Page 11 - NorthAmOil Week 02

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
Renaissance closes $1mn financing
Renaissance Oil is pleased to announce that it has issued to an investor 6,578,500 common shares of the company at a price of CAD0.20 per share for proceeds to the company of $1mn.
The proceeds from the investment will be used to fund capital expenditures and for general corporate purposes.
The investment is subject to final acceptance by the TSX Venture Exchange. The shares are subject to a hold period expiring on May 14, 2020, in accordance with applicable Canadian securities laws.
RENAISSANCE OIL, January 13, 2020
Kimbell Royalty Partners announces $175mn acquisition of mineral and royalty interests in a cash and unit transaction
Kimbell Royalty Partners, a leading owner
of oil and gas mineral and royalty interests
in approximately 13mn gross acres in 28 states, today announced that it has agreed
to acquire the mineral and royalty interests held by Dallas-based Springbok Energy Partners, LLC (SEP I) and Springbok Energy Partners II, LLC (SEP II and, collectively with SEP I, Springbok) in a transaction valued at approximately $175mn, subject to purchase price adjustments. The purchase price for the acquisition is comprised of $95mn in cash (approximately 54% of the total consideration) and an aggregate of approximately 2.2mn
common units of Kimbell and approximately 2.5mn common units of Kimbell Royalty Operating, LLC, which are together valued at $80mn (approximately 46% of the total consideration). Kimbell intends to raise the cash portion of the purchase price through
a combination of an underwritten public offering of common units (announced substantially concurrently with this release) and borrowings under its revolving credit facility. Kimbell estimates that, as of October 1, 2019, the Springbok assets produced 2,533 boepd (823 bpd of oil, 279 bpd of NGLs and 8,584 mcf/d of natural gas) (6:1) with an average realised cash margin of $21.92 per boe and included 2,160 net royalty acres.
The Delaware Basin represents 29% of the
rig activity included in the Acquisition. The board of directors of Kimbell’s general partner and the governing bodies of the respective Springbok entities have each unanimously approved the acquisition, which is expected to close in the second quarter of 2020, subject to customary closing conditions. The effective date of the acquisition is October 1, 2019. KIMBELL ROYALTY PARTNERS, January 10, 2020
Parsley Energy completes
acquisition of Jagged Peak
Energy
Parsley Energy today announced that it has completed its acquisition of Jagged Peak Energy. The acquisition was previously approved by Parsley shareholders at a special meeting held on January 9, 2020, where more than 99.5% of the votes cast by Parsley stockholders were voted in favour of the proposal to issue Parsley common stock to the holders of Jagged Peak common stock as consideration for the acquisition.
PARSLEY ENERGY, January 10, 2020
MIDSTREAM
Kinder Morgan announces sale of Pembina shares
Kinder Morgan, Inc. (KMI) today announced it has sold all of the approximately 25mn shares of Pembina Pipeline Corporation stock it received in connection with Pembina’s acquisition of the outstanding common equity of Kinder Morgan Canada Limited. The
sale of these shares is consistent with KMI’s previously announced intention to convert the shares into cash in an opportunistic and non-disruptive manner, and the after-tax proceeds of $764mn are consistent with KMI’s 2020 budget. As previously disclosed, KMI intends to use the proceeds to pay down debt – creating balance sheet flexibility in 2020 (relative to KMI’s long-term leverage target of 4.5 times net debt-to-adjusted EBITDA). KINDER MORGAN, January 09, 2020
Enterprise and Navigator
load first vessel at new
ethylene export terminal
Enterprise Products Partners and Navigator Holdings today announced that the first cargo of ethylene has been exported from their 50/50 joint venture marine terminal located at Morgan’s Point, Texas along the Houston Ship Channel. The Navigator Europa recently departed the facility carrying 25mn pounds of ethylene for Marubeni Corporation, a large Japanese trading company and long-term terminal customer.
The new terminal features two docks and the capacity to load 2.2bn pounds per year
of ethylene. A refrigerated storage tank for 66mn pounds of ethylene is also being built on-site and will increase the capability to load ethylene up to a rate of 2.2mn pounds per hour. Tank construction is expected to be completed in the fourth quarter of 2020.
The export terminal is pipeline-connected to Enterprise’s Mont Belvieu, Texas complex, where the company is in the process of commissioning a high-capacity ethylene salt dome storage well with a capacity of 600mn pounds. Enterprise has designed the system to serve as an open market storage and trading hub for the ethylene industry through storage, connections to multiple ethylene pipelines and high-capacity export capabilities. ENTERPRISE PRODUCTS PARTNERS, January 08, 2020
Week 02 15•January•2020
w w w. N E W S B A S E . c o m
P11