Crude Drops as Buying and Selling Continues
As crude prices continued to decline through the month of July, businesses involved in the Eagle Ford continue to buy, sell and take advantage of all opportunities to stay afloat during this lean time.
Related: Fierce Competition in the Eagle Ford
Following is a summary of some of the Eagle Ford deals in recent weeks.
NextEra Energy Partners LP will buy seven natural gas pipelines in Texas for $2.1 billion from NET Midstream. These new assets serve power producers and municipalities in South Texas, processing plants and producers in the Eagle Ford shale play and provide natural gas transportation for shale gas being shipped to Mexico. The Eagle Ford assets include:
- The NET Mexico Pipeline: a 120-mile, 42-in.-diameter pipeline that delivers low-cost natural gas from the Eagle Ford shale play to the Mexico border
- The Eagle Ford Pipeline: a 158-mile, large-diameter natural gas pipeline The system’s connection to the Agua Dulce Hub, with access to multiple pipeline interconnects, as well as Mexican markets, uniquely positions the system to attract additional Eagle Ford shale volumes.
Lonestar Resources Ltd. has agred to a a joint development agreement (JDA) with Dallas’ IOG Capital LP. which will add an $100 million for its Eagle Ford drilling efforts fund and develop additional farm-in opportunities such as Horned Frog, a 3,614-acre leasehold recently acquired in La Salle County, Texas
Nustar Energy will lease space at the Port of Corpus Christi and plans to develop a private marine loading dock at its North Beach Terminal, which will expand the company’s ability to ship out more barrels of crude oil from the Eagle Ford Shale. The new dock should be completed in the second quarter of 2017 and will have the capacity to load up to 30,000 barrels per hour.
Goodrich Petroleum Corp. announced it will sell a portion of its Eagle Ford Shale leases in LaSalle and Frio Counties in a $118 million deal. The company declined to say who bought the acreage but acknowledged it will retain about 17,000 net acres of its undeveloped leases for future development or sale. The deal is expected to close on Sept. 4