Coal M&A news
CONSOL closes $420M mine deal, continues to reduce coal exposure
CONSOL Energy Inc.announced the completion of the $420 million sale of one of the most productive Central Appalachia coalmines April 1 to Coronado IV LLC, a unit of CoronadoCoal LLC. The sale of the Buchanan mine in southwest Virginia is to help CONSOL pay downdebt. The sale included $402.8 million cash paid at closing, slightly higher thanthe figure offered in the initial sale announcement.
Walter Energy closes sale of core assets to Warrior Met Coal LLC
Walter Energy Inc.closed the sale ofsubstantially all of its core assets, including its Alabama coal assets, to WarriorMet Coal LLC, formerly known as CoalAcquisition LLC. The U.S. Bankruptcy Court for the Northern Districtof Alabama approved the sale Jan. 8. Warrior Met Coal paid $5.4 million in cashand assumption of certain liabilities for the purchase, according to S&P GlobalMarket Intelligence data.
Walter Canada wins extended stay in asset sale, initiates next phaseof process
Walter Energy Canada Holdings Inc. has been granted an extendedstay under its Companies' Creditors Arrangement Act "to continue its sale andinvestment solicitation process for the company's assets." The extension runsthrough June 24.Walter Energy Canada is a holding company for the Canadian and U.K. operations ofAlabama-based Walter Energy.
Vale says Mitsui remains committed to 2014 coal JV deal in Mozambique
Vale SA'spartner Mitsui & Co. Ltd.is not considering revising terms of a coal joint venture in Mozambique, refutingreports published in Brazilian newspaper Valor Econômico. Citing the newspaper,Reuters wrote earlier that the Japanese group was mulling over amending the termsof a 2014 deal after Vale wrote down US$2.4 billion in assets in the country.
Natural gas/midstreamM&A news
As hope for a quick rebound in oil and gas prices fades, thelikelihood of significant M&A activity in the sector has increased, accordingto one project finance and M&A specialist. Private equity firms are preparingto pounce on appealing targets as the spread between what buyers are willing tooffer and what sellers are expecting starts to narrow, according to Sidley AustinLLP's Irving Rotter, a partner and co-leader of the firm's project finance and infrastructurepractice.
Energy Transfer Partners completes $2.23B dropdown of fuel, retail assetsto Sunoco
Energy TransferPartners LP has completed the dropdownof the remaining 68.42% interest in SunocoLLC and 100% interest in Sunoco Retail LLC to Sunoco LP for about $2.23 billion, effective Jan. 1. Thetransaction is expected to be accretive to Sunoco's distributable cash flow andexpected distributions per unit beginning this 2016.
TransCanada closes C$4.4B bought deal offering for Columbia Pipelineacquisition
TransCanada Corp.has completed its C$4.4 billion bought deal offering of subscription receipts carriedout to partly fund its proposedacquisition of Thecompany issued a total of 96,600,000 subscription receipts, including 4,600,000acquired by the underwriters in full exercise of their overallotment option.
Marathon completes dropdown of inland marine biz to MPLX
Marathon PetroleumCorp. and MPLX LPannounced the closing of Marathon's dropdownof its inland marine business to MPLX, effective March 31. As for the assets, MPLXis issuing $600 million worth of equity to Marathon, priced at about $26.09 perunit. Some 98% of the equity is in common units, with the rest in general partnerunits.
Tallgrass' play for more of REX pipeline is a bet on Utica, Marcellus
Privately owned TallgrassDevelopment LP is putting more chips on Appalachian shale gas flowingwest while at the same time increasing its exposure to unused capacity and strugglingshippers. On March 29, Tallgrass announced that it struck a $440 million deal to buy an additional 25% of Rockies Express Pipeline LLC from Sempra Energy subsidiary Sempra U.S. Gas & Power LLC. Tallgrass already owned50% of REX.
Vanguard Natural Resources to sell SCOOP/STACK assets for $280M
Vanguard NaturalResources LLC has agreed to sell its natural gas, oil and NGL assets in the area in Oklahoma to entitiesmanaged by the oil and gas investment firm Titanium Exploration Partners LLC for$280 million. The transaction would be effective Jan. 1 upon closing, which is expectedon or before May 18.
Valero Energy Partners gets OK for $240M acquisition of terminal servicesbusiness
Valero Energy PartnersLP said its acquisition of the McKee terminal services business froma subsidiary of Valero Energy Corp.,or Valero, for a total consideration of $240 million, has been approved by the boardof directors of the partnership's general partner.
Pembina closes C$345M offering to fund purchase of Alberta gas processingassets
Pembina PipelineCorp. has closed its bought deal offering of 10,148,750 common sharesat C$34 per share to help finance its C$556 million planned acquisition of natural gas processing assets fromParamount Resources Ltd.
Range Resources nets $110M in sale of Marcellus assets
Range ResourcesCorp. completed the sale of nonoperated assets in Bradford County, Pa.,for about $110 million. The sale covered about 10,900 net acres with net productionof about 22 MMcf/d at an average working interest of 23%.
PBF Logistics to raise $53M in common unit offering due to underwriter'soverallotment
The underwriter of PBFLogistics LP's publicoffering of 2,500,000 common units has exercised in full its optionto buy an additional 375,000 common units. Net proceeds from the offering is expectedto partly fund its $100 million plannedacquisition of fourrefined product terminals in the Greater Philadelphia region from a affiliate.
Bear Head LNG agrees to buy land to expand Nova Scotia export project
LNG Ltd.subsidiary Bear Head LNG Corp. has reached an agreement to buy more land from so it canexpand its planned LNG facility in Richmond County, Nova Scotia, according to aMarch 29 news release.
Holly Energy closes $39.5M deal for Okla. crude oil tankage from Plainsaffiliate
Holly Energy PartnersLP has closed its acquisitionof crude oil tankage at HollyFrontierCorp.'s Tulsa, Okla., refinery from a Plains All American Pipeline affiliatefor $39.5 million in cash, effective March 31. The acquisition is anticipated toyield minimum annual revenue of $6.1 million in the first year and will be immediatelyaccretive.