Inergy Buys Rangeland Energy, Petrobras Faces Fine: Energy Biz Wrap
Inergy Midstream (NYSE:NRGM) purchases Rangeland Energy for $425 million. The latter owns and operates the COLT crude oil storage, rail terminal, and pipeline facilities in North Dakota’s Bakken and Three Forks shale areas. The buyer will sell $225 million worth of common units in a private placement and also has secured committed unsecured debt financing to fund the transaction.
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Petrobras (NYSE:PBR) might have to shell out 4.7 billion real, or $2.35 billion, to settle a tax claim linked to the lease of foreign offshore oil platforms, subsequent to a judge throwing out an injunction that permitted it to avoid payment until a court challenge of the tax ruling was resolved.
The partnership deal between Exco Resources (NYSE:XCO) and Harbinger Group (NYSE:HRG) affords Exco temporary relief under the firm’s debt covenants, but it also sets an “upper bound” for its valuation, reports Jefferies. However, Exco is parting with fields that typically produce more oil and gas liquids and also have longer output lives than the rest of its wells, “supporting our view that shares are overvalued.”
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