Stock

As the stock market suffered its eighth straight day of losses Friday and the Dow flirted with the 8,000 mark, several more domestic oil and natural gas producers reported that they were cutting their planned capital expenditures (capex) for the rest of the year and/or 2009 and were rolling back their drilling programs or postponing planned acquisitions in order to preserve capital liquidity. Producers said they also had taken steps to shore up their bank credit lines.

While the stock market tumbled lower Wednesday on more financial crisis news, energy futures and other commodities headed in the opposite direction on the day as investors sought refuge in tangible goods. In the second worst session of the year, Dow industrials fell more than 400 points, while October natural gas surged 63.1 cents higher to close at $7.910/MMBtu and October crude gained $6.01 to finish at $97.16/bbl.

Vanguard Natural Resources LLC agreed to acquire natural gas properties in South Texas for $53.4 million in cash and stock from an affiliate of the Lewis Energy Group. The properties have estimated net proved reserves of 20 Bcfe, of which approximately 98% is natural gas and 65% is proved developed. Lewis will continue to operate the wells and the undeveloped portion of the properties, which Vanguard and Lewis will jointly develop. Upon closing, Vanguard will assume from Lewis natural gas swaps and collars based on Houston Ship Channel pricing for approximately 85% of the estimated gas production from existing producing wells for the period July 2008 through December 2011. Vanguard expects to finance the cash portion of the acquisition with borrowings under its existing credit facility. The transaction is scheduled to close before the end of July.

Vanguard Natural Resources LLC agreed to acquire natural gas properties in South Texas for $53.4 million in cash and stock from an affiliate of the Lewis Energy Group. The properties have estimated net proved reserves of 20 Bcfe, of which approximately 98% is natural gas and 65% is proved developed. Lewis will continue to operate the wells and the undeveloped portion of the properties, which Vanguard and Lewis will jointly develop. Upon closing, Vanguard will assume from Lewis natural gas swaps and collars based on Houston Ship Channel pricing for approximately 85% of the estimated gas production from existing producing wells for the period July 2008 through December 2011. Vanguard expects to finance the cash portion of the acquisition with borrowings under its existing credit facility. The transaction is scheduled to close before the end of July.

Fort Worth, TX-based XTO Energy Inc. has completed its acquisition of producing properties from Headington Oil Co. for $1.05 billion in cash and 11.7 million shares of XTO common stock for total consideration of $1.8 billion. The purchase includes 352,000 net acres of Bakken Shale leasehold in Montana and North Dakota. In addition, XTO agreed in separate transactions with undisclosed parties to acquire another 100,000 net undeveloped acres in the play and 400 boe/d of production for $115 million. “With these deals XTO now becomes a leading operator in perhaps the largest oil resource play in the nation, with more than 450,000 net acres,” said President Keith A. Hutton. “Given the opportunities in the Bakken through horizontal drilling, multiple stimulations and enhanced recovery, we anticipate the potential for even more.”

MDU Resources Group Inc. has agreed to acquire Intermountain Gas Co. from privately held Intermountain Industries Inc. in a cash-for-stock transaction. The acquisition grows MDU’s utility customer base to more than 900,000.

MDU Resources Group Inc. has agreed to acquire Intermountain Gas Co. from privately held Intermountain Industries Inc. in a cash-for-stock transaction. The acquisition grows MDU’s utility customer base to more than 900,000.

Western Gas Partners LP, the midstream partnership formed last year by Anadarko Petroleum Corp., had a modest debut Friday in an overall down day for the stock market. The initial public offering (IPO) opened and closed at the same price: $16.50/unit.

EOG Resources Inc. topped the list of the biggest percentage price gainers on the New York Stock Exchange last Thursday after it boosted its 2009 and 2010 organic production growth estimates and announced four new natural gas and crude oil discoveries.