Deal

Adelaide-based independent gas producer Santos Ltd. is on track to become Australia’s largest energy producer following its Monday announcement that it inked a $1.39 billion deal to buy ConocoPhillips’ northern Australia assets.

Spokane, WA-based Avista Corp. eventually could look for another merger or acquisition for its five-state utility holding company, following the failure of a $5.3 billion acquisition by Hydro One Ltd. earlier this year, CEO Scott Morris said Friday.

Denver-based U.S. Energy Corp. (USEG) has entered into a memorandum of understanding with APEG I Partners to acquire all of APEG’s interest in 67 Bakken Shale wells in McKenzie and Williams counties, ND. The proposed deal includes about 1.1 million boe of proved developed reserves (79% oil) and 400 boe/d of current production across 1,600 net acres. Total consideration is $17.8 million, consisting of a combination of cash, stock and assuming APEG’s outstanding commodity derivatives. USEG said it also plans to establish an $8 million revolving credit facility. The deal is contingent upon regulatory and shareholder approval.

Denver-based Foothills Exploration Inc. said it will purchase 67,330 gross acres (49,600 net) in the Uinta-Piceance Basin from an undisclosed seller. Financial details were not released. The acreage is 100% held by production, and the deal includes 85 wells, 31 of them producing and 54 of them shut-in. All but 19 of the wells will be operated by Foothills. The deal, which would deliver 100% working interest (87% net revenue interest), “bolsters the company’s current acreage position in the Rockies and specifically in the Uinta-Piceance Basin to over 100,000 acres, while adding significant proven reserves and expanding proved undeveloped drilling inventory,” Foothills said. The deal is expected to close by the end of June.

Energy Transfer Partners LP (ETP) unitholders have voted to approve a merger with Sunoco Logistics Partners LP. ETP said 88% of its units voted in favor of the deal, which is expected to close on Friday (April 28). Sunoco said in November it would acquire ETP in an all-stock deal valued at nearly $20 billion to create the nation’s second largest midstream master limited partnership by enterprise value. The combined company is keeping the ETP name. The deal comes about five years after ETP acquired Sunoco Inc. in a $5.3 billion deal.

Despite predictions that the oil and gas industry would consolidate in the wake of low commodity prices, merger and acquisition (M&A) activity during the first half of 2016 fell to levels not seen since 2008-09, according to a report by Deloitte Center for Energy Solutions.

Sempra EnergyMexico unit IEnova said it has restructured its deal to acquire the 50% stake in Gasoductos de Chihuahua that is held by Petroleos Mexicanos (Pemex). Last December, Mexico’s Federal Economic Competition Commission objected to the deal (see Daily GPI,Dec. 22, 2015). IEnova said it has reached an agreement with Pemex to restructure the deal in order to satisfy the regulator. According to IEnova, the price to be paid for the pipeline stake would be a minimum of US$1.108 billion. The deal is expected to close during the third quarter, assuming that regulatory conditions are satisfied by Pemex and regulatory approvals obtained, IEnova said.

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.

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.