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 10 – October 14.

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($Million)

Count

Value ($Billion)

Count

Permian

$17,113

116

~$4

12

Mid-Continent

$4,893

59

$1-2

6

Gulf Coast

$2,128

61

~$6

11

Rockies

$3,872

70

$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

$594

12

-

-

Multi Region

$645

20

$2

3

Total

$41,289

463

~$31

65

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

*Only includes packages valued >$100 million

Deal flow
Upstream

  • RSP Permian Inc. has entered into agreements to acquire Silver Hill Energy Partners LLC (Silver Hill I, backed by Kayne Anderson Capital Advisors) and Silver Hill Energy Partners II LLC (Silver Hill II, backed by Kayne Anderson Capital Advisors and Ridgemont Equity Partners) for ~$2.4 billion. RSP Permian will pay $1.25 billion in cash and issue 31 million RSP Permian shares for a total value of $1.15 billion at ~$31 per share. Silver Hill I and Silver Hill II own ~83% average WI in ~41,000 net acres in Northeast Loving Co., and Northwest Winkler Co., TX, in the Delaware basin.
  • Freeport-McMoRan Inc. has entered into an agreement to divest its onshore California assets to Sentinel Peak Resources LLC (backed by Quantum Energy Partners). The assets are located in Los Angeles basin and San Joaquin basin with production of 28 Mbbl/d.
  • On 7-Oct-2016, Resolute Energy completed the previously announced acquisition of Delaware basin assets from FireWheel for $135 million.
  • On 11-Oct-2016, Silver Run completed the previously announced acquisition of Centennial Resources Development for $1.74 billion.
  • Goodrich Petroleum announced that it has satisfied the conditions precedent to the effectiveness of its First Amended Joint Chapter 11 Plan of Reorganization and has emerged from bankruptcy. Goodrich received $40 million in new capital through the issuance of Convertible Second Lien Senior Secured Notes.
  • Extraction Oil & Gas Inc. announced the pricing of its IPO of its common stock at $19 per share. Extraction was initially offering the shares at an estimated price range of $15 to $18.

Deals in play

  • Brigham Resources LLC, backed by Warburg Pincus LLC, Pine Brook Partners LLC and Yorktown Partners LLC, is up for sale. Brigham Resources is also exploring the option of a potential IPO. Brigham Resources holds 72,000 acres in the Delaware basin.

Midstream

  • EQT Midstream Partners LP has acquired the Allegheny Valley Connector transmission and storage system, along with several Marcellus gathering systems from EQT Corp for $275 million. The assets acquired include ~209 miles of AVC system with capacity of 450 MMcf/d and 11 Bcf of storage capacity and 87 miles of gathering pipeline with capacity of 370 MMcf/d in Pennsylvania and West Virginia.
  • EIV Capital announced the completion of $20 million investment commitment to Gazelle Transportation, a crude oil transportation and fluid management logistics company. EIV's investment will support the company's growth as it continues providing first-class transportation and logistics service to its customer base.

Downstream

  • Phillips 66 Partners LP has entered into an agreement to acquire 30 crude oil, refined products and NGL logistics assets from Phillips 66 for ~$1.3 billion. Phillips 66 Partners will pay ~$1.1 billion in cash and issue ~4.093 million Phillips 66 Partners new shares for a total value of $196 million. The assets acquired include 1,373 miles refined products pipelines and 2,215 miles of oil pipelines as well as 4.852 MMbbl of refined products storage and 2.71 MMbbl of oil storage, supporting Phillips 66’s Ponca City, Billings, Bayway and Borger refineries.
  • First Reserve Corp., through an energy infrastructure investment fund, has entered into an agreement to acquire Gas Natural Inc. for a total enterprise value of ~$196 million. This represents a premium of ~39% over Gas Natural's 52-week high. First Reserve will acquire all the outstanding Gas Natural shares at $13.10 in cash per share. Gas Natural engages in the distribution of ~21 Bcf of gas annually in Maine, Montana, North Carolina and Ohio to ~68,000 customers.
  • On 12-Oct-2016, Sunoco LP completed the previously announced acquisition of fuel distribution assets from Denny Oil for $55 million.

 

 

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