American Airlines adds routes
American Airlines and US Airways on Friday announced the addition of new regional service this summer from Charlotte Douglas International Airport to Will Rogers World Airport in Oklahoma City and Tulsa International Airport, adding two new routes to American’s network this summer. Flights operated by regional partner Mesa Airlines will leave Oklahoma City for Charlotte twice a day, at 7:15 a.m. and 1:40 p.m. The new service, which begins July 2, will provide customers in Oklahoma with additional access to the combined carrier’s network, with nonstop connections from Charlotte to destinations throughout the U.S., Europe and Latin America. Charlotte is American’s second largest hub.
Devon takes on Eagle Ford Shale
Devon Energy Corp. is ready to move into south Texas’ Eagle Ford shale. Devon on Friday completed its $6 billion acquisition of 82,000 net acres in the emerging oil play from GeoSouthern Energy. “Our Eagle Ford acquisition is one of several bold steps we have recently taken to upgrade our portfolio and improve the growth trajectory and profitability of our business,” CEO John Richels said. Devon intends to invest about $1.1 billion in the Eagle Ford to drill more than 200 wells. The company expects its daily production in the play to average as much as 80,000 barrels of oil equivalent this year.
American Energy offers notes
American Energy-Utica LLC said Friday it has closed on its offering of $750 million of seven-year 3.5 percent convertible subordinated notes that priced last week. American Energy-Utica is an affiliate of Oklahoma City-based American Energy Partners LP, which Aubrey McClendon formed last year. The offering was raised from its initial amount of $500 million. The notes are convertible into common stock when the company completes an initial public offering. In addition to the equity offering, the company also has received an additional $500 million of borrowing capacity under its senior credit facility led by GSO Capital Partners. The total borrowing capacity now is $950 million. American Energy-Utica said it plans to use the net proceeds from the financing deals to pay for its planned purchase of leasehold in Ohio’s natural gas-rich Utica shale and for drilling and development expenses.