M&As this week: Eclipse Resources, Pieridae Energy, Enbridge

Eclipse Resources has entered a merger agreement with Blue Ridge Mountain Resources to form one of the biggest operating companies focused on the Utica shale operations.

The merger represents a combined entity value of $1.4bn and an equity value of $908m.

The stockholders of Blue Ridge will receive 4.4259 shares of Eclipse Resources for each share held.

Blue Ridge stockholders will own 60% of the outstanding common shares of the new company.

Both based in the US, Eclipse Resources is an oil and gas company, while Blue Ridge Mountain Resources is a natural gas exploration and production company.

The merger will consolidate the premier assets of both companies to increase production and revenue, while also offering midstream and downstream synergies.

Pieridae Energy has entered an agreement to purchase 100% issued and outstanding shares of Ikkuma Resources.

Ikkuma will divest its interests in Cardium light oil-focused Alberta Foothills properties to a new entity named ExploreCo, as part of the agreement. Ikkuma shareholders will hold a 100% share in ExploreCo.

Each Ikkuma shareholder will receive 0.1926 of a Pieridae common share and 0.1 of an ExploreCo share for each Ikkuma common share held.

Both based in Canada, Pieridae Energy is an oil and gas exploration and production company, while Ikkuma Resources is an oil and gas firm.

The transaction will give Pieridae ownership of an area of gas-prone reserve and resource production assets situated primarily in the central Alberta Foothills area. It will strengthen the company’s plans to acquire natural gas reserves and resources, while expanding its LNG business to the international markets.

Enbridge plans to acquire all of the outstanding public common units of Spectra Energy Partners (SEP) for $3.3bn.

Enbridge will offer 1.111 Enbridge common shares for each SEP common unit.

Based in Canada, Enbridge is a natural gas distribution and transportation company, while SEP is an investment firm based in the US and a subsidiary of Spectra Energy Corp.

Enbridge has simultaneously proposed to acquire all of the outstanding equity securities of other entities including Enbridge Energy Partners, Enbridge Energy Management and Enbridge Income Fund.

The transaction will strengthen SEP’s balance sheet, while helping Enbridge simplify and streamline its corporate structure.

Plains All American Pipeline and Magellan Midstream Partners have entered an agreement to divest their 50% share in BridgeTex Pipeline Company to Canadian pension fund OMERS for $1.44bn.

OMERS will acquire a 30% interest from Plains and a 20% interest from Magellan, as part of the agreement.

Plains will hold a 20% stake, while Magellan will hold a 30% stake in the BridgeTex crude oil pipeline, upon completion of the transaction.

Plains All American Pipeline is a company engaged in the transportation, storage and marketing of hydrocarbons, while Magellan Midstream Partners is engaged in the transportation, storage and distribution of refined petroleum products. Both companies are based in the US.

The proceeds from the divestment will help Plains and Magellan to fund their growth projects, while marking OMERS’ re-entry in the US midstream sector.