CERAWeek, happening this week in Houston, Texas, is one of (perhaps THE) premier oil and gas conferences held each year. Everybody who’s anybody attends, except for yours truly. Sometimes it’s the things you (over)hear around the proverbial water cooler at such events that are more interesting than what is said from the stage or in media interviews. For example, Banpu’s BKV, with major assets in the northeast Pennsylvania Marcellus, filed plans with the Securities and Exchange Commission late last year to launch an initial public offering (see Northeast PA Marcellus Driller BKV/Banpu Files with SEC for IPO). According to whispers Reuters heard at CERAWeek, the current low commodity price of natgas has put BKV’s IPO plans on hold.
In addition, several previously announced mergers and/or acquisitions are now on hold (or gone) due to the low commodity price of gas. Tokyo Gas was working on a deal to acquire Rockcliff Energy for $4.6 billion from private equity firm Quantum Energy Partners. Rockcliff owns and operates gas wells on 270,000 Haynesville acres in East Texas. Three sources whispering to Reuters at CERAWeek said the deal is canceled, thanks to low gas prices.
EQT Corp (EQT.N) agreed a deal for THQ Appalachia I for $5.2 billion and Marathon Oil Corp (MRO.N) snapped up Ensign Natural Resources for $3 billion. BKV Corp in November filed for an initial public offering, and was expected to seek an up to $2 billion valuation.
With prices falling, however, Chesapeake Energy (CHK.O), Southwestern Energy (SWN.N) and Comstock Resources (CRK.N) slammed the brakes on new production by cutting drilling rigs.
BKV’s IPO plans are on hold as it cannot achieve its desired value at current prices, two sources aware of the matter said.
Don't get mad at me. Just keeping it real! You don't want be drinking your own bath water.
NG losing again , deals cancelled!
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Re: NG losing again , deals cancelled!
Add to that Aetheon trying to unload their Haynesville properties, interest has dried up. I hope that they honor their drilling commitment with Black Stone Minerals or reach some mutual agreement on modification. That said all these will work themselves out. I am hanging tough but luckily I don't take baths.
3 posts • Page 1 of 1