Halliburton to issue $2B of senior notes
Halliburton, a large provider of products and services to the energy industry, has priced an offering of $2 billion in an aggregate principal amount of senior notes. The notes are being issued in two tranches - $1 billion of 10½-year notes bearing interest at a fixed rate of 6.15% per year and maturing on September 15, 2019, and $1 billion of 30½-year notes bearing interest at a fixed rate of 7.45% per year and maturing on September 15, 2039. Proceeds are expected to be used for general corporate purposes.
PXP prices $365M senior notes
Plains Exploration & Production Co. (PXP) has sold $365 million of 10% senior notes that will mature March 1, 2016. The notes were sold to the public at 92.373% of the face value to yield 11.625% to maturity. Net proceeds will be used for future capital expenditures and for general corporate purposes. JP Morgan Securities Inc., Greenwich Capital Markets Inc., Wachovia Capital Markets LLC, Goldman, Sachs & Co., Morgan Stanley & Co. Inc., and Banc of America Securities LLC are acting as book-running managers for the offering.
Energy XXI partially monetizes hedges to reduce bank debt
Energy XXI Ltd. has conducted an early settlement of certain oil and natural gas hedges. Net proceeds of $66.5 million are expected to be used to reduce borrowings under the company’s secured revolving credit facility. As of March 11, 2009, the company had approximately $63 million of cash on hand, and bank borrowings under its $400 million borrowing base totaled $300.6 million before application of the $66.5 million of hedge-settlement proceeds. Following the hedge repositioning, the mark-to-market value of the company’s hedge portfolio is currently $102 million. In total, the company monetized crude oil swaps and collars covering 4,174 b/d for the remainder of 2009, and 1,516 b/d for 2010, as well as natural gas swaps and collars covering 10,507 MMbtu/d for the remainder of 2009, and 16,055 MMbtu/d for 2010. These hedges were replaced with new crude oil swaps on the same volumes at prices averaging $50.32 for the remainder of 2009 and $54.70 for 2010, as well as natural gas swaps on the same volumes at prices averaging $4.22 for the remainder of 2009 and $5.75 for 2010.
Pritchard Capital partnerswith Glacier Partners
Pritchard Capital Partners, an energy investment bank and institutional financial services firm, has agreed in principle to combine with Glacier Partners Corp., an investment bank in the seafood and geothermal energy industries with a heritage in the Nordic markets. The partnership will provide Pritchard Capital with an enhanced portfolio of services in renewable energy to complement its existing investment-banking offerings for small- to mid-cap energy companies.
Stone Energy unwinds 2009 hedge positions
Stone Energy Corp. unwound most of its 2009 crude oil and natural gas hedges. Proceeds from the terminated contracts were roughly $113 million. Stone intends to use most of the proceeds to build its cash position and reduce bank borrowings. Stone may use some of the proceeds to reduce outstanding public debt and/or repurchase Stone common shares. Stone re-hedged a portion of its 2009 volumes and will continue to evaluate hedging opportunities. The company’s current outstanding bank borrowings stand around $425 million (and $46 million in letters of credit) under a $625 million borrowing base. The company expects the $113 million in cash raised, combined with projected operational 2009 cash flow, to allow it to execute on its $300 million capital program with projected excess cash available for debt reduction or stock repurchase. Prior to the termination of the hedges, the company had roughly $77 million in cash.
Berry Petroleum to sell$154M in non-core assets
Berry Petroleum Co. has entered into an agreement to sell its mature, non-core assets in the Denver-Julesburg basin. This transaction represents essentially all the company’s properties in Northeastern Colorado. The sales price, before closing adjustments, is roughly $154 million and includes natural gas reserves, mid-stream assets, and an associated gas hedge for six months valued at $14 million. Proceeds are expected to be used to pay down bank debt. Production from the property is roughly 18 MMcfe/d and, as of December 31, 2008, the property represented 8.5% (21MMboe) of the total year-end 2008 proved reserves of 246MMboe and 5.1% of proved and probable reserves.
Marsh offers up to $500M protection for GoM operations
Insurance broker and risk advisor Marsh has created of a one-of-a-kind property insurance program that can provide up to $500 million of annual capacity, in the aggregate, for windstorm losses incurred by all participating oil and gas companies operating in the Gulf of Mexico in a given policy year. Marsh’s Cost and Coverage Certainty Program, known as the Triple C Facility, was developed in conjunction with the Berkshire Hathaway Group. It is designed to provide oil and gas companies operating in the Gulf of Mexico with insurance protection, on a pooled basis, with pricing stability, and for a period of five years.
OpenLink expands with Singapore office
Long Island, NY-based OpenLink Financial Inc., a provider of cross-asset trading, risk management, and related operational and portfolio management software to companies in the energy, commodities and financial services markets, has expanded its international presence with the opening of an office in Singapore. Jean-Claude Riss, who is responsible for OpenLink International sales operations, will oversee the office.
Petrohawk prices stock offering
Petrohawk Energy Corp. has priced its public offering of 22,000,000 shares of common stock. Underwriters were granted a 30-day option to purchase up to an additional 3,300,000 shares. The shares were offered to the public at $17.50. Net proceeds are expected to fund a portion of Petrohawk’s 2009 capital budget, potential acquisitions, further infrastructure expansion projects, and for general corporate purposes. Barclays Capital Inc. and Credit Suisse Securities LLC acted as joint book-running managers.
Pacific Energy Resources, subsidiaries file Chapter 11
Long Beach, Calif.-based Pacific Energy Resources Ltd. and its wholly-owned subsidiaries have filed petitions for reorganization under Chapter 11 as it works to restructure its debt. The company is seeking authority from the court that will enable it to continue operating. In addition, the company has negotiated a commitment for $40 million in debtor-in-possession financing that wraps and replaces two of the company’s three asset-based credit facilities and is being provided by the lenders of the two credit facilities being replaced. The company’s stock has ceased trading on the TSX was scheduled to be delisted April 10.
Woodside to issue $1B in corporate bonds
Woodside Petroleum Ltd. has entered into an agreement for the issuance of US$1 billion in corporate bonds into the US 144A bond market. The bonds will be issued by Woodside Finance Ltd., a wholly-owned subsidiary of Woodside Petroleum Ltd., and will consist of US$400 million of 5-year bonds with a coupon of 8.125% and US$600 million of 10-year bonds with a coupon of 8.75%. Funds raised will be used to repay short term debt and for general corporate purposes including capital expenditure.
Double Eagle ups credit facility, borrowing base
Double Eagle Petroleum Co. has signed a new credit agreement with its lenders providing an increase in the credit facility of 50% from $50 million to $75 million and an increase in the borrowing base of 28% from $35 million to $45 million. The agreement consists of a $40 million revolving credit line and a $5 million term loan. Bank of Oklahoma serves as the lead bank.
Wells Fargo to offer $50Mcredit line to BNK Petroleum
California-based BNK Petroleum Inc. has entered into a letter agreement with Wells Fargo Energy Capital Inc. for a $50 million senior secured advancing line of credit facility to replace its existing $7 million facility. The initial borrowing base is $29.5 million. Proceeds will be used to complete the balance of BNK’s wells that have been drilled but not yet fracture stimulated and for working capital.
GMX reduces expenditures, acquires East Texas assets
GMX Resources Inc. has reduced its capital expenditure plan for 2009. Additionally, the company has acquired additional Haynesville/Bossier prospective acreage in East Texas. The 2009 CAPEX budget has been reduced by $70 million to $150 million. The company will focus 98% of 09’s CAPEX on the Haynesville/Bossier horizontal drilling program. The company also has contracts in place for 3,900 gross acres of acquired and drill-to-earn leasehold representing 49 gross locations. GMXR is currently drilling on 1,100 gross acres of the drill-to-earn leasehold. GMXR has also obtained first right of refusal on an additional 5,000 gross acres.
Deep Down opens new Houston headquarters
Deep Down has opened a new corporate headquarters in Northwest Houston, at 8827 W. Sam Houston Parkway, N., Suite 100, Houston, Texas 77040. The new facility will house corporate operations, including its CEO, CFO, chief acquisition officer, operations, business development, investor relations, and their support staff. Deep Down also operates service and fabrication facilities in Channelview, Tex., Morgan City, La., and Biddeford, Me.
Max Petroleum seeks farm-outs, JVs for capital
Max Petroleum, an oil and gas exploration and development company focused on Kazakhstan, is actively pursuing joint venture or farm-out relationships to assist in the funding and exploration of the group’s deep portfolio. The company says it will need an additional $50-$70 million to fund its strategic plan through 2010. The company expects to fund its strategic plan using its credit facility with Macquarie Bank Ltd., as well as proceeds from the farm-out or sale of the company’s Astrakhanskiy license, farm-out of the deep rights on Blocks A&E, as well as additional third-party debt or equity financing, if available.
Creditors approve Gale Force restructuring proposal
Gale Force Petroleum’s unsecured creditors voted to accept the Proposal to Creditors in support of the corporation’s restructuring plan. The proposal was filed on February 4 under the Bankruptcy and Insolvency Act (Canada). According to the terms, the corporation will issue up to 47,000,000 common shares to settle all unsecured claims. Additionally, Ronald Bourgeois has stepped down from the board of directors and from the position of COO.
Energy XXI receives borrowing base redetermination
Energy XXI (Bermuda) Ltd. has completed its customary semi-annual redetermination of the borrowing base under its revolving credit facility, which has been set at $240 million. On a pro forma basis, after completing all the commitments, the company expects to be fully drawn under the revolver and have $61 million of cash on hand. The company has agreed to discontinue making dividend distributions until the next borrowing base redetermination is finalized in late 2009.
Bank of America sets GeoMet borrowing base at $140M
GeoMet Inc.’s bank syndicate, led by Bank of America, has approved a borrowing base of $140 million after completing its year-end borrowing base determination. The next regular borrowing base determination is scheduled to be complete on or before December 16, 2009. Commitments under the credit agreement expire in January 2011 and total borrowings are currently $119 million.
Energy Navigator opens Denver office
Energy Navigator, a provider of software solutions for the oil and gas industry, has expanded its operations and added an office in Denver, CO. Energy Navigator will supply US oil and gas companies with capital tracking and reserves evaluation solutions to meet evolving SEC reserves reporting and regulatory requirements. Staff of the new office will include Dan Shikiar, senior account manager.
W&T Offshore implements share repurchase program
W&T Offshore Inc. has implemented a stock repurchase program whereby the company may repurchase up to $25 million of its shares of common stock from time to time. As of March 12, the company had 77,405,107 outstanding shares of common stock.