Stonepeak’s Post

Growth with a Great Company

A strategic move by Energy Transfer LP! Acquiring WTG expands their footprint in the Permian Basin, adding significant gas gathering and processing assets. The deal's cash-and-stock structure and expected DCF accretion suggest a win-win for both parties. This consolidation plays into the trend of midstream companies scaling up to meet growing demand. Exciting to see how this acquisition will drive growth and efficiencies in the energy sector!

Another major acquisition in the midstream space. What an interesting season it has been in the sector.

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

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

Energy Transfer is yet again slaking its acquisition appetite by gobbling up another natural gas gatherer and processor to further expand its already formidable Permian footprint. The company announced May 28 that it has struck a $3.25 billion deal to buy WTG Midstream. In today’s blog, we’ll look at how the addition of WTG’s midstream holdings will enhance Energy Transfer’s asset lineup, including its ongoing NGL export and storage expansions. https://lnkd.in/gPjx6Pkf

https://lnkd.in/gGQKBDbN SM Energy Company (the "Company" or "SM Energy") (NYSE: SM) today announces that it has entered into an agreement to acquire the Uinta Basin oil and gas assets owned by certain entities affiliated with XCL Resources, LLC ("XCL"), a private company backed by EnCap Investments L.P. ("EnCap") and Rice Investment Group ("Rice"), for an unadjusted purchase price of $2.55 billion. Concurrently, Northern Oil and Gas, Inc. (NYSE: NOG) ("Northern") will acquire an undivided twenty percent (20%) of the oil and gas assets of XCL for $510 million, resulting in a $2.04 billion purchase price net to the Company for an undivided 80% interest of the assets (the "XCL Acquisition"). SM Energy intends to serve as the operator of the assets currently operated by XCL. The Company plans to finance the acquisition through a combination of debt and cash on hand. XCL ASSETS EXPAND SM ENERGY'S TOP-TIER PORTFOLIO ADDING (NET TO THE COMPANY): ~37,200 net acres (~99% operated), increasing the Company's core net acreage ~14% 43 MBoed/38 MBod (88% crude oil),(1) increasing the Company's 2025E net production to ~195 MBoed and oil mix to greater than 50% ~390(2) net locations with breakevens $43 – $57/Bbl,(4) increasing the Company's inventory life by 2 years to 12+ years(5) $50.45/Boe 2025E cash production margin,(4) increasing the Company's 2025E cash production margin by ~11%; and 107 million Boe preliminary proved reserves,(7) increasing the Company's estimated net proved reserves by ~18%(8)

Energy Transfer Snapping Up Permian Assets in $3.25B Deal for WTG Midstream https://ift.tt/DVR4mAr Energy Transfer LP is expanding its access to Permian Basin natural gas and natural gas liquids (NGL) in a $3.25 billion deal to acquire WTG Midstream Holdings LLC from a subsidiary of independent Diamondback Energy Inc. and investment firm Stonepeak. Private midstreamer WTG primarily operates in the Permian’s prolific Midland sub-basin. Through the deal, Energy Transfer would gain more than 6,000 miles of natural gas gathering pipelines spanning some of the most active areas of West Texas. “The addition of WTG assets is expected to provide Energy Transfer with increased access to growing supplies of natural gas and NGL volumes enhancing the partnership’s Permian operations and downstream businesses,” Energy Transfer said.  [Data Center Demand: How is the growth in artificial intelligence and data centers expected to impact the natural gas industry? What obstacles and opportunities lie ahead to serve the power-hungry facilities? Tune in to NGI’s podcast to learn more.] The Dallas-based midstreamer also is acquiring eight gas processing plants with a combined capacity of about 1.3 Bcf/d. Two additional plants to add 400 MMcf/d of capacity are under construction and expected to be online later this year and in the second half of 2025.  Midland, TX-based WTG is held 25% by Diamondback subsidiary Rattler Midstream LP. Diamondback said it expected to net $375 million from the transaction, which would help to fund its $26 billion merger with Endeavor Energy Resources LP. In addition, Diamondback management during a recent quarterly earnings call underscored a need for expanding egress for the Permian as producers in the region have grappled with low natural gas prices. Permian benchmark Waha prices have hovered below $2.000/MMBtu throughout most of the year, but dropped below $1.000 this past winter as temperatures were exceptionally mild. Prices continued to plummet with the onset of spring, hitting a year-to-date average low of negative $4.595 in early May. With early-summer heat starting to become more widespread across Texas and export demand ratcheting higher following maintenance, Waha moved back to the positive side of the ledger at an average 22.0 cents in Friday (May 24) trading. What’s more, NGI’s Forward Look shows Waha averaging around $2.900 for this winter and at $2.590 for 2025. The WTG deal also would give Energy Transfer a 20% stake in the 425-mile BANGL pipeline, a joint venture between WhiteWater Midstream LLC, MPLX LP, WTG and Rattler. The pipeline flows NGLs from the Permian’s Delaware and Midland’s sub-basins to the fractionation market in Sweeney, TX, on the Gulf Coast. It has an expansion capacity of up to 300,000 b/d, according to WhiteWater. The post Energy Transfer Snapping Up Permian Assets in $3.25B Deal for WTG Midstream appeared first on Natural Gas Intelligence EXEDRA via Daily GPI – Natural Gas Inte...

Of the top 50 global energy M&A deals announced or closed in 2023 involving U.S. actors — including in traditional oil and gas, renewable energy, and power generation — roughly 40% focused on upstream shale assets. When pared down to just the top 10 deals, roughly 70% focused on upstream shale assets. Among those top 50 deals, roughly 62% involved Houston-based companies or Houston-area assets. When looking at the upstream shale deals specifically, that figure is about 52%. So far this year, several major deals involving Houston companies have been announced, including Houston-based APA Corp.'s (NYSE: APA) acquisition of Houston-based Callon Petroleum Co. for $4.5 billion, which closed at the beginning of April, and Oklahoma City-based Chesapeake Energy Corp.'s (Nasdaq: CHK) $7.4 billion deal to acquire Spring-based Southwestern Energy Co. (NYSE: SWN) for $7.4 billion.

In and about the oil, gas & renewables industry Diamondback acquires Endeavor Diamondback Energy Inc. agreed to buy fellow Texas oil-and-gas producer Endeavor Energy Resources LP in a $26 billion cash-and-stock deal to create the largest operator focused on the prolific Permian Basin. Diamondback will fund the deal with 117.3 million shares and $8 billion in cash, the two Midland, Texas-based companies said in a statement Monday. Diamondback shareholders will own 60.5% of the company after the deal closes. Shareholders of Endeavor, which isn’t publicly traded, will own the rest. Diamondback will fund the deal with 117.3 million shares and $8 billion in cash. The agreement is the latest in a string of massive deals transforming the US energy landscape as companies push to line up future drilling sites and cut costs. Over the past four months, Exxon Mobil Corp. struck a deal to buy Pioneer Resources for about $60 billion, Chevron Corp. agreed to buy Hess Corp. for about $53 billion and Occidental Petroleum Corp. agreed to buy CrownRock LP for about $10.8 billion. This post was adapted from an article by Joe Ryan and Mitchell Ferman of Bloomberg and brought to you by Cordell Marshall.