NGI The Weekly Gas Market Report

Briefs -- Texas Pacific Land Trust | Cargill, Macquarie | Colorado Wildfires | Rubicon Oilfield | Wyoming Lease Sale

Dallas-based Texas Pacific Land Trust (TPL) has formed a water unit to serve Permian Basin oil and natural gas operators. Texas Pacific Water Resources LLC plans to develop integrated water servicing agreements to include brackish water sourcing, produced water gathering/treatment/recycling, infrastructure development/construction, disposal, water tracking, analytical and well testing services. Operations are led by Robert A. Crain, who formerly led development of EOG Resources Inc.'s water resource programs in multiple divisions, including the Eagle Ford Shale and the Permian. TPL, created in 1888, is one of the largest landowners in Texas with about 888,333 acres in 18 counties. The trust has a perpetual oil and gas royalty interest in 459,200 acres. Revenue is derived from managing oil and gas royalties, grazing leases, easements, sundry/specialty leases and land sales.

Minneapolis, MN-based Cargill has reached an agreement to sell its North America Power and Gas trading business to Macquarie Group for an undisclosed amount in a deal expected to close this year. The unit has offices in Calgary, Houston and Minneapolis. Macquarie was No. 5 in NGI'recent analysis of 2016 Form 552 buyer and seller filings with the Federal Energy Regulatory Commission. Macquarie also was ranked No. 5 with 8.91 Bcf/d sales in NGI's 1Q2017 Top North American Gas Marketers Ranking. Cargill was No. 47 in NGI's analysis of 2015 Form 552 filings, buying and selling 669.8 Tbtu. In March, Cargill agreed to sell its petroleum business to Macquarie, also for an undisclosed amount, in a deal expected to close in 2H2017. "Together with our acquisition of Cargill Petroleum, we see a historical opportunity for continued growth and customer engagement across the energy spectrum," said Macquarie Group’s Nick O’Kane, global head of commodities.

Winds in excess of 70 mph triggered a fourth wildfire in northwest Colorado covering more than 5,000 acres, and the threat to oil and natural gas operations remains at another fire contained at around 1,000-acres, according the U.S. Bureau of Land Management (BLM). Some energy operators have shut in some operations as a precautionary step. The Dead Dog fire was considered the biggest of the four lightning-ignited wildfires, and red flag fire warnings remained in effect for the region. BLM reported some highway closures and evacuations as more than 200 firefighters were working the Dead Dog and Hunter fires. The biggest threat to oil and gas operations is said to be the Hunter fire. 

Warburg Pincus-backed Rubicon Oilfield International Holdings LP, based in Houston, has snapped up Calgary-based World Oil Tools Inc. for an undisclosed amount to expand its downhole completions business. World Oil, established in 2000, makes specialty inflatable products and technology used in completions, and it works in North America's unconventional basins, overseas and offshore. The deal would add inflatable packers, external casing packers and drill-stem testing technology to Rubicon's portfolio. Formed in 2015, Rubicon designs, manufactures and sells/rents downhole oilfield products in more than 50 countries. Since its formation it has acquired other downhole products businesses including Tercel Oilfield Products, Top-Co Holdings and Logan International.

Wyoming’s Office of State Lands and Investments is holding an online oil and gas lease auction from July 12-19 using EnergyNet.com. There are to be 240 parcels offered covering 86,000 acres in Converse and Natrona counties. Details are available on the agency website.  

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