1Derrick US M&A Weekly Update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of May 16 - May 20.

Deal Stats

 

Announced deals YTD

Deals in play*

Region

Value ($M)

Count

Value ($B)

Count

Permian

$1,477

32

~$2

10

Mid-Continent

$2,022

18

~$3

7

Gulf Coast

$1,566

19

~$5

10

Rockies

$2,594

24

~$4

12

Ark-La-Tex

$4,878

11

$1-2

4

Eastern

$1,274

11

~$5

12

Gulf of Mexico

$5

6

~$9

11

Alaska

$152

2

<$0.5

1

West Coast

$2

3

 

-

Multi Region

$331

8

~$12

8

Total

$14,301

134

~$42

75

Source: 1Derrick’s Global M&A Database (www.1Derrick.com)

*Only includes packages valued >$100 million

Deal flow

Upstream

  • Range Resources Corp. has entered into an agreement to acquire Memorial Resource Development Corp. (backed by Natural Gas Partners) for $4.4 billion, including $1.1 billion of net debt. Memorial owns 220,000 net surface acres in Northern Louisiana with 420 MMcfe/d of production during Q1-2016.
  • EnerVest has agreed to acquire 7,056 net Eagle Ford acres in Karnes Co., TX, from BlackBrush Oil and Gas LP, a portfolio company of Ares Management, for $674 million. On 29-Apr-2016, EnerVest also acquired 4,198 net Eagle Ford acres in Karnes Co., TX, from GulfTex Energy for $501 million. In total, EnerVest has spent $1.3 billion to acquire Eagle Ford assets in Karnes Co., TX, since Sep-2015.
  • Vantage Energy has been named the successful bidder to acquire acreage in Pennsylvania from Alpha Natural Resources, for $339.5 million, under Chapter 11 of the US Bankruptcy Code. Vantage’s bid exceeded Rice Energy’s $200 million stalking horse bid for the same assets. Vantage will acquire ~27,400 net Marcellus acres (Deep Utica rights on 23,500 acres) in Greene Co., PA.
  • SandRidge Energy has filed voluntarily Chapter 11 of the United States Bankruptcy Code, to reduce its debt by ~$3.7 billion.
  • Breitburn Energy Partners has filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code, to facilitate restructuring of its balance sheet.
  • Halcon Resources has reached an agreement with shareholders and bondholders to enter into a pre-packaged Chapter 11 filing. The restructuring plan, if implemented, will eliminate $1.8 billion of debt.

Oilfeld services

  • Technip and FMC Technologies Inc. have agreed to merge and form TechnipFMC. Technip shareholders will receive two TechnipFMC shares for every share held, and FMC shareholders will receive one TechnipFMC share for every share held. TechnipFMC will have an equity value of ~$13 billion and will be listed on NYSE and Euronext Paris. Technip and FMC will each own ~50% in TechnipFMC. TechnipFMC will operate through five business units, namely, Surface, Subsea Services, Products, Subsea Projects, and Onshore/Offshore.

Midstream

  • Shell Midstream Partners LP has entered into an agreement to acquire additional 30% interest in Zydeco pipeline, 3% interest in Colonial pipeline and 1% interest in Bengal pipeline from Shell for $700 million. Zydeco is a 382 mile crude oil pipeline system, while Colonial and Bengal are refined product pipeline systems.

Deals in play

  • Harmonia Petroleum Corp., affiliate of China-based Harmonia Capital Group, has retained CohnReznick Capital Markets Securities to assist in the sale of its operated Midland basin assets in Texas. Harmonia holds 15,000 net acres in Howard Co., and Borden Co., TX.

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