Industry Briefs
Aker Solutions buys drilling company
Aker Solutions has acquired Managed Pressure Operations International Ltd. (MPO). Tudor, Pickering, Holt & Co. served as exclusive financial advisor to MPO, an NGP Energy Technology Partners portfolio company. MPO currently employs 100 people in operating subsidiaries in Singapore, Dubai, Jakarta and Houston. Its revenue in 2012 was estimated at approximately US$30 million. MPO provides technologies within the emerging managed pressure drilling segment. In addition, MPO has developed a new-generation riser-gas handling system to capture and safely handle gas in the riser.
Rosetta Resources buys properties from Comstock for $768M
Comstock Resources Inc. has agreed to sell its oil and gas properties in Reeves and Gaines counties in West Texas to Rosetta Resources Inc. for $768 million. The sale is expected to close on or about May 15, 2013. Comstock has revised its capital budget for 2013 to reflect the divestiture of the West Texas properties and an increase in drilling activity in its Eagle Ford shale in South Texas. The company is now projecting to spend $410 million in 2013 on drilling activities and $12 million on exploratory leasehold for total capital expenditures of $422 million. Comstock plans to spend $347 million to drill 82 wells (50.5 net) on its on-going operations in South Texas and East Texas/North Louisiana. The Eagle Ford shale will account for $312 million of the budget where Comstock plans to drill 72 wells (46.9 net) with the remainder related to the company's natural gas properties primarily in East Texas and North Louisiana. Comstock plans to increase the number of operated rigs in South Texas from the three that are currently drilling to a total of six during the second half of 2013. Capital expenditures on the West Texas properties for 2013 prior to the closing of the divestiture are estimated to be $63 million to drill 16 wells (11.6 net). Evercore Partners acted as exclusive financial advisor to Comstock in the transaction.
Freepoint completes first oil and gas property acquisition
Freepoint Commodities LLC, through its subsidiary Freepoint Resources LLC, has completed the acquisition of 66 natural gas producing wells from a subsidiary of Bucking Horse Energy Inc. The natural gas wells, located in the Pinedale field in Southwest Wyoming, are Freepoint Resources' first property acquisition. Freepoint Resources is Freepoint Commodities' recently established platform for acquiring and operating natural gas producing properties. Evercore Group LLC acted as Freepoint's exclusive financial advisor in the transaction. Fulbright & Jaworski LLP acted as Freepoint's legal advisor on the acquisition of the Pinedale properties and Stroock & Stroock & Lavan LLP acted as Freepoint's legal advisor on the financing. Management and private equity funds managed by Stone Point Capital provided the initial equity capital for Freepoint Commodities LLC and its subsidiaries, including Freepoint Resources LLC.
CenterPoint Energy, OGE Energy, ArcLight Capital to form MLP
CenterPoint Energy Inc., OGE Energy Corp., and ArcLight Capital Partners LLC have agreed to form a master limited partnership that will include CenterPoint Energy's interstate pipelines and field services businesses and the midstream business of Enogex LLC, owned jointly by subsidiaries of OGE and Arclight. The partnership will be managed by a general partner whose governance will be shared by CenterPoint Energy and OGE on a 50/50 basis. The new partnership will own and operate 8,400 miles of interstate pipelines with nearly 9 billion cubic feet of transport capacity and nearly 2,300 miles of intrastate pipelines. It will also have more than 11,000 miles of gathering lines, which in 2012 moved nearly 4 billion cubic feet of natural gas per day. Additionally, it will have more than 90 billion cubic feet of natural gas storage capacity and 11 major processing plants with nearly 2 billion cubic feet per day of inlet capacity. The new partnership will seek to arrange a new $1.4 billion credit facility as well as a $1.05 billion term loan. Subject to certain adjustments at closing, CenterPoint Energy, OGE Energy and ArcLight will have 59%, 28% and 13% limited partner interest in the partnership, respectively. CenterPoint Energy and OGE Energy will hold 40% and 60% interests, respectively, in the incentive distribution rights of the general partner. Pursuant to a registration rights agreement to be signed upon the closing of the transaction, OGE and CenterPoint Energy will agree to initiate the process for the sale of equity interests in the partnership in an initial public offering (IPO). CenterPoint Energy was advised by Citigroup Global Markets Inc. and Baker Botts LLP. OGE was advised by UBS Investment Bank and Jones Day. ArcLight was advised by Wells Fargo Securities LLC and McDermott Will & Emery LLP.
Albrecht & Associates, Raymond James combine
Albrecht & Associates, an oil and gas divestment firm specializing in the property market, and the Raymond James Energy Acquisitions & Divestitures Advisory Practice have combined to form Raymond James | Albrecht. The newly created practice, which resides within Raymond James Energy Investment Banking, is focused on providing advisory services to energy companies and individuals that are considering oil and gas asset sales. Albrecht, Simon and executive vice president Harrison Williams will serve as joint co-heads of acquisitions & divestitures. Previously a Morgan Keegan subsidiary, Albrecht & Associates joined Raymond James as part of the firm's acquisition of Morgan Keegan. Raymond James | Albrecht is located in Houston.
Williams, Boardwalk look to develop pipeline to transport mixed NGLs
Williams and Boardwalk Pipeline Partners LP have executed a letter of intent to form a joint venture that would develop a pipeline project to transport natural gas liquids from the Marcellus and Utica to the petrochemical and export complex on the US Gulf Coast, as well as the petrochemical market in the Northeast US. The proposed "Bluegrass Pipeline" design would provide producers with 200,000 barrels per day of mixed NGLs take-away capacity in Ohio, West Virginia and Pennsylvania. The proposed pipeline could be increased to 400,000 barrels per day, primarily by adding additional liquids pumping capacity. It would deliver mixed NGLs from these producing areas to proposed new fractionation and storage facilities, which would have connectivity to petrochemical facilities and product pipelines along the coasts of Louisiana and Texas. The companies are exploring development of a new export liquefied petroleum gas terminal and related facilities on the Gulf Coast to provide customers access to international markets. As proposed, the Bluegrass Pipeline would include the following: Constructing a new NGL pipeline from producing areas in West Virginia and Ohio to an interconnect with Boardwalk's Texas Gas Transmission LLC system in Hardinsburg, KY; converting a portion of Texas Gas from Hardinsburg to Eunice, LA (the TGT Loop Line) from natural gas service to NGL service, including construction of new pump stations and related facilities; and constructing a new large-scale fractionation plant and expanding natural gas liquids storage facilities in Louisiana and a new pipeline connecting these facilities to the converted TGT Loop Line. The companies expect to sanction the project this year and place the planned project into service in the second half of 2015 assuming all necessary conditions are met.
Black Elk receives $50M commitment from Platinum Partners
Houston, TX-based Black Elk Energy Offshore Operations LLC has received a $50 million preferred equity commitment from Platinum Partners Value Arbitrage Fund LP to fund Black Elk's 2013 drilling program in the Gulf of Mexico. The 2013 drilling program includes a 23 well capital campaign that will begin monetizing the companies "proved undeveloped reserve" inventory. Platinum Partners Value Arbitrage Fund LP is a multi-strategy hedge fund based in New York with firm assets under management in excess of $700 million.
Riverstone Holdings increases commitments with acquisition, investment
Riverstone Holdings LLC, an energy and power-focused private equity firm, and Utex Industries Inc., have signed a definitive agreement pursuant to which Riverstone Global Energy and Power Fund V LP, in partnership with Utex management, will acquire Utex from investment funds affiliated with Rhone Capital LLC. Financial terms were not disclosed. Utex is a manufacturer of engineered sealing and other specialty products used in a variety of applications and equipment related to onshore and offshore oil and gas drilling and production, power, mining, water treatment, and other industrial sectors. In addition, Riverstone Global Energy and Power Fund V LP will make a strategic investment alongside Ridgewood Energy Corp. in a series of deepwater exploration projects located in the Gulf of Mexico. The investment brings the total Riverstone sponsored fund commitment to the venture to over $550 million. Since its inception in mid-2010, this venture has participated in four significant oil discoveries located in the Mississippi Canyon and Ewing Bank regions of the deepwater Gulf of Mexico, all of which are currently under development and expected to commence production in 2015 and early-2016. The venture now has an additional seven exploration opportunities being progressed, the first of which will begin drilling in March 2013.
Cowen Group completes acquisition of Dahlman Rose
Cowen Group Inc. has completed the previously announced acquisition of Dahlman Rose & Company LLC, a privately-held investment bank specializing in the energy, metals and mining, transportation, chemicals and agriculture sectors. Financial terms of the all-stock transaction were not disclosed. Cowen Group Inc. is a diversified financial services firm and, together with its consolidated subsidiaries, provides alternative investment, investment banking, research, and sales and trading services through its two business segments: Ramius and its affiliates make up the company's alternative investment segment, while Cowen and Company and its affiliates make up the company's broker-dealer segment. Its alternative investment products, solutions and services include hedge funds, replication products, managed futures funds, fund of funds, real estate and health care royalty funds.