GE - Vess Oil Acquire Woodbine & Eagle Ford Acreage From Enervest - $108 Million

January 9, 2014 R.T. Dukes

GE and Vess Oil have partnered to acquire 13,000 net acres in Brazos, Grimes, and Madison counties from EnerVest for $108 million.

The acreage is producing from the Woodbine and prospective for the Eagle Ford Shale.

This is the third partnership GE Energy Financial Services and Vess Oil have entered. Previous partnerships have acquired reserves in Brazos County, TX, and Kansas. A separate Vess Oil affiliate also operates Woodbine acreage in the Kurten Field adjacent to the assets acquired here.

“I am eager to launch our program and look forward to expansion opportunities predicated on demonstrable results.”

— Ronnie Nutt, COO of Vess Oil

Read the full release at businesswire.com

Eagle Ford Spending Could Reach $30 Billion in 2014

January 8, 2014 R.T. Dukes

Eagle Ford spending could stretch to new heights this year.

Eagle Ford oil production will surpass 1 million b/d early this year (combined oil and condensate production already has) and strong growth won't stop there.

GlobalData expects development spending could reach as high as $30 billion. If that happens, Eagle Ford oil production won't just reach 1 million b/d, it'll blow right past it. Other research organizations estimate spending somewhere in the $20-25 billion range.

If spending ends up closer to $20 billion, it will tie directly to cost savings the industry is capturing across the board and not necessarily due to less activity.

“With over 250 rigs operating in Eagle Ford, companies are expected to spend approximately $30 billion in capital this year, and nearly all of the major operators are projecting at least five years’ more drilling at the current rapid pace. The most efficient operators in sweet spots are achieving over 100% pre-tax Internal Rates of Return (IRR) with conservative pricing.”

— Taryn Slimm, GlobalData’s Lead Analyst covering US Onshore

B/E Aerospace Acquires LT Energy Services & Wildcat Wireline for $265 Million

January 6, 2014 R.T. Dukes

B/E Aerospace describes itself as the "worldwide leading manufacturer of aircraft passenger cabin interior products..." and the company now can boast about its Eagle Ford equipment rental and wireline businesses in South Texas.

B/E acquired LT Energy Services, an equipment rental company, and Wildcat Wireline who is also active in the Eagle Ford. The company spent ~$265 million to acquire the two companies.

“The acquisitions of LT, headquartered in Houston, TX, and Wildcat, headquartered in Marshall, TX, continues our initiative to expand our consumables management segment into the oilfield equipment rental, logistics and services business. The acquisition of LT establishes a new geographical base of operations in the Southwestern United States.....The acquisition of Wildcat expands the Company’s service offerings in both locations.”

— Amin J. Khoury, CEO

The two businesses had combined revenue of $125 million for the 12-month period ending September, 30, 2013.

Read the full news release at beaerospace.com

Kinder Morgan & Magellan Expanding Eagle Ford System to Move Anadarko Crude & Condensate

January 3, 2014 R.T. Dukes

Double Eagle Pipeline Eagle Ford System Map

Double Eagle Pipeline, a partnership between Kinder Morgan and Magellan Midstream, is expanding to move more crude and condensate to the Houston Ship Channel.

Double Eagle Pipeline has signed an agreement with Anadarko Petroleum to extend its pipeline system and connect with the KMCC Pipeline to move crude to the Houston Ship Channel.

Also read: Kinder Morgan Expanding Its Eagle Ford Crude & Condensate Pipeline Into Karnes County

Double Eagle is expected to spend approximately $45 million to add 160,000 bbls of storage and add a pump state at Gardendale, as well as build 10 miles of pipeline connecting the system to the KMCC System in Karnes County.

“We are pleased that customer demand on the Double Eagle system is continuing to grow,” said Michael Mears, Magellan’s chief executive officer. “The increased connectivity for the Double Eagle system is in direct response to our customers’ desire to more efficiently supply additional condensate barrels to the Houston Ship Channel.”

Kinder Morgan's KMCC and Double Eagle System Map

To service the Double Eagle addition, Kinder Morgan plans to add 240,000 bbls of storage at the KMCC's Helena Station.

Through Kinder Morgan's KMCC Pipeline oil moves to delivery points in the Houston Ship Channel or the Phillips 66 Sweeney Refinery in Brazoria County, TX.

The KMCC pipeline system has capacity of 300,000 b/d and has been in operation since mid-2012.

About Double Eagle Pipeline

The Double Eagle Pipeline includes 140 miles of 12-inch pipeline connecting to an existing 50-mile, 14- and 16-inch pipeline segment owned by Kinder Morgan extending from Three Rivers, Texas, to Magellan’s marine and storage terminal in Corpus Christi, Texas. The capacity of the pipeline is 100,000 barrels per day, but can be expanded with additional pumps.

Plains All American Expanding Eagle Ford Fractionation & Condensate Stabilization

January 2, 2014 R.T. Dukes

Plains All American plans to spend $120 million to construct a new natural gas liquids (NGL) fractionator and expand its condensate stabilization facility in South Texas.

The new fractionator will be located near the company's Gardendale facilities in La Salle County, TX.

The fractionator is supported by third party commitments and will have capacity of 15,000 b/d of Y-Grade and off-spec Y-Grade products.

Also Read: Plains & Enterprise Announce Eagle For JV Pipeline Expansion

Plain All American's existing Gardendale truck and rail infrastructure will be upgraded to handle unloading and loading of Y-Grade products. Plains will also build 80,000 bbls of storage for the NGL products

The condensate stabilization train will be the third in the area and will provide approximately 40,000 barrels per day of incremental capacity. Total capacity will be 120,000 b/d when it is completed.

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