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 31 – November 4.

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$20,519

119

~$5

16

Mid-Continent

$4,962

63

$1-2

6

Gulf Coast

$2,816

69

~$6

10

Rockies

$5,276

76

$2-3

6

Ark-La-Tex

$6,497

23

$1

3

Eastern

$4,978

28

$2

8

Gulf of Mexico

$2,432

81

~$10

12

Alaska

$232

4

-

-

West Coast

$597

13

-

-

Multi Region

$1,489

23

$2

3

Total

$49,799

499

~$30

64

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

*Only includes packages valued >$100mn

Deal flow

Upstream

  • Oxy has acquired acreage in the southern Delaware basin from private sellers, additional interest in EOR and CO2 assets in Permian basin for a total value of $2 billion. The EOR and CO2 assets were acquired from Marathon Oil for $235 million. 1Derrick has also identified the confidential sellers of the Delaware basin unconventional acreage. The southern Delaware basin transaction includes ~35,000 net acres located in Reeves Co., and Pecos Co., TX, with production of ~7 MBOE/d.
  • Covey Park Energy LLC (backed by Denham Capital) has acquired additional assets in the Haynesville and Bossier Shale areas in East Texas and North Louisiana. The seller of the transaction is understood to be EOG Resources Inc based on EOG's Haynesville divestiture package marketed by BMO Capital Markets. The transaction includes ~90,000 net acres located primarily in East Texas and North Louisiana, with production of 35 MMcf/d.
  • Anadarko Petroleum Corp. has entered into an agreement to divest its Carthage assets in East Texas for ~$1 billion during Q3-2016. The transaction includes ~104,600 net acres across Carthage, Oak Hill, Henderson and SEC areas.

Deals in play

  • ExL Petroleum Management LLC, a portfolio company of Quantum Energy Partners, has retained J.P. Morgan Securities Inc. and RBC Richardson Barr, to assist in the sale of its Delaware and Midland basin assets. The Delaware basin assets cover 20,462 net acres located in in Reeves Co., and Ward Co., TX, and Midland basin assets cover 10,487 net acres located in Martin Co., Dawson Co., and Andrews Co., TX.

OFS

  • Baker Hughes and General Electric Oil & Gas (a wholly owned subsidiary of General Electric Co) have entered into a merger agreement. At closing, Baker shareholders will receive $7.4 billion or $17.5 per share special dividend from GE. The combined company will retain the name Baker Hughes, and will operate as an affiliate of GE.

Midstream

  • Dominion Midstream Partners has entered into an agreement with Dominion Resources Inc to acquire Questar Pipeline LLC for $1.725 billion, including Questar Pipeline's outstanding debt of $435 million. Questar Pipeline holds 3,400 miles of gas transmission pipeline and four storage hubs with 56 Bcf of working gas storage capacity, located in Utah, Wyoming and Colorado.
  • On 01-Nov-2016, Transcanada increased its offer and agreed to pay $17 per share for a total value of ~$915 million, to acquire 53.5% remaining stake in Columbia Pipeline Group Inc. The aggregate revised deal value including an outstanding debt of $337.5 million, is $1,252.5 million.
  • On 02-Nov-2016, Energy Transfer Partners (ETP) completed the previously announced acquisition of 65% effective stake in PennTex Midstream for $733 million.

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