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 21st to November 25th.

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$21,277

138

~$5

16

Mid-Continent

$4,954

73

$1-2

6

Gulf Coast

$2,888

77

~$9

11

Rockies

$5,504

83

$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

$1,492

24

$2

3

Total

$50,912

554

~$36

66

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

*Only includes packages valued >$100 million

Deal flow
Upstream

  • Concho Resources Inc. has entered into a definitive agreement to acquire Northern Delaware basin assets from Endurance Resources LLC (backed by Lime Rock Partners) for ~$430 million. The assets cover 16,400 net acres with production of 2.5 MBOE/d, located primarily in Red Hills area in Lea Co., NM.
  • Endurance Resources LLC, backed by Lime Rock Partners, has entered into two separate agreements to sell majority of its Delaware basin assets located in New Mexico and Texas. RBC Richardson Barr disclosed the buyer for the New Mexico assets as Concho Resources. The assets located in Reeves Co., TX, cover ~15,000 net surface acres.

OFS

  • On 21-Nov-2016, Transocean revised terms to acquire the remaining ~29% stake in Transocean Partners. Transocean will now offer 1.2 Transocean shares instead of 1.1427 Transocean share, for each Transocean Partners share. The revised deal value including shares worth ~$265 million and working capital surplus of $70.76 million for 29% stake, is $194.24 million.

Midstream

  • Sunoco Logistics Partners LP (SXL) has entered into an agreement to acquire Energy Transfer Partners LP (ETP). SXL will offer 1.5 SXL shares for every ETP share. SXL will issue ~814 million shares worth ~$21.3 billion at $39.29 per share. The aggregate deal value including shares, debt of ~$29.18 billion and working capital deficit of $701 million, is ~$51.19 billion. ETP owns ~62,500 miles of pipelines with total liquids capacity of ~1,287 MMbbl/d and gas capacity of ~33.4 Bcf/d across United States.
  • Tesoro Logistics LP has entered into an agreement to acquire certain gathering and processing assets in North Dakota from Whiting Petroleum Corp., MDU Resources Group Inc., and GBK Investments LLC for $700 million. The assets include ~650 miles of oil, gas, and produced water gathering pipelines, and 2 processing plants (Robinson Lake and Belfield) with 170 MMcf/d of gas processing capacity and 18.7 Mbbl/d of fractionation capacity.

Downstream

  • Tesoro Logistics LP has acquired certain terminalling and storage assets located in Martinez, California from Tesoro Corp. for $400 million. Tesoro paid $360 million in cash and issue 878,503 shares worth ~$40 million at $45.53 per share. The assets include 5.8 MMbbl oil, feedstock and refined products storage capacity at Martinez refinery as well as a marine terminal capable of handling ~35 Mbbl/d of feedstock and refined product throughput.

 

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