Monday, April 18, 2016

The Halliburton – Baker Hughes Deal May Happen


The Halliburton – Baker Hughes deal has experienced a number of delays and setbacks since the deal was announced in November 2014.  Going into the deal, the management of Halliburton recognized that it would have to sell numerous businesses in order to allay the Department of Justice (DOJ) concerns about Halliburton monopolizing oil field services.  DOJ finally sued two weeks to stop the merger. Besides combatting the DOJ, Halliburton had pass muster in Europe.  The EU had raised many monopoly questions and delayed any decision. GE and the Carlyle Group may come to Halliburton’s rescue.  Two weeks ago, there were stories in the press that GE was looking to purchase a number of businesses from a Halliburton – Baker Hughes deal.  Some people in the industry commented that GE may actually have been lobbying DOJ to sue in order to get better leverage. Last Friday, CNBC reported that the Carlyle Group had conversations with Halliburton about purchasing businesses valued at $7 bi
http://www.shaledirectories.com/blog/halliburton-baker-hughes-deal-may-happen/

Wednesday, April 13, 2016

Chesapeake Secures Financing Through June 2017


Chesapeake Energy said Monday its banking syndicate reaffirmed the independent producer’s senior secured revolving credit facility’s $4 billion borrowing base, Kallanish Energy learns. To maintain the base, Chesapeake agreed to pledge additional assets as collateral, while the next scheduled borrowing base redetermination review was postponed until June 2017. The amendment includes a collateral value coverage test, which may limit Chesapeake s borrowing capacity if its collateral coverage ratio falls below 1.25 times, tested as of March 31, 2017. The amendment provides temporary covenant relief, with the facility s senior secured leverage ratio suspended until September 2017, then reverting to 3.5 times through December 2017, and decreasing to 3 times thereafter. In addition, the amendment reduces the interest coverage ratio to 0.65 time from 1.1 times through March 2017, after which it will increase to 0.70 times through June 2017, then reverting to 1.2 times in September 2017 an
http://www.shaledirectories.com/blog/chesapeake-secures-financing-june-2017/

Tuesday, April 12, 2016

GE Could Make Play for Baker Hughes


In a previous blog, I commented that GE could be working behind the scenes to kill the Halliburton – Baker Hughes deal.  It now looks like GE is making a run at Baker Hughes. The Department of Justice lawsuit filed last week against Halliburton to stop the $25 billion merger of the world’s second- and third-largest oilfield service companies could soon put Baker Hughes back in play, with GE acknowledged as the most probable bidder. Halliburton and Baker Hughes have said they plan to contest the government’s case, which could delay the timing of any future takeover offers. Last December, GE was said to be exploring bids for various assets Halliburton was marketing in an attempt to secure antitrust approval for the deal, Kallanish Energy finds. “This is one way you could really accelerate yourself in the oil and gas industry,” J. David Anderson, an analyst at Barclays, told Bloomberg last week. “Buy Baker to fill in the gap and all of a sudden, you’re one of the more domi
http://www.shaledirectories.com/blog/ge-make-play-baker-hughes/

Monday, April 11, 2016

Utica Upstream Seminar Provides Insights in the Shale Play


Shale Directories LLC and the Canton Ohio Regional Chamber of Commerce presented the Utica Upstream Seminar on Wednesday, April 6th at the Pro Football Hall of Fame in Canton, Ohio. The seminar was very informative and received very favorable comments from the attendees.  The seminar featured speakers that were experts in the field as well as representatives from drillers in the Utica. Some of the highlights of the seminar are: Maria Cortez, Upstream Analyst, Wood Mackenzie Breakeven for the Marcellus drillers is $2 Breakeven for the Utica drillers is $3. When the price of oil is in the $50-$60 range, it will help Utica NGLs The REX (Rockies Express Pipeline) and Rover may not have enough production capacity. The Nexus Pipeline may be delayed. Marcellus has 15 rigs drilling in the wet gas area and 8 rigs in the dry gas area. In the Utica, there are 3 rigs in the wet gas area and 7 rigs in the dry area. Callum Streeter, Chief Operating Officer, EdgeMarc EdgeMarc is operating 1 rig and
http://www.shaledirectories.com/blog/utica-upstream-seminar-provides-insights-shale-play/

Thursday, April 7, 2016

Finally, Department of Justice Sues Halliburton


I have been commenting in our Newsletter, Facts & Rumors, that Halliburton – Baker Hughes could be trouble.  The European Union has been asking for more details for months about the deal.  The Department of Justice (DOJ) has been asking also for information.  Yesterday, the DOJ finally sued to stop the deal. The U.S. Department of Justice sued oilfield services firm Halliburton to stop its proposed acquisition of smaller rival Baker Hughes, citing antitrust concerns. The firms, the second- and third-largest in the industry behind Schlumberger, saw their stock prices soar with the U.S. fracking boom of the past decade. But the share prices were crippled in the last 18 months by slumping oil prices. The $35 billion deal, announced in November 2014, was scheduled to close last year, but it’s been delayed by U.S. antitrust regulators. In the meantime, the value of the deal has shrunk to roughly $25 billion, again due to slumping share prices. Halliburton’s purchase of Baker Hughe
http://www.shaledirectories.com/blog/finally-department-justice-sues-halliburton/

Monday, April 4, 2016

Can a Recovery in Drilling Be Coming in the 4th Qtr. 2016?


The Facts & Rumors newsletter recently had an in-depth article from Oil World that discussed a fourth quarter recovery in the Marcellus and Utica in 2016.  The article highlighted the fact that there are 37 pipeline projects that will be completed between 2016 and 2018.  Additionally, I’ve heard from different sources that in Northeastern PA there will be more take away capacity than production capacity by the end of 2016. Chevron is also starting to obtain permits to drill in PA and Shell is securing permits in McKean County, PA to go along with permits they are obtaining Tioga County, PA.  Do the big guys know something we don’t?  Is the bottom in on oil and gas prices?  Today NatGas is hovering around $2.00 which the highest level that it’s been in weeks. If you are wondering about the state of drilling in PA in 2016 and beyond, you should register for Upstream PA 2016.  http://upstreampa.com/ The Seminar will have experts from the Energy Information Administration who
http://www.shaledirectories.com/blog/can-recovery-drilling-coming-4th-qtr-2016/