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 28th to December 2nd.

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$22,259

143

~$5

16

Mid-Continent

$4,954

74

$1-2

6

Gulf Coast

$2,888

79

~$9

11

Rockies

$5,564

87

$5

7

Ark-La-Tex

$6,499

29

$1

3

Eastern

$5,026

33

$2

8

Gulf of Mexico

$2,432

81

~$10

12

Alaska

$232

5

-

-

West Coast

$611

15

-

-

Multi Region

$1,492

24

$2

3

Total

$51,958

570

~$36

66

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

*Only includes packages valued >$100 million

Deal flow

Upstream

  • Centennial, backed by Riverstone and NGP Energy Capital, has agreed to acquire Delaware basin acreage from Silverback Energy, backed by EnCap Investments LP, for $855 million. The assets cover ~35,000 net acres in Reeves Co., TX, with production of ~3.5 MBOE/d.
  • Noble Energy Inc. has acquired additional 7,200 net bolt-on acres, in Reeves Co., TX, with production of 2.4 MBOE/d. 1Derrick estimates the value of transaction to be ~$300 million, based on a production metric of ~$35,000/Daily BOE and acreage metric of $30,000/Acre (as reported by Noble).
  • Juniper Capital II LP announced a partnership with BoomTown Oil LLC to pursue and develop conventional and unconventional plays across multiple basins in the Lower 48, initially focusing on the Eagle Ford Shale in South Texas.
  • On 1-Dec-2016, SM Energy completed the previously announced divestiture of its Williston Basin assets to Oasis Petroleum for $785 million. The transaction includes ~55,000 net acres, located primarily in McKenzie Co., and Williams Co., ND.

OFS

  • Baker Hughes Inc. has entered into an agreement with CSL Capital Management and West Street Energy Partners (WSEP), a fund managed by Goldman Sachs, to form a North American hydraulic fracturing and cementing services company. CSL and WSEP together, and Baker Hughes will own 53.3% and 46.7% stake, respectively. Baker Hughes will contribute its North American land cementing and hydraulic fracturing businesses, and CSL will contribute its Allied Energy Services

Midstream

  • On 1-Dec-2016, Enbridge Income Fund Holdings Inc. completed the previously announced sale of South Prairie assets to Tundra Energy for $814.17 million.
  • On 1-Dec-2016, Dominion Midstream Partners completed the previously announced acquisition of Questar Pipeline from Dominion Resources Inc. for $1.725 billion.

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