Sabine Oil & Gas Corp.'s OTCQB common stock ticker symbol has been changed from "FSTO" to "SOGC." In addition, the name change from Forest Oil Corp. to Sabine was completed and effective Dec. 19 following the companies' merger (see Shale Daily, May 6, 2014).
A unit of EnLink Midstream Partners LP plans to buy LPC Crude Oil Marketing LLC for about $100 million. LPC purchases, transports and sells about 60,000 b/d of crude oil, serving as a link between Permian Basin producers and end markets. The acquisition expands EnLink's service offerings in the Permian, adding crude oil first purchasing and logistics capabilities to its natural gas gathering and processing services. "Even with the recent decline in oil prices, we believe that the Permian Basin will remain a core growth area for oil production," said EnLink Midstream LLC CEO Barry Davis. "This acquisition enhances EnLink's ability to provide a complete midstream solution to customers in one of the most active producing basins in North America, and our plan is to make additional investments expanding LPC's business over time." LPC assets include 13 pipeline and refinery injection stations; a fleet of 43 tractor trailers; six crude oil gathering systems totaling 67 miles of pipeline; and a crude oil first purchasing operation.
Oklahoma City-based SandRidge Energy Inc. said it earned $43 million (7 cents/share) in 3Q2014, versus $31.7 million (6 cents) in 3Q2013. Operating cash flow totaled $203 million, compared with $227 million, in part on asset sales. SandRidge had delayed the filing following discussions with the U.S. Security and Exchange Commission concerning how it accrued carbon dioxide (CO2) delivery penalties (see Shale Daily, Nov. 4, 2014). SandRidge plans to accrue a portion of its annual CO2 under a delivery penalty each quarter, which previously was recorded at the end of each year, CFO Eddie LeBlanc said. The company also restated its 2013 annual report and quarterly reports for 1Q2014 and 2Q2014, and said the change in accounting treatment impacted the first nine months of 2013 by $8 million net per quarter, while rendering no change to the 2013 annual net income. Capital spending plans for 2015 are to be issued in February.
Gulfport Energy Corp. has leased nearly 6,000 acres of land owned by Murray Energy Corp. in Belmont County, OH, adding to its 184,000 net acre position in the Utica Shale play. According to documents filed with the Belmont County Recorder's office, two Murray subsidiaries leased about 5,923 acres to Gulfport. Ohio-based Murray is the nation's largest privately-owned coal producer. Terms of the deal were not disclosed. According to published reports, the companies will work closely to ensure that Gulfport development will not interfere with Murray's nearby coal mining operations.
TPH Partners, the private equity arm of Houston-based energy investment bank Tudor, Pickering, Holt & Co. LLC, has announced an undisclosed investment in a Pittsburgh-based father and son team that will help them establish an exploration and production company focused on the Appalachian Basin. Laurel Mountain Energy LLC will be formed by Clark and David Nicklas to focus on the Marcellus, Upper Devonian and Utica shale formations in western Pennsylvania. The father and son have worked together in the past at Vista Resources in Pittsburgh, which partners with energy companies on drilling and pipeline projects in the Appalachian and Rockies regions.
Louisiana Gov. Bobby Jindal has asked the Louisiana Supreme Court to affirm the constitutionality of a law passed by the legislature with the intent of blocking a mega-lawsuit against oil and gas companies for damage to the state's coastal wetlands. The lawsuit was filed by the South Louisiana Flood Protection Authority-East in state district court in Orleans Parish in 2013 and alleges that pipeline/energy companies harmed coastal lands with activities tied to hundreds of wells and pipelines (see Daily GPI, July 25, 2013). The more than 80 defendant companies were later successful in having the case moved to federal court in New Orleans. A handful of companies have been removed from the lawsuit. Lawmakers last year adopted Act 544 with the intent of blocking the lawsuit. However, last fall 19th Judicial Court Judge Janice Clark ruled that SLFPA-E is not a state agency or a local government, and therefore is not subject to the provisions of Act 544 (see Daily GPI, Oct. 7, 2014). And then last December, Clark ruled that Act 544 is unconstitutional. That ruling has now been appealed by the governor's office to the Louisiana Supreme Court.