El Paso Energy Partners LP completed its previously announced acquisitions of the Chaco processing facility and Deepwater Holdings LLC from El Paso Corp. Chaco is a cryogenic natural gas processing facility located in northern New Mexico’s San Juan Basin and is connected to El Paso Field Services’ extensive natural gas gathering system. It is the third-largest natural gas processing plant in the United States with processing capacity of 700,000 Dth/d and natural gas liquids (NGL) production capacity of 50,000 b/d. EPN retains an existing lease with El Paso Field Services. In conjunction with the Chaco acquisition, EPN entered into a 20-year, fixed-rate tolling agreement to process natural gas for El Paso Field Services. The Chaco transactions are valued at $198.5 million. Deepwater Holdings owns the High Island Offshore System, which serves the Outer Continental Shelf region of the western Gulf of Mexico and the East Breaks Gathering System, which serves the deepwater trend of the western Gulf of Mexico region. Prior to the acquisition, EPN operated and held a 50% interest in Deepwater Holdings. EPN acquired the remaining 50% interest from a subsidiary of El Paso Corp. and retired project debt for a total transaction value of $85 million.
Articles from Acquisitions
The Oil & Gas Asset Clearinghouse, the Houston-based marketing and consulting firm for property acquisitions and divestitures, will hold its 14th hybrid live floor/Internet auction on Wednesday. More than 1,100 oil and gas properties will be combined into 123 lots. The hybrid auction enables Internet bidders to compete real-time against the live auction floor.
Lehman Brothers Analyst Thomas Driscoll said an “exhaustive analysis” of mergers and acquisitions among 47 large producers, who account for about 70% of domestic production, led him to conclude that production rose 1.5-1.6% over the past six months. A continuation of the first-half trends will lead to 3-3.5% year-to-year production growth by the end of the fourth quarter, Driscoll said. However, the significant decline in prices probably will have an impact on drilling in the second half of the year.
Coalbed methane (CBM) production, which up to now has been mostly centered in the Rocky Mountain Basin, appears to be where it’s at for both large and small domestic producers, with several recent announcements to beef up exploration and production in not only the well known basin in Colorado, Utah and Wyoming, but also in smaller plays around the United States.
With the news that its second-quarter net income doubled from the same period last year, Calgary-based PanCanadian Petroleum Ltd. said Tuesday it would boost its capital budget almost 51% through the rest of the year, with 26% targeted toward high impact exploration. The increase, said the company, would allow it to take advantage of “new opportunities and pursue an aggressive plan of delivering further growth.”
Mergers and acquisitions in the energy industry are continuing at a feverish pace as two more production companies announced that they have decided to tie the knot. Samson Canada, a privately held oil and natural gas company with operations in the United States, Canada, Russia and Venezuela, announced that it will make an offer to acquire all of the outstanding common shares of Courage Energy Inc. at a price of C$5.20/share in cash.
Mergers and acquisitions in the energy industry are continuing at the feverish pace set last year as two more production companies announced that they have decided to tie the knot. Samson Canada, a privately held oil and natural gas company with operations in the United States, Canada, Russia and Venezuela, announced on Monday that it will make an offer to acquire all of the outstanding common shares of Courage Energy Inc. at a price of C$5.20/share in cash.
Based on recent and near-term acquisitions, Alberta EnergyCompany Ltd., (AEC) has upped cash flow projections for itsmidstream business for 2000 from the original estimate of C$145million to over C$165 million. The company also expects itsmidstream’s forecasted cash flow for the year 2001 to be C$230million, double its performance in 1999.
San Jose, CA-based Calpine Corp. announced yesterday it hascompleted the acquisitions of the remaining 50% interests in twonatural gas-fired power generation facilities from two affiliatesof Statoil Energy Inc. of Alexandria, VA, for $71 million.