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Terry Pegula has more cash on hand after $1.75 billion sale of oil acreage


We still don't know if Terry Pegula is interested in buying the Buffalo Bills.

But any doubts about Pegula having the wherewithal to pull it off probably evaporated Monday.

Pegula's liquidity is flowing strong after his East Resources Inc. and at least one other undisclosed company sold 75,000 acres of Utica and Marcellus Shale leases in West Virginia and Ohio for $1.75 billion.

"This does make him a much more formidable bidder if he chooses to move forward," a sports acquisitions expert told The Buffalo News on the condition of anonymity.

Forbes estimates Pegula's net worth at $3.3 billion.

Royal Dutch Shell purchased most of his East Resources' holdings for $4.7 billion in cash four years ago.

Pegula bought the Buffalo Sabres in 2011 and since has gotten into real-estate development, music production and NFL player representation.

  • Art Vandelay

    Let the Sabres bashing begin....

    • Big Jake

      The worst team in the NHL? Why would anyone even think to bash them?

      • jwdundee

        Make sure we bash Golisano while we're at it. You know, that guy that bought the team when they were bankrupt and kept them here.

        • Jeff

          And free the Regis family!

          • Sheldon S. Kornpett, D.D.S.

            ...except for Tim. I believe he's a douche.

    • Paul Bruhns

      not me! it took a few years, but Terry Pagula shook things up and dismantled the organization where it needed it: across the board. The dust is settling and there's a new sherif in town with a very capable Tim Murray leading the hockey operation. I believe Pegula will have a perennial contender when this thing takes off in a couple years.

  • Guest

    I hope Mr. Pegula wants to buy the Bills. He has shown he is willing to pay the bills associated with owning a professional sports franchise. After his initial investment in 1960, Greedy Wilson had his hand held ever since.

    • Thomas Elderwine

      This is the most ignorant comment ever. Coward.

      • HP MegaVeg

        ^^ New "most ignorant comment ever".

  • Rich

    Well Pegula should be able to get the Bills for $750 million leaving $1 billion for the new stadium...that takes care of the $1.75 billion. Hey spending other peoples money is easy and it keeps the Bills in WNY.

  • welfare4millionaires

    I want my $24 million dollars.

  • Patrick Krantz

    I love the idea of the Pegula family owning the Bills... With that said:

    It's hard to look a gift horse in the mouth - but I am concerned that Pegula will over promise and under deliver. With sports; it's hard to win. You need a good combination of skill and luck. With development, you do not. You either hit a
    home run or you miss wide right.

    Pegula's final design is significantly less elaborate than previous proposals. Nothing like a classic bait and switch. The hotel design is reminiscent of the dated Marriott in Amherst and the sky bridge over Perry Street is so poorly integrated with the Arena it screams amateur.

    I can only hope, if Pegula ends up with the Bills, he builds a stadium designed by the worlds best architects and not the folks who designed Harbor Center.

    Pegula - with all your money - you still have a chance to get this right and create a signature building.

    Do it.

    Buffalo Strong!

    • apoorcitizen

      And what makes you so astute to judge the design of a shy bridge from Harbor Center to First Niagara Center? I thought it was quite functional and fluid with the surroundings.

    • Justice

      So how many years have you been an architect? From every report I've read the Harbor Center is going to be a world class hockey destination.

      • Guest

        Ha ha ha ha !!

    • Troy Berkely

      The Skyway has to go! I have been saying that for years, and when it was originally designed, it really stunted Buffalo's development in the downtown area. Remove it, and the sun will shine on the city again!!!!!

  • AlyshiaNorgaardlab

    just as
    Jesse replied I am blown away that a mom able to profit $9937 in 4 weeks on the
    computer . Read Full Report R­e­x­1­0­.­C­O­M­

  • Guest

    as Kevin
    replied I cannot believe that people able to earn $4404 in a few weeks on the
    computer . try here F­i­s­c­a­l­p­o­s­t­.­C­O­M­

  • BuffaloFan4Life

    Pegula's company sold "...75,000 acres of Utica and Marcellus Shale leases in West Virginia and Ohio for $1.75 billion..."

    Every day Terry Pegula must laugh and laugh and laugh at the liberal idiots that control government in NY State. While the thousands of acres of potential Marcellus Shale located in our wonderful state sit useless, earning businesses and workers ZERO dollars in our "eco-friendly" over taxed New York, Pegula continues to earn BILLIONS of dollars all by himself from the other states' shale investments he made years ago when he started East Resources with an $8,000.00 personal loan from a family member.

    Oh yes, let's instead continue to SPEND our tax dollars on more "studies and research" on the horrible effects of fracking. After all, we would never want to end up like Pennsylvania, Ohio or West Virginia, NY State would never want to contribute to the production of domestic natural gas that would benefit energy customers and create thousands of good paying jobs and, God forbid, actually help to LOWER taxes as it has in those other states.

    • mikek L

      Well said!

    • smokyerbuttbbq

      So what do think about Terry buying the Bills ?

      • BuffaloFan4Life

        I would love to see Pegula win the bid. I wonder how the NFL will feel about letting a "fracker" into their fraternity, however. I know the Hunt family in Kansas City earned their fortune in the oil business decades ago, but I don't know if any other current ownerships have anything to do with drilling for natural gas or even oil these days.

        It should be interesting. Liberals can be very powerful, especially in Washington these days. Of course the NFL would never admit to not voting for Pegula because of how he made his money, but if he didn't get the votes, that would be the only reason I could think of.

    • Ken Elder

      I think that no matter what, we never want to be like West Virginia.

      • Buffalo Shark

        I can think of at least two things I prefer there. Higher speed limit and the work zone speed limit and extra fines only apply if the lights are flashing which only happens when the workers are actually working.

      • Truth Serum

        Almost Heaven, brother.

      • Sheldon S. Kornpett, D.D.S.

        Strongly agree. We just cruised through WV on the way to Hilton Head. Wow. Told the wife and kids at the truck stop to not make eye contact and be about your business quicky. They're a little "different" there. Lots of camouflage down there. The WV women enjoy wearing it as much as the guys.

    • Jeff in Chicago

      says the guy who doesn't have flammable tap water.

      • BuffaloFan4Life

        Yes you're right, I don't have flammable tap water. But I'm sure the immensely small percentage of homeowners that suffered damages to their water from fracking were well paid by the oil companies to clean it up or move them out. In fact, they probably made a hefty profit from lighting a match under their kitchen faucets for the oil execs and lawyers.

        I'm not naive enough to think fracking doesn't have it's problems. But somehow, someway, those other residents of those other states continue to allow it and they are making profits from it and enjoying better paying jobs and better local economies from it. And the oil companies I'm sure are working through the problems and improving their procedures as they learn from their mistakes.

        And oh by the way, how are Obama's clean energy companies our tax dollars funded coming along lately??

        • Jeff in Chicago

          well, i didn't know much about it either at one time. it interested me so i poked around a little and found a lot of fascinating reporting on the topic from all angles. if you're open to what you might find, you may be surprised what you stir up. not just the things that support the position it appears you want to be true- but the unbiased full picture. it's much more complicated and gray than we'd all like it to be and takes some energy to gather up info from all angles. it's time-consuming; there are a lot of topics i don't have the time or inclination to get that thorough of a read on so there's no crime in not knowing. but it's not a great idea to broadly assume either.
          don't know exactly how this administration's clean energy initiative has been at meeting any of its goals. i
          haven't read up on all the sides of the issue surrounding it so i won't
          wildly speculate.
          didn't vote for Obama. i'm also not making this about politics. i don't
          care about whether there's a (D), (R) or (I) next to yours or anyone
          else's name. but i would care if a company bought land near where i lived and toxically contaminated the water table in my community and the pond near my house so i couldn't even enjoy fishing and i couldn't do much to stop it because they have a team of high-priced lawyers backing a very profitable activity who will pay a slap on the wrist settlement for them, after all the fracking, in which the attorneys get richer but the place i (used to) live in is still ruined. but you seem pretty ok with it because you're sure i'm one of an immensely small percentage and was probably compensated, and i'm somehow, someway allowing it to happen and you're sure they're working through the problems and (most importantly) your taxes would be lower.
          that's a very thoughtful position.

    • Molson Cree

      My wife and I are unfortunately childless, yet I am amazed at the number of people WITH children who share your views, not to mention the denial about global warming.

      Life is short, and we only have one life. But that doesn't excuse us from looking at the bigger picture, we have an obligation to future generations to try to preserve and protect our world as best as possible. Because if we don't start NOW, then it will be all your descendants (I won't have any) choking to death on what toxic cess pool the world will be in in 75 years... while the 1% ( aka the ones who are RESPONSIBLE for the situation in the first place!... Because the ONLY people that deny global warming are the few that are PROFITING from the status-quot, and the lawyers and lobbyists they hire... the REST of humanity be damned.) Anyway the 1% will be laughing them selves silly as they are the ones "chosen" to escape our inevitable uninhabitable nightmare world, and THEY get to colonize space!

      You don't have to be Nostradamus to see THIS coming. The fact that ANY parents out there can sit idly by and NOT be concerned is frankly, CRIMINAL.

      • BuffaloFan4Life

        Hold on Molson. You don't call it "Global Warming" any more, remember? You now refer to it as "Climate Change."

        I guess I'll just have to see what Jesus has to say about my lack of concern for the air in 100 years, since I'll be joining him long before then. In the meantime, as long as we NY State residents use Natural Gas, then I think it's pretty darn stupid for us not to drill our own when we have millions of gallons of it sitting there waiting to be used.

        Do you use natural gas? Do you use heating oil, or electricity? Do you enjoy air conditioning in your home or car/s? Do you use washing machines and dryers to clean your clothes? Do you heat your food? Do you refrigerate your food? Do you ever travel on a plane or train? Or do you even drive your car?

        Unless you can honestly tell me you don't use one speck of fossil fuel to live your life today in 2014, then please stop your preaching to me. Somebody out there is drilling it in some place, to provide your comfort. Go out and create a new cleaner energy and then come back and start telling us how criminal we are to use the energy we have. Until that day, start riding horses and cooking over the fire if you want, but leave the rest of us alone, OK?

        • Molson Cree

          If all you are concerned about is fuel, and jobs. Then why not buck the system (aka BIG business) and create jobs (and energy) with the myriad of alternative (clean, and safe) energy sources that have been available for GENERATIONS, yet to this day they STILL for the most part remain untapped, underfunded and largely ignored. In fact the ONLY thing keeping them from being an everyday part of our reality and "washing my clothes", and "heating my home" etc. is big oil/gas/and coal, keeping the potential competition at bay. THEY are the ones profiting at the expense of the "lesser" peoples lives and their future generations. Again, I don't mean to sound "preachy" but I'll ask you again, how are you ok with this?

  • bill menomore

    You can own two sport franchises? Only in America or is that what they want us to believe.

    • Jan Reimers

      You can own multiple franchises in the same market, but not in different markets. Jeremy Jacobs, for instance, cannot buy the Bills as long as he owns the Boston Bruins.

      • Jeff

        They can be in 2 markets, but not in a market with a competing franchise. He cannot own the Bills because Boston plays in the same city as the Patsies. If he owned the Columbus Blue Jackets, he could own the Bills, as there is no NFL team in Columbus.

  • Jan Reimers

    After taxes on the $1.75 Billion sale, Pegula should be worth about $4.3 Billion. He should buy both the Bills and Jon Bon Jovi, keeping the Bills in Buffalo and Bon Jovi as his cheesy little toady.

    • Bob

      Hi liquidated an existing asset. This isn't net new wealth. He is still worth "only" about 3.3 Billion.

      • Rick C

        Actually, Bob, you are incorrect. He liquidated his company in the first place for about $4.7 billion that he owned 75% of and got $3.2 billion in cash from that sale. He was known to have had plenty of land in the Utica Shale region that he still owned, hence the 'if I want to make money I'll dig another well' statement when he bought the Sabres. He sold 75,000 acres of that land (it definitely isn't all the land he owns in that region) for a further $1.75 billion. Jan Reimers is quite correct with the assessment that Pegula is now going to have IN CASH in excess of $4 billion. I don't know if anybody has truly measured his actual net worth, but having that amount of money sitting in the bank is quite incredible. That it is in the bank account of a guy who has no clue how to run a hockey franchise is the sad part.

        • Jeff in Chicago

          he doesn't need to know how to run one: he just has to know how to own one. there's a significant difference. and that job he may slowly be coming around on. i hope.

        • BuffaloFan4Life

          Good last line, Rick, I laughed out loud. I disagree, but I do like your sense of humor. Pegula is better then "not having a clue." I'm convinced, with absolutely no proof of course, that Pegula just really wanted Darcy Regier to succeed, out of loyalty to the man staying in Buffalo for so many years through so many strange ownership changes. It sounds simplistic and a tad emotional for a man worth over $4 Billion, but those were real tears he shed when he saw Gilbert Perreault sitting in the front row.

          Everything I've read and heard about the way Pegula manages his businesses, lends itself to my theory. Nobody has a bad word about boss Pegula. Everyone says he was and is fair and cared about all of his workers. The extremely strange case of Pat LaFontaine notwithstanding (and who knows what on earth really happened there), I think Pegula cares about the people who work for him, and he allowed Darcy too much control and obviously kept him around too long.

          After the LaFontaine smoke has cleared, Pegula has Ted Black for the business side, and now thanks to Patty, a good qualified first time GM running the hockey side. With Ted Nolan signing on for 3 years, (again thanks to Patty and then new GM Murray), and all those early draft picks, I really believe Pegula's Sabres are on their way back up.

  • Datdude

    This would be a dream owner of the Buffalo Bills. He is vested in the community more than any potential ownership group out there. Regardless of the state of the Sabres, it hasn't been for lack of effort, as well as desire to win, on the part of Terry Pegula.

    • Rifleman

      Pegula has been a terrible owner. He has taken the team on a number of fateful disasterous turns. He has repeatedly said the Sabres are his and as the owner it is all about himself. He has shown awful judgement and goes AWOL for long periods. The team is far worse off under Pegula than any previous owner. He cannot keep his hands out of the cookie jar, he is a big time meddler with little expertise. His only positive is money, which he turns into a negative. I'll take Golisano.

  • MMN

    It is bad enough that Pegula owns owns the Sabres...have boycotted the team since he took ownership, will do the same for the Bills...sometimes Buffalonians (sports fans in general, really) can be so pathetic as they turn a blind eye in the name of sports.

    "In the course of making his fortune, the Florida billionaire, negotiating to buy the Buffalo Sabres, contributed heavily to politicians in a position to advance his business interests and established a less-than-stellar track record in the environmentally dicey business of drilling for natural gas, The Buffalo News has found.

    A news review of compliance records found East Resources, the company Terrence M. Pegula sold last summer for $4.7 billion, had a middling record of complying with environmental regulations in Pennsylvania, his base of operations. The company last year paid the largest regulatory fine in its history and was involved in a spill of toxic wastewater that resulted in the first quarantine of cattle in the history of natural gas drilling in the state."

    • smokyerbuttbbq

      So you're not in favor of him purchasing the Bills.

    • Thomas Elderwine

      Good for you. No one cares what you think. Go pretend to be upset.

    • cs

      Who are the leading environmentalist or people with no political ties that are capable of buying a professional sports team? Its tough to a mass that sort of wealth and not step on any toes or cuddle up to some politicians, its big business in American 2014.

  • Ed Smith

    He must not be allowed to displace Jim Kelly from being the savior! The fact that Kelly does not have the resources and considers Trump a viable option shall in no way deprive him of his grandiose dreams of returning to the superbowl he lost four times. Jill will have to pray extra hard over this and share some pics with us in the hopes the real players with the resources will allow the Kellys their rightful place in the owners box.

  • Frank Buxton

    Mr. Pegula is the only professional sports owner Buffalo ever had to dig deep into his pockets. His Harbour Center project alone blows away what Wilson, Golisano, the Rich's and the Knox's combined spent in re-investing in Buffalo during their times as owners.

    • Cannibal King

      AMEN! I hope upon hope Pegula buys the Bills and builds a downtown stadium. If that happens, I'd vote to rename Buffalo to Pegulaville!

  • bugzzz

    $1.7B. Amazing. For what it's worth, 95% of the last 5 years of stock market gains have gone to the 1%. Wealth disparity is continuing to increase and the wealthy can kick back and live off our cheap labor. I don't have a beef with Mr. Pegula. I think he's been a good Sabres owner. But I'm troubled by the national consolidation of wealth in the hands of the few.

    • GentrifierNumber6

      While this isn't a stock transaction, it's definitely a lot of $. Doing the simple math...if he is paying the standard 35% in Federal taxes (he's likely paying less unless his tax people are idiots) + state taxes he's clearing around a billion $ with the rest being taken by Uncle Sam to fund paving roads, the military, welfare, unemployment, and various other government programs.

      • Molson Cree

        Romney 2 years ago paid 14% income tax. Back in the day (1980) I lived with a girl from a pretty wealthy family, I still can remember the day her father told me that he paid 84% in income tax! Come on! You're telling me that we can't find a happy medium, maybe 50-60% for the very rich I think is fair.... but as long as big money has Washington in it's back pocket, that will NEVER happen again.

    • BuffaloFan4Life

      Wow. Reading this, I thought I had been kidnapped and thrown into Doc's DeLorean and Flux Capaciter-ed back to the year 2007. Liberal young Senator Barack Obama could have written that exact post about President George Bush's economy at that time, when Bush's time was winding down and Obama was picking up steam for his run to the Presidency.

      Funny as we race "Back to the Future" for just a moment, and realize that young liberal Barack Obama has been the President for every one of those last 5 years of stock market gains, of which 95% has gone to the 1%. Not exactly something candidate Obama "promised" his liberal Democrats would happen during his first campaign, huh?

      • bugzzz

        You're the one who introduced Obama into the conversation, not me. You're inferring things I haven't even said. Truth is both the GOP & Dems are responsible, and also John Q. Public. We support the 'winner take all' mentality every time we shop (myself included) at any big box retailer, in person or online, and every chain restaurant, etc. NAFTA & subsequent 'free trade' agreements were bipartisan and began the unraveling of the middle class.

  • Cannibal King

    When he bought the Sabres, Pegula said if he wanted to make money he'd sell an oil field (or whatever the quote was). Getting ready to stroke a check for the Bills? Or perhaps he needed a little weekend fun money?

  • Jeff in Chicago

    i've read up a lot on Pegula, Harbor Center, and his old company and fracking in general. not just the things that support one side of an argument but trying to get the full picture. it's a mixed bag. i'm torn. it appears that Pegula is a guy trying to do truly good things with money gotten in ways that has (knowingly or unknowingly to him) hurt a lot of people. i personally think he's been wonderful for the city of Buffalo. i believe he wants to make a positive difference in the lives of Western New Yorkers. yeah, he's "stepped in it" as owner of the Sabres. hopefully he's picked the right people to run the show and (like all quality owners) get's out of their way and let's them run it. (unlike the Joneses and Snyders of the sports world.)
    however, when the argument comes down strictly to the economy or the environment you have not given yourself a very good decision. it should never come to that. looking into the past to see when men painted themselves into a choice between making a lot of money or protecting the resources where ALL created (real) wealth comes from (not imaginary, not leverage, not credit swapping, not derivatives) and wealth was chosen, it's been an error based on short-term game and made it the problem of somebody else. not themselves or their families, usually someone poor or future generations.
    for every family his companies fracking has provided a job for, it has most likely seriously injured another's by making the nearby streams, ponds, creeks or lakes or the very water coming out of their taps polluted and even flammable. that's tough for a judicious mind to justify.
    then what's the answer smart guy? getting the bright minds who thought of it to think harder and longer on a better solution. putting food on one table is not a justifiable end if the water on another table is dangerously polluted.
    that said, i do admire what Pegula has been doing to help Buffalo. i'm just glad no one i know lives in certain towns in PA, WV, KY, or OH.

  • janb55

    Too bad there won't be time to see how successful Harborcenter would be before wondering if Pegula should buy the Bills. He purchased another team(Rochester Americans) an hour east on the Thruway from Buffalo, and I think he's been there once-on the day he bought the team.

  • Ken Elder

    I thought you weren't allowed to own more than one sports team. Wasn't that the issue with Jeremy Jacobs? Or is it just that you can't own teams in competing markets?

    • hybrid1486

      The latter is correct, NFL team owners aren't allowed to own a sports franchise in a different market

  • Puck4life

    "Pegula bought the Buffalo Sabres in 2011 and since has gotten into real-estate development, music production and NFL player representation"
    Did anybody else notice this line? Music production and NFL player representation? The NFL player representation is a great sign for us bills-fans-worried-about-them-leaving-the-great-Buffalo... IDK why would he venture into NFL Player representation if he doesn't like football? From what I know about him, hes from Pennsylvania and football is huge there. This guy is obviously lining up for a bid to buy the bills.

  • W.T. Beef

    WGRZ is reporting that Pegula will make a bid for the Bills.

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About the reporters

Vic Carucci returned to The Buffalo News as a Bills beat reporter in September. Carucci covered the Bills for 17 years before joining as a columnist in 1999. Prior to rejoining The News, he spent three years as a senior editor for the Cleveland Browns.

Tim Graham returned to The Buffalo News in 2011 after covering the NFL for three years at ESPN and for one year at the Palm Beach Post. Before that, the Cleveland native spent seven seasons on the Buffalo Sabres beat for The News and was president of the Boxing Writers Association of America.

Jay Skurski joined The News in January 2009. The Lewiston native attended St. Francis High School before graduating from the University of South Florida.