2023 Was a Year of Consolidation in the Energy Space
We saw continued consolidation , and therefore financings , in the traditional energy sector , both in the investment grade space and in the leveraged space , with large transactions involving oil field service providers , midstream operators and exploration and production companies .
Bracewell advised Wells Fargo Bank , N . A . as administrative agent and Wells Fargo Securities LLC , as lead arranger and sole bookrunner for a $ 300 million bridge term loan facility for the acquisition of NexTier Oilfield Solutions Inc . by Patterson-UTI Energy , Inc .
Bracewell assisted Phillips 66 in a $ 1.5 billion delayed-draw term loan facility with Mizuho Bank , Ltd ., as administrative agent . The loan , along with proceeds of a concurrent $ 1.25 billion senior notes issuance , was incurred to fund a portion of the $ 3.8 billion acquisition by Phillips 66 of the publicly held common units of DCP Midstream , LP , following the realignment of economic and governance interests in DCP Midstream , LP and Gray Oak Pipeline , LLC through the merger of existing joint ventures owned by Phillips 66 and Enbridge Inc .
Bracewell acted as US counsel to The Bank of Nova Scotia , as administrative agent , in a $ 1.25 billion revolving credit and term loan facility to Baytex Energy Corp . and Baytex Energy USA Inc . A portion of the proceeds from such facility were used to fund the $ 2.9 billion acquisition of Ranger Oil Corp .
The Year Ahead
We anticipate an increase in financings related to smaller acquisitions resulting from companies divesting non-core assets from consolidations that occurred in 2023 . Although it may be at a slower pace , we also expect to continue to see large consolidations and related financings in the energy space , such as APA Corporation ’ s $ 4.5 billion acquisition of Callon Petroleum Company announced in January of 2024 , where Bracewell acted for APA Corporation with respect to a $ 2 billion committed financing arrangement in connection with such acquisition . bracewell . com