Twin Eagle Expands Eagle Ford Operations

Company Acquires StarMex Big Wells, LLC
Twin Eagle Acquires StarMex Big Wells

Twin Eagle Acquires StarMex Big Wells

Twin Eagle Resource Management announced this week it will acquire another 42 miles of pipeline in the Eagle Ford.

Related: Eagle Ford Shale Midstream Sold

Houston-based Twin Eagle says the deal gives them 100 percent interest in StarMex Big Wells, LLC,  a crude oil gathering system pipeline that connects to the major long-haul pipelines in the Gardendale area.

“The acquisition of StarMex Big Wells is exciting for the Twin Eagle brand as we continue to diversify our logistics and midstream offerings to our clients,” said Griff Jones, Twin Eagle’s chief executive officer. “We are looking forward to working with producers in the area to develop valuable gathering solutions to move their crude oil.”

The company’s press release states that the pipeline system has capacity of 35,000 bopd and is backed by long-term, fee-based contracts with existing customers that are committed to ship approximately 24,000 bopd.

StarMex Big Wells will be renamed Twin Eagle Gardendale Pipeline, LLC.

While many companies have curbed spending during the downturn, others have taken advantage of new opportunities to expand their operations:

  • Enterprise Products Partners (EPD) will acquire Eagle Ford Shale (EFS) Midstream for a total price of $2.15 billion. Read more
  • Repsol completed its acquisition of Talisman Energy last month and became one of the largest companies in the energy sector worldwide. Read more
  • Houston -based EP Energy plans to expand its presence in the Eagle Ford by adding new training, office and warehouse space to its operations in Dilley. Read more

Read the press release at twineagle.com

Eagle Ford Shale Midstream Sold

$2.15 Billion Price Tag for Pipelines & Plants
EFS Midstream Operating Area

EFS Midstream Operating Area

Enterprise Products Partners (EPD) will acquire Eagle Ford Shale (EFS) Midstream for a total price of $2.15 billion.

The deal announced this week includes an agreement with Pioneer Natural Resources and Reliance Industries who each own shares in EFS and is expected to be closed in the third quarter this year. The purchase price will be split into two installments, with $1.15 billion to be paid at the transaction closure. The balance of $1 billion will be paid within 12 months of the closing date.

Related: Pioneer Resources Reveals Q4 & 2015 Capex 

Michael A. Creel, chief executive officer of Enterprise said “This ‘bolt on’ acquisition extends our integrated system deeper into the NGL and condensate rich areas of the Eagle Ford, which will provide us with the ability to offer services to additional producers and increase volumes on our system.”

EFS Midstream designs, constructs, owns and operates facilities that provide gas gathering, treating, condensate stabilization, and transportation services for operations in the Eagle Ford Shale and offers nearly 460 miles of natural gas gathering pipelines and ten central gathering plants. The firm maintains 119 thousand barrels of condensate stabilization capacity per day and can treat 780 million ft3 of natural gas daily.

Read more at enterpriseproducts.com

Repsol to Aquire Talisman Energy

Shareholders Agree to $8.3 billion Deal
Talisman Energy Eagle Ford Shale Acreage Map

Talisman Energy in the Eagle Ford

Talisman Energy shareholders unanimously agreed Tuesday to a deal that would finalize the sale of the company to Repsol. The deal includes includes the valuable Eagle Ford assets of of approximately 61,000 net acres of land.

In an organizational letter in 2014, the President and CEO expressed optimism for the future  saying, “2013 was a turnaround year for Talisman…and they are emerging as a stronger, more predictable company with better opportunities for profitable growth.” Unfortunately the drastic drop in crude prices proved too much for the company and shares began to drop sharply in November. A December announcement of the acquisition soon followed.

The company reported a $1.59 billion loss in the fourth quarter of 2014, and fell shy of its expected capex by $.2 billion. Additionally, the company reported that it would cut 300 jobs due to falling production and rising operating costs.

“This deal creates significant and immediate value for Talisman stakeholders,” said Chuck Williamson, Chairman of Talisman’s Board of Directors. “Importantly, the deal underscores Repsol’s strong belief in the high quality portfolio that Talisman has worked hard to develop. Repsol is a world-class operator with a solid track record and the financial capability to continue the development of these assets within their international portfolio. I am proud of the company that our employees, past and present, have built and I believe this transaction represents new opportunities for them in Canada and around the world.”

Highlights:

  • All-cash price of US$8.00 (C$9.33) per Talisman common share delivers significant and immediate value to Talisman common shareholders.
  • The $8.3 billion deal includes assumed debt of $4.7 billion
  • The transaction received the unanimous approval of Talisman’s and Repsol’s boards of directors.
  • Repsol and Talisman will create more competitive and more diversified global energy company, producing over 680 mboe/d, have refining capacity of 1 mboe/d, and have a presence in over 50 countries with 27,000 employees.
  • The transaction is targeted to close in the second quarter of 2015.

Talisman boasts that its Eagle Ford interests are among its most valuable assets. Currently, they are activity in the following Texas counties:

Read more at talismanenergy.com

 

 

Atlas Resource Partners Enters Eagle Ford – $225 Million Deal

Deal Includes 22 Producing Wells in Atascosa County, TX
Atascosa County Eagle Ford Shale Map

Atascosa County, TX

Pittsburgh-based Atlas Resource Partners (ARP) is entering the Eagle Ford in a $225-million deal. ARP will acquire 22 producing wells and 19 undeveloped locations containing estimated net reserves of 12-million BOE, according to company officials. The seller was not disclosed.

The producing wells are all located in Atascosa County, TX, which is the heart of the Eagle Ford oil window. The oil cut from these wells is 87%, with 7% NGLs and 6% natural gas. ARP officials did not indicate the exact county or counties for the undeveloped drilling locations.

The transaction, which has an effective date of July 1, 2014,  is expected to close some time in the fourth-quarter. The company will pay $200-million of the purchase price at closing.

ARP CEO Edward E. Cohen, said, “we expect this transaction to immediately enhance ARP’s cash flow, distribution coverage and credit metrics, providing additional visibility and growth.”

In connection with the acquisition, Atlas Energy, L.P.’s (ATLS) E&P development subsidiary will purchase eight wells that have already been drilled, but are uncompleted, in the play. The $115-million purchase also includes 53 undeveloped Eagle Ford locations.

ARP is an exploration & production master limited partnership which owns an interest in over 14,000 producing natural gas and oil wells, located primarily in Appalachia, the Barnett Shale (TX), the Mississippi Lime (OK), the Raton Basin (NM), Black Warrior Basin (AL) and the oil-rich Rangely Field (CO).

Read more at atlasresourcepartners.com

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