American Oil and Gas Reporter - August 2022 - 20

IndustryDigest
Ring Energy Inc. Buys
Assets From Stronghold
THE WOODLANDS, TX.-Ring
Energy Inc. has entered an agreement to
acquire the assets of Stronghold Energy
II Operating LLC and Stronghold
Energy II Royalties, LP, most of which
are located in Crane County, Tx. and
focused on developing about 37,000 net
acres in the Permian Basin's Central
Basin Platform. Ring notes that the
privately-held Stronghold is majorityowned
by Warburg Pincus LLC.
According to Ring, consideration for
the transaction consists of:
· $200 million in cash at closing;
· $15 million deferred cash
payment due six months after closing;
· $20 million of existing
Stronghold hedge liability; and
· $230 million in Ring equity based
on a 20-day volume weighted average
price of $3.60 a common share as of
June 30, 2022, all of which will be
issued to the owners of Stronghold.
Ring says the transaction provides a
proven, high-quality asset base with
substantial, capital efficient and low
break-even-cost inventory. The
company predicts the acquisition will
almost double fourth quarter 2022 sales
volumes from the midpoint of the
company's fourth quarter guidance.
Ring adds that it projects the transaction
will increase proved reserves by more
than 80%, including proved developed
reserves by approximately 90%; and
grow its operating footprint 56% to
more than 100,000 net acres.
Ring adds that the acquisition will
grow its inventory of high rate-of-return
projects by providing more than:
· 200 low-cost and low-risk drilling
locations;
· 200 identified low-cost, high rateof-return
recompletions in target rich,
stacked pay areas; and
· 100 low-cost, low-risk step out
locations. ❒
BKV Corp. Obtains
Barnett Shale Assets
DENVER-Subsidiaries of BKV
Corp. have closed on a $750 million
purchase of natural gas upstream and
associated midstream infrastructure in
North Texas' Barnett Shale from
ExxonMobil subsidiaries XTO Energy
Inc. and Barnett Gathering LLC.
20 THE AMERICAN OIL & GAS REPORTER
BKV says it has acquired about
160,000 total net acres in the Barnett,
primarily in Texas' Tarrant, Johnson and
Parker counties. The upstream assets
include low decline wells and high
average working interests of
approximately 93% in more than 2,100
wells with operating positions. The
transaction also includes roughly 750
miles of gathering lines, compression
and processing midstream
infrastructure, BKV describes.
BKV Chief Executive Officer Chris
Kalnin says the acquisition advances the
company's goals. " We are excited to
welcome approximately 130 new
employees to our team, expand our
footprint in the Barnett, and move one
step closer toward the safe and
profitable production of net-zero natural
gas, " he says.
When the deal closes, the company
says its total production and reserves
will reach approximately 900 million
cubic feet equivalent a day and 5.8
trillion cubic feet equivalent a day,
respectively. BKV mentions it has more
than 7,500 producing wells across
487,000 net acres, and its natural-gasfueled
power plant in Temple, Tx.,
produces a heat rate of 7,000 Btu/kWh
at a capacity of 760 MW+.
" We are excited to get started and
build upon the strengths and legacy of
the XTO team as we drive future growth
in the Barnett, " affirms Nick Kunze,
BKV vice president of operations in the
Barnett. " The extensive synergistic
opportunities already in place allow us to
hit the ground running, such as working
toward certifying responsibly sourced
gas at the wellhead through a credible
third party and offering additional access
to premier Gulf Coast markets. " ❒
Momentum Midstream
Buys Midcoast Assets
HOUSTON-Press accounts indicate
that privately-held Momentum Midstream
has reached a $1.3 billion deal to buy
Midcoast Energy LLC's midstream
Haynesville Shale assets in East Texas.
Midcoast Energy notes that its
midstream services included gathering,
compressing, cryogenic recoveries,
dehydrations, carbon dioxide and
hydrogen sulfide sweetening,
condensate stabilization and marketing.
The company says it has more than
3,600 miles of natural gas and natural
gas liquids pipeline, with much of it in
the East Texas Basin.
Media reports say Momentum's
acquisition is enabled with financing
from private equity provider EnCap
Flatrock Midstream. ❒
Gas Storage Volumes
Climb 206 Bcf, Still Trail
Five-Year Averages
WASHINGTON-Underground
natural gas storage in the United States
stood at 2.457 trillion cubic feet on July
29, 12.1% below the five-year average,
according to the U.S. Energy Information
Administration. That was up 206 billion
cubic feet from the 2.251 Tcf in storage
on June 24, which was 12.5% below the
five-year average. The July 29 storage
number was 268 Bcf lower than a year
ago, when gas storage stood at 2.725 Tcf.
Gas storage in the East Region was
549 Bcf on July 29, 12.3% below the
five-year average, and 88 Bcf more than
on June 24, when storage stood at 461
Bcf, 12.4% below the five-year average.
East Region gas storage on July 29 fell
52 Bcf from a year ago, EIA reports.
In the Midwest, gas storage stood at
643 Bcf on July 29, 9.3% beneath the
five-year average and 108 Bcf more
than the 535 Bcf in storage on June 24,
which was 11.3% below the five-year
average. July 29 Midwest gas storage
was 74 Bcf less than a year ago.
In the Mountain Region, EIA
continues, gas storage was 147 Bcf on
July 29, 17.4% below the five-year
average and 13 Bcf more than the 134
Bcf stored on June 24, which was
15.2% below the five-year average. Gas
storage in the Mountain Region was 37
Bcf less than a year ago.
The Pacific Region's gas in storage
was 253 Bcf on July 29, 7.3% below the
five-year average and 18 Bcf more than
the 235 Bcf stored on June 24, which
was 11.7% below the five-year average.
Pacific Region gas storage on July 29
was up 9 Bcf from a year ago.
In the South-Central Region, gas
storage levels on July 29 were 865
Bcf, 14.1% below the five-year
average and 21 Bcf less than the 886
Bcf in storage on June 24, which was
13.1% below the five-year average.
The July 29 gas storage level for the
South-Central Region was down 114
Bcf from a year ago. ❒
American Oil and Gas Reporter - August 2022

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