Formidable

In a merger that would create a formidable onshore oilfield services company, Superior Energy Services Inc. on Monday agreed to pay $2.7 billion in cash and stock to buy Complete Production Services Inc. — a 62% premium to Complete’s closing share price on Friday.

Superior Energy Services Inc. on Monday agreed to buy Complete Production Services Inc. in a cash-and-stock deal would create a formidable competitor in North America’s onshore oil and natural gas fields. The $2.7 billion purchase price is estimated to be a 62% premium to Complete’s closing share price on Friday.

Once the spin-off of El Paso Corp.’s exploration and production (E&P) business is completed, the yet-to-be-named independent producer will be formidable competition in some of the prolific unconventional natural gas and oil plays in the United States, CEO Doug Foshee said.

The integrated majors’ strong cash flows appear unstoppable for now, but their prosperity belies formidable challenges to replace their reserves, grow their production and control costs, Moody’s Investors Service reported last week.

The integrated majors’ strong cash flows appear unstoppable for now, but their prosperity belies formidable challenges to replace their reserves, grow their production and control costs, Moody’s Investors Service reported Wednesday.

April natural gas futures threw caution to the wind and jumped higher in active trading Thursday, building on Wednesday’s formidable rally. April futures Thursday rose 16 cents to $7.320, and the May contract added 17 cents to $7.435. May crude oil futures vaulted $2.08 to $61.69/bbl.

Targa Resources Inc. last week completed its $2.35 billion acquisition of Dynegy Inc.’s formidable midstream natural gas business, which includes gas gathering and processing facilities, as well as its natural gas liquids (NGL) fractionation, terminaling, storage, transportation, distribution and marketing assets. With the sale, which was announced in August (see NGI, Aug. 8), Dynegy is now a pure power generation player.

Targa Resources Inc. on Monday completed its $2.35 billion acquisition of Dynegy Inc.’s formidable midstream natural gas business, which includes gas gathering and processing facilities, as well as its natural gas liquids (NGL) fractionation, terminaling, storage, transportation, distribution and marketing assets. With the sale, which was announced in August (see Daily GPI, Aug. 3), Dynegy is now a pure power generation player.

The federal court of appeals in Washington, DC on Friday denied a petition seeking review of FERC’s approval of a formidable cash-out mechanism proposed by Northern Natural Gas pipeline to deter shippers from taking advantage of arbitrage opportunities on its system.