Welcome to GasNewsOnline.com!  With the month of May nearly upon us, warmer temperatures across much of the country are starting to cause the air conditioners to come online again and, with it, more electric generation utilizing natural gas for the summer season.

Today, we’ll take a look at the latest energy news, scan the interstate natural gas pipeline grid, and bring you the updated six-to-ten day temperature forecast from the National Weather Service. 

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From the US Energy Information Administration’s “Natural Gas Weekly Update” publication, net injections into working gas totaled 92 Bcf for the week ending April 19. Working natural gas stocks are 1.339 Tcf, which is 22% lower than the five-year (2014–18) average for this week.

The NYMEX natural gas futures price

beginning June, 2019 added two cents on Monday to finish the day a little more

than $2.59/MMBtu.  The 12-month price

strip from June, 2019 to May, 2020 is now $2.73/MMBtu.

The natural gas plant liquids composite

price at Mont Belvieu, Texas, fell by 3¢/MMBtu, averaging $6.12/MMBtu for the

week ending April 24. The price of propane fell by 3%.

The price of natural gasoline and ethane rose by 2% and 1%, respectively. The

price of butane and isobutane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, April 16, the natural gas rig count decreased by 2 to 187. The number of oil-directed rigs fell by 8 to 825. The total rig count decreased by 10, and it now stands at 1,012.

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Anadarko Petroleum Corporation today announced that it intends to resume negotiations with Occidental Petroleum Corporation in response to Occidental’s proposal to acquire Anadarko, which was announced by Occidental on April 24, 2019 (the “Occidental Proposal”). As disclosed previously, Anadarko entered into a definitive merger agreement with Chevron Corporation on April 11, 2019 (the “Chevron Merger Agreement”).

Anadarko is resuming its earlier

negotiations with Occidental because Anadarko’s board of directors, following

consultation with its financial and legal advisors, has unanimously determined

that the Occidental Proposal could reasonably be expected to result in a

“Superior Proposal” as defined in the Chevron Merger Agreement.

The Occidental Proposal

reflects significant improvement with respect to indicative value, terms and

conditions, and closing certainty as compared to any previous proposal

Occidental made to Anadarko.

Under

the Occidental Proposal, Occidental would acquire Anadarko in a transaction

with consideration comprised of $38.00 in cash and 0.6094 of a share of

Occidental common stock per share of Anadarko common stock. 

Under

the Chevron Merger Agreement, Chevron would acquire Anadarko in a transaction

with consideration comprised of $16.25 in cash and 0.3869 of a share of Chevron

common stock per share of Anadarko common stock.

The Anadarko board’s determination allows Anadarko to resume negotiations with Occidental in accordance with the Chevron Merger Agreement. The Chevron Merger Agreement remains in effect and accordingly the Anadarko board reaffirms its existing recommendation of the transaction with Chevron at this time.

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