Chesapeake offers senior notes
Chesapeake Energy Corp. on Thursday launched a public offering of $3 billion in senior notes. The company expects the notes to be issued in three separate series, one maturing in 2019, another maturing in 2022 and the last maturing in 2026. Chesapeake intends to use proceeds from the offering to repay debt, including a tender offer for $1.26 billion in senior notes due in 2015.
Chaparral deals to gain $150M
Chaparral Energy Inc. is set to sell its interests in two Texas basins for more than $150 million in cash, according to a regulatory filing. Chaparral disclosed separate deals Thursday with Scout Energy Group I LP and RKI Exploration and Production LLC for its ownership interests in the Delaware Basin and Eastern Shelf/Fort Worth Basin in the filing. The deals are expected to close by May 22. The properties currently produce about 2,300 barrels of oil equivalent a day. Chaparral has been trying to sell properties in different parts of Texas, Louisiana and Arkansas so it can focus on its Mid-Continent operations.
Groups seek to protect bird
Three conservation groups announced a legal challenge Thursday to win full protection for the lesser prairie chicken under the Endangered Species Act. The U.S. Fish and Wildlife Service last week decided to list the prairie chicken as “threatened,” but Defenders of Wildlife, WildEarth Guardians and Center for Biological Diversity contend special exemptions will allow for ongoing destruction of the bird and its dwindling habitat. The lesser prairie chicken is found in parts of five states, including Oklahoma, but the restrictions in last week’s ruling are expected to minimize its impact on energy production, agriculture and other activity. “This decision is a recipe for further declines of a rare and beautiful bird already teetering on the brink of extinction,” said Jason Rylander, senior attorney with Defenders of Wildlife. “The (wildlife) service has adopted unprecedented and sweeping loopholes that seriously undermine their ability to monitor the implementation and effectiveness of new and inadequate conservation programs, increasing the likelihood of further loss of prairie chickens and further habitat destruction.”
Laredo names new vice president
TULSA — Laredo Petroleum Inc. this week announced the promotion of Michael T. Beyer to vice president and chief accounting officer. Beyer, who has been with Laredo since 2007, has served as controller since 2012. “Michael has been an integral part of Laredo’s success for many years,” CEO Randy A. Foutch said. “His 11 years of experience in oil and gas accounting has been invaluable as Laredo has grown from a small private company to a publicly traded company with a multibillion dollar market capitalization. We are pleased to have someone with Michael’s expertise to head our accounting activities.”
$1.3M donated to state higher ed
ExxonMobil and its employees are donating $1.3 million to Oklahoma colleges and universities as part of the ExxonMobil Foundation’s matching gift program. The company’s employees, retirees, directors and surviving spouses last year contributed $352,700, which was matched with $913,200 in unrestricted grants from the ExxonMobil Foundation. The program distributed $44 million in 2013 to about 900 institutions nationwide. “The ExxonMobil Foundation has a long history of supporting a range of efforts to improve the quality of education in the United States,” said Suzanne McCarron, president of the ExxonMobil Foundation. “We are proud to build upon the generous support of ExxonMobil employees who are committed to investing in the future of young Americans and supporting institutions of higher learning.” Although grants are unrestricted, colleges and universities are encouraged to designate a portion to math and science programs supporting student engagement.
Pipeline company seeks bids
Southern Star Central Gas Pipeline Inc. has commenced a binding open season to additional firm transportation in its production and market areas. The proposed expansion will connect growing gas supplies to markets in Oklahoma, Texas, Colorado, Kansas, Missouri and Arkansas, as well as other intrastate and interstate pipelines. Bids must be received by May 7.
AEP CEO will remain on board
American Electric Power CEO Nicholas K. Akins will spend another year on the board for the Electric Power Research Institute. Akins was granted a one-year term extension, securing his place on the board until April 2015. AEP is the parent company of Tulsa-based Public Service Co. of Oklahoma.
Willbros reduces term loan debt
Willbros Group Inc. sold a service line and fabrication facility near Tulsa this week in a deal that included certain assets of its oil and natural gas segment’s downstream businesses. The buyer was an unnamed private company. The deal will allow Houston-based Willbros to reduce in term loan debt by $25 million.
Oil dips with weak Chinese data
The price of oil edged slightly lower from a five-week high Thursday after China reported weak monthly trade data and U.S. crude supplies rose substantially last week. By early afternoon in Europe, benchmark crude for May delivery was down 24 cents to $103.36 in electronic trading on the New York Mercantile Exchange. On Wednesday, the Nymex contract gained $1.04 to settle at $103.60 amid unrest in eastern Ukraine after adding more than $2 the day before. The last time it closed above $103 was on March 4. Brent crude, a benchmark for international oil prices, was down 60 cents to $107.38 a barrel on the ICE Futures exchange in London. Oil prices fell as Chinese trade numbers showed that exports contracted unexpectedly in March, shrinking by 6.6 percent from a year earlier while imports contracted 11.3 percent. Chinese imports of crude oil were also the lowest in five months, totaling 5.54 million barrels in March. The numbers highlight the gradual slowdown in China’s economic growth, which could result in lower demand for energy. The country’s leaders are struggling to hit a full-year target of 7.5 percent growth this year while reorienting the world’s second biggest economy away from trade and investment to one based on domestic spending.
From Staff and Wire Reports