Southern Union shareholders approve merger with Energy Transfer

DALLAS, Texas. - Southern Union Co. shareholders on Dec. 9 overwhelmingly approved a $9.4 billion merger with Energy Transfer Equity LP, ending Tulsa-based Williams Cos. Inc.'s chance of gaining reconsideration for its lower bid to buy the Houston-based pipeline company.

Williams, however, still has a shot at buying some of Southern Union's pipeline assets after the merger.

"Obviously, Williams has shown interest in the assets in the past," company spokeswoman Julie Gentz said.

"While we can't speculate on any future actions, Williams is always looking at strategic and financially disciplined growth opportunities."

Energy Transfer CEO Kelcy Warren said last month that the Dallas-based ETE would not rule out a later deal with its former bidding rival.

Eagle Rock LP agrees to acquire Crow Creek Energy for $318 million

HOUSTON, Texas - Oil and gas company Eagle Rock Energy Partners LP (Nasdaq: EROC) said before the market open on April 13 that it will buy Crow Creek Energy for $318 million in cash and stock to tap natural gas resources in Oklahoma, Texas and Arkansas.

The company will pay $303 million by issuing shares and $15 million of cash. It will also assume $207 million in debt.

"The Crow Creek acquisition provides greater scale and development potential to our upstream business," Chief Executive Joseph Mills said.

Houston-based Eagle Rock said it estimates the Crow Creek Energy properties to contain about 268 billion cubic feet equivalent of proved reserves as of Dec. 31, 2010. The proved reserve base is 80 percent natural gas.

Net production from the Crow Creek Energy properties in the first quarter of 2011 was about 47 million cubic feet equivalent per day.

Crow Creek Energy is a portfolio company of Natural Gas Partners VIII LP. After completion of the deal, Natural Gas Partners' stake in Eagle Rock will increase to about 40-45 percent from 24 percent.

Shares of EROC on April 13 closed at $11.38, up $1.32. (12.9 percent) on Nasdaq.

Buckeye Partners to buy BP assets for $225 million

EMMAUS, Pa. - Buckeye Partners LP said on March 18 that it has agreed to acquire 33 refined petroleum products terminals and about 1,000 miles of pipelines from BP for about $225 million.

The terminal and pipeline assets are spread across the midwestern, southeastern and western U.S.

Buckeye's proposed acquisition includes BP's 50 percent stake in Inland Corp, which represents $60 million of the purchase price and is subject to approval by Inland's other shareholders.

Buckeye expects the deal to close in the second quarter.

BP has been selling off assets aggressively to help pay for the Gulf oil spill. The British oil company expects to pay nearly $40 billion to handle the spill. In addition to suspending its dividend and selling bonds, the company has sold off nearly $22 billion in assets. It plans to shed up to $30 billion in company assets by the end of 2011.

Enterprise Products makes $2.41 billion offer for Duncan Energy

HOUSTON, Texas - Enterprise Products Partners LP (NYSE: EPD) has offered to acquire Duncan Energy Partners LP (NYSE: DEP) in an all-unit deal valued at about $2.41 billion.

Such an acquisition would see the web of oil-and-gas pipeline and processing companies controlled by the family of late Texas billionaire Dan Duncan, who died last year, further consolidated.

Enterprise owns Duncan's general partner and about 58 percent of Duncan's common units. Late last year, Enterprise merged with Enterprise GP Holdings LP.

Duncan has "received Enterprise's merger proposal and will begin our review process," said William A. Bruckmann III, chairman of the audit, conflicts and governance committee of DEP’s general partner.

Enterprise's results have improved in recent quarters thanks to its $3.3 billion merger with Teppco Partners LP in late 2009, which created one of the U.S.'s biggest pipeline companies. Enterprise is increasing its focus on developing pipeline projects serving the Eagle Ford and Haynesville shale gas fields in Texas and Louisiana.

Advances in technology and increased investment have led to surging natural-gas supply as companies tap resources trapped in shale rock formations.

Earlier this month, Enterprise reported its fourth-quarter profit soared, helped by production growth in shale regions and increasing demand for natural-gas liquids. Duncan's earnings for the period rose 7.8 percent.

Enterprise units closed on Feb. 22 at $43.70, while Duncan finished at $32.56, compared with the $41.71 offer price. Then came the offer after the close of the market. On Feb .23, DEP closed at $39.57 a unit, up $7.01. EPD closed on Feb. 23 at $42.97, down $0.73.