Richard Zeits • 68 Comments
Daniel R Moore • 169 Comments
Mon, Jun. 20, 2:25 PM
- Marathon Oil (MRO +10.4%) powers higher after snapping up P-E-backed PayRock Energy for $888M, increasing its footprint in Oklahoma's prolific STACK oil play.
- MRO expects internal rates of return for the new addition of 60%-80% before taxes at a WTI price of $50/bbl.
- CEO Lee Tillman says MRO would ratchet up drilling activity if crude prices held above $50/bbl for a while, and that the Oklahoma oil region is profitable enough that it can compete for capital against the company’s other oil plays.
- SunTrust analysts consider ~60% of Payrock’s position to be in the core STACK, and estimates the core acreage value at ~$15K/acre, which appears in line with recent transactions.
- The firm also thinks MRO's move is good news for core STACK players Newfield Exploration (NFX +0.5%), Cimarex Energy (XEC +1.3%), Continental Resources (CLR +1.2%), Devon Energy (DVN +4.6%) and Chesapeake Energy (CHK +3.3%).
Mon, Feb. 22, 6:35 PM
- Some analysts believe the merger of Williams Cos. (WMB, WPZ) and Energy Transfer Equity (ETE, ETP) is inching closer to fruition, after WMB said last week that it remains committed to the much-maligned deal.
- Raymond James analyst Darren Horowitz believes the highest probability outcome remains that WMB and ETE continue with the previously agreed-upon merger terms, and that it is in management’s best interest to provide as much deal-related transparency as legally possible.
- Rob Thummel, portfolio manager at Tortoise Capital, thinks more encouragement came from some reassurance on WMB's earnings conference call that the company is not overly exposed to the risk that Chesapeake Energy (NYSE:CHK), which provides about 18% of WMB's cash flow, could go bankrupt and stop making payments.
- However, CTFN reports that January's $1B private placement of debt by WMB subsidiary Transcontinental Gas Pipe Line has led an investor to question the "limitation of guarantees” covenant as it may relate to the merger.
Jan. 20, 2015, 11:33 AM
- Chesapeake Energy (CHK +1.9%) moves higher as a report speculates that the company could be a potential acquisition target of India's ONGC.
- India's government has directed state-run ONGC to make some acquisitions to hedge themselves against higher energy prices in the future, and reportedly considers CHK a strong strategic target, given its recent sales, balance sheet and diversification through two commodities.
- The report says ONGC could already be in talks with a North American gas and oil company, with CHK believed to be the target.
Jul. 14, 2014, 8:10 AM
- Exterran Partners (NASDAQ:EXLP) agrees to acquire natural gas compression assets from Chesapeake Energy (NYSE:CHK) subsidiary MidCon Compression for ~$135M.
- The assets include 162 compression units, most of which are being used to provide compression services to BHP Billiton in Arkansas' Fayetteville Shale; as part of the deal, the contract operations services agreement with BHP will be assigned to EXLP.
- EXLP says the deal will add immediately to distributable cash flow per unit.
Jul. 7, 2014, 8:14 AM
- Rice Energy (RICE) agrees to acquire ~22K net acres and 12 developed Marcellus wells in Pennsylvania from Chesapeake Energy (CHK) for ~$336M.
- RICE says the acquisition represents a 24% increase in its net acreage position and a 47% increase to its Marcellus inventory of 325 net risked locations as of March 31; current net production total ~20M cf/day from seven wells plus five wells in various stages of development.
Feb. 24, 2014, 2:20 AM
- Chesapeake Energy (CHK) is pursuing strategic alternatives for its oilfield services division, including selling the unit or spinning it off to the company's shareholders.
- Chesapeake Oilfield Services (COS) generated revenue of $2.2B in 2013; its service offerings include drilling, hydraulic fracturing, oilfield rentals, rig relocation, and fluid handling and disposal.
- The news follows speculation last week that 10%-owner Carl Icahn is seeking a cash bid of up to $40 a share for Chesapeake, whose shares closed at $26.57 on Friday to give it a market cap of $17.67B. (PR)
Oct. 17, 2013, 6:25 PM
- The Daily Mail passes along a rumor going around earlier that Chesapeake Energy (CHK) could be takeover bait for the likes of BP or Royal Dutch Shell (RDS.A, RDS.B) at ~$40/share.
- Early morning strength in the shares may have been attributed to the rumor, but most gains fell away into the afternoon; shares closed +0.3% but have picked up ~2% AH.
Jun. 7, 2013, 3:16 PM
Gastar Exploration (GST +3.6%) says it's completed its acquisition of proven reserves and undeveloped leasehold interests in Kingfisher and Canadian Counties, Oklahoma, from Chesapeake Energy (CHK) for $84M. The company also reports that as of today, Michael McCown will assume the position of senior vice president and chief operating officer. Michael Gerlich will continue as GST's CFO and has been promoted to senior vice president.| Jun. 7, 2013, 3:16 PM
May 1, 2013, 8:15 AM
SemGroup (SEMG) agrees to acquire Mississippi Lime midstream assets from Chesapeake Energy (CHK) for $300M. SEMG says the deal will lift its total processing capacity to 600M cf/day in Oklahoma and with ~655K net acre dedications within the core of the Mississippi Lime play. Completion of two cryogenic processing plants will require ~$125M in capex.| May 1, 2013, 8:15 AM
Feb. 27, 2013, 5:58 PM
Along with its Q4 results, Western Gas (WES) announces it's buying a 33.75% interest in Marcellus shale gas gathering systems from Anadarko (APC) for $490M, and a similar interest in Marcellus gathering systems from Chesapeake (CHK) for $133.5M. The assets have a combined throughput of over 1.2 Bcf/d. WES plans to to finance the purchases with $220M in cash on hand, credit facility borrowings, and the issuing of 449K shares at an implied price of $54.55. (PR)| Feb. 27, 2013, 5:58 PM | 1 Comment
Jan. 31, 2013, 12:28 PM
Chesapeake (CHK) will no longer be run by Aubrey McClendon, but the company he founded is far from rid of him. He is entitled to ~$47M in total compensation, but the most enduring entanglement is his interests in up to 2.5% of ~45K producing wells, which could make it harder to structure a takeover deal. "It's hard for me to imagine anyone wanting to take it all on," Argus' Phil Weiss says.| Jan. 31, 2013, 12:28 PM | 11 Comments
Jan. 30, 2013, 10:52 AMChesapeake's (CHK +6.4%) Archie Dunham says "the company is not for sale," but getting McClendon out removes a big obstacle in the way of a hostile takeover. CHK would make a juicy target for Asian state-controlled oil firms, Bernstein's Neil Beveridge writes; E&Ps with shale acreage or deepwater discoveries but lacking capital to develop the assets are exactly what they're looking for, given their access to low cost financing. | Jan. 30, 2013, 10:52 AM | 6 Comments
Jan. 30, 2013, 9:45 AMAubrey McClendon's departure has some wondering if his “philosophical differences” with the board are about whether Chesapeake (CHK +10.8%) could be shopping itself. Stifel Nicolaus upgrades shares to Buy on the expectation that McClendon's ouster "could lead to the whole company being put into play or at least, and more likely, a more aggressive shrinking of the asset base.” | Jan. 30, 2013, 9:45 AM | 2 Comments
Dec. 13, 2012, 8:30 AM
Plains All American (PAA) acquires Eagle Ford crude oil and condensate gathering assets from a subsidiary of Chesapeake Energy (CHK) for ~$125M. The acquired assets include ~40 miles of crude oil and condensate gathering pipelines with a throughput capacity of ~50K bbl/day; 150K barrels of existing storage capacity and 300K barrels of capacity under construction. PAA +1.8% premarket.| Dec. 13, 2012, 8:30 AM
Dec. 11, 2012, 5:43 PM
Chesapeake Energy (CHK) agrees to sell a substantial majority of its remaining midstream assets to Access Midstream Partners (ACMP) for ~$2.16B; the assets are located primarily in the Marcellus, Utica, Eagle Ford, Haynesville and Niobrara shale plays. CHK also anticipates completing the sale of its remaining midstream assets by the end of Q1 2013 for ~$425M. CHK +0.3% AH.| Dec. 11, 2012, 5:43 PM | 18 Comments
Sep. 12, 2012, 11:54 AMChesapeake (CHK -1.1%) swings sharply lower after its opening pop, as analysts question whether it got top dollar for the Permian Basin acreage; some had expected the sales to reap $4B-$5B (I, II, III). The deal has "helped them climb up the wall in this hole they've dug for themselves, but they are not there yet," Argus' Phil Weiss says. | Sep. 12, 2012, 11:54 AM | 5 Comments