Deals this week: DCC Energy, Cenovus Energy, Hess Midstream Partners

DCC subsidiary DCC Energy has agreed to acquire LPG business in Hong Kong and Macau from Shell Gas (LPG) Holdings, a subsidiary of Royal Dutch Shell.

The deal implies a purchase consideration of $150.3m. The LPG business sells liquefied petroleum gas to domestic, commercial and industrial customers, and services the energy needs of more than 100,000 households in Hong Kong and Macau.

Upon the completion of the transaction, the LPG business will continue to operate under the Shell brand in both Hong Kong and Macau.

Scheduled for completion by the financial year ending 31 March 2018, the transaction will allow DCC Energy to expand its operations in Hong Kong and Macau.

Cenovus Energy has announced its plans to raise $1bn through the issue of 5.4% senior notes, due 2047, in a private placement.

The proceeds from the offering are intended to be used by the company to partly fund the cash consideration payable for the acquisition of assets in Western Canada from ConocoPhillips.

The offering is scheduled for completion on or before 7 April.

Hess Midstream Partners has announced the pricing and upsizing of an initial public offering (IPO). The company intends to raise $339.94m through the issue of 14.78 million units, at a price of US$23 per unit. The placement was upsized from 12.5 million units to 14.78 million units.

The underwriters, including ING Financial Markets, Scotia Capital (USA), SMBC Nikko Securities America, Barclays Capital, HSBC Securities (USA), and TD Securities (USA), have been granted a 30-day option to buy up to 2.2 million units. The company intends to list its units on the New York Stock Exchange under the symbol 'HESM'.

Goldman, Sachs & Co., Morgan Stanley & Co, Citigroup Global Markets, J.P. Morgan Securities, MUFG Securities Americas, and Wells Fargo Securities, are the joint book-running managers for the IPO, which is scheduled for completion on 10 April.

The amount raised from the offering is intended to be used by Hess Midstream to repay outstanding debt and for general working capital requirements.

Ineos Group has agreed to spend up to $250m for the acquisition of Forties Pipeline System (FPS) and associated pipelines and facilities from BP, through its subsidiary INEOS FPS.

Under the terms, Ineos Group will pay $125m in cash and settle up to $125m over seven years under an earn-out arrangement.

The 235-mile long FPS has a throughput of 450,000 barrels of oil per day and approximately 3,500t of raw gas a day.

Scheduled for completion in the third quarter of this year, the transaction will allow Ineos to extend its midstream assets portfolio in the UK North Sea.

Ultra Petroleum plans to raise $700m through the issue of senior unsecured notes, due 2022, in a private placement through its wholly owned subsidiary Ultra Resources.

The amount raised from the placement is intended to be used by Ultra Petroleum to support a comprehensive reorganisation plan of the company and its subsidiaries, and to pay certain fees, commissions and associated expenses.