First Reserve Corp. has formed a $9 billion private equity fund, First Reserve Fund XII LP, to make privately negotiated equity and equity-related investments in a diversified portfolio of companies in the global energy industry. Law firm Simpson Thacher represented First Reserve in the establishment of the fund.
BPZ closes $4.4M private placement with IFC
BPZ Resources Inc.’s largest shareholder, International Finance Corp. (IFC), has exercised its preemptive right related to the February 2009 private placement to purchase 1.4 million shares of the company’s common stock for roughly $4.4 million. Total shares issued in the February offering are approximately 15.7 with gross proceeds of nearly $48 million.
Quantum Resources plans $1.2B in oil, gas acquisitions
Quantum Resources Management LLC, the US fund manager that owns 80 oil and natural-gas fields from the Gulf Coast to the Rocky Mountains, plans to spend at least $1.2 billion on acquisitions in the next two years. Quantum is targeting acquisitions of at least $200 million. The Denver-based company plans to relocate its headquarters in the next few months to Houston, home of its co-manager, the $5 billion buyout firm Quantum Energy Partners. The company has also promoted Alan Smith from managing director to president and CEO. Smith replaces Donald Wolf who will retain his title as chairman of Quantum Resources.
St. Mary Land & Exploration enters new credit facility
St. Mary Land & Exploration Co. has entered into a new senior secured revolving credit facility. The bank group, comprised of 12 banks, has approved a $900 million borrowing base. The current commitment amount from the bank group is $678 million, which is an increase from the $500 million in commitments provided in the previous facility. As of April 14, 2009, St. Mary has $312 million drawn under this facility.
Approach Resources’borrowing base reaffirmed
Approach Resources Inc.’s bank group has reaffirmed the company’s $100 million borrowing base and the bank group’s $100 million commitment amount under the company’s revolving credit facility. The credit facility is provided by The Frost National Bank, as agent, JPMorgan Chase Bank, Fortis Capital Corp. and KeyBank.
Brasada Capital Management enters Houston hedge fund market
Hedge fund managing company Brasada Capital Management was recently formed in Houston with principals Mark McMeans, CEO, Ronnie Stein, director of trading and lead portfolio managers Gabe Birdsall and Rob Leslie.
Concho Resources’ $960Mborrowing base reaffirmed
Concho Resources’ bank group has completed a semi-annual redetermination of the company’s borrowing base for its $1.2 billion secured revolving credit facility. The borrowing base has been reaffirmed at $960 million, its existing level since July 2008. The credit facility is provided by a syndicate of 22 banks led by JP Morgan Chase Bank NA and Bank of America NA.
Energy XXI receives borrowing base redetermination
Energy XXI (Bermuda) Ltd. has completed its semi-annual redetermination of the borrowing base under its revolving credit facility, which has been set at $240 million. On a pro forma basis, after completing all the commitments, the company expects to be fully drawn under the revolver and have $61 million of cash on hand. Energy XXI also agreed to discontinue making any dividend distributions until the next borrowing base redetermination is finalized in late 2009. The previous quarter’s dividend rate was $0.005 per share.
OTCGH launches NGL, product options brokerage with Ion Energy Group
OTC Global Holdings (OTCGH), an independent interdealer broker in the over-the-counter (OTC) space, has formed Ion Energy Group. Based in New York City, Ion marks OTCGH’s entry into the US natural gas liquids (NGL) market and increases its market share in the US product options business. Ion will also be brokering natural gas and crude oil options. Ion was created around principals Sid Perkins and Eric Foster and includes a team of six brokers. Foster began his career working on the floor of the New York Mercantile Exchange, Perkins began his career as a trader.
GMX plans additional hedges; decreases future CAPEX budgets
GMX Resources Inc. has increased its hedge positions for 2010 and revised its capital expenditure forecast for 2010. The company added additional hedges in 2010 and now has roughly 75% of its anticipated 2010 production hedged at $6.50 per Mcfe. The company purchased a 3-way collar for 15,500 MMbtus per day settled at NYMEX with a $7.00 ceiling and a $5.50 floor with an additional put option at $4.00. The company also sold a $3.50 put option settled at NYMEX on the balance of its 2009 hedges. As of this posting, GMX has roughly 67% of its expected 2009 production hedged at an average of $7.77 per Mcfe. The company expects capital expenditures for 2010 to be $75 million. This is a decrease of $75 million from the forecast of $150 million in 2009. The current 2009 plan is forecasted at $150 million to $125 million.
Industrial Growth Partners, Northern Oil and Gas benefit from CIT financing arrangements
CIT Group Inc., a bank holding company, has co-arranged a $36 million senior secured credit facility for Industrial Growth Partners to complete its acquisition of O’Brien Corp., a St. Louis-based manufacturer of industrial tubing and equipment enclosures. Aditionally, CIT served as lead arranger in a $25 million senior secured revolving credit facility to Wayzata, Minn.-based Northern Oil and Gas Inc. Financing for both deals was arranged by CIT through CIT Bank, a Utah state bank. Terms were not disclosed.
Kronfeld et al. start Plymouth Exploration; receive $50M from Kayne Anderson
Tulsa, Okla.-based Plymouth Exploration LLC (PEX) has been formed with a $50-million private-equity commitment from Kayne Anderson Energy Funds, and with funding from management. Plymouth is the latest venture of Plymouth Resources Inc., which has been operating since 1982. It will focus on acquisition, exploration and development primarily in Oklahoma, Texas, and Kansas. PEX’s founder is Ted Kronfeld, president; he is also president of Plymouth Resources. Alex Kronfeld is senior vice president. Joel Blake, formerly of Williams Cos., is vice president, exploration, and Jack Kueser, formerly of Newfield Exploration Co., is vice president, engineering. Kyle Hill, also formerly with Newfield, is controller.
CyrusOne brings energy clientsto planned Austin data center
CyrusOne, a corporate colocation provider, has signed a long term lease agreement to acquire 50,000 square feet of real estate in one of Austin’s data center business parks, The MetCenter. The company brings two clients to the new Austin center, both in the energy industry. Once the center is built, CyrusOne will have six facilities totaling 380,000 square feet in Texas. CyrusOne will provide its typical high power densities, fully redundant colocation services that are engineered in a 2N configuration for power and cooling. Disaster recovery and business continuity services in the Austin site will be available immediately, while data center space will come online in the third quarter.
