1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of September 5 – September 9.

Deal stats

 

Announced deals YTD

Deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$14,173

91

~$4

10

Mid-Continent

$4,725

46

~$2

8

Gulf Coast

$2,074

49

~$6

14

Rockies

$3,396

66

~$3

6

Ark-La-Tex

$5,497

18

~$2-3

7

Eastern

$1,774

18

~$3

8

Gulf of Mexico

$432

21

~$10

12

Alaska

$152

3

-

-

West Coast

$2

7

-

-

Multi Region

$602

17

~$3

4

Total

$32,828

336

~$32

69

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

*Only includes packages valued >$100 million

Deal flow
Upstream

  • EOG Resources Inc. has entered into an agreement to acquire Yates Petroleum Corp. for $2.45 billion. Yates primarily operates across the Delaware basin, Northwest Shelf play and Powder River basin with ~ 1.6 million net acres (186,000 net acres in Delaware basin), and production of 29.6 MBOE/d.
  • Total SA has exercised its preemption right to acquire 75% interest in Chesapeake Energy Corp.'s Barnett Shale assets in North-Central Texas for $558 million and simultaneously agreed to terminate associated midstream commitments to Williams Partners. The transaction includes ~215,000 net acres with proved reserves of 81 MMBOE and production of 65 MBOE/d. On 10-Aug-2016, Chesapeake had entered into an agreement to convey its Barnett Shale assets to Saddle Barnett Resources LLC, backed by First Reserve, for $420 million.
  • Callon Petroleum Co. has entered into an agreement with Plymouth Petroleum LLC, an ArcLight Capital portfolio company, to acquire certain assets in Midland basin for $327 million. The transaction includes ~5,667 net acres located in Howard Co., TX, with production of 2.3 MBOE/d.
  • Samson Resources Co. has entered into multiple stalking horse agreements to sell its assets in Williston, San Juan and West Anadarko basins, as part of Chapter 11 filings of the US Bankruptcy Code. Williston basin assets were sold to Resource Energy Partners LLC, an affiliate of Apollo Global Management LLC, for $75 million. Derrick has identified the confidential buyers for Samson’s West Anadarko basin and San Juan basin assets, valued at over $100 million each.
  • Charger Shale Oil Co. LLC, backed by Oaktree Capital Management LP, has acquired ~40,000 acres in Delaware basin. Oaktree and Joseph Magoto, former president of Tall City Exploration, formed Charger on 29-Aug-2016, with the intent of building a Permian basin platform company. Charger will receive $600 million in an initial equity commitment with an additional $300 million runway commitment.

Midstream

  • Enbridge Inc. has entered into an agreement to acquire Spectra Energy Corp. for $46.558 billion. Spectra holds interests in pipelines, storage facilities, gas utilities, and gathering and processing facilities, located in United States and Canada and operates through four segments, namely, Spectra Energy Partners, Distribution, Western Canada Transmission & Processing and Field Services.

Downstream

  • Western Refining Logistics LP (WNRL) has entered into an agreement to acquire certain terminalling, storage and other logistics assets from Western Refining Inc. (WNR) and St. Paul Park Refining Co LLC (SPPR), an indirect wholly owned subsidiary of WNR for $210 million. The transaction includes Storage tanks, product terminals, rail and barge facilities, and three oil pipeline segments near the SPPR refinery in St. Paul Park, Minnesota.

 

 

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