1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of August 22– August 26.

Deal stats

 

Announced deals YTD

Deals in play*

Region

Value ($M)

Count

Value ($B)

Count

Permian

$11,382

78

~$4

9

Mid-Continent

$4,340

36

~$2

8

Gulf Coast

$2,022

35

~$6

14

Rockies

$3,321

52

~$3

6

Ark-La-Tex

$5,490

17

~$2-3

7

Eastern

$1,774

16

~$3

8

Gulf of Mexico

$7

9

~$10

12

Alaska

$152

3

-

0

West Coast

$2

4

-

0

Multi Region

$582

14

~$3

4

Total

$29,072

264

~$32

68

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

*Only includes packages valued >$100M

Deal flow

Upstream

  • PDC Energy Inc. has entered into two separate agreements to acquire acreage in the Delaware Basin through acquisition of Arris Petroleum Corp. and 299 Resources LLC, portfolio companies of Kimmeridge Energy Management Co. PDC will pay ~$915 million in cash and ~$590 million in stock. The transaction includes ~57,000 net acres located in Reeves Co., and Culberson Co., TX, with production of 7 MBOE/d. PDC reports value of Production to be $245 million (at $35,000/Daily BOE) and value of Undeveloped Acreage to be $1,260 million (at $22,105/Acre).
  • Guidon Energy (backed by Blackstone), has acquired certain acreage in the Midland Basin from a confidential seller. Blackstone and Jay Still, former EVP of Pioneer Natural Resources and President & COO of Laredo Petroleum, formed Guidon in Q1-2016, with the intent of building a Permian basin platform company. Guidon has received capital commitments of ~$500 million from Blackstone. The transaction includes ~16,000 net acres located in Martin Co., TX.
  • Blackstone Energy Partners and an affiliate of Jetta Operating Co Inc., have formed a Delaware Basin JV, Jetta Permian LP. Jetta Permian has received capital commitments of $1 billion from Blackstone and Jetta Operating's partners. Jetta Permian will focus on asset acquisitions in West Texas and Southern New Mexico.

Deals in play

  • Silver Hill Energy Partners LLC has retained Jefferies LLC to assist in the sale of the company. Silver Hill holds 40,000 net contiguous acres in Delaware basin, with production of 18 Mbbl/d.
  • Sanchez Energy Corp. has retained RBC Richardson Barr to assist in the sale of its ~50% non-operated interest in Palmetto oil field in Eagle Ford. The field covers ~8,000 net acres in Gonzales Co., TX.
  • Sanchez Energy Corp. has retained Citigroup Global Markets Inc. to assist in the sale of assets in Cotulla and Wycross drilling areas in Eagle Ford. The areas up for sale cover ~17,000 net acres primarily in La Salle Co., and McMullen Co., TX.

In total, Sanchez is marketing ~25,000 net Eagle Ford acres.

Midstream

  • Phillips 66 Partners LP has entered into an agreement to acquire an NGL logistics system in Southeast Louisiana from Chevron Corp. The transaction includes 300 mile TENDS pipeline system, 200-mile VP pipeline/EP pipeline, and Sorrento cavern with 1.5 MMbbl NGL storage capacity.

Downstream

  • Alimentation Couche-Tard has entered into a definitive agreement to acquire CST Brands Inc. for $4.4 billion, including net debt. CST is an independent motor fuel retailer and convenience store operator, with 1,146 company operated sites selling Valero branded fuel in United States and 873 sites selling Ultramar branded fuel in Canada.
  • Alimentation Couche-Tard has also entered into a binding agreement with Parkland Fuel Corp to sell majority of the Canadian operations for $750 million, which are being acquired from CST Brands. Parkland will acquire 72 cardlock sites, ~490 commission agents sites, Commercial & Home Heat business (27 sites), and a portion of 305 CST operated sites in Canada.
  • Valero Energy Partners has entered into an agreement to acquire Meraux and Three Rivers terminal services business from a wholly owned subsidiary of Valero Energy Corp., for $325 million. The transaction includes Meraux and Three Rivers terminals located in Texas with total storage capacity of 6.15 MMbbl.

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