1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of October 3 – October 7.

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$14,671

112

~$4

12

Mid-Continent

$4,873

58

$1-2

6

Gulf Coast

$2,127

60

~$6

11

Rockies

$3,861

69

$3

7

Ark-La-Tex

$5,497

20

$2

6

Eastern

$3,883

20

$2

8

Gulf of Mexico

$2,432

81

~$10

12

Alaska

$232

4

-

-

West Coast

$2

11

-

-

Multi Region

$645

20

$2

3

Total

$38,224

455

~$31

65

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

*Only includes packages valued >$100 million

Deal flow

Upstream

  • Marathon Oil Corp. has entered into an agreement to sell its non-operated CO2 and waterflood assets in West Texas and New Mexico for $235 million. The assets hold production of ~4 MBOE/d.  
  • Resolute Energy Corp. has entered into an agreement with FireWheel Energy LLC (a portfolio company of EnCap Investments), to acquire additional interest in certain assets in Mustang project area in the Delaware basin for $135 million. The transaction includes 3,293 net acres located in Reeves Co., TX, with production of 1.2 MBOE/d.  
  • Double Eagle Lone Star LLC has entered into a merger agreement with Veritas Energy Partners Holdings LLC to form Double Eagle Energy Permian LLC. Double Eagle Energy Permian will hold ~63,000 net acres located primarily in Midland Co., Martin Co., Howard Co., and Glasscock Co., TX.

Deals in play

  • Enerplus is looking to sell its Marcellus gas assets (100% non-operated). The assets cover 47,000 net acres, located in Pennsylvania with production of 195 MMcf/d.
  • Anadarko and Shell are looking to sell ~9,050 net acres in Central Reeves Co., TX, and ~10,230 net acres in Eastern Loving Co., and Winkler Co., TX. 
  • SM Energy has retained Petrie Partners LLC to assist in the sale of its Williston basin assets. The assets to be sold cover ~54,500 net acres in North Dakota. 
  • Endeavor Energy Resources LP has retained BofA Merrill Lynch Securities to assist in seeking a partner to finance the development of a Midland basin project.

OFS

  • Frank’s International NV has entered into a definitive agreement to acquire Blackhawk Specialty Tools LLC (backed and owned 70% by Bain Capital Partners LLC) for $321 million. Frank’s International will pay ~$150 million in cash and issue 12.8 million Frank’s International shares valued at ~$171 million. Blackhawk Specialty designs, manufactures, rents and sells offshore and onshore cementing equipment and products across nine locations in the United States and Mexico.

Midstream

  • Cheniere Energy Inc (CEI) has offered to acquire remaining 19.9% stake in Cheniere Energy Partners LP Holdings LLC (CEPH) for $2.462 billion. CEI will issue 0.5049 shares for each outstanding CEPH share for a total value of $1,009.77 million. The aggregate deal value including shares, debt of $1,284.11 million and working capital deficit of $168.97 million is $2,462.85 million. CEPH holds 55.9% stake in Cheniere Energy Partners LP. Effectively, CEI is acquiring 11.12% additional stake in Cheniere Energy Partners. Cheniere Energy Partners owns and operates the regasification facilities at Sabine Pass LNG terminal, located in Cameron PA., LA.
  • Tundra Energy Marketing Ltd., a wholly owned subsidiary of James Richardson & Sons Ltd., has entered into an agreement to acquire pipelines assets in the South Prairie region in Saskatchewan from an affiliate of Enbridge Income Fund Holdings Inc. for ~$814.17 million. The assets primarily include ~1,600 km of crude oil and liquids gathering pipelines, ~547 km of trunk line that deliver ~175 Mbbl/d of crude oil to Enbridge’s mainline system at Cromer.

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