Over the past week, we've seen one oil patch transaction tank, and another sail through. Let's have a look at each, and see if we can suss out the pace of future deals in the space.
Antero Resources, like Chief Oil & Gas, is a private equity-backed player that was early into the Barnett Shale play. Whereas Chief sold out to Devon Energy
Both companies have since moved into Appalachia's Marcellus shale, where Chesapeake Energy
Broader jitters aside, it couldn't have helped that one of Antero's backers was the merchant banking division of Lehman Brothers.
Now, contrast this funding faux pas with yesterday's announcement by Delta Petroleum
Trust is one critical component of this agreement. A second is the pile of cash injected into this firm by Kirk Kerkorian at the outset of the year. A third is the fact that Delta is simultaneously selling a 50% interest in all of its CRB acreage to a yet-unnamed Canadian partner. Much like Chesapeake's successful joint venture strategy with BP and Plains Exploration & Production
If we can glean anything from these examples -- beyond the old saw that "cash is king" -- I think we can also conclude that partnerships are powerful. I'm looking forward to many more joint venture arrangements, in addition to classic takeover bids by cash-rich competitors.