Locke Lord LLP’s Post

Better Together It was a year to the month last May that Aaron Milford took the reins as CEO of Tulsa-based Magellan Midstream Partners and its 9,800 miles of refined products pipelines, 2,200 miles of crude oil pipe, 56 terminals, and 39 MMbls of storage. The anniversary of that date was sealed with a whopper of an announcement no one expected—that natural gas and NGLs midstream operator (and blocks-away neighbor) ONEOK would acquire Magellan for $18.8 billion. Reese Energy Consulting today is following the latest on the proposed merger of the two, now juggling the last of formalities that will make ONEOK an energy infrastructure giant 50,000 pipeline-miles long. It wasn’t so much the price tag that surprised, as it was ONEOK’s decision to diversify its business into new hydrocarbon territory. For Magellan, the path to win over shareholders hasn’t come without a few sharp-edged rocks in the form of some investors naysaying the combo ahead of a vote to approve the deal September 21. Meantime, Milford has been front and center to discuss the rationale behind the merger, Magellan’s future as part of ONEOK, and the shareholder value he sees going forward. Together, he says, the two companies create a more powerful growth engine with greater opportunities to expand. In particular, Milford points out the ability to transport gas, NGLs, crude, and refined products on the same pipeline systems, annual cost-savings between $200 million and $400 million, and the increasing demand for natural gas in the utility and industrial sectors. Fingers crossed and if the creek don’t rise, we hope to see a big vote of confidence in September. What do you think? Learn more about REC and our natural gas and NGLs expertise at https://lnkd.in/ewhkGFa.  

No doubt about it, most of the headline-grabbing oil and gas M&A activity lately has involved large, publicly owned producers gobbling up other good-sized E&Ps, lock, stock and barrel. But there are other ways to increase scale and improve operational efficiency, as evidenced by privately held WildFire Energy’s bolt-on acquisition frenzy in the northeastern Eagle Ford, where WildFire is now one of the largest producers. In today’s blog, we’ll look at the E&P and its rapid rise. https://lnkd.in/g-w5_UHp

Better Together It was a year to the month last May that Aaron Milford took the reins as CEO of Tulsa-based Magellan Midstream Partners and its 9,800 miles of refined products pipelines, 2,200 miles of crude oil pipe, 56 terminals, and 39 MMbls of storage. The anniversary of that date was sealed with a whopper of an announcement no one expected—that natural gas and NGLs midstream operator (and blocks-away neighbor) ONEOK would acquire Magellan for $18.8 billion. Reese Energy Consulting today is following the latest on the proposed merger of the two, now juggling the last of formalities that will make ONEOK an energy infrastructure giant 50,000 pipeline-miles long. It wasn’t so much the price tag that surprised, as it was ONEOK’s decision to diversify its business into new hydrocarbon territory. For Magellan, the path to win over shareholders hasn’t come without a few sharp-edged rocks in the form of some investors naysaying the combo ahead of a vote to approve the deal September 21. Meantime, Milford has been front and center to discuss the rationale behind the merger, Magellan’s future as part of ONEOK, and the shareholder value he sees going forward. Together, he says, the two companies create a more powerful growth engine with greater opportunities to expand. In particular, Milford points out the ability to transport gas, NGLs, crude, and refined products on the same pipeline systems, annual cost-savings between $200 million and $400 million, and the increasing demand for natural gas in the utility and industrial sectors. Fingers crossed and if the creek don’t rise, we hope to see a big vote of confidence in September. What do you think? Learn more about REC and our natural gas and NGLs expertise at https://lnkd.in/ebXT2mS. #energy #ngl #midstream #naturalgas #refinedproducts #gasgathering #gasprocessing #mergers #acquistions #oilandgas #reeseenergyconsulting

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ONEOK, a midstream service provider, completed the acquisition of Magellan Midstream Partners, a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil, for $18.8bn. "This is a significant day for Tulsa and the industry as we bring together the talented ONEOK and Magellan teams and look to the future as one company. Our expanded products platform will present additional opportunities in ONEOK's core businesses and further enhance the resiliency of our company. We are committed to ensuring a smooth transition aimed at delivering on the many benefits of this combination for our customers, employees and shareholders," Pierce Norton, ONEOK President and CEO. Magellan Midstream Partners (led by Aaron Milford and Jeff Holman) was advised by Morgan Stanley, Latham & Watkins (led by Ryan Maierson and patrick nevins), Richards, Layton & Finger and Joele Frank (led by Andrew Siegel and Ed Trissel). ONEOK (led by Pierce Norton and Walter Hulse) was advised by Bank of America, Goldman Sachs, Tudor, Pickering, Holt & Co. Securities, Inc., Kirkland & Ellis (led by Camille Walker, Debbie Yee and Sean T. Wheeler) and Joele Frank (led by Sharon Stern and Dan Moore). Debt financing was provided by Goldman Sachs. Goldman Sachs was advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP. #MergersAcquisitionsDivestitures #OilandGas #Utilities #Transportation

Producers and Midstreamers Hit the Gas Natural gas takes center stage today with news from Enterprise Products, Haynesville pure player Comstock Resources, and bp setting the record straight about adding more U.S. shale gas assets following October’s mega mergers. Reese Energy Consulting is following the latest from midstream machine Enterprise Products, which reported 3Q profit of $2.3 billion along with record volumes across its systems. EP’s NGL pipelines and services segment, the largest part of its business, handled a record 5.9 BCFD for the quarter. With every expectation Permian volumes will continue to grow over the next decade, the company announced four new projects to address the basin’s takeaway challenges, including two gas plants, a fractionation unit, and the 550-mile Bahia NGL pipeline. All are expected to be completed by 2025. EP says it will also convert its 210 MBD Seminole Pipeline to NGL service. Natural gas producer Comstock Resources , which operates 372,000 net acres in the Haynesville and Bossier, has partnered with Quantum Capital Solutions to fund the future buildout of its Western Haynesville gathering and treating system. The company’s midstream assets include a 145-mile gas pipeline and the Bethel processing plant supported by Comstock’s production. A Reuter’s exclusive on Monday reported that BP is scouting JV partners in the Haynesville and Eagle Ford. While CEO Murray Auchincloss on Tuesday clapped backed at rumors the London-based supermajor might be eyeing a large shale acquisition here, he did not respond to the earlier report. What do you think? Learn more about REC and our natural gas and midstream consulting services at https://lnkd.in/ebXT2mS. #acquisitions #energy #oilandgas #midstream #ngl #reeseenergyconsulting

💰 ➡️ "Consolidate or Get Eaten": Wall Street Is Warming to Big Shale After $250 Billion of Deals This week’s $26 billion combination of two Texas oil companies is the latest in a series of deals that’s ushering in the era of Big Shale. Wall Street, which eyed the sector with skepticism for most of the last decade, appears to be all in. #shale #merge #drilling #USLNG #LNG

What's New to The Street... Big news in the energy sector! 💥💼 Diamondback Energy and Endeavor Energy are joining forces to form a powerhouse in the Permian Basin. 🛢️💰 With a merger valued at over $50 billion, get ready for some major shifts in the oil-and-gas landscape. 🌎🔥 #energymerger #permianpowerhouse #businessnews #business #news #newtothestreet