Aethon Energy wins Haynesville deal

Aethon Energy Wins Deal of the Week Aside from the billion-dollar deals this week in the scene-stealing Permian, a much smaller acquisition in the gas-rich Haynesville might well take the prize for best bargain. Reese Energy Consulting today is following the latest from Dallas-based Aethon Energy, an investment firm and E&P, which has stealthily built its Haynesville position over the last eight years. Back in 2014, large operators there like Shell and Encana Corporation were staking For Sale signs on their assets in a basin that mostly fell into slumber over the next two years. But 2016 brought a Haynesville reawakening. Private operators moved in to nudge the sleeping gas giant, the same year the nation’s first LNG export cargo set sail from La., bound for Brazil, and everyone and their French poodle wanted in on the burgeoning LNG biz. More terminals to build; more gas supplies to feed them. And Aethon’s gas-to-LNG strategy started paying off. The company is currently the Haynesville’s top dog producer—at least until Chesapeake Energy’s merger with Southwestern Energy gets a government kiss. But no matter. Aethon is all eyes on growth now with its shiny new acquisition of Tellurian Inc.’s Haynesville assets for $260 million. And that might well be a steal. Analysts report the sale, which consists of 29,883 net acres, interests in 167 producing wells, and midstream bones, is $100 million less than their book value. Tellurian, which reported $25.5 million in 1Q gas revenues, is cash hungry to help save its beleaguered $25 billion Driftwood LNG project. As part of the deal, the two have signed an HOA that would see Aethon buying 2 MPTA of LNG should Driftwood become a reality. The agreement is non-binding. What do you think? Learn more about REC and our natural gas and LNG consulting services at https://lnkd.in/ewhkGFa.           

Energy Transfer is set to expand its presence in the Permian Basin by acquiring WTG Midstream Holdings for $3.25 billion. This acquisition, announced on May 28, is part of a broader trend in the midstream sector aimed at reducing costs and gaining access to key oil and gas regions, including the U.S. Gulf Coast export facilities. The deal, which is expected to close in the third quarter of 2024, includes $2.45 billion in cash and 50.8 million newly issued Energy Transfer shares. Diamondback Energy, which holds a 25% stake in WTG, will receive about $375 million from this transaction. WTG's assets include a 6,000-mile pipeline network, eight processing plants with a total capacity of 1.3 billion cubic feet per day, and two additional plants under construction. The acquisition also encompasses a 20% interest in the 425-mile BANGL Pipeline, enhancing connectivity from the Permian Basin to the Texas Gulf Coast. Energy Transfer expects the WTG assets to boost distributable cash flow per share by nearly $0.04 in 2025, growing to $0.07 per share by 2027. This acquisition follows Energy Transfer's recent purchases of Crestwood Equity Partners, Lotus Midstream, and NuStar Energy L.P., further solidifying its position in the industry. The company is also one of three considering building a deepwater port along the Texas coast and anticipates receiving a draft Environmental Impact Statement for its offshore terminal this quarter. https://lnkd.in/gqB93vaF

Energy Transfer to Acquire WTG Midstream in $3.25 Billion Deal to Expand Permian Presence With the recent acceleration in consolidation in the pipeline industry, some companies seek cost-cutting measures, while others aim to expand their reach and secure access to prolific oil and gas production areas like the Permian Basin and export terminals along the U.S. Gulf Coast. Read it here ▶ https://lnkd.in/grvXjSD7 #pipelinejournal #pipelinenews #pipelineindustry #pipelines #USA #Texas #gas

TotalEnergies to acquire 45% interest in Eagle Ford gas assets TotalEnergies has agreed to acquire a 45% interest in dry gas-producing assets in the Eagle Ford basin in Texas from Lewis Energy Group. This strategic move is aimed at bolstering TotalEnergies' position across the US gas value chain. Financial terms of the deal were not disclosed. Located in south-west Texas, the assets are expected to achieve sustainable gross production of approximately 400mcf/d by 2028. https://lnkd.in/gMSsvjmf

US midstream company Energy Transfer has agreed to buy WTG Midstream for $3.25bn, expanding its foothold in natural gas transportation in the Permian basin. Spot gas prices near the Permian have spent much of the last two months in negative territory as crude-focused production has flooded the market with associated gas, for which there is insufficient pipeline infrastructure to ship to more distant customers. https://lnkd.in/efUJQwz6

"WTG's 6,000-mile pipeline network serves significant operators in some of the most active areas of the Midland Basin, operates eight processing plants with a total capacity of 1.3B cf/day, and is constructing two new plants with 400M cf/day of an additional capacity; the first new plant is expected to be in service in Q3 2024 and the second plant in Q3 2025. Energy Transfer (ET) said it expects the addition of WTG assets to provide increased access to growing supplies of natural gas and natural gas liquids volumes enhancing its Permian Basin operations and downstream businesses. The partnership expects WTG will add ~$0.04/unit of distributable cash flow in 2025, growing to ~$0.07/unit in 2027; it said WTG’s cash flows are supported by a high-quality customer base, predominately investment grade, with an average contract life of more than eight years. Includes a 20% ownership interest in the BANGL NGL Pipeline. BANGL is a joint venture between White Water, MPLX, WTG, and Rattler. The natural gas liquids pipeline system connects the Delaware and Midland basins of Texas to the fractionation market in Sweeny, Texas, and has expansion capacity of up to 300,000 bpd."

On Your Mark…Get Set, Haynesville Producers in the Haynesville this year have no doubt endured quite the teeter-totter ride. That’s mostly due to low-down-dirty natural gas prices that have taken a whippin’ stick to operators working their assets off in the nation’s third-largest natural gas basin. Early on in 2024, some of the biggest E&Ps here announced decreasing production or shutting in wells altogether in a wait-and-see to move abundant supplies to gas-hungry Gulf Coast LNG facilities. This, while also awaiting more pipeline capacity to get them there. Reese Energy Consulting today is following the latest news from the Haynesville, where East Daley Analytics tells us Haynesville operators are sitting on 1.2 BCFD of unused gas production that’s waiting for love and rescue amid a growing inventory of DCUs. East Daley predicts the winter season’s increased LNG demand will trigger gas prices above $3/MMBtu, which is expected to lead to a resurgence in the Haynesville, starting with that 1.2 BCFD of “ready” production coming online ahead of rig-driven supply. It’s also welcomed news for the basin’s top midstreamers to include Energy Transfer, Williams, and DT Midstream ahead of next year’s startup of Plaquemines LNG, and Cheniere Energy, Inc.’s Corpus Christi stage 3 expansion that will add seven midscale trains. New cross-border pipeline projects between Texas and La., are currently at play, including Kinder Morgan, Inc.’s Texas-Louisiana Expansion slated to go online in 2026. Williams’ Louisiana Energy Gateway, which will feed gas from the Haynesville to the Gulf Coast, looks to start service next year. Meanwhile, rumor bees are all abuzz that Dallas Cowboy’s owner Jerry Jones and his Haynesville-centered, Comstock Resources, could be looking to take his company private. What do you think? Learn more about REC and our natural gas expertise in the Haynesville at https://lnkd.in/ewhkGFa. For more information about our new online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.         

On Your Mark…Get Set, Haynesville Producers in the Haynesville this year have no doubt endured quite the teeter-totter ride. That’s mostly due to low-down-dirty natural gas prices that have taken a whippin’ stick to operators working their assets off in the nation’s third-largest natural gas basin. Early on in 2024, some of the biggest E&Ps here announced decreasing production or shutting in wells altogether in a wait-and-see to move abundant supplies to gas-hungry Gulf Coast LNG facilities. This, while also awaiting more pipeline capacity to get them there. Reese Energy Consulting today is following the latest news from the Haynesville, where East Daley Analytics tells us Haynesville operators are sitting on 1.2 BCFD of unused gas production that’s waiting for love and rescue amid a growing inventory of DCUs. East Daley predicts the winter season’s increased LNG demand will trigger gas prices above $3/MMBtu, which is expected to lead to a resurgence in the Haynesville, starting with that 1.2 BCFD of “ready” production coming online ahead of rig-driven supply. It’s also welcomed news for the basin’s top midstreamers to include Energy Transfer, Williams, and DT Midstream ahead of next year’s startup of Plaquemines LNG, and Cheniere Energy, Inc.'s Corpus Christi stage 3 expansion that will add seven midscale trains. New cross-border pipeline projects between Texas and La., are currently at play, including Kinder Morgan, Inc.’s Texas-Louisiana Expansion slated to go online in 2026. Williams’ Louisiana Energy Gateway, which will feed gas from the Haynesville to the Gulf Coast, looks to start service next year. Meanwhile, rumor bees are all abuzz that Dallas Cowboy’s owner Jerry Jones and his Haynesville-centered, Comstock Resources, could be looking to take his company private. What do you think? Learn more about REC and our natural gas expertise in the Haynesville at https://lnkd.in/ewhkGFa. For more information about our new online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.         

https://lnkd.in/gH3GF_wc Canada’s Vermilion Energy Inc. has entered into an agreement to acquire gas-heavy production and assets from privately held Westbrick Energy Ltd. for CA$1.075 billion ($US746 million), Vermilion said Dec. 23. Vermilion said it will acquire Calgary, Alberta-based Westbrick’s portfolio of Alberta Deep Basin assets, including more than 700 drilling locations and 50,000 boe/d (75% gas, 25% liquids) and four operated gas plants with 102 MMcf/d of capacity.

In a strategic move within the oil and gas sector, Ovintiv USA has transferred the Powell Ranch 24 Battery, located in Upton County, Texas, to FourPoint Energy LLC. This acquisition marks a significant step for FourPoint Energy as it continues to expand its footprint and operational capabilities in the Permian Basin, one of the most prolific oil and gas regions in the world. https://lnkd.in/gWcRRECz