Private

Flaring-to-Fertilizer Could Be North Dakota Fix

Facing an ongoing challenge of flaring up to almost a third of its associated natural gas supplies in the oil-rich Bakken Shale, North Dakota is considering a proposal to use mobile equipment to turn some of the flared supplies into much-needed fertilizer for the state’s agricultural industry. Another proposal calls for a $1 billion farmer-owned fertilizer plant using natural gas currently being flared.

August 17, 2012

Riverstone Boosts Three Rivers’ Acquisition Plans in Permian

Private equity power broker Riverstone Holdings LLC announced Monday that it has made an investment in Three Rivers Operating Co. LLC, which in turn has signed an agreement to buy several assets in the Permian Basin of West Texas from Meritage Energy Company LLC.

August 14, 2012

Industry Briefs

EnCap Flatrock Midstream LLC has closed its second private equity fund, EnCap Flatrock Midstream Fund II LP (EFM II), with commitments of $1.75 billion. The fund exceeded its $1.25 billion target and was significantly oversubscribed, EnCap Flatrock Midstream said. It received strong support from existing and new investors, it said. EnCap Flatrock Midstream now has nearly $3 billion in investment commitments from institutional investors and has made commitments to 10 portfolio companies across Funds I and II. Fund II recently announced a commitment to Caiman Energy II LLC as part of a $285 million total commitment from the firm. Caiman II will develop midstream infrastructure in the rich gas region of Ohio’s Utica Shale, including gathering pipelines and natural gas treating, processing and fractionation facilities. EFM II will be announcing a second commitment soon, EnCap Flatrock Midstream said.

August 6, 2012

$1.75B Raised for Resource Play-Focused Midstream Fund

EnCap Flatrock Midstream LLC has closed its second private equity fund, EnCap Flatrock Midstream Fund II LP (EFM II), with commitments of $1.75 billion.

August 2, 2012

Industry Brief

Oregon regulators extended for another 12 months the same portfolio of retail energy options for private-sector natural gas and electric utility customers throughout the state. The Oregon Public Utility Commission (PUC) followed the recommendation of a third-party options committee in letting stand current programs for residential and nonresidential customers of NW Natural, PacifiCorp and Portland General Electric Co. The programs are designed to give utility customers options for supporting alternative energy development. Customers will continue to be able to voluntarily participate in NW Natural’s greenhouse gas emissions offset program and the two electric utilities’ offers for time-of-use, green source and wind power sources.

July 20, 2012

Riverstone, Meritage Pursue More North American Midstream Ventures

Meritage Midstream Services LLC and private equity power broker Riverstone Holdings LLC on Wednesday said they were teaming up once again, with Riverstone providing $500 million to pursue new natural gas liquids (NGL) midstream opportunities in some of North America’s emerging resource plays.

July 20, 2012

Industry Brief

The cash-strapped state park system in Colorado is considering using its nonprofit foundation to bring in more private-sector funds, which include allowing more oil and natural gas drilling in some of the state parks, such as the drilling currently taking place at one state park, St. Vrain, near Longmont, CO. A series of public meetings around the state has been set to kick off Thursday in Grand Junction and continue in Colorado Springs (July 24), Fort Collins (July 31) and Denver (Aug. 8). Colorado Parks and Wildlife officials are considering corporate sponsorships and/or more oil and gas drilling in state parks to cope with budget cuts, according to reports this month in various news media around the state. Assistant Director Ken Brink told local news media that park visitors do not want state parks named after corporations, or more oil/gas drilling in the parks, but the officials say they may have no choice. There are 42 state parks in Colorado that now are forced to develop all of their revenues through user fees.

July 17, 2012

Third Point Takes Big Chesapeake Position, Say Market Insiders

Private hedge fund operator Third Point LLC, which is run by activist investor Daniel Loeb, listed Chesapeake Energy Corp. as one of the fund’s largest new holdings in a June exposure report to investors, according to several market followers.

July 5, 2012

KKR Boasts $4B for Energy, Infrastructure

Global investment firm Kohlberg Kravis Roberts & Co. LP and affiliates (KKR) said its energy and infrastructure platform now manages $4 billion in non-private equity related assets following its most recent fund closings.

June 27, 2012

Industry Briefs

The Pennsylvania Department of Environmental Protection (DEP) has launched a natural gas vehicle (NGV) website to help public- and private-sector fleet operators decide if they want to convert part or all of their operations to NGVs. The website offers information on both compressed natural gas (CNG) and liquefied natural gas (LNG) options. Inspired by the state’s booming shale gas play, Pennsylvania’s new state law (Act 13) passed earlier this year (see Shale Daily, May 11) authorized DEP to establish the Natural Gas Energy Development Program to distribute $20 million in grants during a three-year period to help pay for the purchase and conversion costs of NGVs. The website (www.dep.state.pa.us) section on the “Natural Gas Vehicle Grant Program” offers more details on the grants as well as information on NGV conversions and fueling.

June 6, 2012