LPLink News’ Post

Diversified Energy Company PLC's (LSE:DEC, NYSE:DEC) latest asset acquisition in Texas looks like a high-quality and well-priced addition, that’s according to analysts at stockbroker Peel Hunt. The broker, following today’s deal news, repeated a ‘buy’ recommendation for the London and NYSE listed American oil and gas company. With a price target pitched at 3,000p, Peel Hunt sees very substantial upside for the share – which today trades at around 1,116p. “[The acquisition] is a very good fit with Diversified's existing asset base. We will update our model in due course,” Peel Hunt analyst Matt Cooper said in a note. In a statement this morning, DEC described the newly picked up assets as high-quality natural gas properties in eastern Texas. DEC is paying $106 million to acquire the assets from Crescent Pass Energy, including the issuing of 2.4 million shares to the seller. The asset package comprises 827 operated... More at #Proactive #ProactiveInvestors http://ow.ly/QnPr105A7xI

Diversified Energy Co. Plots Growth Through Culling, Harvesting Mature Gas Wells Diversified concurrently announced a major transaction: the $410 million purchase of Oaktree Capital’s proportionate interests in assets acquired since the participation agreement signed in 2020, bringing Diversified’s interest to 100%. The purchase included production of 122 MMcfe/d, a 15% increase to the company’s 2023 average output. The price included the assumption of approximately $120 million in debt and about $90 million in deferred cash payments to Oaktree. Benefits included an average floor price for the acquired volumes at a 25% premium to Diversified’s current hedge portfolio, which boosted the company’s pro forma 2024 average price by $0.10/MMBtu. The deal also brought $15 million in cost efficiencies. https://lnkd.in/gw_jPpBz

Southwestern Energy, an integrated oil and gas firm, agreed to merge with Chesapeake Energy, a petroleum and natural gas exploration and production company, in a $7.4bn deal. "This powerful combination redefines the natural gas producer, forming the first U.S. based independent that can truly compete on an international scale. The union creates a deep inventory of advantaged assets adjacent to high demand markets, allowing for the application of proven operational practices and the power of an Investment Grade quality balance sheet to drive significant synergies benefiting energy consumers and shareholders alike," Nick Dell'Osso, Chesapeake President and Chief Executive Officer.   Chesapeake Energy (led by Nick Dell'Osso) is advised by Evercore, J.P. Morgan, Morgan Stanley, Latham & Watkins, DrivePath Advisors, and Wachtell, Lipton, Rosen & Katz (led by David A. Katz). Southwestern Energy (led by Bill Way) is advised by Bank of America, Goldman Sachs, RBC Capital Markets, Wells Fargo, Kirkland & Ellis (led by Doug Bacon, Kim Hicks and Pat Salvo), and Joele Frank. #MergersAcquisitionsDivestitures #OilandGas #Petroleum

EBW Analytics Group: Bearish Near-Term Risks for Natural Gas Skylar Capital Management LP is an investment management firm located in Houston, TX, focused on the natural gas and power markets with a mission to generate outsized non-correlating returns for our investors. To invest in Skylar Capital Management’s strategy, an investor must be a qualified purchaser, as defined in the U.S. Investment Company Act of 1940, a person or entity with more than $5 million in investments. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES AND OPTIONS IS SUBSTANTIAL. THIS IS NOT AN OFFER OR SOLICITATION. Skylar Capital Management may be contacted at:  https://lnkd.in/gq6rJK8s #Energy #NaturalGas #NatGas #Commodities #LNG #HedgeFund #NatGasHedgeFund #InvestmentManagement #trading #alternativeinvestments #investment #markets #opportunity #investments #management

Sector-Focused Oil and Gas PE Firms: The Unsung Heroes of High Returns 🌟 Hats off to the sector-focused oil and gas private equity firms! 🎩 These specialized players armed with the deep-sector knowledge have been delivering stellar exits while the large generalist firms fled the sector, chasing renewables and infrastructure investments. Gone are the days of big generalist PE firms, riddled with inefficiencies and bloated with individuals more interested in salaries and bonuses from hefty management fees than in driving true value. 🚫💼 The future belongs to sector-focused PE firms, ready to outshine and outperform these mammoths. Kudos to the EnCap Investments L.L.C Quantum Capital Group and many others in supporting the Energy Industry. #OilAndGas #PrivateEquity #SectorFocused #InvestmentSuccess #SpecializedInvesting #HighReturns #EnergySector #PrivateEquityExcellence #LinkedInFinance #privateequity #energyfinance

Integrating with Trailstone Group means our combined business will play a leading role as an independent enabler of the clean energy transition. At the same time, we remain committed to maintaining our diversified footprint across the commodity markets. Diversification is crucial to promoting sustainable growth and better resource optimisation as we grow our business. By leveraging Trailstone Group’s expertise in renewables, short-term power trading, and physical gas markets with our existing strengths in trading and data analysis across the commodities complex, we create a platform that can manage market volatility, capitalise on emerging opportunities and support our clients through every phase of the energy transition. It also means we can provide risk management, liquidity, and tailored solutions for established and emerging energy markets. You can read more about it in our latest interview with our CEO, Huw Jenkins, and our Deputy CEO, John Redpath. Please find a link in the comments and let us know your thoughts below. #commodities #commoditytrading #renewables #powertrading #thefutureofcommodities

Quantum Capital Group, a private equity company, agreed to acquire oil and gas operations from Oaktree Capital Management, L.P.-backed Caerus Oil and Gas LLC, a company that invest in conventional oil and gas properties, for $1.8bn. “As an active private energy investor, we recognize the important role of expanding access to clean and reliable energy in key markets across the United States. This transaction represents a unique opportunity for Quantum to invest in substantial natural gas production alongside large, contiguous acreage positions containing sizable hydrocarbon resources with significant value creation potential. We believe that KODA and QB Energy are well positioned to steward the next phase of development and operation of the Assets to serve responsibly natural gas demand centers in the western US while generating attractive returns for our investors," Tom Field, Quantum Partner. Quantum is advised by Vinson & Elkins and Joele Frank (led by Katherine Thompson). Caerus is advised by Bank of America, Evercore, Jefferies, Davis Graham & Stubbs LLP and Latham & Watkins. #MergersAcquisitionsDivestitures #OilAndGas #Energy

Tailwater Capital LLC announces sale of Tall Oak Midstream LLC III to Summit Midstream Corporation - Tailwater Capital has announced the sale of Tall Oak Midstream III to Summit Midstream Corporation for approximately $450 million. - The sale includes $155 million in cash and around 7.5 million shares of Summit Class B common stock and common units representing about 40% ownership in the pro forma company. - Up to $25 million in contingent consideration in cash may be paid over specific measurement periods through March 31, 2026. - The transaction is expected to close in the fourth quarter of 2024, subject to customary conditions and approvals. - Four directors appointed by Tailwater will serve on Summit's board after closing. - Tall Oak operates a significant gas gathering and processing system in the Arkoma Basin with two 220 million cubic feet per day natural gas processing plants and extensive gathering lines. - Tailwater Capital's Co-Founder, Jason Downie, expressed optimism about partnering with Summit to enhance value creation initiatives. - Ryan Lewellyn, CEO of Tall Oak, praised the team's performance and stated confidence in Summit continuing to capitalize on opportunities in the Arkoma Basin. - TPH&Co. served as the exclusive financial advisor for Tailwater, while various legal and financial advisors supported both parties in the transaction. - Tailwater Capital is a private equity firm based in Dallas with a strong track record in energy and growth infrastructure investments. https://lnkd.in/gtyP7p-T

Chord Energy, a company engaged in hydrocarbon exploration and hydraulic fracturing, agreed to merge with Enerplus, an independent oil and gas producer, in a $11bn deal. "This combination further strengthens our Williston Basin position and represents a compelling opportunity for both companies' shareholders. Enerplus' Williston Basin position brings high-quality inventory, and we are excited to leverage best practices from both companies to create a stronger, more efficient entity. The combined company is expected to benefit from improving returns, capital efficiency, low-cost inventory, and a peer-leading balance sheet, all of which support sustainable free cash flow generation and meaningful shareholder returns," Danny Brown, Chord Energy President and CEO. Enerplus (led by Ian Dundas) is advised by BMO Capital Markets, CIBC, Evercore, RBC Capital Markets, Blake, Cassels & Graydon LLP and Latham & Watkins. Chord Energy (led by Daniel Brown and Michael Lou) is advised by Citi, J.P. Morgan, Wells Fargo, Goodmans LLP, Vinson & Elkins (led by David Palmer Oelman) and Wachtell, Lipton, Rosen & Katz (led by Dan Neff and Zachary Podolsky). #MergersAcquisitionsDivestitures #OilandGas #Energy

𝘿𝙚𝙫𝙤𝙣 𝙀𝙣𝙚𝙧𝙜𝙮 𝘽𝙤𝙡𝙨𝙩𝙚𝙧𝙨 𝙋𝙤𝙨𝙞𝙩𝙞𝙤𝙣 𝙬𝙞𝙩𝙝 $5 𝘽𝙞𝙡𝙡𝙞𝙤𝙣 𝘼𝙘𝙦𝙪𝙞𝙨𝙞𝙩𝙞𝙤𝙣 Devon Energy has completed its acquisition of Grayson Mill Energy, significantly enhancing its footprint in the Williston Basin. The $5 billion transaction adds 307,000 net acres and boosts Devon's unexplored and refracturing potential with an additional 500 undrilled locations and 300 high-quality candidates for refracturing. Rick Muncrief, President and CEO, expressed enthusiasm about the acquisition, highlighting its strategic fit and the benefits of expanded operational scale. He also acknowledged the efforts of both companies' teams in facilitating the smooth integration. Devon Energy, known for its strong presence in the U.S. oil and gas sector and its robust business model focused on high returns and sustainable operations, plans to provide updates by November on the impact of this acquisition on its 2024 production and capital outlook. #EnergySector #MergersAndAcquisitions #DevonEnergy #OilAndGasIndustry #BusinessGrowth https://lnkd.in/gyjAEjuM