Steve Reese’s Post

All the Action, All the Drama, and No Big Foot Reese Energy Consulting today hand-picks three news nuggets to share, proving our belief that dull moments in the oil and gas industry are as likely to manifest as an authenticated Big Foot sighting. We start with a big headliner announcing regional banks are in it to win it when the “it” comes to financing fossil fuels deals. And these smaller guys are hungry for more, recognizing oil and gas aren’t going away any time soon and offering competitive rates and terms in a more friendly environment. Loans among the top three regional banks have climbed 70% since 2022. BOK Financial Chief George Kaiser was rumored to say, “Ya’ll come, ya’ll come.” EQT Corporation, the nation’s largest natural gas producer looking to offload its non-operated Appalachian assets, has found sweet harmony with Equinor looking to offload its operated assets there. In a “Let’s just swap” deal, EQT will add a total 36,000 net acres in Ohio and Pa., 150 MMCFED, the remaining 16.25% ownership of its gathering systems in Lycoming County, Pa., and a gas buyback agreement through 1Q 2028 that will increase EQT’s interest in certain Chesapeake-operated Marcellus gas units to 25.7%. Equinor will also pony up $500 million to balance the deal. Last but not least comes the proxy fight between SilverBow Resources and its largest investor, Kimmeridge entering a sundown showdown. After two years and eight different merger packages that would combine their Eagle Ford assets into one $3.6 billion enterprise, the investment firm has withdrawn its latest proposal and fired back with loaded language in a press release. Kimmeridge now looks to upset three SilverBow board seats with its own peeps. In other news, Bonnie Raitt was heard singing, “I can’t make you love me if you don’t.” What do you think? Learn more about REC and our oil and gas consulting services at https://lnkd.in/ewhkGFa.   

All the Action, All the Drama, and No Big Foot Reese Energy Consulting today hand-picks three news nuggets to share, proving our belief that dull moments in the oil and gas industry are as likely to manifest as an authenticated Big Foot sighting. We start with a big headliner announcing regional banks are in it to win it when the “it” comes to financing fossil fuels deals. And these smaller guys are hungry for more, recognizing oil and gas aren’t going away any time soon and offering competitive rates and terms in a more friendly environment. Loans among the top three regional banks have climbed 70% since 2022. BOK Financial Chief George Kaiser was rumored to say, “Ya’ll come, ya’ll come.” EQT Corporation, the nation’s largest natural gas producer looking to offload its non-operated Appalachian assets, has found sweet harmony with Equinor looking to offload its operated assets there. In a “Let’s just swap” deal, EQT will add a total 36,000 net acres in Ohio and Pa., 150 MMCFED, the remaining 16.25% ownership of its gathering systems in Lycoming County, Pa., and a gas buyback agreement through 1Q 2028 that will increase EQT’s interest in certain Chesapeake Energy-operated Marcellus gas units to 25.7%. Equinor will also pony up $500 million to balance the deal. Last but not least comes the proxy fight between SilverBow Resources and its largest investor, Kimmeridge entering a sundown showdown. After two years and eight different merger packages that would combine their Eagle Ford assets into one $3.6 billion enterprise, the investment firm has withdrawn its latest proposal and fired back with loaded language in a press release. Kimmeridge now looks to upset three SilverBow board seats with its own peeps. In other news, Bonnie Raitt was heard singing, “I can’t make you love me if you don’t.” What do you think? Learn more about REC and our oil and gas consulting services at https://lnkd.in/ewhkGFa.   

MURRAY SETS THE TRAFFIC LIGHTS TO RED 𝐁𝐏, 𝐡𝐞𝐫𝐞 𝐟𝐨𝐫 𝐲𝐨𝐮𝐫 𝐞𝐯𝐞𝐫𝐲𝐝𝐚𝐲 𝐣𝐨𝐮𝐫𝐧𝐞𝐲𝐬… …𝐛𝐮𝐭 𝐨𝐧𝐥𝐲 𝐮𝐧𝐭𝐢𝐥 𝐚𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝘊𝘰𝘶𝘭𝘥 𝘵𝘩𝘪𝘴 𝘣𝘦𝘤𝘰𝘮𝘦 𝘵𝘩𝘦 𝘯𝘦𝘸 𝘴𝘭𝘰𝘨𝘢𝘯 𝘰𝘧 𝘢 𝘤𝘰𝘮𝘱𝘢𝘯𝘺 𝘳𝘪𝘱𝘦 𝘧𝘰𝘳 𝘢𝘤𝘲𝘶𝘪𝘴𝘪𝘵𝘪𝘰𝘯? The latest knee-jerk reaction to loss of investor confidence would seem to be as a consequence of the lack of clear policy for a company that resembles an ocean liner without a rudder. CEO #Murray Auchincloss appears to be eyes on Shell to copy their lead a month or so after action is required. Share buy-backs and a dividend that is flying high above corporate performance to keep investors onboard will only work for so long before the company is picked out of the stock markets bargain bin in a hostile acquisition. What are industry commentators saying that indicates bp is a target… ↘ “BP’s valuation is one of the lowest among oil giants”, Reuters ↘ “BP’s depressed shares make it an appealing target.”, Reuters Breakingviews, Karen Kwok & Yawen Chen ↘ “Whenever cyclical volatility and uncertainty hit the energy markets, consolidation becomes the order of the day…BP...is the most obvious candidate.”, Forbes ↘ “…weaker than expected profits of $3.3bn (£2.7bn) for the third quarter of this year [2023].”, The Guardian ↘ Yawen Chen at Reuters News Agency identified a strategy to focus high spending on low-return projects outside its core business. ↘ Investors are restless with Giuseppe Bivona, partner and co-chief investment officer at Bluebell Capital Partners speaking out as noted by Sam Meredith at CNBC ↘ “…BP willfully misrepresented details of a pension plan offered to thousands of employees…BP violated the federal Employee Retirement Income Security Act…federal Judge George C. Hanks, Jr., ruled.”, Houston Chronicle, Amanda Drane ↘ “…BP was effectively dealing from the bottom of the pack.”, Hansard, Alistair Carmichael MP ↘ “…United Arab Emirates' state-owned oil company recently considered buying Britain's BP… The 88 billion-pound ($110.3 billion) company has underperformed…", Reuters, Sarah McFarlane, Anousha Sakoui & Ron Bousso ↘Now we have the jobs freeze and a halt to off-shore wind projects. The company's reputation as a caring employer is in tatters with its treatment of former employees in at least 4 countries, including court rulings against the company in two and legal letters sent in the UK. The bitter dispute is being played out on social media due to the company refusing to engage and stonewalling pensioner for over a year now. A dispute that was avoidable and has left all pensioners 11% worse of for life. bp currently seem set on attracting negative press. ➡Is there a hidden agenda? ➡Are they actively seeking to be the target of an aggressive acquisition? ➡Are the intransigent leadership completely out of their depth and locked into a holding pattern awaiting the, seemingly inevitable, hostile bids to start rolling in? #BP #BPpensions #Acquisition

This was such an insightful presentation on what's happening in the world of M&A for energy.

Was so great to catch up yesterday with my good friend & former colleague, Eric Yu Chang, and to get an update on the launch of his new firm Melange Capital Partners which was recently profiled by the WSJ 👇 . Growing up in Houston, I have many friends (+ some family) who have spent their careers in the energy sector. About 6 years ago, I was at a bachelor party where about half the men worked in energy (investing, law, or engineering), and almost all of them seemed to exhibit a collective unease about whether their jobs would even exist in 10-years. As an investor in industrials businesses, I have spent a fair amount of time grappling with questions such as the pace of adoption for electric vehicles, future of the power grid, and how the world will balance legitimate ESG concerns with the many industries reliant on fossil fuels to provide diverse goods required for human flourishing: infrastructure (steel/cement), agriculture (fertilizer), and the plastics used in both life saving medical devices as well as every day consumer products. As I grappled with such issues over the years, Eric was always a terrific thought partner who frequently shared insights years before they became mainstream (EV supply chain dynamics re critical minerals, renewables & distribution infrastructure issues within the power grid). This is not to say that either of us were ever rooting for slower “green” energy or EV adoption, but as I’m constantly reminded in my graduate studies of International Relations, it’s crucial to “see the world as it is, not merely as one wishes it to be,” even as we should indeed strive to shape the world around us for the better. Fast forward to today, Russia’s invasion of Ukraine has brought energy security back into foreground of thinking for many policy elites, while higher rates & supply chain challenges have tempered views on how fast the world can practically pivot away from oil & gas entirely. I don’t think a single person at that bachelor party would have predicted U.S. oil production to hit all time highs in 2024 or that it would now be politically unpalatable for a Democratic Presidential hopeful to have a policy stance around “banning fracking.” But it is the world in which we live. But more than his expertise, I admire Eric for having the courage to take on risk as an entrepreneur to pursue his investing convictions. In addition to understanding the essential nature of oil & gas, Eric saw a unique investment opportunity presented by secondary markets in which energy assets are often heavily discounted by LPs forced to sell for non-financial reasons. Considering the challenging fund-raising environment, couldn’t be prouder of Eric & his team on their $300m raise. Testament to the uniqueness of the opportunity & caliber of his team. Happy for you brother and look forward to seeing you crush it for your LPs! https://lnkd.in/grRv9wrC

Following the appointment of CEO Chris Wright as energy secretary by President-elect Donald Trump, Liberty Energy's stock increased on Monday. The Denver, Colorado-based oilfield services provider Liberty Energy has a $2.7 billion market valuation. On Monday, the shares ended the day about 5% higher. Source - CNBC For more information, visit us at - https://bbmagz.com Follow us for daily updates 👍 #brandsandbusinessmagazine #business #businessnews #magazine #news #internationalnews #newsupdates #finance #economy #news #updates #FinanceNews #FinTech #EconomicGrowth #BusinessFinance #EconomicNews

In support of Independent Petroleum Association of America - IPAA's 95th annual meeting, we had the pleasure of sponsoring an energy M&A expert panel that included our own Pat Tucker (Head of M&A, Americas), with Paul Perea (Perella Weinberg), and Sean T. Wheeler and Matthew Reilly (both Kirkland & Ellis). Together, the experts presented perspectives from investment banking, legal and strategic communications with respect to the first wave of energy sector consolidation, key lessons learned from dealmaking across both the Street and the Hill, and what potential residual impacts the first wave of consolidation may imply for the future of dealmaking in the space. To learn more of the key takeaways, please contact Pat Tucker. #EnergyInvestment #EnergyConsolidation #EnergyTransactions #EnergyDeals

McDermott International, Ltd has completed the sale of its CB&I storage business to Mason Capital Management LLC for $475 million. https://lnkd.in/e-tG9jmM #energynews #energyinvestment #midstream

EQT Corporation has announced a $3.5 billion midstream joint venture with Blackstone Credit & Insurance (BXCI) for some of its natural gas pipelines. The JV includes EQT’s ownership of the 300-mile Mountain Valley Pipeline, FERC-regulated transmission and storage assets, and the Hammerhead Pipeline, for a total value of around $8.8 billion. Rick Campbell #alternativeassets #connectmoney

Malcolm Moore Financial Times has just written a great article "𝗕𝗣 𝗮𝗻𝗱 𝗦𝗵𝗲𝗹𝗹 𝗴𝗼 𝗯𝗮𝗰𝗸 𝘁𝗼 𝗯𝗮𝘀𝗶𝗰𝘀 𝘁𝗼 𝗯𝗼𝗼𝘀𝘁 𝘀𝗵𝗮𝗿𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗿𝗲𝘁𝘂𝗿𝗻𝘀", perfectly capturing the present tension between short and long-term facing oil and gas majors in Europe. >> It is great to see Accela Research views on this topic and the chart on Euromajor emissions performance featured. We are at a cross roads. While today valuations are tied to shareholder distributions "cash" as opposed to earnings growth, this could change, but only if oil and gas companies can be bold enough to execute on low-carbon visions. Interested to hear other investors views (dm or comment). https://lnkd.in/gXtZvCWz #climatefinance #esginvesting #accelaresearch #oilandgas #sustainablefinance #sustainability #climatetransition