Tuesday, October 21, 2014
Pipeline expansion
HOUSTON
Spectra Energy announced a proposed expansion of its oil pipeline network, with service from Guernsey, Wyo., to Patoka, Ill. The expansion may enable future access to Eastern U.S. refiners.
Eagle Ford sale closed
Houston
EV Energy Partners L.P. announced that it has closed the previously announced sale of certain deep rights in the Eagle Ford formation in Burleson, Brazos and Grimes counties, Texas, to an undisclosed buyer. Net proceeds to EVEP are $30.6 million. EVEP and Ener-Vest will retain all non-Eagle Ford formation rights, including the Austin Chalk formation and corresponding production. The transaction is subject to customary post-closing purchase price adjustments.
Credit base increase
DENVER
Antero Resources Corp. announced today that the borrowing base under its bank credit facility has been increased to $4 billion. This represents a $1 billion increase over Antero’s previous borrowing base announced in May 2014. In addition, lender commitments under the facility were increased by $500 million to $3 billion and can be expanded to the full $4 billion borrowing base upon bank approval.
Study commissioned
ALEXANDRIA, VA.
The Oil and Natural Gas Industry Labor-Management Committee commissioned a study through the Institute for Construction Economics Research on the economic benefits associated with Marcellus oil and natural gas reserves. The conclusion is that Marcellus shale development in Pennsylvania, Maryland, West Virginia and Ohio “has been a strong engine of job growth” in the local construction industries in those states. The report represents these crafts in the construction trade: boilermakers, operating engineers, electricians, ironworkers, laborers, sheet metal workers, painters, and masons and teamsters. The report concludes that domestic energy exploration has created 45,000 construction jobs. To review the report go to ongil-mc.org.
Purchase and sale
OKLAHOMA CITY, OKla.
Chesapeake Energy Corp. announced that it has executed a Purchase and Sale Agreement to sell assets in the Southern Marcellus Shale and a portion of the Eastern Utica Shale in West Virginia to Southwestern Energy Co. for aggregate proceeds of $5.375 billion. The transaction, which is subject to certain customary closing conditions, including the receipt of third-party consents, is expected to close in the fourth quarter of 2014. Chesapeake has agreed to sell approximately 413,000 net acres and approximately 1,500 wells in northern West Virginia and southern Pennsylvania, of which 435 are in the Marcellus and Utica formations, along with related property, plant and equipment.
Not-for-profit recognized
NEW YORK
Hess Corp. was recognized by Carbon Disclosure Project, an environmental not-for-profit organization, as a leader among 500 companies for the depth and quality of climate change data it discloses to investors and the global marketplace. On the 2014 Climate Disclosure Leadership Index (CDLI, Hess is one of only 14 companies across all sectors to receive a score of 100 and the only energy producer to be awarded a position on the CDLI.
3rd quarter earnings
The following is a list of dates for release of third-quarter earnings:
Hess Corp.: Oct. 29.
Consol Energy Inc.: Oct. 28
Chesapeake Energy Corp.: Nov. 5
Halcon Resources Corp.: Nov. 10
MarkWest Energy Partners L.P.: Nov. 6
BP: Oct. 28