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Permalink Reply by Steve on January 15, 2015 at 15:34

I guess this is a good thing for the local economy but, as a landowner, I would rather they wait and extract my minerals at a time when prices are higher, particularly since the wells deplete so quickly.

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Permalink Reply by Two Dogs, Pirate on January 15, 2015 at 15:40

Steve, is your lease with Comstock?

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Permalink Reply by Skip Peel - Mineral Consultant on January 16, 2015 at 4:41

Industry talk of EP Energy E&P Company, LP also restarting Haynesville Shale drilling program.  Many will recall the company under their previous name, El Paso.  The bulk of their HA acreage is in DeSoto Parish.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellorg6?...

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Permalink Reply by Cayman Bum on January 21, 2015 at 7:18

Hi Skip, regarding what Steve said, since EP is owned by KM they are earning more revenue in transportation, gathering etc. EP would not just be looking at nat gas price as under KM Petrohawk joint venture transport and gathering paid to KM was as much as $0.91/Mcf for month month.. So there is nearly a $1 revenue potential for KM per Mcf than just the nat gas price they are earning versus the mineral owner revenue only being based off off nat gas price.

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Permalink Reply by Skip Peel - Mineral Consultant on January 21, 2015 at 7:29

HI Cayman, it was my understanding that KMI retained the pipeline, treatment and storage assets of El Paso and sold the exploration & production subsidiary.  Here is a cut and paste of some articles published around that time.

El Paso Corporation has been acquired by KINDER MORGAN, INC., which trades as KMI on the New York Stock Exchange. With the close of the transaction, Kinder Morgan is now the largest midstream energy company in North America with an enterprise value of nearly $100 billion. For more information on Kinder Morgan's approximately 73,000 miles of pipelines and 180 terminals, visit www.kindermorgan.com.

EL PASO PIPELINE PARTNERS (NYSE: EPB) will continue to operate under its current name. For more information go to http://www.kindermorgan.com/pages/investor/epb_overview.aspx.

As previously announced, EP Energy (El Paso Exploration & Production Company) has been sold. For information on EP Energy, proceed to www.epenergy.com.

The El Paso Corp. announced on Friday it is selling its oil-and-gas exploration-and-production business -- the EP Energy Corp. (EP Energy) -- for about $7.15 billion to a consortium led by Apollo Global Management LLC.

Apollo was joined by Access Industries Inc., Riverstone Holdings LLC, and other unnamed firms in entering into a definitive agreement to buy EP Energy under certain conditions.

Apollo is acquiring a company with an impressive portfolio of valuable natural resource assets, a talented management team and a remarkable group of highly skilled employees, Josh Harris, Apollo senior managing director said in a statement.

This agreement is dependent upon the completion of Kinder Morgan Inc.'s proposed acquisition of El Paso, which is expected to close in the second quarter, subject to the customary regulatory approvals. Kinder Morgan entered into an agreement to buy El Paso for about $20.7 billion last October.

Kinder Morgan, a leading energy-transportation and storage company in North America, would more than double the size of its pipeline network by purchasing El Paso.

We are pleased that this pending sale will allow the El Paso exploration and production assets to be kept intact as a single entity, said Kinder Morgan Chairman and CEO Richard D. Kinder. We thank the EP Energy employees for their efforts to build a strong company and in facilitating the sales process, he added.

The acquiring consortium is planning to finance this deal with $5.5 billion in debt, $3.5 billion in bonds and $2 billion in a loan, Bloomberg reported.

 

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