IS - Chevron launches sale of North West Shelf LNG stake in Australia - June 2020Chevron said it is launching a sale process for its 16.67% stake in the A$34 billion ($23 billion) Woodside Energy-operated North West Shelf project in Australia, after receiving approaches from several “credible” potential buyers. Analysts cited by Bloomberg said the interest could be valued $3-4 billion, down from valuations as high as $6 billion prior to the sharp decline of LNG prices earlier this year because of the coronavirus outbreak. As the North West Shelf project’s offshore...
Jun 22, 2020
MI - Enbridge looks to diversify with more gas, some wind & sun - June 2020North America’s largest midstream company, Enbridge, Inc., plans to gradually transition its asset mix toward more natural gas and renewables, investing larger portions of its capital in those areas. The company currently earns 55% of its income from liquids pipelines and about 40% from gas and storage, with 4% from renewables. “If you look at the energy supply/demand balance globally, we as a company kind of mirror that,” CEO Al Monaco told Canada’s Financial Post. Enbridge has just...
Jun 17, 2020
A&D - Bankrupt Gavilan Resources seeks buyers for Eagle Ford JV assets - June 2020Gavilan Resources is marketing its South Texas portfolio through a Section 363 process after filing for bankruptcy protection May 15. The Blackstone Group-backed company partnered with Sanchez Energy—now also going through bankruptcy—in March 2017 to acquire what the Sanchez-operated 50:50 JV calls the Comanche assets in the western Eagle Ford from Anadarko Petroleum for $2.3 billion. Gavilan and Sanchez have been engaged in a legal dispute over operatorship of the assets during the last year....
Jun 11, 2020
IS - Chevron completes $1.6B exit from major Caspian project - May 2020Chevron completed the $1.57 billion sale of its stake in the largest oil field in the Azerbaijan sector of the Caspian Sea to MOL Group. The Hungarian company acquired 9.57% WI in the Azeri-Chirag-Gunashli field and an 8.9% stake in the Baku-TbilisiCeyhan pipeline, both operated by BP. The disposal marks Chevron’s exit from Azerbaijan. Combined with other recent sales, the deal helped Chevron surpass the midpoint of its 2018-2020 divestment target. MOL described the transaction as a major...
May 08, 2020
A&D - SilverBow expands Eagle Ford core through corporate buy - May 2020South Texas operator SilverBow Resources announced April 13 that it acquired a private company with Eagle Ford assets and entered a definitive agreement to sell royalty assets in Wyoming’s Powder River Basin. The Eagle Ford purchase added 10 MMcf/d of gas production directly offsetting SilverBow’s existing assets, bringing its acreage to more than 200,000 net acres in the western portion of the play. SilverBow said that the acquisition gives it the opportunity to recognize synergistic...
May 01, 2020
IS - Woodside clears regulatory hurdle for Scarborough, cuts capex - April 2020Australia’s National Offshore Petroleum Safety and Environmental Management Authority approved Woodside Petroleum’s Scarborough offshore project proposal on April 2. The project is still subject to further regulatory approvals, including an accepted environmental plan, a well operations management plan and a safety case. The development of Scarborough off Western Australia is part of the company’s Burrup hub vision. Woodside had planned to take a final investment decision on Scarborough...
Apr 15, 2020
CM - NGL Energy Partners will spend modestly in fiscal 2021 - April 2020NGL Energy Partners LP plans to spend $50 million for growth capex in FY21, which starts in April, and expects to generate $565-595 million of EBITDA during the period. At FY20’s three-quarter mark on Dec. 31, NGL had spent $427 million on capex. This year, though, it will focus on enhancing infrastructure investments made during in the past 12 months rather than start new projects. Its capex will be funded with free cash flow. On a February earnings call, NGL said it expected growth...
Apr 03, 2020
CS - CEO likes where Enbridge is at start of market meltdown - April 2020Enbridge is in a place of “resilience and stability” even amid the coronavirus and commodity turmoil, CEO Al Monaco said March 17. He pointed to past A&D as having put the midstream giant into that place—its $67.2 billion acquisition of Spectra Energy in 2017 and its 2018 divestments of its gathering and processing businesses. Calgary-based Enbridge was almost exclusively a crude company before it acquired Spectra. The deal allowed Enbridge to enter gas pipelines and gas utilities and...
Apr 01, 2020
MI - Sanchez exits Seco pipeline, sending SNMP to $48MM net loss - March 2020Bankrupt Sanchez Energy suspended use of the Seco gas pipeline, causing Sanchez Midstream Partners to take a $32.1 million impairment on the 30-mile pipeline in South Texas. The impairment caused SNMP to take a net loss of $47.8 million on revenue of $16.4 million in 4Q19 when it released earnings on March 13. Completed in 2017, Seco sends dry gas from the Raptor processing facility to markets in South Texas. While it has a 400 MMcf/d capacity, Seco transported an average of just 1.9...
Mar 26, 2020
MI - NGL Energy Partners to leave gas blending before April - March 2020NGL Energy Partners will exit its gas blending business by March 31 and intends to spend only $50 million in growth capex during its fiscal 2021, which starts this April. The partnership expects its fiscal 2020 EBITDA to come inside the $565-595 million guidance. The partnership had previously announced its intent to divest its gas blending business, which operates in the Southeastern and Eastern US. It did not say whether it had found a buyer, only that it had “reached an agreement” on...
Mar 26, 2020
MI - CEO likes where Enbridge is at start of market meltdown - March 2020Enbridge is in a place of “resilience and stability” even amid the coronavirus and commodity turmoil, CEO Al Monaco said on March 17. He pointed to past A&D as having put the midstream giant into that place—its $46.6 billion acquisition of Spectra Energy in 2017 and the 2018 divestments of its gathering and processing businesses. Calgary-based Enbridge was almost exclusively a crude company before it acquired Spectra. The deal allowed Enbridge to enter gas pipelines and gas utilities...
Mar 26, 2020
IS - Carnarvon: We are pushing ahead on Dorado with Santos - March 2020Despite commodity prices battered by the coronavirus pandemic and the ongoing Saudi-Russian oil price war, work continues on Santos’ Dorado project off Western Australia, minority partner Carnarvon Petroleum reported. Carnarvon (20% WI) said it is working closely with operator Santos (80% WI) on components that are required to formally enter front-end engineering design. It added that nothing is preventing commencement of FEED nor ongoing work on the project through 2021. Santos said in...
Mar 24, 2020
MI - Williams-led JV tears up plans to build Constitution pipeline - March 2020Williams and its partners pulled the plug on the 650 MMcf/d Constitution pipeline only a few months after federal regulators overturned New York’s decision to block the project. The Tulsa-based company, which owned a 41% stake in Constitution, took a $354 million impairment on the project in 4Q19. “The members of Constitution, following extensive evaluation and discussion, recently determined that the underlying risk-adjusted return for this greenfield pipeline project has diminished in...
Mar 05, 2020
CM - Oilfield Services Briefs - June 5, 2020Modular solutions provider ENGlobal Corp. signed a loan and security agreement with Pacific Western Bank to borrow up to $6.0 million for three years. The loan bears interest at the prime rate plus 200 bps but not to equal less than $7,500 per month. The loan’s collateral is a first priority lien on all of the borrower’s assets. Private equity firm KPS Capital Partners agreed to acquire Baker Hughes Co.’s Lufkin rod solutions business for an undisclosed amount. Based in Missouri City,...
Jun 05, 2020
MI - News Briefs - April 17, 2020Blueknight Energy Partners LP expects to use cash flow to fully fund its 2020 distribution payments and total expected capital expenditures of $9.5-10.5 million, including maintenance capex in the $7.5-8.0 million range. The partnership said 2020 spending will be 20% lower at midpoint YOY. It also expects to end 2020 with a leverage ratio of 4.0-4.25x and distribution coverage of 1.2x or more. Cheniere Energy disclosed on March 24 that its sub Sabine Pass Liquefaction, LLC closed a $1.2...
Apr 17, 2020