Lawsuit Claims Anadarko Cut Safety Budget, Staff Before Fatal Colorado Explosion

A shareholder lawsuit claims Anadarko Petroleum cut its safety budget and staff just months before a fatal house explosion in Colorado that was linked to an Anadarko well.

The lawsuit alleges that Anadarko was staying focused on keeping oil and gas flowing from older wells and was not focused on fixing any potential safety problems.

Anadarko's actions caused stock prices to fall, which hurt investors, according to the lawsuit that is being lead by the pension fund for the Philadelphia Iron Workers union. The pension fund owns Anadarko stock.

The fatal explosion killed two people and injured one in April 2017 in Firestone, Colorado. The explosion was caused by odorless, unrefined natural gas that seeped into the home's basement from a severed gathering line.

The lawsuit cites one former employee who claims Anadarko was aware that there was something unusual about the well because it should have been emitting methane but was not. The company kept the well in operation anyway, according to the former employee.

The lawsuit was filed last year in Texas, which is where Anadarko is based. The company said it does not comment on pending lawsuits.

Source:
Fuel Fix

Private Equity Firm Raises $3.25 Billion to Invest in Midstream Companies Across North America

Investment firm EnCap Flatrock Midstream announced the closure of its fourth investment fund after it collected $3.25 billion to pour into midstream companies in North America.

The private equity firm based in San Antonio said it surpassed its investment target of $3 billion in just six months.

The firm has raised about $9 billion from investors since 2008 to pour into midstream companies that operate pipelines, storage tanks, and other transportation infrastructure in the energy sector.

EnCap Flatrock Midstream is a venture capital firm that invests in businesses and assets in the midstream sector of North America's oil and gas industry, according to its website. Although based in San Antonio, the firm also has offices in Houston.

Source:
Fuel Fix
EnCap Flatrock Midstream

Investor Blackstone to Purchase Pipeline Assets in Permian for $2 Billion

Leading investment firm Blackstone Group will acquire pipeline company EagleClaw Midstream Ventures for approximately $2 billion, joining the rise of pipeline buyers in the booming Permian Basin.

In the transaction expected to close by end of July, Blackstone will acquire more than 375 miles of natural gas pipelines from EagleClaw, the largest privately held midstream operator in the Permian's Delaware Basin.

EagleClaw will keep its name and leading staff under the purchase and will operate as a Blackstone portfolio company.

“As we begin a new chapter, we will continue to deliver the same outstanding level of service our customers expect while we work with Blackstone to deploy additional capital and to expand our footprint in the Delaware Basin," said EagleClaw President and CEO Bob Milam.

"Blackstone has a deep understanding of the compelling fundamentals of the upstream and midstream economics in the Permian, an outstanding reputation as an investor in the energy sector and the scale to take EagleClaw to the next level. We are proud to have their support and look forward to a long and successful relationship," Milam added in a statement.

The Permian Basin is seeing a significant increase in activity and investment due to rising oil prices. According to Baker Hughes, the total number of rigs drilling in the Permian rose to 339 last week, which is the most it has been in more than two years.

Source:
Bloomberg
Blackstone Group