1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of November 14th to November 18th.

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$20,847

136

~$5

16

Mid-Continent

$4,954

73

$1-2

6

Gulf Coast

$2,848

77

~$9

11

Rockies

$5,466

81

$5

7

Ark-La-Tex

$6,498

28

$1

3

Eastern

$5,024

31

$2

8

Gulf of Mexico

$2,432

81

~$10

12

Alaska

$232

4

-

-

West Coast

$611

15

-

-

Multi Region

$1,489

23

$2

3

Total

$50,401

549

~$36

66

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

*Only includes packages valued >$100MM

Deal flow
Upstream

  • On 27-Oct-2016, Geopetro LLC acquired Utica Shale acreage from Chesapeake Appalachia LLC, a wholly owned subsidiary of Chesapeake Energy Corp. The assets cover 37,000 net acres in Columbiana Co., OH, and Beaver Co., PA.
  • Fortress Investment Group LLC has acquired limited partner interest in Red Rocks Energy Partners LP, backed by VFS Financing Inc (subsidiary of GE Capital US Holdings Inc). Fortress Investment will own and develop over 7,200 conventional and unconventional SCOOP acres in Grady Co., McClain Co., and Garvin Co., OK.  
  • Double Eagle Energy Permian LLC (backed by Apollo Global Management LLC and Post Oak Energy Capital LP), and Magnetar Capital have entered into a definitive agreement, wherein Magnetar has agreed to invest up to $450 million of equity and delayed draw unsecured debt capital to support additional Midland basin acquisition opportunities and to accelerate the operated drilling program.
  • Emerald Oil Inc. has emerged from Chapter 11 bankruptcy protection as a debt-free entity, after reducing its long-term debt by ~$278 million. The Company will operate under the new name National Oil Production Company LLC (majority owned by Crestline Investors and Fir Tree Partners).

Deals in play

  • ConocoPhillips is looking to sell its San Juan basin assets, as part of its $5 to $8 billion divestiture target. The assets are located in Colorado with production of ~138.5 MBOE/d.

Midstream

  • CONE Midstream Partners LP has entered into an agreement to acquire 25% remaining stake in CONE Midstream DevCo I LP (Anchor Systems) from a wholly owned subsidiary of CONE Gathering LLC (a JV between Consol Energy and Noble Energy). CONE Midstream will pay $140 million in cash and issue ~5.183 million shares worth $108 million. Anchor Systems owns 166 miles of pipelines with gathering capacity of 1.329 Bcfe/d and 72,782 horsepower of compression.

Downstream

  • Tesoro Corp. has entered into an agreement to acquire Western Refining Inc for an enterprise value of $6.4 billion. Tesoro will offer 0.435 Tesoro share or $37.3 per share in cash for each Western Refining share. Tesoro will acquire Western Refining shares for a total value of $4.1 billion, based on Tesoro's closing share price of $85.74 on 16-Nov-2016. Tesoro will also acquire Western Refining's stake in Western Refining Logistics LP (WNRL) for a market value of $605 million and assume Western Refining's net debt of ~$1.7 billion. Western Refining operates 3 refineries at El Paso (Texas), Gallup (New Mexico) and St Paul Park (Minnesota).

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