Closed

Kayne Anderson Capital Advisors LP has closed its fifth private equity energy fund with total commitments of $820 million. The Houston-based fund has invested in more than 50 energy companies since 1998. Like prior funds, the new fund will invest in “early to mid-stage” North American oil and gas companies with typical investments ranging from $20 million to $150 million, officials said. Previous investments by Kayne Anderson have included Millennium Midstream Partners LP (see Daily GPI, Sept. 17, 2008) and Crestwood Midstream Partners LLC (see Daily GPI, June 26, 2008).

As a bipartisan group of senators worked behind closed doors Friday to shave more than $100 billion from the $900 billion-plus economic stimulus package, Capitol Hill sources expected that the bulk of the tax cuts and spending for renewable fuels production, construction of power transmission facilities and energy conservation would survive.

As a bipartisan group of senators worked behind closed doors Friday to shave more than $100 billion from the $900 billion-plus economic stimulus package, Capitol Hill sources expected that the bulk of the tax cuts and spending for renewable fuels production, construction of power transmission facilities and energy conservation would survive.

Houston-based Western Gas Partners LP Monday closed its $210 million purchase of all or parts of various Powder River Basin processing and gathering infrastructure from Anadarko Petroleum Corp., which previously formed Western and eventually spun it off. Some of the purchase involves percentage interests in the Anadarko assets.

New Hampshire-based Unitil Corp. closed its $201.6 million purchase of Northern Utilities Inc. and Granite State Gas Transmission Inc. from NiSource Inc. The deal was announced Feb. 19 (see Daily GPI, Feb. 20). A utility holding company with electric and natural gas distribution utilities spread around New England, Unitil absorbed 81 employees and 52,000 retail gas customers making up Northern and Granite’s distribution operations. Unitil’s utilities now employ 430 workers and serve about 167,000 customers in 71 cities and towns in Massachusetts, Maine and New Hampshire. The purchase price was $160 million, plus $41.6 million for working capital, including about $33.9 million of gas storage inventory. Unitil said there was no acquisition premium. Unitil said it expects to close soon on long-term debt financing of $90 million, and to raise additional capital through the issuance of common stock.

Chesapeake Energy Corp. closed its Marcellus Shale joint venture transaction with Norwegian producer StatoilHydro ASA. The transaction was announced in mid-November (see Daily GPI, Nov. 12). Chesapeake sold 32.5% of its Marcellus leasehold to StatoilHydro for $3.375 billion, with $1.25 billion received in cash at closing and $2.125 billion set aside to fund 75% of Chesapeake’s drilling and completion costs in the shale between 2009 and 2012. Prior to the transaction Chesapeake had 1.8 million net acres in the leasehold; StatoilHydro now owns 600,000 net acres. StatoilHydro also has the right to a 32.5% participation in any additional stake that Chesapeake acquires in the play.

Natural gas futures closed lower Monday after an opening run that took prices to the highest levels in two weeks. Reports of cooler weather in the latter half of the six- to 10-day period aided bulls, but realization of ample supplies quickly tempered their enthusiasm and prices fell. Traders also noted a continued bearish technical environment. The November contract fell 4.5 cents to $6.741 , and the December contract dropped 8.5 cents to $6.991. November crude oil rose $2.40 to $74.25.

San Diego-based Sempra Energy closed its purchase of Mobile, AL-based EnergySouth Inc. for $510 million in cash. EnergySouth is absorbed into Sempra Pipelines & Storage, greatly increasing the company’s profile in the Gulf of Mexico region. A “substantial majority” of EnergySouth shareholders approved the sale Sept. 30; they will receive $61.50/share. The transaction has received all necessary regulatory approvals, including the federal antitrust clearance under the Hart-Scott-Rodino Act. Announced in late July, Sempra’s acquisition gives it a majority ownership in two large, high-cycle underground gas storage facilities that when fully developed will have a combined capacity of 57 Bcf. When the deal was announced Standard & Poor’s Ratings Services (S&P) revised to “negative” the ratings outlook on Sempra Energy, citing the deal’s provision that Sempra assume $283 million of EnergySouth debt. S&P affirmed the company’s “BBB+” corporate credit rating and its “A” rating on Sempra’s California utility subsidiaries. Included in the purchase is Mobile Gas Service Corp., an Alabama gas distribution utility owned by EnergySouth. Mobile Gas serves about 93,000 retail customers in southwest Alabama. Sempra said than James Fine has been named president of Mobile Gas after previously serving as the company’s vice president for operations.

San Diego-based Sempra Energy closed its purchase of Mobile, AL-based EnergySouth Inc. for $510 million in cash. EnergySouth is absorbed into Sempra Pipelines & Storage.