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Market Chatter: National Fuel Gas Considers Sale, Merger Or Spinoff Of Natural Gas Unit

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National Fuel Gas (NFG) is weighing options for its natural gas production unit, with a potential transaction expected to value it near $5 billion, Reuters reported Wednesday, citing five people familiar with the matter.

The business includes natural gas producer Seneca Resources and pipeline operator National Fuel Gas Midstream. Goldman Sachs is advising National Fuel Gas as it weighs several paths for the unit, including a potential sale, merger with a US-listed producer or a standalone spinoff.

The review followed an approach from a potential buyer earlier this year, though the sources declined to identify the bidder or disclose details of the sale discussions.

National Fuel Gas declined to comment in response to a request from, while Goldman Sachs did not immediately respond.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: $81.20, Change: $-0.50, Percent Change: -0.61%

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Commodities

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Commodities

US Crude Oil Inventories Rise, API Says

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Commodities

US Power Update: Prices Mostly Higher Tuesday Afternoon, With Natural Gas Leading the Generation Mix

US wholesale electricity markets were mostly higher Tuesday afternoon, with intraday prices ranging from a high of $372.39 per megawatt-hour to a low of -$102.90/MWh, according to GridStatus.io.Electric Reliability Council of Texas' real-time locational marginal price was $36.99/MWh at 4 p.m. ET. Net load reached 41.59 gigawatts, while solar accounted for the largest share of the generation mix at 36.6%.California Independent System Operator's real-time LMP was $27.25/MWh at 4 p.m. ET. Net load was 0.66 GW, with solar making up the largest share of the generation mix at 66.2%.Southwest Power Pool's real-time LMP stood at $92.93/MWh at 4 p.m. ET. Net load reached 36.68 GW, while natural gas represented the largest share of the generation mix at 38%. Prices climbed to an intraday peak of $233.61/MWh at 4:25 p.m. ET.PJM's real-time LMP was $66.99/MWh at 4 p.m. ET. Net load totaled 97.39 GW, with gas providing the largest share of the generation mix at 42.8%. Prices rose to an intraday high of $264.54/MWh at 4:10 p.m. ET.Midcontinent Independent System Operator's real-time LMP was negative at -$69.78/MWh at 4 p.m. ET. Net load was 86.07 GW, while natural gas accounted for the largest share of the generation mix at 33.1%.Prices reached an intraday high of $372.39/MWh at 5:20 a.m. ET, before falling to an intraday low of negative $102.90/MWh at 2:50 p.m. ET.New York Independent System Operator's real-time LMP stood at $51.66/MWh at 4 p.m. ET. Net load reached 15.82 GW, with dual fuel making up the largest share of the generation mix at 29.6%. Prices advanced to an intraday high of $245.16/MWh at 2:25 p.m. ET.Independent System Operator New England's real-time LMP was $31.83/MWh at 4 p.m. ET. Net load came in at 9.98 GW, while natural gas supplied the largest share of the generation mix at 37.1%.Independent Electricity System Operator's real-time LMP reached $32.76/MWh at 4 p.m. ET. Net load was 15.15 GW at 3:55 p.m. ET, with nuclear accounting for the largest share of the generation mix at 43.1%.The National Weather Service's Climate Prediction Center forecasts above-normal temperatures across most of the US from Sept. 23-29, with below-normal readings in parts of the West.