OFS - Covia enters bankruptcy with rival Hi-Crush likely to follow - July 2020Covia filed for Chapter 11 bankruptcy reorganization on June 29, the latest of several dark days for the depressed proppant sector. Hi-Crush Inc., an early mover into mining West Texas for frac sand, expects to enter bankruptcy after defaulting on its asset-based loan facility. Another frac sand provider, Vista Proppants and Logistics, entered Chapter 11 in early June (PG.9). Covia, which is based in Independence, Ohio, said it has reached a prepackaged deal that will reduce debt and...
Jul 01, 2020
OFS - TechnipFMC lines up $190MM in work off Norway for Equinor - July 2020TechnipFMC received two contracts and an LOI for pipelaying and subsea installation from Equinor for three projects in the Norwegian North Sea. The total value of the three assignments, including the option, is about NOK 1.8 billion ($190 million). The contracts cover the Breidablikk discovery and the gas import system for the Snorre expansion project. The LOI covers Askeladd Vest, a gas project in Snøhvit field. The Breidablikk contract has subsea installation as an option. The...
Jul 01, 2020
OFS - Core expects to beat $46MM cost-cutting target by one-third
- July 2020Core Laboratories exceeded its cost-cutting target by nearly $15 million by the end of Q2. The reservoir and production enhancement company also negotiated an amendment to its revolving credit facility, getting an increased maximum leverage ratio in exchange for a lower borrowing cap. In response to the coronavirus pandemic, Core announced in April an effort to reduce corporate and operating costs by $46.1 million in an annualized basis. On June 23, the company said it added a second...
Jul 01, 2020
OFS - US set output record in 2019 despite relatively modest rig count - July 2020US crude and gas production set records of 12.2 MMbbl/d and 111.5 Bcf/d in 2019, despite the number of active rigs and wells drilled being at the lower end of the range during the past 45 years, the EIA reported on June 25. The increased productivity of wells with longer horizontal lengths has more than offset the effects of rigs drilling fewer wells, the agency said. The EIA said the average active rig count per month was 943, and the average count of new wells drilled per month was...
Jul 01, 2020
OFS - Q2 GOM well starts, rig counts lagged behind Q1 amid oil bust - July 2020The number of rigs drilling for hydrocarbons in the Gulf of Mexico averaged 33 during Q2, showing a nine-rig, or 21%, drop compared to the Q1 average, according to Enverus Rig Analytics. This was the lowest level of GOM rig activity in Enverus’ data, which goes back to 2Q14. After bottoming at a quarterly average of 34 in 4Q16 following the last oil bust, the count has remained in a tight range around 40. This compares to a peak of 72 in 4Q14. As of June 11, there had been 20 well...
Jul 01, 2020
MCS - Tapstone taps Osage & Meramec in Dewey-focused program - July 1, 2020Tapstone Energy conducted a Mississippian-focused development program last year, primarily in Dewey County, Oklahoma. Of 23 completions by the company during 2019, 21 were in that county, while the other two were in Woodward County. Enverus’ DI Landing Zone analysis suggests targets in the Meramec and Osage. Effective lateral lengths for the Dewey horizontals averaged 8,298 ft and frac loads were 1,022 lb per perforated lateral ft. During 24-hour tests, the wells averaged 748 boe/d (52% oil),...
Jul 01, 2020
CM - Equitrans absorbs EQM Midstream, which issues $1.6B in debt - June 2020EQM Midstream Partners LP, now a subsidiary of Equitrans Midstream Corp., sold two new series of notes with a combined aggregate principal amount of $1.6 billion: $900 million of 6.5% notes due 2027 and $700 million of 6% notes due 2025. Both series of notes are senior, subordinated and unsecured. The principal amount of notes sold is double the initially contemplated offering amount of $800 million. Just one day earlier, Equitrans and EQM announced the completion of Equitrans’ buyout...
Jun 26, 2020
CM - Startup Sixth Creek Energy will seek $250MM-plus investments - June 2020Denver-based Sixth Creek Energy, which just formed this quarter, said it will pursue the addition of institutional investors to its capital base if the size of an opportunity dictates. The company disclosed in an investor presentation that initial capital commitments from management, friends and family will total around $50 million. The company is working with Houston-based investment and merchant bank Rivington Holdings. Sixth Creek said its strategy was to acquire low-risk PDP...
Jun 26, 2020
CM - Oneok has largest midstream equity offering in 2.5 years - June 2020Oneok Inc. sold 29.9 million shares at $32 each for gross proceeds of $956.8 million in a public offering launched June 11. The 3.9 million-share greenshoe was exercised in full, delivering $124.8 million of the total gross proceeds. The offering is the midstream sector’s largest public common equity sale since January 2018 when—coincidentally— Oneok sold 19 million shares for $55.02 each to raise over $1.02 billion. Oneok’s offering is the second public midstream common equity sale this year,...
Jun 26, 2020
CM - Phillips 66’s $1B bond sale includes 2025 add-on and new 2030s - June 2020Phillips 66 launched debt offerings totaling $1 billion on June 9. The offerings comprised two tranches: $850 million aggregate principal amount of 2.15% senior notes due 2030 and a $150 million add-on tranche to its existing 3.85% senior notes due 2025, of which the company initially sold $500 million on April 9. The company said both 2025 offerings will be treated as a single series upon settlement. The new 2025 tranche was sold at a premium of 111.947, reflecting the existing 2025...
Jun 26, 2020
CM - DCP closes $500MM debt sale to pay down revolver borrowings - June 2020DCP Midstream LP announced the closing of the sale of $500 million aggregate principal amount of 5.625% senior notes due 2027 at 100 on June 24. The offering was upsized from an earlier contemplated $400 million principal amount. Net proceeds of about $494 million will be used for general partnership purposes, which include the repayment of revolver debt and possibly the funding of capital expenditures. The new notes bring DCP’s total long-term debt outstanding to over $5.93 billion,...
Jun 26, 2020
CM - Southwest Gas sells 10-year notes to redeem 2020 maturity - June 2020Southwest Gas Corp. completed a public offering of $450 million aggregate principal amount of 2.2% senior notes due 2030 on June 4. The notes were sold at 99.874 for a yield to maturity of 2.214%. Adjusted for the new notes, Southwest Gas has total long-term debt of about $2.29 billion, excluding current maturities of $605 million Net proceeds of around $446 million will be used redeem the $125 million outstanding of the company’s 4.45% senior notes due 2020, and to reduce credit facility debt....
Jun 26, 2020
CM - Ares’ IGS Resi Solar III fund raises $150MM for new projects - June 2020Ares Management Corp., through its Infrastructure and Power strategy group and IGS Ventures unit, raised $150 million in capital for new fund IGS Resi Solar III LLC. The capital commitments for Solar III comprises cash equity from its sponsors, tax equity, and debt that will be deployed to fund a portfolio of nearly 4,000 residential solar power installations with 25-year power purchase agreements or leases across multiple states. The Solar funds, of which this is the third, have raised...
Jun 26, 2020
CM - Upstream Briefs - June 26, 2020Northern Oil & Gas Inc. will ask its shareholders to vote sometime in Q3 to reverse split its NYSE-traded common shares. It is considering ratios ranging from 1:6 to 1:10. A change in authorized shares will accompany the reverse split. Northern’s 430 million shares outstanding have been trading mainly in the $0.60- $1.00 range in Q2. Texas Pacific Land Trust is moving forward with plans to reorganize into a Delaware corporation and has filed an initial draft registration statement...
Jun 26, 2020
CM - Power & Renewables Briefs - June 26, 2020FirstElement Fuel Inc., a producer of hydrogen for fuel cell electric vehicles, announced on June 16 that it raised $48 million in a financing round with Japanese investors. Mitsui & Co. invested $25 million while $23 million came from the investment arm of the Japan Bank for International Cooperation. The Newport Beach, California-based company has retail hydrogen stations in the state, and sells products under the True Zero brand. Renewable fuels transporter Green Plains Partners...
Jun 26, 2020