Mergers and acquisitions (M&A) within the U.S. oil and natural gas sector was the strongest second quarter activity in five years, led by asset transactions, PwC US said Wednesday.
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Natural gas production is increasing while natural gas trading activity is declining, according to recent reports from the Energy Information Administration (EIA) and the Federal Energy Regulatory Commission.
Powhatan Energy Fund LLC, a private hedge fund based in Virginia, has launched a website defending itself against allegations leveled by FERC that it manipulated energy markets through a contract trader in 2010.
FERC on Monday approved a joint request for temporary waivers of certain agency regulations to facilitate the $3.75 billion sale of Apache Corp. Gulf of Mexico assets to Fieldwood Energy LLC.
Freeport-McMoRan Copper & Gold Inc. has completed its takeover of Plains Exploration & Production Co., with a total value of $16.2 billion, including $9.7 billion in debt. The transaction, completed Friday, included a payment of about $3.3 billion in cash ($25/Plains share), 91 million shares of Freeport common stock ($2.9 billion) and a special cash dividend of $3.00/share (see Daily GPI, May 21). The acquisition of related affiliate McMoRan Exploration Co. for close to $3 billion is expected to close on Monday (June 3), subject to shareholder approval. Former Plains Chairman and CEO Jim Flores was named co-vice chairman and CEO/president of subsidiary Freeport-McMoRan Oil & Gas LLC. Flores also is to be part of newly formed office of the chairman with Chairman Jim Bob Moffett and Vice Chairman Richard C. Adkerson, who also is CEO/president. Flores had served as chairman/CEO of Plains since its inception in 2002; he became president in 2004. Former Plains directors Alan Buckwalter and Thomas A. Fry also have joined the board. Buckwalter is the retired chair of JPMorgan Chase Bank, South Region, and Fry retired as president of the National Ocean Industries Association after serving from 2000 to 2010; he also previously directed the Department of Interior’s Bureau of Land Management.
Progress Energy Canada Ltd., Pacific NorthWest LNG Ltd. and Petroliam Nasional Berhad (Petronas) have closed the previously announced transaction that saw Japex Montney Ltd., the Canadian subsidiary of Japan Petroleum Exploration Co. Ltd., acquire a 10% interest in Progress Energy Canada’s natural gas assets in northeast British Columbia (BC), and in the proposed Pacific NorthWest LNG export facility on Canada’s West Coast near Prince Rupert, BC. Japex has agreed to buy a 10% share of the liquefied natural gas (LNG) facility’s production for a minimum of 20 years for domestic use in Japan (see Daily GPI, March 5). “This Japex investment in upstream natural gas resources in British Columbia and the downstream LNG facility further solidifies the North Montney as a world-class natural gas asset, and it clearly defines British Columbia and Canada as attractive and competitive destinations for global investment,” said Progress Energy Canada CEO Michael Culbert.
After drilling some disappointing wells targeting the Hogshooter interval of the Granite Wash in the Texas Panhandle, Linn Energy LLC is now concentrating its efforts on the Oklahoma Hogshooter, where the reservoir is seen to be of better quality with less variability, CEO Mark E. Ellis said Thursday.
Royale Energy Inc. said Wednesday it struck a $43 million joint venture (JV) agreement with an unnamed company to fund exploration costs on its Alaska North Slope acreage.