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Tallgrass Energy's Open Season for the Pony Express Pipeline Project
03/21/2024
Tallgrass Energy has started a new open season for the Pony Express Pipeline, and this is the second time they're doing it in 2024. They're looking for companies that want to move their crude oil from the Williston Basin and are offering special rates as an incentive. This 30-day event kicked off on March 11. To get the full details, companies need to sign a confidentiality agreement with Tallgrass.
The Pony Express Pipeline, which Tallgrass operates together with Bridger Pipeline, stretches over 830 miles and can handle 230,000 barrels of oil a day. It runs from Guernsey to Cushing, Oklahoma, and includes a side path that can deliver 90,000 barrels a day from Northeast Colorado to Cushing.
In a separate matter, a former board member of Tallgrass, Roy Cook, and four of his friends were in trouble with the Securities and Exchange Commission (SEC) for insider trading. The SEC claimed that Cook found out about a potential deal with Blackstone Infrastructure Partners to buy Tallgrass and go private, and then he told his friends. They all bought Tallgrass stocks before the deal was announced on August 27, 2019. The deal with Blackstone was worth about $3 billion. Although Cook and his friends didn't admit they did anything wrong, they agreed to pay $2.2 million to settle the charges. The SEC's Mark Cave mentioned that they would act against anyone who uses inside information for their own gain.
About Tallgrass Energy
Tallgrass Energy has recently been involved in several notable initiatives aimed at enhancing its energy infrastructure and contributing to environmental sustainability. One of the key projects is the conversion of its Trailblazer natural gas pipeline into a CO2 transport system. This 400-mile pipeline will run through Nebraska, Colorado, and Wyoming, and is capable of transporting over 10 million tons of CO2 per year. In October 2023, FERC approved the conversion of the Trailblazer Pipeline from a natural gas system to a carbon dioxide (CO2) transportation network.
Tallgrass Energy previously partnered with Equinor to pursue large-scale, low-carbon hydrogen and ammonia production projects in North America. This collaboration explored the production, market potential, and associated distribution infrastructure for hydrogen and ammonia, aiming to facilitate broad decarbonization. The partnership included initial co-development activities and the joint funding of a front-end engineering and design (FEED) study focused on large-scale hydrogen production. This study aimed to incorporate capturing at least 95% of CO2 for permanent sequestration.
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Lycos Energy Inc. Secures Durham Creek Exploration Ltd. & $25M Equity Financing
Lycos Energy Inc. has solidified a conclusive agreement to procure Durham Creek Exploration Ltd., a prominent heavy oil producer, for a total of CA$22.5 million. Lycos Energy Inc. is delighted to disclose the conclusion of a definitive agreement to acquire Durham Creek Exploration Ltd., an independent, private heavy oil producer. This acquisition, by way of a plan of arrangement, is valued at $22.5 million, comprising $12.5 million in cash and 2.8 million Lycos common shares, each valued at $3.55. The Acquisition will be financed through a $25 million bought deal equity financing.
SilverBow Successfully Completes $700MM Purchase of Chesapeake’s South Texas Holdings
SilverBow Resources Inc. finished buying Chesapeake Energy Corp.'s oil and gas areas in South Texas. They agreed to this $700 million deal back in August. The deal included SilverBow paying $650 million in cash when the deal was closed. They will also pay another $50 million in cash a year later, with some usual changes in the amount. Chesapeake might get an additional $50 million later, depending on the prices of oil and gas in the future. SilverBow paid for this big purchase with the money they had, by borrowing from their credit line, and by selling more of their second lien notes.
Exxon Mobil recently completed its acquisition of Pioneer Natural Resources, a deal worth about $60 billion. This transaction, which is the biggest in shale oil history, significantly changes the competitive landscape in the Permian Basin, a major oil field. This marks Exxon Mobil's largest deal since its $84.4 billion merger with Mobil Corp. in 1999. With this acquisition, Exxon Mobil's production in the Permian Basin will double to 1.3 million barrels of oil equivalent per day.
OXY has been the leader in Permian Basin production for the past five years. Currently, the Houston-based oil and gas company is deepening its presence in the basin with a $12 billion acquisition of CrownRock, adding over 94,000 acres in the Midland Basin and increasing its oil output by about 170,000 barrels per day. Occidental announced an increase in its proved reserves to 4.0 billion barrels of oil equivalent by the end of December 2023, up from 3.8 billion the previous year. Activities in the Permian largely fueled this rise. Occidental added approximately 303 million barrels through infill development projects as well as new discoveries and the further development of existing fields brought in another 153 million barrels.
TotalEnergies kicked off 2024 with a net income of $5.7 billion in the first quarter, marking a modest 3% increase from the same period last year and a 13% rise from the previous quarter. This growth occurred despite experiencing drops in both the volume and price of gas sales over the year and the quarter. Their adjusted net earnings, which exclude one-time or unusual items, were $5.1 billion. This represents a significant 22% decline compared to last year and a slight 2% drop from the last quarter. The company's earnings before tax, depreciation, and amortization reached $11.5 billion, while their cash flow from operations significantly decreased to $2.2 billion, falling by 58% from last year and a steep 87% from the previous quarter. TotalEnergies also recorded $644 million in impairments.