The Federal Trade Commission has closed its investigation of Regency Energy Partners LP's $1.3 billion acquisition of Eagle Rock Energy Partners LP's midstream business. This was the final regulatory approval required for the deal's closing, which is planned to occur Tuesday (July 1). The deal was announced late last year (see Shale Daily, Dec. 23, 2013).
Sanchez Energy Corp. closed on its acquisition of Eagle Ford Shale assets from units of Royal Dutch Shell plc with an effective date of Jan. 1, 2014 (see Shale Daily, May 22). Total consideration was $553.5 million. The final purchase price is subject to further post-closing adjustments. Sanchez also closed on a $1.5 billion credit agreement, dated June 30, with an elected, available, commitment amount of $425 million. There are no outstanding loans under the amended credit facility. "This strategic acquisition adds significant reserves, production and future resource potential in an area of the Eagle Ford Shale where we have demonstrated an ability to rapidly assimilate and efficiently develop acquired properties," said CEO Tony Sanchez. "We believe that our recently completed equity and notes capital raises along with our new bank credit facility will leave us in a financial position of considerable strength to execute our plans."
San Antonio, TX-based WellAware, a provider of oilfield remote monitoring and predictive analytics software, has secured an additional $37 million of funding. The new round of funding was co-led by Activant Capital Group and Carlos Slim, CEO of America Movil, one of the largest mobile phone carriers in Latin America. Other investors include Ed Whitacre Jr., former CEO of AT&T; and Dick Cheney, former U.S. vice president. Cheney also joined the company's board of directors. The funding will enable WellAware to expand its end-to-end solution for oilfield data collection, storage, visualization, mobility, and predictive analytics. The company has completed a network in the Eagle Ford Shale and is developing a network for the Permian Basin. The oil and gas industry is predicted to spend more than $33 billion by 2022 on oilfield intelligence solutions to manage labor shortages, maintain licenses to operate, reduce capital expenditures, and increase efficiency, according to the company.
Williams has completed the previously announced acquisition of the 50% general partner interest and 55.1 million limited partner units in Access Midstream Partners LP previously held by Global Infrastructure Partners II for $5.995 billion in cash (see Daily GPI, June 16). Williams now owns 100% of the general partner and about 50% of the limited partner units in Access Midstream Partners. As previously announced, Williams is proposing the merger of Williams Partners LP with and into Access Midstream Partners in a unit-for-unit exchange at a ratio of 0.85 Access Midstream Partners units per Williams Partners unit. The merged master limited partnerships would be named Williams Partners LP.
Chevron Phillips Chemical Co. LP (CPChem) is expanding the normal alpha olefins (NAO) production capacity at its Cedar Bayou plant in Baytown, TX. The expansion, which is intended to take advantage of low-cost shale gas supplies, will add 100,000 metric tons per year of capacity and is expected to be completed in July 2015. The project has been permitted by the Texas Commission on Environmental Quality. NAOs and derivatives are used extensively as polyethylene co-monomers, synthetic motor oils, lubricants, automotive additives and in a wide range of specialty applications.
Seventy Seven Energy Inc. (SSE), the oilfield services unit jettisoned by Chesapeake Energy Corp., advanced Tuesday in its first day of trading as a standalone on the New York Stock Exchange. SSE's stock ended the day trading at $25.06 after opening at $23.77. More than 5.4 million shares traded hands. The unit, which had contributed more than $2.00 to Chesapeake's share price, caused the producer's stock to fall by nearly the same amount, closing down $1.84 (6%) for the day. The spinoff is one of Chesapeake CEO Doug Lawler's biggest deals since coming aboard last year (see Daily GPI, June 9). The explorer expects to generate more than $4 billion in asset sales this year.
In two separate deals, Denver-based Hawkwood Energy LLC has made its entry into the emerging East Texas Eagle Ford and Woodbine plays, acquiring producing and nonproducing assets in Brazos, Leon, Madison, and Robertson counties, TX. Hawkwood bought Crimson Energy Partners III's assets, which are located mostly in Brazos County. It also bought certain Encana Oil and Gas (USA) Inc. assets, which are mostly in Robertson County. The combined transactions include about 1,800 b/d of oil production and more than 50,000 "generally contiguous" net undeveloped acres. Terms were not disclosed. "We are excited about the growing unconventional activity in the Eagle Ford and Woodbine, as well as the other long-term multi-pay opportunities the area has to offer," said CEO Patrick Oenbring. "Hawkwood intends to invest significant capital and resources into the area to create substantial value for its investors."