East Resources

East Resources, Inc. was an American oil and natural-gas exploration and production company founded in 1983 by Terrence Pegula. The company initially concentrated on oil operations and was based for much of its early history in Cattaraugus County, New York. Its business later expanded across several U.S. energy-producing regions, and at its height it maintained a principal base in Parkersburg, West Virginia, with additional offices in Warrendale, Pennsylvania, Allegany, New York, and Denver, Colorado. It also operated natural-gas processing facilities in northern Pennsylvania. A major strategic turning point came in 2008, when East Resources shifted much of its attention from conventional oil activity toward natural gas and unconventional shale development. The company became associated with the development of natural-gas resources in the Marcellus Formation, a large shale formation extending beneath parts of the northeastern United States. Advances in horizontal drilling and hydraulic fracturing enabled producers to recover gas from formations that had previously been difficult to exploit economically. East Resources benefited substantially from the identification and development of deep Marcellus gas deposits and from the application of these extraction techniques. The company's growth made it an attractive acquisition target for larger energy companies. In 2010, East Resources sold most of its assets to Royal Dutch Shell for approximately $4.7 billion. The transaction transferred a substantial portion of the company's oil and gas portfolio to Shell and represented the culmination of East Resources' rapid expansion in unconventional gas. The remaining assets were later sold to American Energy Partners, LP in 2014 for approximately $1.75 billion. These transactions effectively ended East Resources as a major standalone exploration and production company. Following the asset sales, Pegula redirected much of his attention toward sports and entertainment. He acquired the Buffalo Sabres in 2011 and the Buffalo Bills in 2014, later developing Pegula Sports and Entertainment. Some natural-gas interests associated with Pegula continued through other businesses, including Greater Rocky Mountain Regional Oil & Gas in Colorado and Wyoming and JKLM Energy in Pennsylvania. JKLM's name was derived from the initials of Pegula's children. The residual East Resources operations have been associated with Boca Raton, Florida, but the company no longer operates as the large-scale energy business it was during its Marcellus-focused period.

East Resources was established in 1983 by Terrence Pegula as an oil and gas exploration and production business. The company spent much of its early history operating from Cattaraugus County, New York, and initially specialized in oil. Over time it developed a broader U.S. operating footprint, including offices and assets in New York, Pennsylvania, West Virginia, and Colorado. The company's most important transformation occurred in 2008, when it began emphasizing natural gas and unconventional shale resources. East Resources participated in the development of the Marcellus Formation, a deep shale formation containing extensive natural-gas deposits beneath parts of the northeastern United States. The commercial importance of this opportunity increased as horizontal drilling and hydraulic fracturing techniques improved. East Resources' development work and resulting resource position helped turn it into a major private energy company and made its assets attractive to larger industry participants. At its peak, East Resources was based in Parkersburg, West Virginia, while maintaining additional offices in Warrendale, Pennsylvania, Allegany, New York, and Denver, Colorado. Its operations also included natural-gas processing facilities in northern Pennsylvania. The company therefore combined exploration and production with infrastructure supporting the treatment and movement of gas produced from its regional assets. In 2010, East Resources sold most of its assets to Royal Dutch Shell for approximately $4.7 billion. This transaction significantly reduced East Resources' operating scale and transferred much of its Marcellus-related portfolio to Shell. The remaining assets were sold in 2014 to American Energy Partners, LP for approximately $1.75 billion. Those transactions effectively brought the company's role as a large independent exploration and production company to an end. Following the divestitures, Pegula redirected his principal business interests toward sports and entertainment. He acquired the Buffalo Sabres in 2011 and the Buffalo Bills in 2014, developments that led to the formation and growth of Pegula Sports and Entertainment. Some energy interests associated with Pegula continued through separate companies, including Greater Rocky Mountain Regional Oil & Gas in Colorado and Wyoming and JKLM Energy in Pennsylvania. The remaining East Resources presence has been associated with Boca Raton, Florida, but the original company is generally understood as a defunct or substantially divested energy enterprise rather than an active large-scale producer.

• 2014

  Remaining assets sold to American Energy Partners

  [1]East Resourcesen.wikipedia.org

  American Energy Partners, LP acquired East Resources' remaining assets for approximately $1.75 billion.

• 2014

  Terrence Pegula acquires the Buffalo Bills

  [1]East Resourcesen.wikipedia.org

  Pegula acquired the Buffalo Bills, further shifting his business focus from energy production toward sports and entertainment.

• 2011

  Founder enters sports ownership

  [1]East Resourcesen.wikipedia.org

  Terrence Pegula acquired the Buffalo Sabres after the principal East Resources asset sale.

• 2010

  Most assets sold to Royal Dutch Shell

  [1]East Resourcesen.wikipedia.org

  Royal Dutch Shell acquired most of East Resources' assets in a transaction reported at approximately $4.7 billion.

• 2008

  Shift toward unconventional natural gas

  [1]East Resourcesen.wikipedia.org

  East Resources began placing greater emphasis on natural gas and unconventional shale development, including resources in the Marcellus Formation.

• 1983

  East Resources is founded

  [1]East Resourcesen.wikipedia.org

  Terrence Pegula founded East Resources as an oil and gas exploration and production company in the United States.

A privately controlled U.S. exploration and production company that transitioned from oil into unconventional natural-gas development, with particular importance in the Marcellus Shale region.

• Energy production · 1983

  Oil exploration and production

  East Resources began as an oil-focused exploration and production company. Its early operations were associated with assets in and around New York and later expanded into a broader U.S. portfolio. Oil remained part of the company's historical identity even after its strategic emphasis moved toward natural gas and shale development.

• Unconventional natural-gas production · 2008

  Marcellus Shale natural gas

  The company's most strategically important business became the exploration and production of natural gas from the Marcellus Formation. East Resources used unconventional production methods, including hydraulic fracturing, to develop deep shale resources in the northeastern United States. The resulting asset base was a principal reason for the company's high-value sale to Royal Dutch Shell.

• Energy infrastructure

  Natural-gas processing

  East Resources operated natural-gas processing facilities in northern Pennsylvania. These facilities supported the handling and preparation of gas produced from the company's regional exploration and production activities.

• 2014

  Sale of remaining assets to American Energy PartnersM&A

  Background

  After the 2010 Shell transaction, East Resources retained a smaller group of oil and gas assets.

  Action taken

  East Resources sold its remaining assets to American Energy Partners, LP for approximately $1.75 billion.

  Aftermath

  The sale completed the major divestiture of East Resources' operating assets and effectively ended its existence as a large standalone exploration and production company.

  Reported transaction value. 1750000000 USD (2014)

  Source

• 2010

  Sale of most assets to Royal Dutch ShellM&A

  Background

  East Resources had built a substantial U.S. oil and gas portfolio, particularly in unconventional natural gas and the Marcellus Formation.

  Action taken

  The company sold most of its assets to Royal Dutch Shell for approximately $4.7 billion.

  Aftermath

  The transaction transferred the principal operating portfolio to Shell and reduced East Resources from a major independent producer to a company holding residual assets.

  Reported transaction value. 4700000000 USD (2010)

  Source

• 2008

  Increase emphasis on unconventional natural gasStrategy

  Background

  East Resources had historically specialized in oil, but advances in shale-drilling technology and the discovery of deep natural-gas resources in the Marcellus Formation created a major growth opportunity.

  Action taken

  The company shifted strategic attention toward natural-gas exploration and production and used hydraulic fracturing as part of its unconventional-resource development approach.

  Aftermath

  The Marcellus-focused strategy substantially increased the value and attractiveness of East Resources' asset portfolio, helping lead to the 2010 sale of most assets to Royal Dutch Shell.

  Source

1. 1East Resourcesen.wikipedia.org