Top stories today:
Norway Buys Out Major Gas Pipeline Network in $1.6 Billion Deal
Houston Based Coterra Announces Accretive Permian Deals for Near $4B
Egypt Opens Up Giant Gas Field For Bidding And Links Arrears Payments To Product
Venture Global LNG plans to raise $3 bln from US IPO.
Carnelian Energy Capital exploring sale of Ridgemar Energy valued at more than $1bn
Ovintiv to buy oil-rich assets in Canada’s Montney shale for USD$2.38 billion
Norway Buys Out Major Gas Pipeline Network in $1.6 Billion Deal
The Norwegian government has reached a deal with seven private companies to acquire a significant portion of the country's extensive gas pipeline network. The deal, valued at 18.1 billion Norwegian crowns ($1.64 billion), solidifies Norway's control over its critical energy infrastructure. The government's decision to nationalize the network is driven by the desire to secure energy supply and maintain low tariffs for users. This strategic move highlights Norway's commitment to energy security and its role as a reliable supplier of natural gas to Europe.
Houston Based Coterra Announces Accretive Permian Deals for Near $4B
Coterra Energy, a Houston-based company, has announced two acquisitions of Permian Basin assets from Franklin Mountain Energy and Avant Natural Resources for a total of $3.95 billion. The deals, which are expected to close in Q1 2023, will be funded through a combination of cash on hand and borrowings. The acquisitions are highly accretive for Coterra, adding significant oil production and over 15 years of inventory in the Permian Basin. Coterra estimates its 2025 oil production will increase by 49% compared to 2024 and total equivalent production will rise by 11%. The deals align with Coterra's strengths in the New Mexico portion of the Delaware Basin and provide a long runway for efficient development and substantial free cash flow generation. Analysts note the transactions are in line with current Permian asset pricing and will help Coterra balance its production between oil and gas.
Egypt Opens Up Giant Gas Field For Bidding And Links Arrears Payments To Product
Egypt has emerged as a key gas supplier for Europe as it seeks to replace Russian energy imports following the Ukraine invasion. Egypt's Satis gas field is now open for bidding after BP's prior development agreement expired. This comes as Egypt faces financial challenges, including payment arrears owed to energy firms like Eni. To address this, Egypt is reviewing projects with firms like Shell and Eni to boost gas output. Egypt's strategic location, controlling the Suez Canal and major pipeline infrastructure, makes it well-positioned to become a regional gas export hub. From a geopolitical standpoint, engaging Egypt, a leading Arab nation, helps offset the West's loss of Saudi Arabia to China and Russia. Overall, Egypt's gas resources and geopolitical significance make it a crucial energy partner for Europe as it navigates the fallout from the Ukraine conflict.
Venture Global LNG plans to raise $3 bln from US IPO, sources say
Venture Global LNG, one of the largest U.S. liquefied natural gas suppliers, is planning to raise approximately $3 billion through an initial public offering (IPO) in New York. The company is working with investment banks, including Goldman Sachs and JPMorgan Chase, to facilitate the listing, which could take place as early as this year. Venture Global's Plaquemines export plant in Louisiana recently received federal approval to introduce natural gas, bringing the facility closer to commercial startup. Once operational, the Plaquemines and Calcasieu Pass facilities will make Venture Global the second-largest U.S. LNG producer, with a capacity to export over 30 million metric tons per annum. A potential $3 billion IPO by Venture Global would be among the year's biggest listings globally.
Carnelian Energy Capital exploring sale of Ridgemar Energy valued at more than $1bn
Carnelian Energy Capital is reportedly considering selling Ridgemar Energy, a US oil and gas producer that operates in the Eagle Ford Basin of South Texas, which could be valued at more than $1 billion, including debt. The sale process is being managed by RBC Capital Markets, and potential buyers include both publicly listed and privately owned energy producers. However, a deal is not guaranteed, and the parties involved have not commented on the situation. Ridgemar Energy acquired the Eagle Ford assets of Callon Petroleum in 2023 and has since expanded its operations, adding approximately 17,000 net acres to its total holdings of more than 70,000 net acres.
Ovintiv to buy oil-rich assets in Canada’s Montney shale for USD$2.38 billion
Ovintiv, a shale producer, has announced a $2.38-billion all-cash acquisition of oil assets from Paramount Resources in Canada's Montney shale play. The acquisition expands Ovintiv's presence in the region, which is considered one of Canada's most attractive oil and gas-producing areas due to its strong economics. The assets will add nearly 70,000 barrels of oil equivalent per day of production and about 900 net well locations to Ovintiv's operations. The company will also sell its Uinta Basin assets in Utah for $2 billion. The transactions are expected to be immediately accretive for Ovintiv, increasing its adjusted free cash flow by about $300 million in 2025. Ovintiv will allocate the majority of its capital to operations in the Permian and Montney shale plays, and has paused its share buyback program until the cash borrowed for the Montney acquisition is recovered.