This week’s buyers: Calumet, Worthington, and Linn Energy

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Calumet buys Specialty Oilfield Solutions – 1 August

Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) an independent producer of specialty hydrocarbon and fuel products, today announced that it acquired substantially all of the assets of privately-held Specialty Oilfield Solutions, Ltd. on August 1, 2014 for total cash consideration of $30.0 million.

Founded in 2005, Houston-based SOS is a full-service solids control and drilling fluids company with operations in the Marcellus, Eagle Ford and Utica shale plays. This transaction further positions Calumet as one of the leading suppliers of specialty oil field products and services to the drilling industry, building upon the Partnership’s acquisition of Anchor Drilling Fluids in March 2014. SOS will operate as a subsidiary of Anchor Drilling Fluids, which is wholly-owned by Calumet. The Partnership believes this transaction will enable Calumet to provide a more comprehensive offering that extends beyond drilling fluids to include solids control equipment and services.

“Oil field services remains a rapidly growing, yet highly fragmented industry,” stated Jennifer Straumins, President and COO of Calumet. “This accretive transaction helps to further build upon Calumet’s position as a leading supplier of specialized, high-quality products and services to drillers in the field.”

Worthington buys Midstream Equipment Fabrication – 1 August

Worthington Industries, Inc. (NYSE: WOR) today announced that it has acquired the business of Midstream Equipment Fabrication, LLC (MEF). MEF manufactures patented horizontal heated and high pressure separators used to separate oilfield fluids and gas for customers drilling in the Eagle Ford Shale and is well-situated to serve customers in the Permian Basin. The purchase price was $40 million.

“With the addition of MEF, we are now positioned to serve all of the major shale plays in the U.S.,” said Andrew Billman, president of the Worthington Industries pressure cylinders business. “Their separation technology is proven to be more cost effective for customers and produces a higher purity crude. We anticipate utilizing this technology to enhance our offerings in other shale plays where we operate.”

MEF is located in Skiatook, Okla. and employs 55 people. The patented separators yield greater throughput, requiring less equipment on each well pad, and produce higher purity crude over traditional oilfield separators. MEF began production in April 2012. The company is Worthington’s fourth acquisition in the upstream oil and gas equipment market. Worthington operations now supply customers in every major shale region, including Bakken, Eagle Ford, Permian, Marcellus, Utica, Mid-Continent, DJ and Uinta. The addition of the Oklahoma facility will complement Worthington’s existing operations in Ohio, Kansas and North Dakota that manufacture steel and fiberglass storage tanks, oil and gas separation equipment and related wellhead controls and equipment.

Pioneer sells Hugoton and Barnett Shale Assets – 4 August

Pioneer Natural Resources Company announced on 4th August that the Company has entered into purchase and sale agreements to sell all of its assets in the Hugoton field and the Barnett Shale for total cash proceeds of $495 million.

Pioneer has entered into a purchase and sale agreement to sell all of its assets in the Hugoton field in Kansas to Linn Energy, LLC LINE -0.74% for cash proceeds of $340 million, subject to normal closing adjustments. The transaction has an effective date of July 1, 2014, and is expected to close by the end of the third quarter of 2014. The assets being sold represent all of Pioneer’s interests in the field, including all of its producing oil and gas wells, all of its interest in the Satanta gas processing plant and all other associated infrastructure.

The sale of Pioneer’s Hugoton assets is expected to result in a pre-tax non-cash loss of approximately $20 million, which is expected to be recorded in the third quarter of 2014. The financial and operating results related to Pioneer’s Hugoton activities for the quarter ending September 30, 2014, and all prior periods presented in future filings, are expected to be reflected as discontinued operations. Net production from Hugoton averaged approximately 6,600 barrels oil equivalent per day during the first six months of 2014, consisting of gas and natural gas liquids.

Pioneer has entered into a purchase and sale agreement to sell all of its Barnett Shale assets in North Texas to an undisclosed private company for cash proceeds of $155 million, subject to normal closing adjustments. The transaction has an effective date of August 1, 2014, and is expected to close by the end of the third quarter of 2014.

The financial and operating results related to Pioneer’s Barnett Shale activities have been reflected as discontinued operations since the fourth quarter of 2013 when Pioneer announced that it planned to sell these assets. Net production from the Barnett Shale averaged approximately 10,300 barrels oil equivalent per day during the first six months of 2014, consisting of oil, natural gas liquids and gas.

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