Bill Barrett signs $757M divestiture deal
In what one analyst called a game-changing event, Bill Barrett Corp. has signed agreements for $757 million in divestitures that comprised of a combination of cash, added Niobrara properties, and reduced liabilities, setting the company up as a majority oil-weighted company poised to focus its efforts on its DJ Basin assets. Bill Barrett signed agreements with several undisclosed purchasers to sell the majority of its Powder River Basin acreage and its remaining position in the Gibson Gulch natural gas program in the Piceance Basin. The deals include an acreage exchange whereby Bill Barrett will gain 7,856 net acres and 390 boe/d net production within the southern block of its operated Northeast Wattenberg area in exchange for acreage in the Powder River Basin. The expanded Niobrara position boosts the company's position by 20% to over 48,000 net acres. The assets sold include 46,510 net acres in the Powder River Basin and 12,000 net acres in the Piceance Basin. While Bill Barrett noted "undisclosed purchasers," Vanguard Natural Resources LLC said in a statement that it has agreed to acquire 12,000 net acres in Colorado's Piceance Basin from Bill Barrett for $525 million. The properties are currently producing approximately 67 MMcfe per day, after consideration of ethane rejection, with approximately 76% natural gas, 5% oil and 19% NGLs. Bill Barrett is set to receive $568 million in cash proceeds, $69 million in acquired Niobrara assets (the exchange), $36 million for the assumption by a purchaser of a lease financing obligation and $84 million in future commitments assumed by a purchaser for natural gas firm gathering and transportation obligations, redefining the company's balance sheet and portfolio. The transactions produce a cash influx set to reduce the company's net debt from $1.1 billion to approximately $450 million and "truly define a game-changing event for Barrett," said Wunderlich Securities analyst Jason Wangler, as "now the company will be solely focused on its DJ and Uinta assets, has a strong balance sheet with ample cash to develop its plays, and can be considered an oily name with a 70% oil weighting by year-end." Going forward, Bill Barrett plans to sell its remaining Powder River Basin position. Citigroup Global Markets, Inc. acted as financial advisor to the Company on the Gibson Gulch sale and BMO Capital Markets acted as financial advisor on the Powder River Basin transactions.
Vitesse Energy makes $186M Williston Basin acquisition
Centennial, CO-based Vitesse Energy LLC, a privately-held subsidiary of Leucadia National Corp., has acquired non-operated oil and gas assets in the Williston Basin from EnerVest Operating LLC. The assets include a working interest in approximately 600 wells and over 19,000 net acres primarily in Williams, McKenzie, and Mountrail counties for a preliminary purchase price of $186.5 million, subject to customary post-closing adjustments. Bob Gerrity, CEO, remarked, "This acquisition represents a synergistic addition to our existing high-quality acreage in the core area of the Bakken and Three Forks play, and also provides new growth opportunities in developing areas of the field where technology continues to enhance returns."
REISA changes name to ADISA
REISA, the nation's leading trade association serving the alternative investment and securities industry, will change its name to the Alternative and Direct Investment Securities Association (ADISA). "Founded in 2003 as TICA, the organization grew beyond a single investment product type (tenant-in-common programs) to broader real estate based products, and was given the name REISA. REISA's new name, ADISA, shows the evolution to handling even more areas of investment products," said ADISA executive director/CEO, John Harrison. ADISA influences more than 20,000 professionals who offer and manage alternative investments, such as non-traded REITs, private placement programs, oil and gas interests, securitized real estate investments, BDCs and more. Members include sponsors/issuers, broker-dealers, registered representatives, investment advisers, registered investment advisers, due diligence officers, accountants, mortgage bankers, institutional lenders and others. The organization promotes education, networking and advocacy, and connects members directly to key industry experts through intimate forums providing timely trends and education that help create a diversified portfolio for members' clients.
ENXP files registration statement for proposed IPO
Energy & Exploration Partners Inc. has filed a registration statement on Form S-1 with the Securities and Exchange Commission relating to a proposed initial public offering of its common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. A portion of the shares will be issued and sold by ENXP and a portion will be sold by certain stockholders of ENXP. Citigroup, Credit Suisse, and RBC Capital Markets are acting as joint book-running managers and as representatives of the underwriters for the proposed offering. ENXP is an independent exploration and production company based in Fort Worth, Texas, focused on the acquisition, exploration, development, and exploitation of conventional and unconventional oil and gas resources.
Pioneer Natural Resources sells Hugoton assets in KS
Pioneer Natural Resources Co. has closed the sale of its assets in the Hugoton field in Kansas to LINN Energy LLC for cash proceeds of $340 million. The assets being sold represent all of Pioneer's interests in the field, including its producing oil and gas wells, along with its interest in the Satanta gas processing plant and other associated infrastructure.
Sea Trucks secures $130M facility to complete Jascon 18
Sea Trucks Group Ltd., an international oil and gas marine contractor, has secured a $130 million facility to finance the completion of its Jascon 18 multipurpose construction support vessel. Jascon 18 will continue the final stages of outfitting at the Kwong-Soon shipyard in Singapore, where work on the accommodation blocks, cabling, piping, and installation of an 1,800-ton main crane has already begun. The vessel is expected to be delivered in the third quarter of 2015.
Senex to swap Surat Basin gas assets with QGC JV
Senex Energy Ltd. has agreed a Surat Basin gas asset swap in Queensland, Australia, with the PL 171 and ATP 574P joint venture partners (QGC JV). Under the terms of the tenement transfer agreement, Senex will transfer its minority interest in eastern Surat Basin permits PL 171 and ATP 574P (Senex permits) to the QGC JV, and the QGC JV will transfer its 100% interest in, and operatorship of, western Surat Basin permits ATP 795, ATP 767 and ATP 8892 (QGC JV permits) to Senex. No cash consideration is payable by any party in respect of the tenement transfers. The QGC JV permits are adjacent to Senex's existing western Surat Basin assets ATP 771P and ATP 593P and form the basis of the Western Surat Gas Project. On completion of the transaction, Senex will hold net 2P gas reserves of 488 petajoules (PJ). Senex will invest up to $37 million (AUD 40 million) from existing financial resources in the Western Surat Gas Project over the next three years, targeting commencement of pilot testing in 2015/16 and moving to an investment decision on commercial production as soon as appraisal results support it. Completion of the transaction is expected by Dec. 14 and is conditional on Foreign Investment Review Board, Queensland government, and other regulatory approvals.
WorleyParsons agrees to acquire MTG
WorleyParsons has an agreement to acquire MTG Ltd., a US-based management consulting firm in the oil and gas, petrochemicals, and chemicals industries with operations in North America, the UK, and Australia. The acquisition should be completed by the end of October. MTG specializes in improving operational performance across every aspect of the exploration and production, midstream, refining and marketing, petrochemicals and chemicals industries. The company has a 30-year history of providing strategic management advice and will provide Advisian, WorleyParsons' advisory business, with strategic skills in business transformation.
Statoil updates on NCS transactions
Statoil ASA has farmed down in Aasta Hansteen, Asterix, and Polarled and has exited two assets on the Norwegian Continental Shelf (NCS) for a consideration of $1.3 billion, including contingent payment. Through this transaction, Statoil monetizes on the Aasta Hansteen field development project, while retaining the operatorship and a 51% equity share. In addition, Statoil exits the non-core Vega and Gjøa fields. The transaction includes a farm down in four exploration licenses in the Vøring area. The buyer is Wintershall, a Germany-based energy company. The effective date for the transaction is Jan. 1. Closing is expected around year's end, pending government approval.
Blueknight Energy makes public offering
Blueknight Energy Partners LP started an underwritten public offering of 8,500,000 common units representing limited partner interests of the partnership. The partnership intends to use the net proceeds from the offering, including any net proceeds from the underwriters' exercise of their option to purchase additional common units, for general partnership purposes, including the repayment of a portion of the outstanding borrowings under the partnership's credit facility and partially funding the Partnership's Eaglebine pipeline project. Wells Fargo Securities, RBC Capital Markets, and BofA Merrill Lynch will act as joint book-running managers for the offering. Stephens Inc. and SunTrust Robinson Humphrey will act as co-managers for the offering.
Esmark to convert Ohio mill to support Marcellus and Utica shale production
Esmark Inc., a holding company with interests in steel manufacturing and distribution, oil and gas exploration and production, and real estate services, is converting the former Ohio Cold Rolling Co. steel finishing mill in Yorkville, Ohio, into a tri-modal industrial services terminal to support companies engaged in oil and gas exploration and production in the Marcellus and Utica shale plays. Esmark will repurpose the 1 million-square-foot mill facility into the newly named Yorkville Energy Services Terminal, a tri-modal (rail/truck/barge) logistics and transportation hub serving the Ohio, Pennsylvania, and West Virginia shale plays. Conversion and initial retrofitting of the facility is underway.
Empeiria acquires oilfield equipment Manufacturers
Empeiria Capital Partners LLC, a New York-based private equity firm, through its affiliate Tank Partners Holdings LLC, has completed the acquisitions of JL Bryan Equipment & Lease Services Inc. and Tank Partners LLC. Based in Perryton, Texas, JL Bryan manufactures and distributes a range of storage tanks and pressure vessels used to separate and store oil and water at oil and gas wellheads. Based in Seguin, Texas, Tank Partners manufactures steel storage tanks and pressure vessels primarily for oil and gas producers operating in the Eagle Ford shale and the Permian Basin. Both companies will continue to be managed by their existing senior executives, who have become investors in the new platform. Miller, Egan, Molter & Nelson LLP acted as legal advisor to Empeiria.
STW Resources to acquire Black Pearl Energy
STW Resources Holding Corp. plans to acquire Midland, Texas-based Black Pearl Energy LLC. Black Pearl installs liners and has introduced floating evaporation covers for freshwater frac pits to the oil industry. The company operates primarily in the Permian Basin. STW Resources plans to operate Black Pearl as a wholly owned subsidiary. Pursuant to a nonbinding agreement, STW will pay $1.95 million for 100% of Black Pearl. The parties are working on a definitive agreement.
Rex Energy completes Butler Operated Area acquisition
Rex Energy Corp. has closed its Butler Operated Area acquisition from SWEPI LP, an affiliate of Royal Dutch Shell plc. Total consideration paid was $120 million and the transaction has an effective date of July 1. The company funded the transaction primarily from the net proceeds of its recent offering of convertible perpetual preferred stock.
Basic acquires Pioneer Fishing and Rental
Basic Energy Services Inc. has completed the acquisition of substantially all of the assets of Pioneer Fishing and Rental (PFR), a division of Pioneer Energy Services, for a total cash consideration of $16 million. PFR operates its rental and fishing tool business from locations in Woodward, Oklahoma; Pampa, Texas; and Springtown, Texas. Basic expects this acquisition to be immediately accretive to earnings and to contribute revenue of $14 million in 2015.
Woodside selects Lloyd's as global inspection provider
Woodside, the largest independent oil and gas company in Australia, has chosen Lloyd's Register Energy as one of its global inspection providers. The new contract will help to ensure that the components and equipment Woodside procures globally meet quality expectations. Under the three-year contract, Lloyd's Register Energy will provide surveillance inspection, expediting, and auditing services.The contract also includes two one-year extension options. For more than 25 years, Lloyd's Register Energy has been providing ongoing compliance and risk consulting services to Woodside.
Blueknight Energy makes public offering
Blueknight Energy Partners LP started an underwritten public offering of 8,500,000 common units representing limited partner interests of the partnership. The partnership intends to use the net proceeds from the offering, including any net proceeds from the underwriters' exercise of their option to purchase additional common units, for general partnership purposes, including the repayment of a portion of the outstanding borrowings under the partnership's credit facility and partially funding the Partnership's Eaglebine pipeline project. Wells Fargo Securities, RBC Capital Markets, and BofA Merrill Lynch will act as joint book-running managers for the offering. Stephens Inc. and SunTrust Robinson Humphrey will act as co-managers for the offering.
Black Ridge increases credit facility borrowing base
Black Ridge Oil & Gas Inc. has reported an increase to the Cadence Bank NA senior secured credit facility borrowing base to $35 million, a 75% increase from the previous borrowing base of $20 million. The Cadence credit facility is the least expensive tranche of capital currently available to the company, carrying annual interest rates from 3.0% to 3.5% above LIBOR. In connection with the increase in the senior secured credit facility, and in consideration of the company's projected cash needs, the company and Chambers Energy Management LP reduced the current availability under the Chambers subordinated credit facility by $5 million to $30 million with additional availability to be approved by the lender on an as needed basis for acquisitions. Total availability to the company under the two facilities is $65 million, with $44 million drawn as of June 30. Black Ridge's focus is exclusive to the Williston Basin Bakken and Three Forks trend in North Dakota and Montana.
Norwest Equity Partners acquires UELS
Norwest Equity Partners has acquired Uintah Engineering & Land Surveying (UELS) for an undisclosed sum. Headquartered in Vernal, Utah, UELS is a provider of surveying, drafting, and engineering services for the American onshore oil and gas industry. UELS serves eight basins across 12 western states, with offices in the Rocky Mountain, Great Plains, Southwest, and Texas regions. GE Antares, a unit of GE Capital, is serving as administrative agent on a senior secured credit facility to support the acquisition. GE Capital Markets served as joint lead arranger and joint bookrunner on this facility.
Encana, PrairieSky report $2.6B secondary offering
Encana Corp. and PrairieSky Royalty Ltd. have entered into an agreement with a syndicate of underwriters, pursuant to which the underwriters will purchase from Encana, on a bought deal basis, 70,200,000 common shares of PrairieSky at a price of $36.50 per share, for aggregate gross proceeds to Encana of C$2.6 billion ($2.37 billion). All proceeds will be payable to Encana. Following closing of the offering, Encana will no longer hold an interest in PrairieSky.
Sanchez upsizes, prices private $300M senior notes offering
Sanchez Energy Corp. has priced its private offering to eligible purchasers of $300 million in aggregate principal amount of 6.125% senior notes due 2023 at an issue price of 100.75% of the principal amount of the notes. The offering was upsized from the previously announced $250 million aggregate principal amount. The notes will be issued under the indenture governing Sanchez Energy's outstanding 6.125% senior notes due 2023 and will become part of the same series as such outstanding notes. Sanchez Energy intends to use the net proceeds from this offering for general corporate purposes, including working capital.
ZaZa regains NASDAQ compliance
ZaZa Energy Corp. received a letter from the NASDAQ Stock Market on Sept. 5, advising that the company has regained compliance with Listing Rule 5550(a)(2), which requires the company to maintain a minimum closing bid price of $1.00 per share. NASDAQ made this determination of compliance after ZaZa's bid price closed above $1.00 per share for 10 consecutive business days following its reverse stock split.
