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🎙️ Energy News: EQT Is Set to Acquire Equitrans Midstream A strategic move to enhance its position in the natural gas market, this all-in stock deal would create a combined company valued at more than $35 billion, including debt. The merger is the latest in a growing list of pipeline deals, including Oneok’s purchase of Magellan Midstream Partner and Energy Transfers deal for Crestwood Equity Partners. 🔹 Greater Efficiencies: The merger, expected to close in Q4 2024, would lower production and transportation costs by adding over 2,000 miles of pipeline infrastructure, positioning EQT as the most cost-efficient natural gas producer in the U.S. 🔹 Financial Value: The deal could result in $250 million in annual synergies. EQT’s existing shareholders are expected to own roughly 74% of the combined company, with Equitrans’s stockholders owning the rest.  🔹 Global Ambitions: EQT's strategy includes expanding its global footprint through liquefied natural gas exports, leveraging preliminary deals with LNG developers to access international markets. This deal could reshape the natural gas industry and bring in a new era of efficiency and global competitiveness. 🌍💡 #NaturalGas #EnergyIndustry #MergersAndAcquisitions #WeCloseDeals https://lnkd.in/eHqYrfHJ

Post High-Dollar Acquisitions, the Name of the Game Is Trimming the Fat For producers and midstreamers that have made multi-billion-dollar acquisitions in the era of consolidation now two years in, slashing debt is front and center if a CEO hopes to sleep at night and keep a happy face on their debt-to-capital ratio. Following its seismic $60 billion deal last October with Hess Corporation, Chevron has been on a wind sprint ever since to shed non-core assets and generate up to $15 billion in the process. The company earlier this month sold its Canadian oil sands assets for $6.5 billion. This, while hosting late talks with Houston-based TG Natural Resources LLC to sell its Haynesville position for about $1 billion. On the midstream side, Reese Energy Consulting today is following the latest on Pa.-based EQT Corporation, also in a deleveraging state of mind with a commitment to cut $5 billion in debt following its March acquisition of Equitrans Midstream Corporation. EQT holds interests in 940 miles of interstate natural gas pipelines with 4.4 BCFD of capacity. The all-stock $5.2 billion deal for Equitrans reunited EQT with the business unit it spun off more than six years ago—and what a beautiful, strategic reunion it was, bringing the long-delayed and yet-to-be-completed Mountain Valley Pipeline back into the EQT fold. By June, the 303-mile MVP was ready-set-flow to transport 1.2 BCFD of Marcellus/Utica natural gas produced by EQT to Mid-Atlantic and Southeast markets. All of which caught the eye of PE firm Blackstone, now said to be in talks to buy minority stakes in EQT’s pipeline portfolio for $3.5 billion. What do you think? Learn more about REC and our natural gas and midstream services at https://lnkd.in/ebXT2mS. For more information about our online natural gas training courses, visit us at https://lnkd.in/g_jDyx_Y. #acquisitions #upstream #midstream #naturalgas #reeseenergyconsulting

DIVESTITURE IN THE WORKS? Occidental Explores $20 Bln-Plus Sale of Western Midstream - Learn More: https://hubs.la/Q02lJ11w0 Occidental Petroleum is exploring a sale of Western Midstream Partners, a U.S. natural gas-focused pipeline operator that has a market value of close to $20 billion, including debt, according to people familiar with the matter. Western Midstream shares rose 10% to $32.12 in afternoon trading in New York on Tuesday. The divestment would help Occidental, which is backed by Warren Buffett’s Berkshire Hathaway, slash the $18.5 billion debt pile it has accumulated because of acquisitions. Western Midstream #oilgas #oilandgascompanies #energy #mergersandacquisitions

Helmerich & Payne's $1.97 Billion Acquisition of KCA Deutag - Helmerich & Payne, has announced its acquisition of KCA Deutag for $1.97 billion in cash, a deal that significantly enhances H&P's standing in the global onshore drilling market. This acquisition is particularly impactful in the Middle Eastern region, where KCA Deutag has established a strong operational base, contributing approximately 70% of its Operating EBITDA in 2023. - The financial implications of this acquisition are substantial for H&P. The transaction is anticipated to immediately boost both cash flow and free cash flow per share, with expectations of achieving double-digit free cash flow accretion by 2025. This financial uplift is further supported by KCA Deutag's $5.5 billion contract backlog, which ensures steady revenue streams and robust growth prospects. - Morgan Stanley acted as the financial advisor and provided committed financing services for the deal, while Kirkland & Ellis offered legal counsel to H&P. On the side of KCA Deutag, Moelis & Company and PJT Partners were the financial advisors, with A&O Shearman handling the legal aspects of the transaction. - This acquisition significantly expands H&P's operational footprint, increasing its rig count in the Middle East from 12 to 88, making it one of the largest service providers in this critical region. Additionally, the deal broadens H&P's business scope by integrating KCA Deutag's offshore management and engineering services, thus diversifying its service offerings across multiple markets. - From a financial perspective, H&P is focused on maintaining a strong investment-grade credit rating post-acquisition. The company aims to reduce its net-debt-to-EBITDA ratio from 1.7x at the time of closing to below 1.0x within the next one to two years, reflecting a prudent approach to leverage and financial stability. - The transaction, which has received unanimous approval from H&P’s Board of Directors, is expected to close by the end of 2024, subject to the fulfillment of customary closing conditions and regulatory approvals. #onshoredrilling #mergersandacquisitions #helmerichandpayne #kcadeutag #middleeastenergy #oilandgas #financialadvisory #corporatelaw #investmentgrade #rigcount #freecashflow #revenuegrowth #shareholdervalue

Woodside, Santos ceased their merging discussions Woodside and Santos have ceased their early-stage discussions regarding a potential #merging deal as they failed to find common ground on terms. Just two months ago, the #Australian two largest #oil and #gas companies had confirmed that they were in talks over a $54 billion merging deal. “We continue to be disciplined in our approach to #mergers and #acquisitions and #capitalmanagement to create and deliver value for #shareholders,” said the Woodside's CEO Meg O’Neill. “While the discussions with #Santos did not result in a transaction, Woodside considers that the global #LNG sector provides significant potential for value creation.” Woodside has reminded that it continuously assesses a range of organic and inorganic growth opportunities. Meanwhile, Santos has said that the two companies had not found “sufficient combination benefits” to support a deal that would have been in the best interest of its shareholders. To see more posts like this in your feed and stay up-to-date with what is going on in the LNG world, follow Global LNG Info on LinkedIn at https://lnkd.in/e442DdDn #energy #globallngdatabase #database #lngindustry #lngshipping #Engineering #procurement #Construction #foundations #mechanical #gas #liquefaction #facility #construction #constructionindustry #constructionprojects #constructionconsulting #constructionjobs #gasprocessing #energyindustry #energyinfrastructure #buildingconstruction #project #export #utilities #planning #design #investment #oilandgasindustry #onshore #offshore #pipeline #development #projects

EQT stock is down ~11% as investors react to the announcement. Heck ETRN stock is only up a few cents. It’s a bad idea. The market is screaming it’s a bad idea. DVN. CTRA. EPD. MPLX. All up. The market doesn’t like your idea. Nip it before spending money going down this rabbit hole. Anti trust will nix it. Neither company can afford wasting money. Toby, you have 20% of your production shut in. What’s the plan, shut in 20% of ETRN’s flow? Admit it, your last two acquisitions haven’t worked out. Don’t care how you spin it. And really, touch base with Goober here before embarrassing yourself with these ideas. Work at making ETQ economically successful and stop the urge to spend when in a bind. 20% of production shut in!

Crescent Energy, a US independent energy company, completed the acquisition of SilverBow Resources, an independent oil and gas company, for $2.1bn. “Today is an exciting day for Crescent. We are well positioned to create value, and I am grateful for the trust from our original Crescent and new SilverBow shareholders, each of whom voted with an overwhelming majority to approve our merger and to take equity consideration and participate in the go-forward company. Through disciplined investing and operations, we have delivered profitable growth, tripling the size of our business over the last four years. We have created a premier growth through acquisition platform by executing on our cash flow and returns-oriented strategy. Today, we are focused on rapidly integrating our new assets and personnel and continuing to deliver on the significant synergies we’ve identified to strengthen returns. We are highly confident in our ability to execute and demonstrate Crescent’s value proposition as a leading mid-cap company,” David Rockecharlie, Crescent CEO. SilverBow (led by Sean Woolverton) was advised by Bank of America, Evercore, Gibson Dunn (led by Stephen Olson) and Joele Frank (led by Adam Pollack). Crescent (led by David Rockecharlie) was advised by Intrepid Financial Partners, Jefferies, Wells Fargo, Richards, Layton & Finger, Vinson & Elkins (led by Jackson O’Maley, Doug McWilliams, Robert Hughes and Jordan Fossee). Debt financing was provided by Wells Fargo. Financial advisors were advised by Baker Botts (led by Joshua Davidson) and Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates (led by Ann Beth Stebbins). #MergersAcquisitionsDivestitures #Energy #OilandGas

Reporting on the Diamondback Energy/Endeavor merger, the WSJ tells us. "Already, deal volumes in the U.S. are up 78% compared with a year earlier, according to Dealogic. Pricier debt and a tighter regulatory environment crimped merger and acquisition activity in 2023, but many advisers expect a busier 2024 as companies put their extra cash to work and rates appear poised to come down." https://lnkd.in/gX22Z47j

Over the last year, M&A activity for upstream oil and gas companies has become top-heavy, portrayed by several top-dollar transactions. But while the number of acquisitions is shrinking in the energy industry, more money is being spent on these big deals. We look at this trend in this week's post. https://lnkd.in/gT49d3bN | #mergersandacquisitions #oilandgas #premiums #transactions

Deep Dive into the Crescent Energy Acquisition of SilverBow Resources! Big news in the energy sector: On July 30th, Crescent Energy successfully acquired SilverBow Resources, solidifying its strategic position in the Eagle Ford Shale and the natural gas market. This deal reflects a significant move towards operational efficiency and sustainable growth in the industry. I’ve put together two resources to help break down this pivotal transaction: 1. PowerPoint Presentation 2. Excel Financial Analysis: https://lnkd.in/gtpUuFKu Looking ahead, I’ll be sharing more detailed breakdowns of future mergers and acquisitions, so be sure to follow me to stay updated on industry trends and financial insights! #MergersAndAcquisitions #EnergySector #NaturalGas #CrescentEnergy #SilverBowResources #FinancialAnalysis #DealAnalysis #M&A #FollowForMore Find the excel for the financial analysis attached below. https://lnkd.in/gtpUuFKu