Four Winds buys Integrity Custom Processing and Kasten Energy – 29 July
Four Winds Energy Services Ltd, a wholly owned subsidiary of Aqua Terra Water Management, has announced the acquisitions of Integrity Custom Processing, and selected assets from Kasten Energy. Terms of the acquisitions were not disclosed.
Integrity Custom Processing has a long operating history of serving the water management needs of British Columbia Montney producers and the acquisition provides Four Winds an entry into the British Columbia disposal market.
Four Winds also recently acquired a fully permitted salt water disposal facility from Kasten Energy near Lloydminster, Alberta. Following the acquisition, Four Winds invested in substantial infrastructure to upgrade the capabilities of the facility.
“The addition of Kasten’s facility combined with Four Winds existing presence near Hilmond, Saskatchewan allows the Company to serve heavy oil producers operating in both Alberta and Saskatchewan” added Tom Johnston.
Chesapeake repurchases CHK Utica shares – 30 July
Chesapeake also announced that it has agreed in principle to repurchase all of the outstanding preferred shares of its unrestricted subsidiary, CHK Utica, L.L.C. (CHK Utica) from third-party preferred shareholders.
Under the agreement, Chesapeake will pay approximately $1.26 billion to repurchase 1,060,000 preferred shares of CHK Utica. The proposed transaction will retire Chesapeake’s highest cost leverage instrument and eliminate approximately $75 million in annual cash dividend payments to third-party preferred shareholders.
Domenic J. Dell’Osso Jr., Chesapeake’s Chief Financial Officer, commented, “We are very pleased with the performance of our Utica assets, and as we continue to execute on our strategy of eliminating financial complexity, we believe that this is an opportune time to repurchase the remainder of the CHK Utica preferred shares at a price that is accretive to net present value.”
Chesapeake plans to fund the cash portion of the RKI acreage exchange and the repurchase of the CHK Utica preferred shares with available liquidity, including nearly $1.5 billion of unrestricted cash held on its balance sheet as of June 30, 2014. Chesapeake continues to refine its portfolio to focus on assets that best align with the company’s strategy of profitable growth from captured resources and expects to close additional sales of noncore assets, including non-E&P assets, by the end of 2014.
Mountaineer Keystone Energy buys 50% interest in interest in PDC Mountaineer from PDC Energy – 30 July
PDC Energy, has announced that it agreed to sell its fifty percent interest in PDC Mountaineer, a Marcellus Joint Venture, to Mountaineer Keystone Energy, LLC for approximately $250 million subject to certain purchase price adjustments.
PDC’s net pre-tax proceeds from the sale, after its share of JV debt repayment and other working capital adjustments, is expected to be approximately $190 million comprised of $150 million in cash and a $40 million note. The transaction includes the buyer’s assumption of PDC’s share of the firm transportation obligations related to the assets owned by PDCM as well as PDC’s share of certain PDCM natural gas hedging positions for the years 2014 and 2015.
The effective date of the transaction is January 1, 2014 and it is expected to close on or about October 15, 2014, subject to customary closing conditions.
The assets are approximately 99% natural gas and include an estimated 240 billion cubic feet (Bcf) of proved reserves net to PDC, as of December 31, 2013. The assets produced approximately 24 million cubic feet equivalent per day (MMcfe/d) net to PDC in the first quarter of 2014. Tudor Pickering Holt acted as advisor on the sale.
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