Agreement

Will the merger of Energy Transfer Equity (ETE) and The Williams Cos. Inc. go through? ETE says “no,” but Williams is pushing ahead, executives with each company said Thursday during first quarter earnings conference calls.

Less than four months after voluntarily filing for bankruptcy protection, Swift Energy Co. emerged from Chapter 11 on Monday and closed on a new $320 million senior secured credit facility, while also forming a joint venture (JV) and closing on the sale of some conventional oil assets in central Louisiana.

Less than four months after voluntarily filing for bankruptcy protection, Swift Energy Co. emerged from Chapter 11 on Monday and closed on a new $320 million senior secured credit facility, while also forming a joint venture (JV) and closing on the sale of some conventional oil assets in central Louisiana.

In an ominous development for midstream companies, a federal bankruptcy court judge ruled in favor of Sabine Oil & Gas Corp. on Tuesday, allowing the distressed producer to terminate natural gas and condensate gathering agreements in the wake of low commodity prices.

April natural gas is set to open 4 cents lower Thursday morning at $1.64 as weather models are in greater agreement on forecast warm patterns and traders hone short-term trading algorithms in preparation for the release of government storage figures. Overnight oil markets fell.

Attorneys active in the oil and gas industry warn that a pair of bankruptcy court cases involving distressed exploration and production (E&P) companies could spell trouble for the midstream sector, with the potential for more E&Ps using bankruptcy protection as a means to get out of long-term contracts.

Williams CEO Alan Armstrong on Thursday downplayed Williams Partners LP’s gathering contract exposure to troubled producer Chesapeake Energy Corp. and said Chesapeake has been paying its bills.

The state of Alaska extended its cooperation agreement with Japan-based consortium Resources Energy Inc. (REI) to develop Cook Inlet natural gas (see Daily GPI,Dec. 29, 2014). The agreement extension comes three months after Gov. Bill Walker met with more than 25 companies and government agencies, including the prefectures of Kyoto and Hyogo, during an international liquefied natural gas (LNG) conference in Tokyo, where he told more than a thousand attendees of the Alaskan LNG opportunity (see Daily GPI,Sept. 23). The agreement, which was extended two years to Dec. 14, 2017, encourages the development of Cook Inlet natural gas to provide Alaskans low-cost energy while also supplying Japanese consumers. “The world market will certainly benefit from Alaska’s rich natural gas reserves, but my No. 1 priority is ensuring that we work toward affordable energy for Alaskan families and businesses.” Walker said. “Extending this agreement with REI shows Japanese consumers that Alaska is committed to exporting liquefied natural gas.”

After two weeks of negotiations in Paris, representatives of nearly 200 nations, including the United States, India and China, entered into an agreement to reduce global carbon emissions.