The Canadian government late Friday approved the C$15.1 billion takeover of Canada’s Nexen Inc. by CNOOC Ltd., an arm of state-controlled China National Offshore Oil Co.
takeover
Articles from takeover
Compton Cites Low Natural Gas Prices in Sale
Canadian natural gas explorer Compton Petroleum Corp. on Monday agreed to a C$33 million friendly takeover bid by New York-based MFC Industrial Ltd., a global commodities trader.
Bidding War Seen for Eagle Ford Player Eureka Energy
With the clock running out on an A45 cents/share takeover offer from Aurora Oil & Gas Ltd., directors of Eureka Energy, are being coy, advising investors to sit tight until its June 15 expiration “as there is the potential for important developments.” Indeed, it was reported that privately held Lonestar Resources Inc. had made a competing offer that would be considered over the weekend.
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.
Kinder Deal for El Paso ‘Tainted by Disloyalty,’ Says Judge
A Delaware business court judge on Wednesday said he won’t stop El Paso Corp. shareholders from voting next week on a proposed takeover by Kinder Morgan Inc. (KMI), but he admonished El Paso Corp. CEO Doug Foshee and Goldman Sachs Group Inc. for “disturbing” behavior that led to the transaction. Shareholders still have a chance to weigh in on whether they believe the sale to KMI was “tainted by disloyalty,” wrote Delaware Chancellor Leo Stine.
Industry Briefs
SemGroup Corp. has rejected a $1.24 billion takeover bid by Plains All American Pipeline LP, but Plains said it intends to continue to pursue the midstream operator. SemGroup, which emerged from bankruptcy in late 2009, purchases, sells, processes, transports and stores crude oil, natural gas, natural gas liquids, asphalt and refined products. It recently had announced plans to increase the capacity of its gas processing facilities in northern Oklahoma, and the board said the increased processing capacity and other long-term strategies offered a compelling future for its shareholders.
SemGroup Rejects Plains Merger Offer
SemGroup Corp. on Monday soundly rejected a $1.24 billion takeover bid by Plains All American Pipeline LP, calling the offer “opportunistic” and failing to reflect the company’s “bright prospects.”
Energy Transfer Admonishes Southern Union
Energy Transfer Equity LP (ETE) on Wednesday warned potential takeover target Southern Union Co. that opening up separate discussions with Williams would be a “willful and intentional breach” of their merger agreement.
GOP-Led House Committees Expected to Hit Hard on Obama Policies
The overwhelming Republican takeover of the U.S. House of Representatives last week pasted happy faces on natural gas and oil industry execs and spurred President Obama to mention natural gas as a possible area of compromise with the new Congress. The president, however, appeared to be the only one talking compromise.
Producers Hail Republican Victories in Pennsylvania
Victory for Republican candidate Tom Corbett in the race for governor of Pennsylvania and the replacement of split leadership in the legislature with the GOP takeover of both houses may be the death knell for a natural gas severance tax in the state — or not.