Post Tagged with: "NewCo"

EQT Corporation Streamlines Midstream Through Q2

EQT Corporation Streamlines Midstream Through Q2

EQT Corporation (NYSE: EQT) announced its Q2 earnings, which was highlighted by a massive jump in both net cash provided by operating activities and in adjusted operating cash flow. EQT also recapped major sales of assets made in Q2, along with plans for further stock buyback initiatives. Highlights: Increase of 116% in net cash provided by operating activities Increase of 128% in adjusted operating cash flow Decrease of 20% in Production’s per unit cash operating costs Approved a 19.9% retention of SpinCo stock Announced plan to separate midstream business Authorized a $500 million stock buyback program Completed midstream streamlining transactions Completed the sale of Huron and Permian assets Net income attributable to EQT Q2 2018 decreased due to higher operating costs, including impairments of long-lived assets and leases, transaction-related expenses, higher interest expense, and losses on derivatives not designated as hedges despite higher revenue that resulted from an 83% sales[Read More…]

Steve Chazen’s Magnolia Assets: Q1 2018 Results

Steve Chazen’s Magnolia Assets: Q1 2018 Results

TPG Pace Energy Holdings Corp. (ticker: TPGE), an energy-focused special purpose acquisition entity led by former Occidental Petroleum Corporation CEO Steve Chazen, disclosed certain financial and operating results for the first quarter of 2018 for the Karnes County and Giddings Field assets (the Magnolia assets) that TPGE is under definitive agreements to acquire from affiliates of EnerVest, Ltd. The Magnolia assets performed as follows for Q1 2018: Operating revenue of $193.3 million Pro forma EBITDA of $152.2 million Free cash flow of $66.3 million Average daily net production of 45.7 MBOEPD (62% oil, 78% liquids) “These strong results were above our expectations for production and realized prices in the first quarter of 2018 and confirm that the Magnolia assets are an excellent match with our desire to build a large-scale company that can generate steady production growth, strong pre-tax margins and significant free cash flow,” TPGE Chairman and CEO Steve Chazen said. In[Read More…]

Former OXY Heavyweights Steve Chazen and Chris Stavros Join Forces in $2.7-Billion SPAC Deal

Former OXY Heavyweights Steve Chazen and Chris Stavros Join Forces in $2.7-Billion SPAC Deal

TPG Pace Energy acquires EnerVest’s South Texas Division in $2.66 billion handshake; forms new public company – Eagle Ford, Austin Chalk pure-play – Magnolia Oil & Gas Corp. TPG Pace Energy Holdings Corp. (ticker: TPGE), an energy-focused special purpose acquisition entity led by former Occidental Petroleum Corporation CEO Steve Chazen, has entered into definitive agreements with funds managed by EnerVest, Ltd to acquire the oil and gas assets within EnerVest’s South Texas Division for approximately $2.66 billion in cash and stock. As part of the transaction, TPGE and EnerVest are partnering to create Magnolia Oil & Gas Corporation, a new public company led by Steve Chazen, who will serve as Magnolia’s full-time chairman, president and CEO. Upon closing, Chazen will be joined by his long-time colleague and business partner, Christopher Stavros, who will serve as the new company’s CFO. Chazen “perfected the OXY playbook”: John Walker “I have known Steve[Read More…]

LINN Energy Debt Free, Outlines Plan to Split into Three Companies

LINN Energy Debt Free, Outlines Plan to Split into Three Companies

LINN Energy, Inc. (ticker: LNGG) reported its 2017 results today and provided details on its announced split into three entities. “Through our successful divestiture program of almost $2.0 billion, we have extinguished all our debt, executed on our share repurchase program and recently completed a sizable tender offer to return capital to our shareholders. At the same time we performed exceptionally well operationally, having consistently met or exceeded guidance each of the past four quarters. This year, we plan to further enhance value by implementing our plan to separate into three unique public companies and believe this separation will unlock the inherent value of each as they focus on the growth and development of their high-quality assets,” said Mark E. Ellis, LINN’s president and CEO. The company outlined its separation into three standalone companies in 2018, as follows: Roan Resources LLC. – A pure play company focused in the Merge/SCOOP/STACK play.[Read More…]

EQT Splits Upstream and Midstream Businesses

EQT Splits Upstream and Midstream Businesses

Tax-free separation creates two Appalachian-based energy companies EQT Corporation (ticker: EQT) has approved a plan to separate its upstream and midstream businesses, creating a standalone publicly traded corporation (NewCo) that will focus on midstream operations. The separation is intended to qualify as tax-free to EQT shareholders for U.S. federal income tax purposes, and is expected to be completed by the end of the third quarter 2018. Under the separation plan, EQT shareholders will retain their shares of EQT stock and receive a pro-rata share of the new independent midstream company. Both companies will remain headquartered in Pittsburgh, PA. “The decision to build our midstream business in parallel with upstream growth has created one of the strongest midstream companies in the Appalachian Basin,” said James Rohr, EQT’s lead independent director. “We have taken many steps to highlight the value of our midstream assets through a series of transactions including, the initial[Read More…]