Energy index contracts slightly
The Oklahoma Energy Index contracted slightly on data collected in May because of falling natural gas prices, but it still reveals positive signs for the industry. The index’s Oklahoma Energy Portfolio has returned growth of 21 percent over the past seven months, since the Dow Jones Industrial Average closed above 16,000 points for the first time. The energy industry as a whole is up 14.1 percent in that span, Oklahoma City University economist Russell Evans said. The hypothetical index includes equity assets of Oklahoma companies. “Large corporations, as well as independent operators in Oklahoma, have helped the state become the fourth-largest natural gas producer in the nation and the fifth largest in oil production,” said Chris Mostek, vice president of energy lending for Bank SNB. “We have Oklahoma oil and natural gas companies to thank for not only the growth in the industry but also for strengthening the state’s economy.” The energy index is a comprehensive measure of Oklahoma’s oil and gas production economy. It tracks industrial growth rates and cycles. The index is a joint project of the Oklahoma Independent Petroleum Association, Bank SNB and OCU’s Steven C. Agee Economic Research and Policy Institute.
Deal called substantial premium
A leading shareholder advisory has recommended Equal Energy Ltd. shareholders vote in favor of the company’s proposed acquisition by Tulsa-based Petroflow Energy Corp. Institutional Shareholder Services Inc. said the deal represents a “substantial premium” on Equal’s unaffected share price, Equal announced Thursday. “The ISS recommendation is a powerful third party endorsement from a leading independent proxy adviser,” Equal Chairman Michael Doyle said. “ISS considered all public comments, including criticisms of the transaction, and came to a conclusion that the transaction is in the best interest of shareholders.” Petroflow has offered to buy all outstanding Equal shares for $5.43 each, but the deal must be approved by two-thirds of Equal’s shareholders.
Official joins SandRidge Energy
The vice president of regulatory affairs at the Oklahoma Independent Petroleum Association is taking a similar job at SandRidge Energy Inc. Jeff Wilson has joined the governmental affairs team at SandRidge, the association announced Thursday. Wilson joined OIPA in 2010. “It has been a true honor and a pleasure during my time at the OIPA to work with and become friends with so many outstanding leaders in the energy industry,” Wilson said. “The good news is I will continue to cover Oklahoma for SandRidge and will remain active at the Oklahoma state capitol and within the OIPA.” OIPA Chairman Ronnie Irani said the association has formed a search committee to find Wilson’s successor.
Southern Star develops pipeline
Southern Star Central Gas Pipeline Inc. is developing a new interstate natural gas pipeline that will connect the SCOOP play to the Bennington pipeline hub in Bryan County, parent company Southern Star Central Corp. announced this week. Service requests in an ongoing open season will determine whether there is sufficient market demand for the project, dubbed Sooner Trails. The nonbinding open season is meant to help gauge interest in the proposed pipeline, which would provide firm transportation service to attractive markets.
Allegiance earns deal of year
Dallas-based Allegiance Capital earned Energy Deal of the Year honors in the New York Champions M&A competition for directing the sale of pipeline contractor Otis Eastern Services to Argonaut Private Equity. Tulsa-based Argonaut is the private equity division of billionaire George Kaiser’s family office. Terms of the deal were not disclosed. “This was a very complicated deal with numerous challenges along the way, but our bankers did a great job of overcoming issues, identifying the perfect buyer, and getting the deal closed,” Allegiance founder David Mahmood said. Allegiance was one of more than 350 nominees for the award.
Price of oil falls on exchange
The price of oil fell Thursday as fears diminished somewhat over supply disruptions from Iraq. Benchmark U.S. crude for August delivery slipped 66 cents per barrel to $105.85 on the New York Mercantile Exchange. Brent crude, used to price international oils, eased 79 cents to $113.21 a barrel in London. While concerns linger about violence in Iraq affecting global crude supplies, oil production and exports from the giant fields clustered in the country’s south remain unaffected. July exports are expected to average about 2.57 million barrels per day, Platts forecasts.
From Staff and Wire Reports