Petroleum Corp.’s $38 billion proposal. Occidental went public with its offer Wednesday and said it was essentially the same one made in January last year. Yet despite several further offers from Occidental as recently as this month, Anadarko’s board agreed April 12 to Chevron’s deal, which is substantially cheaper and comes with $1 billion break fee. Anadarko has said it’s evaluating the Occidental proposal. It reported first-quarter results Friday, several days earlier than originally scheduled, but there won’t be the usual earnings conference call with analysts and investors, leaving them waiting for answers. Anadarko didn’t immediately respond to requests for comment. Anadarko needs “to have a very good reason why turning away a 15-20 percent premium for the Oxy bid in favor of Chevron is[Read More…]

Barrick, Newmont Deal Clears All Regulatory Conditions

Barrick, Newmont Deal Clears All Regulatory Conditions

Nevada Joint Venture Deal Clears All Regulatory Conditions

Aftershocks from Chevron-Anadarko: Experts Discuss What’s Next for U.S. Oil Companies

Aftershocks from Chevron-Anadarko: Experts Discuss What’s Next for U.S. Oil Companies

ConocoPhillips, Oxy, Apache, Noble Energy are the cleanest comps in upstream energy – John Gerdes Permian pure-plays Pioneer, Concho and Diamondback have the assets but will be tougher deals to do while trading at a premium to their peers – Noah Barrett Pioneer, Concho, Diamondback and Endeavor: at the end of the day they are inclined to be merged into a major integrator – Gerdes By Bevo Beaven, Editor, Oil & Gas 360 Last week’s news out of San Ramon sent shock waves through the shale world when Chevron (stock ticker: CVX, $CVX) said it was acquiring Anadarko Petroleum (stock ticker: APC, $APC). Oil companies and investors from Midland to Allentown issued a collective “Say what?”. But pretty soon, the announcement of the industry’s third largest M&A deal in history gave way to speculation and analysis. During the Chevron conference call relating to the Anadarko acquisition, Chevron Chairman and CEO[Read More…]

Oil and Gas Funding is Evolving: An Oil & Gas 360® Special Report

Oil and Gas Funding is Evolving: An Oil & Gas 360® Special Report

For now, Wall Street has turned off the shale funding spigot  By Bevo Beaven, Editor, Oil & Gas 360, with Richard Rostad, Analyst Oil and gas funding is evolving. Initial public offerings, secondaries and follow-on equity raises are no longer an easy-to-turn-on cash spigot that sits ready to fill the bank accounts of public exploration and production (E&P) companies with the millions or billions of dollars the upstream oil and gas companies need to replace declining production. If you’re an oil or natural gas producer you need to continually drill and develop new acreage at a faster rate than the natural decline curve in order to grow production, replace reserves and build your company’s value. But starting in Q4 of last year, Wall Street has been loudly shouting “no thanks” to pumping more funds into shale companies. That means companies are having to become attractive to new sources of energy[Read More…]

Which Companies are Attractive Enough to be the Next Oil Patch M&A Targets?

Which Companies are Attractive Enough to be the Next Oil Patch M&A Targets?

Oxy was actively looking, others are likely considering acquisitions By Richard Rostad, analyst, Oil & Gas 360 The logical question after a major oil and gas M&A deal like Chevron’s (ticker: CVX) announced acquisition of Anadarko Petroleum (ticker: APC) last week is “who’s next?” This question is pertinent because media reports suggested that Occidental Petroleum (ticker: OXY) also made an offer for Anadarko recently. So you can name one company that is in the market looking for a major acquisition target. Focus on Oxy as wannabe acquirer—who is its second choice? While Oxy is not the only possible acquirer, as several supermajors have expressed interest in expanding their presence in U.S. shale, the Oxy offer for Anadar… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

Delek And Ineos Are Front-Runners for Chevron’s U.K. Fields

Delek And Ineos Are Front-Runners for Chevron’s U.K. Fields

From Bloomberg Israel’s Delek Group Ltd. and U.K. chemicals company Ineos Group are emerging as the front-runners for a package of North Sea oil and gas fields put on sale by Chevron Corp., according to people familiar with the matter. The two companies are ahead of Premier Oil Plc, Chrysaor Holdings Ltd.and Oman’s Petrogas, which also submitted bids late last month, the people said. The fields could fetch as much as $2 billion, they said, asking not to be named because the matter is private. The winner would gain a major production boost in a region that is increasingly being run by smaller independent companies. Chevron, which last week agreed to buy Anadarko Petroleum Corp. for $33 billion, is looking to exit the North Sea as it increases focus on areas such as U.S. shale. A Chevron spokeswoman declined to comment. The sale process could take several more weeks, and may not lead to a deal, the people said.[Read More…]

Chevron, Anadarko Megadeal Portends Billions in Asset Divestment

Chevron, Anadarko Megadeal Portends Billions in Asset Divestment

From the Houston Business Journal Chevron Corp.’s (NYSE: CVX) $33 billion acquisition of The Woodlands-based Anadarko Petroleum Corp. (NYSE: APC) precedes a spike and acceleration in Chevron’s planned divestments. First, Chevron is moving up the date by which it plans to sell about $2 billion in assets outside the U.S., many of which had already been announced, said Mike Wirth, Chevron’s CEO and chairman. Those are now set to complete by the end of 2019, a year earlier than previously expected, Wirth said. He was speaking on a conference call with investors the morning of April 12, shortly after the Anadarko acquisition was announced. Then the company will dwarf that action with an additional $15 billion to $20 billion in divestments from 2020 to 2022, Wirth said. It’s all part of Chevron’s effort to high-grade its asset base, making sure it’s investing only in the best possible opportunities, Wirth said. The investment aspect isn’t being overlooked[Read More…]

April 15, 2019 - 11:33 am Closing Bell Story, Energy News, Mergers & Acquisitions
Chevron CEO Michael Wirth Talks about what Chevron is Getting with the Acquisition of Anadarko

Chevron CEO Michael Wirth Talks about what Chevron is Getting with the Acquisition of Anadarko

Chevron (stock ticker: CVX, $CVX) Chairman and CEO Michael Wirth went on the morning cable business shows and hosted a conference call today, saying his company’s acquisition of Anadarko Petroleum (stock ticker: APC, $APC) is “the highest return investment dollar that we can spend.” During his company’s conference call, Wirth responded to analyst questions about plunking down $33 billion in cash and shares to buy Anadarko. Wirth said “our priorities are unchanged. The dividend is priority one. Second is to reinvest in the business. Third is to maintain a strong balance sheet and fourth return capital to shareholders with share repurchases. It’s a resource acquisition business… we are constantly adding resources through exploration, thr… Login or click here to subscribe

Making History: Third-Largest U.S. Oil & Gas Transaction Wakes Up U.S. E&P

Making History: Third-Largest U.S. Oil & Gas Transaction Wakes Up U.S. E&P

Breaking down the numbers By Richard Rostad, analyst, Oil & Gas 360 Chevron (ticker: CVX) uprooted the eerily quiet U.S. exploration and production M&A landscape today when it announced it had agreed to acquire Anadarko Petroleum (ticker: APC). The total deal value is $50 billion, making it the third-largest U.S. oil and gas transaction in history, and the largest since Exxon (ticker: XOM) purchased Mobil in 1998. This is the seventh-largest global oil and gas deal in history; the most recent larger transaction was Aramco’s $69 billion acquisition of SABIC. This deal is roughly comparable to ExxonMobil’s acquisition of XTO Energy in 2009 and ConocoPhillips’ (ticker: COP) purchase of Burlington Resources in 2005. Each ac… Login or click here to subscribe

Netherland Sewell School is Open for Business

Netherland Sewell School is Open for Business

Each year, global petroleum consultancy Netherland, Sewell & Associates (NSAI) hosts a series of oil and gas property evaluation seminars. These jam-packed, two-day education blitzes are designed to give energy bankers, financial institutional decision makers, generalist investors, analysts and new oil and gas industry professionals a basic education detailing what information and data goes into financially evaluating oil and gas assets. It starts with the basics—geology, basic petroleum engineering knowledge, differences between conventional and unconventional plays, the basics of shale and offshore drilling, and the economics of oil and gas exploration and production and reserves calculations. The “Netherland Sewell School” as it has become known, is a highly regarded opportunity to bring the financial experts up to speed quickly on how to assess oil and gas assets, investment considerations, reserves calculations and related information that’s custom to the world of oil and gas. The curriculum is designed for non-technical financial professionals[Read More…]

BP’s Sale Plan Buried by Snow in Wyoming Oil and Gas Field

BP’s Sale Plan Buried by Snow in Wyoming Oil and Gas Field

From Reuters BP’s plan to sell its interest in a half-million acres (202,340 hectares) of land in Wyoming dotted with 2,000 oil and gas wells has been put on ice. Over 4 feet (1.3 meters) of snow fell this winter in the Wamsutter field in south-central Wyoming – more than double the usual average – and that buried anything a prospective buyer would be able to see to evaluate the land. BP, as a result, is postponing selling the acreage for several months, according to documents sent to bidders this month and reviewed by Reuters. Even without massive accumulations of snow, oil acreage has been tough to divest this year because of volatile markets and caution from lenders. BP is focusing on new holdings in West Texas’s Permian region, and wants to unload land worth about $3 billion in Oklahoma, Colorado, East Texas and Wyoming. The sales plans are part[Read More…]

Denbury, Penn Virginia Call Off Marriage – Back to Square One

Denbury, Penn Virginia Call Off Marriage – Back to Square One

Market conditions, shareholder opposition cited Denbury Resources Inc. (NYSE: DNR) and Penn Virginia Corporation (NASDAQ: PVAC) agreed to terminate the previously announced Denbury acquisition of Penn Virginia. Chris Kendall, Denbury’s President and CEO, commented, “While we firmly believed in the strategic merits of the combination with Penn Virginia, the difficult market conditions since announcement, combined with the opposition of certain Penn Virginia shareholders, led us to the conclusion that the transaction was unlikely to receive the necessary super majority approval from Penn Virginia shareholders. “We remain optimistic about the significant resource potential that CO2 enhanced oil recovery could deliver in the Eagle Ford, … Login or click here to subscribe

Carrizo Oil Weighs Deal With Rival Explorer SM Energy

Carrizo Oil Weighs Deal With Rival Explorer SM Energy

From Bloomberg Carrizo Oil & Gas Inc. is weighing a tie-up with U.S. energy explorer SM Energy Co., according to people familiar with the matter. Carrizo has held early-stage discussions with SM about a potential combination, the people said, asking not to not be identified because the information is private. There’s no certainty the deliberations will lead to a transaction, the people said. Shares of SM, based in Denver, climbed about 2.5 percent to $16.09 in at 10:20 a.m. in New York, giving it a market value of more than $1.8 billion. Carrizo rose 4.9 percent to $12.19 for a market valuation of $1.1 billion. The talks come as volatile oil prices put pressure on small and midsize energy explorers to pair up to cut costs, particularly in areas such as the Permian Basin of Texas and New Mexico, which is dense with competition. A spokeswoman for SM declined to comment,[Read More…]

Equitrans Midstream’s Unit to Buy Gas Pipeline Assets For $1.03 Billion

Equitrans Midstream’s Unit to Buy Gas Pipeline Assets For $1.03 Billion

From Reuters U.S. pipeline operator Equitrans Midstream Corp’s unit on Thursday signed a deal worth $1.03 billion to take control of two pipelines that connect the Marcellus and Utica shale basins, the nation’s biggest gas producing region. The unit, EQM Midstream Partners LP, will buy a 60 percent stake in Eureka Midstream Holdings LLC and whole of Hornet Midstream Holdings LLC, from a fund managed by Morgan Stanley. EQM will pay $860 million in cash and assume $170 million of debt, as part of the deal. Gas companies have been betting heavily on pipeline infrastructure in the Utica and Marcellus shale basins, which span across Pennsylvania, Ohio and West Virginia, after a resurgence in drilling activity over the last few years led to tight pipeline capacity. Eureka Midstream is a 190-mile gathering pipeline system in Ohio and West Virginia that services both Utica and Marcellus production, while Hornet Midstream is[Read More…]

Legacy Reserves Announces Review of Strategic Alternatives

Legacy Reserves Announces Review of Strategic Alternatives

Legacy Reserves Inc. Announces Review of Strategic Alternatives

Goodnight-Midstream-TPG-Capital-Acquires-Goodnight-Midstream-from-Tailwater-Capital-and-Private-Investors-Oil-Gas-360

$930-Million Water Acquisition: TPG Capital Acquires Goodnight Midstream from Tailwater Capital, Private Investors

Transaction provides Goodnight Midstream access to $300 million incremental capital to accelerate growth TPG Capital, the private equity platform of global alternative asset firm TPG, has signed a definitive agreement to acquire a majority stake in Goodnight Midstream, a leading midstream produced water infrastructure company, from Tailwater Capital for approximately $930 million. TPG is acquiring the company from Tailwater Capital and private investors. Existing shareholders, including management, will retain a significant minority interest in the company. “As the midstream water sector continues to develop and mature, we believe the company is well positioned to emerge as a leading provider of scale. We’re excited to support the company through its next chapter of growth.” Under the terms of the transaction, TPG Capital and existing shareholders have agreed to commit additional equity capital to support the continued growth of the business. With additional growth equity and proceeds from committed debt financing, the[Read More…]

Shale on Brink of M&A as Oil Majors Flex Muscles in Permian

Shale on Brink of M&A as Oil Majors Flex Muscles in Permian

From Bloomberg Cowboy boots and turquoise belt buckles are giving way to smart suits and silk ties as the world’s biggest shale oil field prepares for mergers. As oil executives from across the world gather in Houston for the annual CERAWeek by IHS Markit conference, the Permian Basin in the U.S. Southwest is on the cusp of a radical transformation with one simple premise: bigger is better. The energy industry appears primed for deals at a time when Big Oil is flexing its muscle in the region. Just last week, Exxon Mobil Corp. and Chevron Corp. unveiled audacious growth plans for the Permian Basin, hitherto the domain of smaller rivals. Royal Dutch Shell Plc is said to be on the prowl for deals while BP Plc bought in last year. Meanwhile, independents are under increasing investor pressure to merge or sell out in an effort to end relentless production growth that has burned through some $200 billion[Read More…]

Barrick Proposes Merger With Newmont to Unlock $7 Billion NPV

Barrick Proposes Merger With Newmont to Unlock $7 Billion NPV

Barrick Proposes Merger With Newmont as an Unprecedented Value Creation Opportunity for Shareholders

February 26, 2019 - 6:01 am Closing Bell Story, Mergers & Acquisitions, Press Releases
Resolute Stockholders Approve Merger with Cimarex

Resolute Stockholders Approve Merger with Cimarex

Target for transaction closing date is Mar. 1, 2019 Resolute Energy Corporation (NYSE: REN) stockholders have voted to approve the adoption of the merger agreement between Resolute and Cimarex Energy Co., Resolute said in a statement. Resolute reported that 15,950,431 shares voted in favor of the proposal to adopt the merger agreement.  This represents approximately 85% of the total shares of Resolute’s common stock represented and entitled to vote at the special meeting, and more than 99% of the votes cast, excluding those stockholders who abstained from voting on the merger proposal. In November the companies announced that Cimarex will acquire Resolute in a cash and stock transaction. With the receipt of the required stockholder … Login or click here to subscribe

Rowan Companies and Ensco Shareholders Approve Combination

Rowan Companies and Ensco Shareholders Approve Combination

Rowan Companies plc and Ensco plc Shareholders Approve Pending Combination

February 21, 2019 - 6:10 pm Closing Bell Story, Mergers & Acquisitions, Press Releases
Shareholders Approve Encana, Newfield Combo

Shareholders Approve Encana, Newfield Combo

Encana and Newfield’s strategic combination receives shareholder approvals

February 12, 2019 - 10:17 am Closing Bell Story, Mergers & Acquisitions, Press Releases
Bristow and Columbia Helicopters Terminate Proposed Acquisition

Bristow and Columbia Helicopters Terminate Proposed Acquisition

Bristow and Columbia Helicopters Terminate Proposed Transaction

February 12, 2019 - 6:31 am Closing Bell Story, Mergers & Acquisitions, Press Releases
Courtesy of Chesapeake

Chesapeake Completes Acquisition of WildHorse

Chesapeake Energy Corporation Completes Acquisition Of WildHorse Resource Development Corporation

February 1, 2019 - 9:05 am Closing Bell Story, Mergers & Acquisitions, Press Releases
Oil & Gas 360

Trinidad Shareholders Approve Combination with Ensign

Trinidad Drilling Ltd. Announces Shareholder Approval of Amalgamation With Wholly-Owned Subsidiary of Ensign Energy Services Inc.

February 1, 2019 - 5:13 am Closing Bell Story, Mergers & Acquisitions, Press Releases
Chesapeake, WildHorse Announce Preliminary Results For Election as to Form of Merger Consideration

Chesapeake, WildHorse Announce Preliminary Results For Election as to Form of Merger Consideration

Chesapeake Energy And WildHorse Resource Development Corporation Announce Preliminary Results For Election Of Form Of Merger Consideration

January 31, 2019 - 7:00 am Closing Bell Story, Mergers & Acquisitions, Press Releases
Husky Offer For MEG Expires Without Extension

Husky Offer For MEG Expires Without Extension

Husky Offer For MEG Expires Without Extension

January 17, 2019 - 6:00 am Closing Bell Story, Mergers & Acquisitions, Press Releases
Newmont Buys Goldcorp for $10 Billion to Be World’s Largest Gold Miner

Newmont Buys Goldcorp for $10 Billion to Be World’s Largest Gold Miner

From Bloomberg Newmont Mining Corp. will buy rival Goldcorp Inc. in a deal valued at $10 billion, creating the world’s largest gold miner and cementing a return of M&A to the industry. The biggest deal in the gold mining industry’s history comes just three months after Barrick Gold Corp.’s move to buy Randgold Resources Ltd. in a $5.4 billion transaction, which instantly spurred speculation that rivals would have to respond. The two huge gold deals have the potential to spark investor interest after the industry lost favor following years of lackluster bullion prices, bad investments and disastrous deals. Just two weeks ago, Mark Bristow, the new chief executive officer of Barrick, said the industry is heading for irrelevance unless there are major changes. Goldcorp shares surged as much as 12 percent to C$14.45 in Toronto. Newmont shares slipped 6.4 percent in New York. Read: Barrick’s New CEO Says Gold Industry Shake-Up[Read More…]

January 14, 2019 - 4:59 pm Closing Bell Story, Energy News, Mergers & Acquisitions
Source: QEP Resources

Elliott Targets Permian with $2 Billion Buyout Offer

QEP offer represents 44% premium American oil and gas is once again being rocked by an activist investor, as Elliott Management has submitted a bid to acquire QEP Resources (stock ticker: QEP). Elliott is proposing to acquire QEP for $8.75/share in cash, $2.07 billion in total. Elliott is already a major owner of QEP, with 4.94% of the company. This is enough to make Elliott the seventh-largest QEP shareholder. Elliott bought in to QEP in Q4 2017 and Q3 2018, at an estimated average price of $9.22/share QEP is a company in transition and is in the process of becoming a pure-play Permian firm. QEP has announced the sale of its Haynesville and Williston assets, its last non-Permian positions, but neither of these deals has closed. Assu… Login or click here to subscribe