In the last week, two very important energy mergers took place that are raising eyebrows. McDermott finished up its deal with CB&I and Talos Energy acquired Stone Energy, which has now earned it a spot on the public markets. Both of these events took place on the 10th of May, and along with this news, Buckeye decided to cancel its Southern Gateway open season, which probably means that the project is coming to an end for the time being. BP Energy Partners also made the news by revealing that they were preparing to raise $475 million as part of a private equity fund.
McDermott International Inc., which is headquartered in Houston, shut down its $6 billion merger that was taking place with Chicago Bridge and Iron Company NV. This means that Iron Company NV is no longer on the public markets where it was dropping market capitalization year after year. McDermott International is now planning to make a move into a new facility in the Houston area after its two year lease runs out in the location its headquarters sit at the moment. The company believes that the new facility will be a better fit since it is now a much larger company than it was before.
Talos Energy also made a move to close its merger with Stone Energy Corp., which had placed the offshore exploration company on the public markets. Talos and previous Stone shareholders now share the stock of the combined company. Buckeye Partners LP, another Houston-based company, chose to partner with Phillips 66 and San Antonio-based Andeavor instead of moving forward with its open season related to the Southern Gateway pipeline project. Last, but not least, Enbridge Inc. has seen a delay of the construction of its Valley Crossing Pipeline, which is a 1,000 foot section of piping that will be crossing the border that is shared by Mexico and the United States. The exact location of the piping will be some miles east of the Rio Grande, and a spokesperson for Enbridge Inc. has stated that it is expected that the company will get to the border crossing by the close of the month.