El Paso Corp. has rescheduled a special meeting to vote on its merger with Kinder Morgan Inc. (KMI) to Friday (March 9) from Tuesday (March 6). The change was made to allow shareholders additional time to consider and and possibly recast their vote following the Delaware Chancery Court opinion rendered in Case No. 6949-CS (see Daily GPI, March 2). Delaware Chancellor Leo Stine said he would not stop El Paso shareholders from voting on the proposed takeover by KMI but he said they likely had cause to file lawsuits because the merger was “tainted by disloyalty” and “disturbing” behavior by El Paso CEO Doug Foshee and Goldman Sachs Group Inc. In addition, since El Paso mailed its definitive proxy statement for the special meeting in late January, the company has agreed to sell the exploration and production business, EP Energy Corp., to affiliates that include Apollo Global Management LLC and Riverstone Holdings LLC, a deal that is tied to the KMI merger (see Daily GPI, Feb. 27). According to proxy solicitor MacKenzie Partners Inc., as of March 2 about 70% of El Paso’s outstanding shares had been voted in connection with the KMI transaction, with more than 98.5% voting in favor of the proposal to adopt the merger agreement. The special meeting is to be held at 9 a.m. CT at the Hyatt Regency Houston, 1200 Louisiana St., Houston.
Morgan
Articles from Morgan
Earnings Briefs
El Paso Corp., which is preparing for a takeover by Kinder Morgan Inc. (KMI) and a blockbuster deal to sell its exploration unit, said fourth quarter profits more than doubled. The natural gas pipeline franchise also reported a solid performance, lifted by rising volumes from the Marcellus Shale. A consortium of private equity investors led by Apollo Global Management LLC late last month agreed to buy the exploration business, EP Energy, for about $7.15 billion (see NGI, Feb. 27). The KMI deal and the sale both are expected to close by the end of June (see related story). Beyond the big deals, El Paso’s net profits reached $185 million (24 cents/share) in 4Q2011, compared with $62 million (9 cents) in the year-ago period. After adjusting for the impacts of financial derivatives and other one-time charges, the company earned 28 cents in 4Q2011, versus 20 cents in 4Q2010. Net income in 2011, which was impacted by derivatives losses, fell to $141 million (18 cents/share), versus $721 million ($1.00) for 2010. Throughput for the Pipeline Group, including equity investments, rose 8% in 4Q2011 from a year earlier, primarily because of higher Marcellus Shale volumes on Tennessee Gas Pipeline. The Pipeline Group earned $417 million in 4Q2011, compared with $439 million in 4Q2010. E&P production volumes rose 11% from a year earlier to 880 MMcfe/d; the year-end production exit rate exceeded 900 MMcfe/d.
CEO: TransCanada Unaffected by Kinder-El Paso Merger Proposal
The proposed Kinder Morgan Inc. acquisition of El Paso Corp. doesn’t change Calgary, Alberta-based TransCanada Corp.’s strategy that is divided among natural gas, including shale; oil through its proposed addition to Keystone XL pipeline; and a growing gas-fired and renewable-based power generation business, CEO Russ Girling told financial analysts Tuesday as TransCanada reported a robust quarter-over-quarter improvement in profits for the third quarter.
PDC Mountaineer Pays $152M for Ohio Marcellus Acreage
PDC Mountaineer (PDCM), a joint venture of Petroleum Development Corp. and Lime Rock Partners V LP, will pay $152.5 million to National Grid plc for Seneca-Upshur LLC, including the rights to an estimated 90,000 net acres in the Marcellus Shale in north central West Virginia, the company said Monday. Closing is scheduled for Monday (Oct. 3), with an effective date of July 1, 2011.
Recent Deal Makes Kinder a Midstream ‘Hawk’
Kinder Morgan Energy Partners LP (KMP) midstream assets in the Eagle Ford and Haynesville shales are positioned to see an uplift in throughput thanks to the pending acquisition of Petrohawk Energy Corp. by BHP Billiton Ltd. and the expectation that the latter will be spending a lot more in the plays, CEO Rich Kinder told financial analysts Wednesday.
Petrohawk Buyout to Feather Kinder Morgan Nest, CEO Says
Kinder Morgan Energy Partners LP (KMP) midstream assets in the Eagle Ford and Haynesville shales are positioned to see an uplift in throughput thanks to the pending acquisition of Petrohawk Energy Corp. by BHP Billiton Ltd. and the expectation that the latter will be spending a lot more in the plays, CEO Rich Kinder told financial analysts Wednesday.
Velocity Midstream Adds to Eagle Ford Infrastructure Plans
Velocity Midstream Partners has secured long-term commitments from Shell Western E&P for transportation and terminal services for light oil and condensate production from Shell’s position of more than 100,000 acres at the Harrison Ranch (also known as the Piloncillo Ranch) in the Eagle Ford Shale in South Texas.
Petrohawk Looks West for Liquids
Petrohawk Energy Corp. has gone west in pursuit of oil and liquids-rich gas production from the Permian Basin, adding to its established holdings in the Eagle Ford and Haynesville shales.
Kinder Buying Petrohawk Out of Haynesville JV
Kinder Morgan Energy Partners LP (KMP) is buying Petrohawk Energy Corp.’s half of the companies’ Haynesville Shale midstream joint venture, KinderHawk Field Services, and also acquiring a 25% interest in Petrohawk’s gas gathering and treating business in the Eagle Ford Shale, the companies said.
More Projects Join Eagle Ford Oil Bandwagon
Two more infrastructure projects to target growing crude oil production from the Eagle Ford Shale of South Texas have been announced.