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$1B Deal: Williams Buys Out Houston-based Midstream in Haynesville Basin
03/25/2022![1B-Deal-Williams-Buys-Out-Houston-based-Midstream-in-Haynesville-Basin](https://images2.rextag.com/public/blog/52Blog_Williams_Acquires_Assets_from_Trace_in_Haynesville.png)
Earlier this month, Williams announced that it has reached an agreement to purchase the gathering and processing assets of Trace Midstream, a portfolio company of Quantum Energy Partners, in a $950 million deal.
By adding the Trace system to Williams' existing footprint, the company gains expanded capacity in one of the nation's largest growth basins, bringing its Haynesville gathering capacity to over 4 Bcf/d — more than 200% growth. Following this merge, It is anticipated that Williams will invest at around 6 times 2023 EBITDA, with minimal expansion capital required and significant growth forecasted, thus helping the company's credit metrics to stay afloat.
This deal highlights Williams’s commitment to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy.
The agreement also includes a long-term capacity commitment from Trace customer and Quantum affiliate Rockcliff Energy to support Williams' Louisiana Energy Gateway project (LEG). By connecting to premium Transco markets, the LEG project will gather the responsibly sourced natural gas produced in Haynesville. It will deliver it to industrial and LNG export markets along the Texas and Louisiana Gulf Coast
The LEG project was further strengthened with the signing of a Memorandum of Understanding between Williams and Quantum to establish a joint venture that will enable Quantum to become a partner and equity investor in the project. Williams will bring its expertise as a leading developer and operator of clean energy infrastructure together with Quantum's capacity as a global provider of private capital for responsible sourcing of energy and the transition to a low carbon economy.
For Williams, the opportunity to support Rockcliff's success and enable them to access growing markets represents a unique way to demonstrate how natural gas plays an essential role in reducing emissions, lowering costs, and providing reliable, secure energy to the US and around the world.
This partnership is also welcomed by Quantum, since working with exceptional entrepreneurs such as those from Trace and Rockcliff, who developed a strategic infrastructure platform with high ESG standards, has been at the foundation of Quantum’s success. This makes the Williams-Haynesville LEG partnership a crucial link between responsibly sourced Haynesville natural gas and the Gulf Coast's premium LNG markets.
If all regulatory approvals are received, the transaction should close by the end of the second quarter. RBC Capital Markets served as lead financial advisor to Williams; Citi served as lead financial advisor to Trace. Williams was represented by Davis Polk & Wardwell LLP; Trace was represented by Vinson & Elkins LLP.
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Major: Ameredev II Oil Producer to be Sold for $4 Billion by EnCap
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In light of the conflict in Ukraine, buyout firms are currently scurrying to make cash from the U.S. crudeprices reaching their highest level since 2008. And one of the largest privately-owned US-based oilproducers may be up for sale. EnCap Investments looks to sell its portfolio company Ameredev II for over $4 billion including debt. It’s important to note, however, that both EnCap and Ameredev II alike are staying tight-lipped on the matter.
$690 Million Deal Moves Ahead: Crescent Energy to Complete Purchase of EP Energy's Uinta Assets
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/56Blog_Crescent_Bought_EP_Energy's_Uinta_Assets.png)
Crescent Energy closed the acquisition of Uinta Basin assets in Utah that were previously owned by EP Energy for $690 million, a few hundred million dollars below the original price. The accretive deal increases Crescent's Rockies position and adds significant cash flow and a portfolio of high-quality oil-weighted undeveloped sites. In addition to its acquired Uinta assets, Crescent's pro forma year-end 2021 provided reserves totaled 598 million boe, of which 83% was developed, 55% was liquid, and its provided PV-10 was $6.2 billion.
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The pipeline industry in the USA faced and still faces a range of regulatory challenges, including permitting delays, environmental requirements, and public opposition to pipeline projects. In recent years, pipeline projects like the Keystone XL and Dakota Access pipelines had legal and regulatory obstacles that delayed or canceled their construction. Keystone XL Pipeline, proposed by TransCanada in 2008, aimed to transport crude oil from Canada (around Calgary and Edmonton) to refineries on the Gulf Coast (Port Arthur). The project faced opposition from environmental groups and indigenous communities, who argued that it would contribute to climate change and pose a risk to water resources. In 2015, President Obama rejected the project, citing concerns about its environmental impact. However, in 2017, President Trump revived the project, leading to further legal challenges. In June 2021, U.S. President Joe Biden officially canceled the project on his first day in office.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/282_Blog_Renewable Natural Gas How RNG Changes the Industry.jpg)
The renewable natural gas (RNG) industry in the United States is showing promising signs of growth. As of 2019, the U.S. consumed 261 billion cubic feet (BCF) of RNG, primarily utilized by independent power producers, electric utilities, and various commercial and industrial entities. However, this figure represents only a small fraction of its potential. Research indicates that the U.S. could theoretically produce up to 2,200 BCF of RNG through anaerobic digestion alone, which would equate to about 11% of daily national natural gas consumption.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/295_Blog_Renewable Efforts Lag as Global Oil and Gas Demand Continues to Rise.jpg)
Recently, the progress toward an energy transition is hitting a snag. Sales of electric vehicles are decelerating, and the growth in wind and solar power needs to be keeping pace with expectations. To make matters more challenging, electricity prices are climbing when they were expected to fall. Amidst these setbacks, the oil and gas sectors are proving resilient. According to BP's latest energy outlook, not only are these energy mainstays here to stay, but their demand is expected to remain relatively high even after reaching a peak. Interestingly, BP forecasts that oil demand will reach its zenith next year, marking a critical moment in energy consumption trends. This isn't the first time BP has projected a peak in oil demand. Back in 2019, their review anticipated a decline in demand growth, but the prediction fell flat. Instead, oil demand surged to unprecedented levels following the end of the global pandemic lockdowns, defying previous forecasts and underscoring the enduring dominance of traditional energy sources in the global market.