Midstream Implications of Surge Energy’s $420 MM Grenadier Purchase: Surge Energy bought $420 million worth of Permian assets from Grenadier Energy Partners II (GEP II), the company announced Sunday (Jan. 31). The deal brings potential upside for midstream companies with exposure to the two companies including DCP Midstream (DCP), EnLink (ENLC), and privately held West Texas Gas. Targa’s (TRGP) dominant role in processing legacy Surge volumes could benefit from a healthier entity, but might also lose out if capex shifts to the acquired acreage. (GEP II), (DCP), (ENLC), (TRGP)
Repsol Sees Declines on Northeast PA Gas System: Marcellus gas recovery is in steady decline on the REPPY-Repsol gathering system in northeastern Pennsylvania, losing market share to competing producers and midstream systems in the Northeast Pennsylvania sub-region.
North American Energy Indicators and Equity Prices