1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of December 12th to December 16th.

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($mn)

Count

Value ($bn)

Count

Permian

$25,685

166

~$3

15

Mid-Continent

$6,804

77

$1-2

6

Gulf Coast

$2,896

82

~$9

11

Rockies

$6,038

91

$5

7

Ark-La-Tex

$6,949

30

<$1

3

Eastern

$5,102

33

$2

8

Gulf of Mexico

$2,432

82

~$10

12

Alaska

$232

5

-

-

West Coast

$611

15

-

-

Multi Region

$1,517

27

$2

3

Total

$58,266

608

~$34

65

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

*Only includes packages valued >$100 million

Deal flow
Upstream

  • Diamondback Energy has entered into an agreement to acquire the entire Delaware basin acreage and related assets of Brigham Resources LLC (backed by Warburg Pincus, Pine Brook and Yorktown) and its subsidiaries. Diamondback will pay $1.62 billion in cash and issue 7.69 million Diamondback shares valued at $809.6 million. The transaction includes 76,319 net acres in Pecos Co., and Reeves Co., TX, with production of 9.482 MBOE/d in Nov-2016. 
  • Gulfport Energy has agreed to acquire SCOOP assets from Vitruvian II Woodford LLC, a subsidiary of Vitruvian Exploration II LLC (portfolio company of Quantum Energy Partners), for ~$1.85 billion. Gulfport will pay $1.35 billion in cash and the balance $500 million by issuing ~18.8 million Gulfport shares. The transaction includes 46,400 net acres in Grady Co., Stephens Co., and Garvin Co., OK, with production of 183 MMcfe/d in Oct-2016.
  • Callon Petroleum has entered into an agreement to acquire Southern Delaware basin acreage from American Resource Development LLC (backed by EnCap) and its subsidiaries, for $615.18 million. The transaction includes 16,098 net surface acres located primarily in Ward Co., TX, and also in Pecos Co., and Reeves Co., TX, with production of 1.945 MBOE/d in Oct-2016. 
  • Enerplus has entered into a definitive agreement to sell its non-operated Fort Berthold assets in North Dakota for $292 million. The transaction includes 5,800 net acres in Dunn Co., McKenzie Co., McLean Co., and Mountrail Co., ND, with net production of 4 MBOE/d during Q3-2016.
  • Extraction Oil & Gas has acquired acreage in Wattenberg field in DJ basin, through two separate transactions, for $177 million. The transaction includes 16,800 net acres with minimal production.
  • On 13-Dec-2016, Energy XXI announced that it expects to complete its financial restructuring process and emerge from Chapter 11 before the end of 2016.
  • On 15-Dec-2016, Freeport-McMoRan completed the previously announced sale of deepwater GoM assets to Anadarko Petroleum for $2 billion.

Oilfield services

  • Patterson-UTI Energy has entered into an agreement to acquire Seventy Seven Energy. Patterson-UTI will offer ~1.7725 Patterson-UTI shares for every Seventy Seven Energy share. In total, Patterson-UTI will issue 49.6 million shares, valued at ~$1.422 billion, based on $28.67 per share. The aggregate deal value including shares and assumption of ~$336 million of Seventy Seven Energy's debt, net of cash and warrant proceeds is ~$1.76 billion. Post-transaction, Seventy Seven Energy shareholders will hold ~25% stake in the combined company. Seventy Seven Energy provides wellsite services and equipment to onshore customers in United States.
  • On 15-Dec-2016, Key Energy Services and its subsidiaries announced that they have emerged from Chapter 11 filings of the United States Bankruptcy Code. Key Energy’s new common shares will get listed on NYSE on 16-Dec-2016

 

 

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