Chesapeake

Chesapeake Energy Corp. and SandRidge Energy Inc. are accused in a $30 million lawsuit of conspiring to “depress the market” to purchase natural gas and oil leaseholds in Kansas.

Austin, TX-based Luxe Energy LLC has been identified as the seller in a $560 million deal with Diamondback Energy Inc. for assets in the Permian Basin’s Delaware sub-basin (see Shale Daily,July 13). Luxe, formed in 2015 by Natural Gas Partners’ NGP Natural Resources XI LP, acquired the Delaware properties in early 2016 (see Shale Daily,Jan. 22;May 14, 2015). Luxe CEO A. Lance Langford said the company planned to work with NGP to “identify, evaluate and execute on additional acquisition opportunities.” The Diamondback transaction is expected to be completed in September.

More than 30 business entities and individuals in Texas, including Fort Worth’s Kimbell Art Foundation, are suing Chesapeake Energy Corp. based on claims that the company structured a series of contracts to receive excessive fees and other charges after its 2009 sale of Barnett Shale midstream assets.

The Pennsylvania Attorney General’s (AG) office has pushed back against Chesapeake Energy Corp. and Anadarko Petroleum Corp.’s efforts to have a far-reaching royalties lawsuit be decided by a federal, rather than a state court, arguing it has the right to prosecute antitrust violations and protect the state’s landowners.

EnLink Midstream Partners LPplans to construct the Greater Chickadee crude oil gathering project in Upton and Midland counties in Texas to serve Permian Basin producers. The partnership said it would invest $70-80 million to build the system, which would include more than 150 miles of high- and low-pressure pipelines to transport oil to major market outlets and other hub centers in the Midland, TX, area. The project also includes central tank batteries and pump, truck injection and storage stations. The initial phase is expected to be operational in the second half of this year with full service expected in early 2017. Greater Chickadee, supported by long-term, fee-based agreements, includes about 35,000 dedicated acres in Upton County where current output is .more than 10,000 b/d. Last November, an EnLink unit agreed to pay $40 million to Apache Corp. to acquire full ownership of their jointly owned Deadwood natural gas processing facility in the Permian (see Shale Daily,Nov. 17, 2015).

Denver-based FourPoint Energy LLC said it will continue to look for more transactions to beef up its onshore portfolio after tripling its staff and offices through its buyout of Chesapeake Energy Corp.’s remaining Anadarko Basin properties.

The Fort Worth, TX, city council has voted 9-0 to authorize a $15 million settlement with Chesapeake Energy Corp. regarding underpaid natural gas royalties for Barnett Shale volumes. Fort Worth originally had sought $33.5 million in the lawsuit for royalties from more than 260 leases on 5,800 acres of property in Tarrant and Johnson counties. Chesapeake, which has leased land with the city since 2006, agreed to make the full payment by Tuesday (May 31). Going forward, royalty payments for the Barnett gas will be calculated using Houston Ship Channel prices, without any deductions for post-production costs and expenses. Revenue would be retroactive to April 1, 2016. The city council in March settled a similar lawsuit for $6 million with Chesapeake’s Barnett 25% partner Total E&P USA (see Shale Daily,March 23). Chesapeake and Total also agreed to pay $52.5 million to settle lawsuits with more than 13,000 people owning land in the Barnett, who had claimed they were underpaid royalties for their gas leases (see Shale Daily,May 23).

Chesapeake Energy Corp. and Barnett Shale partner Total E&P USA agreed Monday to pay $52.5 million to settle lawsuits with more than 13,000 people who had claimed they were underpaid royalties for natural gas leases.

American Energy Partners LP, created by Aubrey McClendon in 2013 after he left Chesapeake Energy Corp., will be closed in the next few months, the company said.