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  1. Rice Energy acquires Vantage Energy

    Rice Energy Inc. (NYSE: RICE) has entered into a purchase and sale agreement to acquire Vantage Energy LLC and Vantage Energy II LLC (collectively, "Vantage Energy") for approximately $2.7 billion, including the assumption of debt. In connection with the acquisition, Rice Midstream Partners LP (NYSE: RMP) (RMP) will purchase the acquired midstream assets from Rice Energy for $600 million. The transaction is expected to close in the fourth quarter of 2016, subject to customary closing conditions. The E&P assets to be acquired by Rice Energy include approximately 85,000 net core Marcellus acres (includes approximately 5,000 net royalty acres, the majority of which are leased to Rice Energy) in Greene County, Pennsylvania, with rights to the deeper Utica Shale on approximately 52,000 net acres and 37,000 net acres in the Barnett Shale. Second quarter 2016 net production of the acquired assets was 399 MMcfe/d (approximately 65% Appalachia, 35% Barnett). The core midstream assets to be acquired by RMP include 30 miles of dry gas gathering and compression assets. As part of the transaction, Rice Energy will dedicate the acquired Pennsylvania acreage to RMP to provide gas gathering, compression and water services.   Transaction highlights Core acquisition with organic upside potential Expands high return inventory of drilling locations by 66% Leasehold is approximately 50% held or owned in fee Extends RMP's 20% distribution growth target through 2023 Immediately accretive and credit enhancing to both E&P and RMP Positions Rice Energy as a premier dry gas Appalachia company with 231,000 net acres, approximately 70% 2017 estimated production growth and 2017 estimated leverage of less than 2.5x Following this transaction, Rice Energy will control approximately 231,000 net acres in the Marcellus and Ohio Utica cores with an inventory of 1,164 drilling locations that generate average single well returns of approximately 95% at strip pricing. Similarly, Rice Midstream Partners will control one of the largest and most concentrated core dry gas acreage dedications in the Marcellus Shale, covering approximately 199,000 acres in Washington and Greene Counties. Daniel J. Rice IV, CEO, commented, "This deal represents the largest core dry gas Marcellus acquisition to date, one that is truly transformational for Rice Energy, Rice Midstream Partners and our respective shareholders. This acquisition adheres to our proven strategy of pursuing core shale gas acreage, leveraging our industry-leading technical shale team to deliver best-in-class well results and capturing a greater share of the value chain through our premier midstream services business. Our transaction financings are meant to strengthen Rice Energy's balance sheet even further, including positioning us to capture an additional 20,000 – 40,000 acres of leasehold adjacent to our existing position." Roger Biemans, CEO of Vantage Energy, said "Vantage, together with its three sponsors – Quantum, Riverstone, and Lime Rock – has assembled one of the largest and most attractive core dry gas positions in the Marcellus Shale.  We believe the combination of Rice and Vantage creates the premier natural gas company in the country." Transaction terms and financing Pursuant to the PSA, Rice Energy Appalachia LLC (REA), a wholly-owned subsidiary of Rice Energy, will acquire from Vantage Energy Investment LLC and Vantage Energy Investment II LLC (collectively, the "Vantage Sellers") their ownership interests in Vantage Energy for aggregate consideration at closing of approximately $2.7 billion. Total consideration consists of approximately $1.02 billion in cash, the assumption and retirement of assumed net debt of approximately $700 million and the issuance of membership interests in REA that are immediately exchangeable into approximately 39.1 million shares of common stock of Rice Energy, valued at approximately $980 million. The issuance of membership interests in REA will allow for tax deferral of the equity portion of the consideration paid to the Vantage Sellers. Concurrent with Rice Energy's acquisition of Vantage Energy, Rice Energy entered into a purchase and sale agreement with RMP, pursuant to which RMP will purchase the midstream assets associated with the Vantage acquisition from Rice Energy for aggregate consideration of $600 million. RMP intends to fund the midstream asset acquisition through borrowings under its revolving credit facility and potential equity and debt financings prior to closing, or the issuance to Rice Energy of up to $250 million of RMP common units representing limited partner interests. These acquisitions are expected to close concurrently in the fourth quarter of 2016, subject to customary closing conditions. Evercore acted as financial advisor to Rice Energy's Board of Directors. Wells Fargo Securities LLC and Barclays Capital Inc. provided committed financing to Rice Energy and RMP's upsized revolving credit facilities. Latham & Watkins LLP served as legal counsel to Rice Energy. Simmons & Company International | Energy Specialists of Piper Jaffray served as exclusive financial advisor to the conflicts committee of RMP and provided a fairness opinion for the midstream asset acquisition by RMP. Akin Gump Strauss Hauer & Feld LLP served as legal counsel to the conflicts committee of RMP. Goldman Sachs acted as financial advisor to the Vantage Sellers. Vinson & Elkins LLP served as legal counsel to the Vantage Sellers. Guidance Rice Energy has updated its 2016 capital budget and guidance pro forma for the anticipated fourth quarter 2016 transaction closing. Our Marcellus drilling and completion capital investments increased by $40 million to reflect ongoing activity on the acquired acreage. Our land capital budget increased by $35 million, as a result of anticipated successful organic leasing and leasehold costs associated with the acquired acreage. 2017 preliminary outlook In addition, Rice is providing a preliminary 2017 outlook pro forma for the Vantage Energy acquisition. We expect our drilling and completion budget to be within a range of $950 – $1,125 million. Furthermore, we expect 2017 net production to be within a range of 1,280 – 1,355 MMcfe/d, which is approximately 70% above our increased 2016 estimated net production, based on the mid-point of guidance.

    Online Articles

    Online Articles

    Mon, 26 Sep 2016

  2. Tennessee mayors preview waste-to-energy plant

    The world's largest waste-to-energy downdraft gasification plant is being constructed in Tennessee - area mayors were invited to take a look at the facility in preparation for full startup early next month.

    Online Articles

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    Tue, 27 Sep 2016

  3. Tenaska Acquires 470-megawatt Wind Development Portfolio

    The projects include 270 MW in Minnesota and 200 MW in North Dakota.

    Online Articles

    Online Articles

    Tue, 27 Sep 2016

  4. AfDB selected as lead financial adviser for US$4 billion Batoka Gorge hydropower project in Africa

    Zambia and Zimbabwe have appointed the African Development Bank (AfDB) as lead financial adviser for the construction of the 2,400-MW Batoka Gorge hydropower project, according to Zambezi River Authority (ZRA) Chief Executive Officer, Munyaradzi Munodawafa.  

    Online Articles

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    Wed, 28 Sep 2016

  1. Waste-to-energy power plant nears operation in Tennessee

    Online Articles

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    Mon, 26 Sep 2016

  2. GE and Mainstream to develop Vietnamese wind power

    GE Energy Financial Services and Mainstream Renewable Power have signed an agreement to develop, build and operate large scale wind power plants in Vietnam.

    Online Articles

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    Wed, 28 Sep 2016

  3. Dam construction complete at Iran's 450-MW Rudbar Lorestan hydropower plant

    The China Gezhouba Group Co. Ltd. reached a significant milestone last week when it completed construction of a dam associated with the 450-MW Rudbar Lorestan hydropower plant in Iran.

    Online Articles

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    Wed, 28 Sep 2016

  4. Solar Farm developer offers 5.5GW pipeline of 20MW-80MW size solar power projects

    The company has built on this success by hiring top solar power industry executives along with solar farm development professionals and is now developing approximately 10 Gigawatts of Solar Farm projects per year across thirty (30) states.

    Online Articles

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    Mon, 26 Sep 2016

  5. On-site solar+storage financing scheme introduced

    Sharp has introduced a financing scheme for US-based commercial and industrial on-site solar photovoltaic systems which include its energy storage solution.

    Online Articles

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    Tue, 13 Sep 2016

  6. 43% of PE firms planning global oil and gas acquisitions in 2017

    Capital requirements for the oil and gas sector are high; the shortage of bank-led debt financing is offering plenty of scope for Private Equity (PE) firms to invest and provide more alternative financing sources than historical options to fund the world’s future energy needs.

    Online Articles

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    Wed, 21 Sep 2016

  7. Senegal’s first IPP solar power project wins funding

    Construction financing has been finalized for Senegal's first independent power producer (IPP) solar photovoltaic plant. 

    Online Articles

    Online Articles

    Thu, 22 Sep 2016

  8. World Bank makes US$390 million loan Pakistan's Tarbela hydroelectric plant extension

    The World Bank has approved US$390 million in additional financing to be used by Pakistan's Water and Power Development Authority for extensions of its Tarbela hydroelectric plant.

    Online Articles

    Online Articles

    Wed, 21 Sep 2016

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