When No News Is Probably Bad News

When No News Is Probably Bad News

​One year ago, Berkshire Hathaway stunned the COVID-weary investment world with an energy acquisition no one saw coming. BH’s $8+ billion purchase last July for the lion’s share of Va.-based Dominion Energy’s natural gas transmission and storage assets included three pipelines sprawling 7,700 miles; 50% ownership of a fourth; 20.8 BCFD of transportation capacity; 900 BCF of storage; a 25% stake in Cove Point LNG; and control of 18% of all U.S. interstate gas flows. The transaction achieved antitrust clearance in September, right before Dominion announced a “dual-phase” closing related exclusively to the sale of its Questar Pipeline Group. The two companies in October entered into a second agreement—this one for Questar—and BH plunked down a $1.3 billion deposit on Questar’s Rocky Mountain system comprised of 2,500+ miles of gas pipe and underground storage. Regulatory approvals were expected early this year. Cue the crickets. Reese Energy Consulting today is following the latest news from Dominion and BH, which have terminated that second agreement as crickets continue to chirp from the FTC. Dominion now must secure a loan to refund Berkshire’s deposit while on the hunt for another buyer.

What do you think? Learn more about REC and our natural gas expertise at www.ReeseEnergyConsulting.com.

Berkshire Hathaway

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States.

www.berkshirehathaway.com

Dominion Energy

Dominion Energy, Inc., commonly referred to as Dominion, is an American power and energy company headquartered in Richmond, Virginia that supplies electricity in parts of Virginia, North Carolina, and South Carolina and supplies natural gas to parts of Utah, West Virginia, Ohio, Pennsylvania, North Carolina, South Carolina, and Georgia. Dominion also has generation facilities in Indiana, Illinois, Connecticut, and Rhode Island.

www.dominionenergy.com

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Is It Shark Week?

Is It Shark Week?

​The oil and gas industry’s buy/sell frenzy continues apace with billion-dollar deals practically tripping over each other. If you’re keeping count, we’ll rattle off the latest just since Monday. Denver-based Bonanza Creek (soon to be Civitas Resources) will acquire rival Crestone Peak Resources after purchasing Extraction Oil & Gas last month. Upon closing, Civitas will hold an enterprise value of $4.5 billion, 500,000+ acres in the Bakken, and 160 MMBPD of production. Houston-based Contango and KKR’s energy unit Independence Energy will merge in an all-stock deal valued at $5.7 billion and producing assets from Texas to Colo. A new company name is soon to come along with plans to shop for even bigger buys. The latest deal marks Contango’s fourth acquisition in the last 18 months. Reese Energy Consulting today is following news from Houston-based Plains All American, which has announced the sale of its Pine Prairie and Southern Pines gas storage facilities on the Gulf Coast. Just shy of that magic billion-dollar number, the all-cash purchase by Hartree Partners comes in at $850 million.

What do you think? Learn more about REC and our M&A services at www.ReeseEnergyConsulting.com.

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KM Just Hopped a Stagecoach

KM Just Hopped a Stagecoach

Kinder Morgan is getting seriously serious about diversifying its vast midstream business. Reese Energy Consulting today is studying the latest news from the Houston-based pipeline behemoth, which now will expand its operations into the Northeast with a $1.23 billion acquisition of N.Y.-based Stagecoach Gas Services. The deal includes four storage terminals and three natural gas pipelines that service the Marcellus with a total delivery capacity of 2.9 BCFD. This adds to KM’s existing 9,500 miles of pipelines that flow 2.4 MMBPD of gasoline, jet fuel, diesel, natural gas, and NGLs across the West, Southeast, Midwest, and Canada. But there’s more. As recently as last week, we learned Kinder Morgan plans to go full-on carpe diem on its 3,000 miles of petroleum products pipelines and storage network by adding “trader” to its resume, joining Energy Transfer in the buy/sell of refined supplies. And not to be forgotten, KM in March launched a new joint venture to implement a sweeping menu of clean-energy technologies into its own operations as well as commercialize them.

What do you think? Learn more about REC and our range of midstream services at www.ReeseEnergyConsulting.com.

Kinder Morgan

Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals. Kinder Morgan owns an interest in or operates approximately 85,000 miles of pipelines and 152 terminals.

www.kindermorgan.com

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