Diamondback’s decision to take its Rattler midstream subsidiary public is the latest move by an E&P to address takeaway capacity concerns in the Permian Basin.
The change in investor sentiment has in turn altered how private-equity sponsors and portfolio companies exit.
‘Value over volume’ mantra has been discarded as investors seek growth in output.
Alternative lending sources are needed to fill the gap left by an RBL market in transition and capital-hungry shale producers, says Mark Green, president of Madava Financial.
Finance - Buy Backs
The company expects to fully fund this year’s $3 billion program, as well as its dividend and capex, with cash from operations.
Peter Coleman, who was speaking at the World Gas Conference in Washington, said the project’s ability to provide Woodside with an adequate return is “very challenged.”
Hess said the new buyback program was in addition to the $500 million plan the company had announced in late 2017.
Chevron also revised its three-year annual capital spending plan to $18 billion to $20 billion and said it was looking to resume share buybacks.
Finance - Debt
High-yield energy has outperformed many of its fixed income peers as E&P capital discipline provides a clear path to generating free cash flow.
Anadarko Petroleum on July 9 announced its board of directors has authorized an expansion of the company's share-repurchase program to $4 billion, representing a $1 billion increase.
Alaska Gasline Development Corp. (AGDC) is preparing an equity offering for this summer and is open to partnering with a major energy firm on the development of its costly Alaska LNG export terminal and pipeline project, an executive said on June 28.
Goodnight Midstream LLC recently expanded its revolving credit facility to $320 million, the Dallas-based midstream water infrastructure company said June 7.
Finance - Equity
The new $4 billion fund will be used by Carlyle to buy companies in the energy supply chain outside of North America, the Financial Times reported.
Black Bay Energy Capital is a private-equity firm investing in the North American oilfield service sector focused on investments of up to $30 million.
The company announced on July 11 that it has already raised $1.5 billion for the Global Energy and Power Infrastructure Fund III.
Rather than capital discipline, private equity is targeting growth, according to panelists at the Energy Capital Conference.
Finance - Redemptions
QEP Resources Inc. (NYSE: QEP) said on Nov. 6 it has priced an offering of $500 million aggregate principal amount of senior notes due 2026.
Holly Energy Partners LP and Holly Energy Finance Corp. will redeem all $300 million of their outstanding 6.50% senior notes due 2020, according to a Dec. 2 press release.
Paramount Resources Ltd. will redeem about $286.58 million of outstanding 7.625% senior unsecured notes due 2019 on Dec. 19 of this year, the company said Nov. 17.
Concho also said it recently completed its redemption of the $600 million of 7.0% senior notes due January 2021.
Finance - Restructuring
Fieldwood entered Chapter 11 with a simultaneous deal to buy Gulf of Mexico assets from Noble Energy while taking pains to meet obligations to employees and more than 700 vendors.
As part of a stalking-horse bid, SAExploration offered to acquire bankrupt Geokinetics' equipment and machinery, seismic processing software and equipment, and certain contracts with large E&P companies.
EV Energy Partners, an MLP, filed for Chapter 11 in early April. Parent firm EnerVest and its EnerVest Operating unit did not file for bankruptcy.
Questerre Energy reported on June 4 that it has executed a letter of intent with a senior E&P company to settle outstanding litigation and acquire all their assets in the St. Lawrence Lowlands, Quebec.