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BP Has Acquired Archaea Energy for $4.1 Billion Developing Its bioenergy business

BP acquired renewable natural gas (RNG) provider Archaea Energy Inc. for $4.1 billion on December 28, marking a milestone in the growth of BP’s strategic bioenergy business.

The acquisition, announced in October, was finalized following BP’s completion of regulatory requirements and Archaea obtaining shareholder approval.

BP sees a golden opportunity to extend its bioenergy business by bringing Archaea fully into the company. Based in Houston, Archaea Energy operates 50 RNG and landfill gas-to-energy facilities in the U.S. and is anticipated providing a quick 50% rise to BP’s biogas supply volumes, BP said in October.

In October, BP announced it had agreed to purchase Archaea, subject to regulatory and Archaea shareholder approval. Having received those approvals and with the transaction complete, Archaea broadens BP’s presence in the US biogas industry, improving its ability to support customers’ decarbonization aims and progressing its goal to decrease the average lifecycle carbon intensity of the energy products it sells.

Bioenergy is one of the most significant strategic transition growth engines that BP is going to proliferate through this decade. BP anticipates investment into its transition growth businesses to achieve more than 40% of its total annual capital expenditure by 2025, targeting to increase this to about 50% by 2030.

Gas & low carbon energy (G&LCE) integrates BP’s existing natural gas capabilities with significant growth in low and zero-carbon businesses and markets. The company is investing in and building renewable energy capacity of 20 gigawatts by 2025 and 50 gigawatts by 2030. It grows up its integrated gas portfolio, including equity gas, LNG, and merchant portfolio, and further develops its bioenergy offer solutions for aviation, marine, and heavy-duty transportation, creating a distinctive position in hydrogen and CCUS, including a 10% market share of hydrogen in core markets.

Archaea Energy is one of the largest renewable natural gas producers in the U.S., with an industry-leading RNG platform and expertise in developing, constructing, and operating RNG facilities to capture waste emissions and convert them into low-carbon fuel.

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Tyler Reitmeier Tel. +1 713-203-3128 Email: treitmeier@hartenergy.com

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CA$375 Million Bolt-on Deal to Expand Crescent Point

On December 9, Crescent Point Energy Corp. announced a purchase and sale agreement to develop its core Kaybob Duvernay assets, which will bolt on production, the midstream infrastructure and technical data. With the deal, the company has committed more than US $1 billion to the play. Crescent Point, the Alberta-based company, is purchasing almost 65,000 net acres from Paramount Resources Ltd. for CA $375 (US $274 million) cash. The assets estimate more than 4,000 boe/d, 50% liquids, and include a gas plant, associated pipelines, water infrastructure, and seismic data. The acquired asset’s production consists of 35% condensate, 15% NGL, and 50% shale gas.

The Permian Basin is one of the most important oil and gas basins in the world, located in western Texas and southeastern New Mexico in the United States. Oil drilling and production in the Permian Basin began in the early 1920s. The first significant discovery in the region was made in 1923 in the Westbrook field in Mitchell County, Texas. This discovery led to a boom in oil exploration and production in the area. By the 1930s, the Permian Basin had become one of the major oil-producing regions in the United States, and it continued to grow in importance throughout the 20th century.

Enbridge acquired Tres Palacios natural gas storage facility in Texas for $335 million, adding approximately 35 Bcf of natural gas storage to their portfolio. The facility uses salt caverns for storage and has a gas header pipeline system that spans 62 miles and links to 11 major gas pipelines. Crestwood Equity Partners LP intends to divest its interests in Tres Palacios by the second quarter.

The U.S. natural gas pipeline network is a complex system of pipelines that transport natural gas from production areas to consumers across the country. The pipeline network consists of three main types of pipelines: gathering pipelines, transmission pipelines, and distribution pipelines. Gathering pipelines are small-diameter pipelines that transport natural gas from production wells to processing facilities or larger transmission pipelines. Transmission pipelines are large-diameter pipelines that transport natural gas over long distances, sometimes across multiple states. Distribution pipelines operate at low pressure and are located in or near urban areas. They are often referred to as "utility pipelines" because they are typically owned and operated by local gas utility companies.

Diamondback Energy, an independent oil and gas company, has successfully completed the acquisition of Lario Permian, marking the closure of two major deals in the fourth quarter of 2022. The company purchased two private operators in the Midland Basin for approximately $3.3 billion.

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