Rex Energy Corp. said Wednesday it has executed another key divestment, agreeing to sell its Warrior South assets in Southeast Ohio to Antero Resources Corp. for $30 million.
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Onshore drilling specialist Patterson-UTI Energy Inc. (PTEN) said Wednesday it is acquiring Calgary-based Warrior Rig Ltd., a deal expected to give it more options in the rig market and expand its technology offerings. Swiss-based Clariant AG also has snapped up two Texas-based drilling experts whose focus is the Permian Basin.Houston-based PTEN agreed to acquire Warrior and its related entities for an undisclosed amount. Warrior, which began business in September 2005, has an office in Oklahoma City.”This acquisition will enhance our competitive position within the high-spec rig market and expand our technology portfolio,” CEO Andy Hendricks said.Although few details were disclosed, Hendricks said Warrior’s workforce would become part of “the Patterson-UTI family.” Warrior manufactures fully automated pipe handling equipment, and its forte is rig components, including top drives, both electric and hydraulic, automated tubular tongs and alternating current/hydraulic drawworks.Warrior is about the same size as Canrig Drilling Technology Ltd., owned by Nabors Industries Ltd., according to RBC Capital Markets. RBC estimated that less than $20 million was paid for Warrior, with the “vast majority” through a stock exchange.Separately, Clariant agreed to buy Arsenal Capital Partners LP’s Kel-Tech, which is based in Midland, while NCH Corp. sold Irving-based X-Chem LLC. Financial details also were not disclosed for the transactions, which are set to close by Oct. 1.Both Kel-Tech and X-Chem manufacture chemical products used to enhance the drilling process, including hydraulic fracturing. Clariant’s specialty chemicals arm already manufactures drilling stimulation products. It also makes products to separate solids from oil and to reduce pipeline corrosion.”It is part of our global strategy to seize business opportunities in key markets with excellent future prospects through innovations and bolt-on acquisitions,” CEO Hariolf Kottmann said. “These acquisitions allow us to strengthen our position in one of the world’s largest specialty chemicals markets.”Clariant estimated the two companies would add a total of about $200 million to annual sales, which in 2015 were about $5.93 billion.
Atlas Energy LP (ATLS) exploration and production (E&P) subsidiary Atlas Resource Partners LP (ARP) is buying 466 Bcf of natural gas proved reserves in the Raton (New Mexico) and Black Warrior (Alabama) basins from EP Energy E&P Co. LP (EP Energy), a unit of EP Energy LLC, for $733 million.
Southeast Gas Storage LLC (SGS), an affiliate of El Paso Corp.’s Tennessee Gas Pipeline Co., has launched a nonbinding open season for its proposed Black Warrior Storage Project, a greenfield underground natural gas storage facility to be located in northeastern Mississippi. The proposed storage facility would have a total working natural gas capacity of 20 Bcf and provide for a three-turn service. The project would interconnect with Tennessee’s 500 Line, downstream of its Columbus Compressor Station in Zone 1, through a new 24-inch diameter pipeline. Based on the initial project design, the high-deliverabiity, multi-cycle facility would provide up to 333 MMcf/d injection rates and 375 MMcf/d withdrawal rates. The open season would allow SGS to evaluate the market interest, economics and design parameters for the project, the company said. Based upon the results of the open season, SGS said it would determine the project’s scope and whether to proceed with a binding open season. With enough market interest, SGS said it expects to file the project with the Federal Energy Regulatory Commission in May and would request authority to charge market-based rates. The proposed in-service date is June 2010. SGS noted that even though the open season is nonbinding, only bids received during the subscription period for the open season would be guaranteed consideration for service in the project. The open season will end at 4 p.m. CDT on May 14. Project details are available here or by contacting Sital Mody at (713) 420-4336, Stuart Neck at (713) 420-2230 or Heath Deneke at (713) 420-3812.
Southeast Gas Storage, LLC (SGS), an affiliate of El Paso Corp.’s Tennessee Gas Pipeline Co., on Monday launched a nonbinding open season for its proposed Black Warrior Storage Project, a greenfield underground natural gas storage facility to be located in northeastern Mississippi.