Launch a company built around energy market fundamentals and rock & roll song titles. Then … give it away for free. Not exactly a textbook business plan. Today we turn the page. Novi Labs has acquired RBN Energy. Today’s blog is all about the logic of this deal and what it means for our customers.
The competition for upstream assets in the Permian is fierce. It’s a different story in the Anadarko, where production has been flat and some larger E&Ps have been exiting. But there’s been a lot of big-money M&A in the Anadarko lately, most for steady-as-she-goes production assets at reasonable prices.
With their scale and 130-gigawatt pipeline of new large-load customers, the planned combination of electric utility and wholesale power giants NextEra Energy and Dominion may substantially accelerate the buildout of new gas-fired power plants and, with that, the need for more pipeline capacity.
The prospect of procuring steady production assets at reasonable prices has been spurring interest in the Anadarko Basin. In the past few weeks, two privately held producers closed on deals totaling more than $4 billion, with another $1-billion-plus agreement announced this month. What’s going on?
Oil markets have been pushed higher by supply disruptions and geopolitical tensions, while natural gas prices have strengthened on weather-driven demand, reinforcing a powerful near-term earnings tailwind. The question is a familiar one: What will producers do with these additional cash flows?
Shell’s plan to acquire Western Canadian E&P ARC Resources Ltd. affirms the global energy giant’s new strategic focus, enhances the prospects for Phase 2 of LNG Canada, and supports the view that the Montney Shale may be replacing the Permian as the epicenter of oil and gas M&A.
It’s been a busy few years for big-money M&A in the oil and gas industry. Now, having acquired their targeted assets — often running up debt in the process — several E&Ps have been selling off non-core holdings and, with those deals, zeroing in on the shale basins they see as the keys to their success.
The retail propane market delivers 9 billion gallons to U.S. consumers annually, with its heart anchored in “mom-and-pop” retailers serving rural and small-town communities. These small, owner-operated businesses know their customers, regions, and challenges.
Devon Energy and Coterra Energy’s newly announced merger didn’t come as a huge surprise. They have highly complementary assets in the Permian and the Anadarko and their deal promises $1 billion or more in synergy-related savings. Finally — and this is important — their combination had been urged on by an activist investor.
There are at least a couple of clear trends in upstream-sector M&A. One is that E&Ps continue to zero in on the basins where they see the most promise, and to divest non-core assets. Another is that the ramp-up in LNG exports is spurring heightened interest in acreage and production targeting that market.
