Magazine article Global Finance

Energy, Resources Deals Heat Up

Magazine article Global Finance

Energy, Resources Deals Heat Up

Article excerpt

Pipeline deals, shale-energy plays and natural resources transactions - often involving Asian buyers - provided an energetic start to mergers and acquisitions in 2013. The overall January deal totals for the Americas and Europe surpassed the levels of January 2012, although M&A transactions in Asia were off slightly from a year earlier, according to Thomson Reuters.

Kinder Morgan Energy Partners, the biggest US pipeline company, agreed to acquire Houston-based Copano Energy in a stock-swap deal valued at $4.7 billion, including debt. The acquisition will give Kinder Morgan natural gas gathering capabilities in numerous shale-energy properties in the US. "We continue to be bullish on the domestic shale plays and believe they will drive substantial future growth," Richard Kinder, chairman and CEO of Kinder Morgan, said in a statement. "We will be able to pursue incremental development in the Eagle Ford Shale play in south Texas, [and] gain entry into the Barnett Shale Combo in north Texas and the Mississippi Lime and Woodford Shales in Oklahoma."

GATHERING GAS

Copano Energy owns or operates 6,900 miles of natural gas pipelines in Texas, Oklahoma and Wyoming. Kinder Morgan will gain complete control of the Eagle Ford Gathering that collects, transports and processes natural gas for producers in the Eagle Ford Shale. It agreed to pay a 24% premium for Copano, its partner in the gas-gathering joint venture.

Sinochem, Chinas largest supplier of chemicals.agreed in January to buy a 40% interest in oil-shale acreage in the Wolfcamp site in Texas from Pioneer Natural Resources for $500 million. Sinochem also agreed to pay $1.2 billion of Pioneer Naturals future drilling costs. "This accelerated development will add significant production and reserves for Pioneer while enhancing shareholder value," Scott Sheffield, chairman and CEO of Pioneer Natural, said in a statement. …

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