Hedge fund Mason Capital seeks to resolve legal dispute over US gas driller - #AbuDhabi

Hedge fund Mason Capital seeks to resolve legal dispute over US gas driller

A hedge fund has offered to buy a large gas driller at the centre of a legal dispute in which a Middle Eastern sovereign wealth fund accused a US private equity group of self-dealing.

Mason Capital has offered to buy Ascent Resources in a potential multibillion-dollar takeover that would sidestep the company’s controversial sale between two funds managed by its private equity backer, Energy & Minerals Group. Ascent Resources is one of the largest privately held natural gas drillers in North America. 

Earlier this month, the Abu Dhabi Investment Council sovereign wealth fund sued Energy & Minerals Group to block the Houston-based private equity fund from selling its more-than 30 per cent stake in the driller between two funds it manages. 

The sovereign fund accused EMG of selling Ascent using a so-called continuation fund in a deal that would short-change investors, but create a financial windfall for EMG. 

Abu Dhabi Investment Council also argued that EMG had sought to coerce investors to support the fund-to-fund transfer by minimising Ascent’s prospects of being sold to an outside buyer or go public. EMG agreed to halt the transaction while the battle is arbitrated in a Delaware court. 

Mason Capital, a $2bn fund that makes distressed investments and long/short equity trades, is an existing investor in Ascent Resources after having built a stake in the driller through its 2018 bankruptcy. 

It is now using its preliminary offer to force EMG to initiate a full sale process. The New York hedge fund says it is willing to pay a premium to the valuation of EMG’s mooted fund-to-fund deal and make its purchase without any deferrals. 

“Mason Capital is prepared to evaluate and, if supported by a proper governance process and customary confirmatory diligence, deliver a fully financed, all-cash proposal to acquire all outstanding units . . . at a price superior to that contemplated by the EMG transactions,” it said in a letter sent to Ascent’s board of directors obtained by the Financial Times. 

In the letter, Mason also said it hoped Ascent would initiate a formal sale process that included a 45-day period in which its board would seek higher alternatives to the hedge fund’s potential offer, “thereby ensuring that the company pursues the most value-maximising path for all members”. 

Mason Capital declined to comment. Abu Dhabi’s fund declined to comment on matters subject to ongoing litigation. Ascent Resources did not immediately respond to a message seeking comment.

#UAE stocks ease as oil slips, profit-taking caps #Dubai rally | Reuters

UAE stocks ease as oil slips, profit-taking caps Dubai rally | Reuters

Stock markets in the United Arab Emirates were subdued on Friday as weaker oil prices and profit-taking offset recent gains, with sentiment also tempered by concerns over a global supply glut and geopolitical developments.

Oil prices - a catalyst for the Gulf's financial markets - inched lower with Brent crude down 0.25% at $61.17 a barrel at 1230 GMT.

The International Energy Agency on Thursday trimmed its forecast for next year's global oil surplus for the first time since May, citing stronger demand prospects, while OPEC left its 2026 global oil demand growth outlook unchanged in its monthly report.

Dubai's benchmark index (.DFMGI), opens new tab fell marginally after nine straight sessions of gains, with declines in communications, consumer staples and industrial stocks outweighing advances in financials, utilities and real estate. The index still notched its third consecutive weekly rise.

Emirates NBD (ENBD.DU), opens new tab, Dubai's largest lender, gained 1.6% and Mashreqbank (MASB.DU), opens new tab rose 2.1%, while Gulf Navigation (GNAV.DU), opens new tab and Union Properties (UPRO.DU), opens new tab fell 9.8% and 2.1%, respectively.

In Abu Dhabi, the index (.FTFADGI), opens new tab slipped 0.2%, pressured by healthcare, real estate and telecom shares. Blue-chip developer Aldar Properties (ALDAR.AD), opens new tab lost 1.2% and Abu Dhabi Commercial Bank(ADCB.AD), opens new tab declined 2.1%.

Dana Gas (DANA.AD), opens new tab jumped 6% after the company reported a new gas discovery in Egypt's onshore Nile Delta, following the successful drilling of the North El-Basant-1 exploration well.

"Markets edged slightly lower due to profit-taking after a strong rebound over the last two weeks," said Ahmed Negm, head of market research for MENA at XS.com.

"Looking ahead, lower oil prices and a bearish outlook for 2026 remain risks that could cap future gains," he added.

Exclusive: #Oman's OQ in talks with partners for Duqm petrochem project as SABIC withdraws | Reuters

Exclusive: Oman's OQ in talks with partners for Duqm petrochem project as SABIC withdraws | Reuters

Oman's state energy group OQ is in talks with new potential partners for its planned petrochemical complex in Duqm after Saudi Arabia's SABIC withdrew, said OQ CEO Ashraf Al Mamari.

SABIC decided "to withdraw from the project, so now it is us and the Kuwaiti side," Mamari told Reuters in an interview, without giving details on the reason for the decision.

SABIC (2010.SE), opens new tab, whose withdrawal from the project in Oman has not been previously reported, had no immediate comment.

Duqm port on Oman's southwest coast is close to its major oil and gas projects, where OQ and Kuwait Petroleum International last year inaugurated a $9 billion refinery called OQ8, with plans for a petrochemical project close by.

"Currently it's on a 50-50 (shareholding) basis and in parallel, we are discussing with some partners if they would be interested in joining as a third partner," Mamari said without giving any names.

"We are discussing with both technology solutions providers and partners or even financial partners. When it comes to the equity share and split, we did not decide that yet, which will depend on the progress of the project," he said.

SABIC is restructuring as the chemicals industry faces with weak demand. It is 70% owned by oil giant Aramco (2222.SE), opens new tab, which is cutting costs and selling assets as it balances capital expenditure with lower oil prices and shareholder payouts.

OQ is owned by Oman's sovereign wealth fund and has a portfolio of companies ranging from exploration and production to refining, chemicals, trading, hydrogen and renewables.

Mamari said it is also in early talks with foreign investors, including U.S. and Asian firms, about potential partnerships and equity investments in some of its "key projects", citing higher investor confidence as the country's and OQ's credit ratings have improved in recent years.

Oman, a small non-OPEC oil producer, is following other Gulf countries in economic diversification efforts, including with a privatisation drive to attract foreign investors.

That, along with fiscal reforms, has helped the Sultanate pay down debt and turn its large fiscal deficit into a surplus since 2022. Credit rating agency Fitch upgraded it to investment grade this week.

OQ, which in recent years listed some of its units including its exploration and production business OQEP (OQEP.OM), opens new tab, is assessing floating up to two more in 2026, Mamari said.