Natural Gas

Shareholder disquiet lights up Chinese gas M&A

7 Jun 2018

A $400 mln deal to sell Sino Gas to U.S. buyout shop Lone Star seems hasty, when the Australia-based firm has just won a key regulatory approval. A 19 pct premium looks ho-hum. If the board sees big risks ahead for foreign energy firms in China, it needs to better explain itself.

Utility deal provides banquet for regulatory feast

23 Apr 2018

CenterPoint Energy’s $6 bln swoop for Vectren gives state watchdogs a chance to extract their pound of flesh for customers. As with many electric company M&A, there’s no number given on synergies. That leaves investors wondering if they’ll receive any juice at all.

Qatar/Exxon love-in makes two types of sense

12 Apr 2018

Deepening its relationship with the Texas-based oil major would tie the Arab state more closely to the U.S. after recent tensions with Saudi Arabia. It also gets Exxon investing in infrastructure. That could open up the global market, to the benefit of both parties.

Duke Energy draws power from climate activism

22 Mar 2018

America’s largest electricity generator plans to phase out coal and slash carbon emissions. Gas and renewables make business sense regardless of the Trump administration’s policy-reversal efforts, it claims. Duke’s stance and transparency put Exxon’s climate disclosures to shame.

Chesapeake solidifies shale role as OPEC sandfly

22 Feb 2018

The shale producer pumped more crude at lower costs in the last quarter – then sold it for more money. It can partly thank oil cartel OPEC, which has helped prices edge up. The Oklahoma-based driller joins a growing list of little wildcatters that are becoming a big annoyance.

America better at finding natural gas than using it

29 Dec 2017

Booming production has made the country a net exporter. But consumers are on pace to use less electricity from natural gas in 2017. As issues from Atlanta to Florida pressure the grid, shale’s promises of “energy independence” hit policy and infrastructure obstacles.

Oil shareholders try capping sorry governance well

21 Dec 2017

SandRidge adopted a poison pill to fend off investors unhappy with a recent deal. Hess faces another fight with Elliott. Exxon is only now allowing owners to talk to the board. The shareholder pushback is welcome, but the industry’s slow response leaves it exposed to other risks.

Even China can’t thaw Alaska’s LNG ice age

9 Nov 2017

Exxon and BP walked away from liquefied natural gas projects in the U.S. state last year because the costly endeavor doesn’t compute at current prices. China’s cheap debt and need for gas alter the equation. But other energy sources still look better than the Last Frontier.

D.E. Shaw’s rare activist shot falls short at EQT

14 Sep 2017

The hedge fund is calling for a breakup of the natural-gas company, echoing Jana Partners. Yet it’s content to let the company first buy Rice Energy for $6.7 bln despite the deal’s flaws. It’s an unconvincing foray into activism for a fund better known for computerized trading.

Calpine $5.6 bln buyout puts chips on gas hegemony

18 Aug 2017

A consortium is taking the heavily indebted electricity company private at a 51 pct premium. It’s a bet natural gas will dominate the nation’s power grid. Problems with other sources justify that for now. Longer term, stagnant electricity prices and usage makes it a big risk.

Jana’s EQT breakup pitch is short of fuel

6 Jul 2017

The activist fund reckons cutting the natural gas company in two rather than buying Rice Energy would boost its value by up to 50 pct. It’s coy with the details, though, and rivals’ multiples imply a far smaller gain. Without more information, Jana’s idea may sputter to a halt.

Saudi-Qatar rift is old theme with Trumpian twist

5 Jun 2017

After the U.S. president’s whistlestop visit, the kingdom has turned on its gas-rich neighbour. Saudi has long suspected Qatar of supporting terrorism and sidling up to Iran. Deep fractures in a region that pumps a fifth of the world’s oil could spill over into markets.

Linde-Praxair back Big Gas, investors don’t yet

2 Jun 2017

Both gas-makers’ boards have approved their $74 bln transatlantic merger. Even Linde’s sceptical worker representatives backed down. Yet shareholders aren’t pricing in the benefits of the tie-up. They may be partly right, but at least neither side is putting cash on the table.

U.S. nuclear closure points to economic meltdown

9 Jan 2017

New York Governor Andrew Cuomo hailed a decision to shut down the Indian Point facility as a win for the environment. Low natural gas prices are what really pulled the plug. Carbon trading might give nuclear energy a fighting chance, but good luck with that under President Trump.

New Linde CEO’s mark of success will be redundancy

7 Dec 2016

The German industrial gases group has named corporate veteran Aldo Belloni as its new chief executive. His main challenge is to secure a $65 bln merger with Praxair. New concessions by the U.S. rival and less sceptical Linde unions improve his chances of doing away with his job.

Linde’s workers hold key to $66 bln Praxair merger

30 Nov 2016

The US gas producer wants to breathe fresh air into a union with its German rival. Linde's prior demands for a share of top jobs and locations appear fixable, but its powerful workers may require generous guarantees. Such concessions could undermine the deal's financial benefits.

Spanish utility seeks credulous new investor

2 Sep 2016

Oil firm Repsol and industrial group Criteria Caixa want to offload 20 pct of Gas Natural. A potential 4 bln euro deal would simplify things for the two sellers. A buyer, though - most likely a private equity or infrastructure investor - would be taking a fair bit on trust.

Gas mega-merger looks short on solids

16 Aug 2016

A potential $63 bln merger of Praxair with Germany’s Linde could cut the industrial gas market from four big players to three, and create more value than the earlier union of Air Liquide and Airgas. Yet despite strategic appeal, it’s hard to see a deal making financial sense.

Chesapeake gets double win in $5.4 bln shale sale

16 Oct 2014

The U.S. gas driller’s market cap jumped 17 pct, or about $2 bln, after rival Southwestern agreed to buy some wells. The acquirer’s 11 pct share-price slide suggests the deal favors Chesapeake. But it also gives CEO Doug Lawler a one-shot fix for his company’s balance sheet.

Encana’s pirouette demands greater fanfare

29 Sep 2014

The Canadian driller’s $7 bln acquisition of Athlon Energy cements a commitment to move from gas to shale oil. It’s paying a full price, especially after the recent fall in crude to $94 a barrel. If Encana can get the transition right, though, its valuation will deserve a lift.