1Derrick US M&A weekly update

US M&A Weekly Update (January 2nd to January 6th)

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$2.5

2

~$3

16

Mid-Continent

-

-

$1-2

6

Gulf Coast

$800

1

~$8

9

Rockies

$31

2

$5

6

Ark-La-Tex

-

-

<$1

2

Eastern

$30

1

$2

7

Gulf of Mexico

-

-

~$10

12

Alaska

-

-

-

-

West Coast

-

-

-

-

Multi Region

 

1

<$1

1

Total

$863

7

~$30

59

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

*Only includes packages valued >$100 million

Deal flow
Upstream

  • Venado Oil and Gas LLC, an affiliate of KKR, has agreed to acquire non-operated Eagle Ford assets, including interest in related midstream assets, from SM Energy for $800 million. The transaction includes ~37,500 net acres primarily in Dimmit Co., TX, with production of ~27.26 MBOE/d in Q3-2016, and 12.5% interest in Springfield gathering system.
  • PDC Energy disclosed it acquired additional bolt-on Delaware basin acreage from Fortuna Resources Holdings LLC, backed by Och-Ziff Capital, for ~$118 million. The transaction closed on 30-Dec-2016 and included ~4,500 net acres in  Culberson Co., and Reeves Co., TX. The bolt-on acreage is contiguous with the Central acreage block acreage acquired from Kimmeridge for $1.51 billion in Aug-2016.
  • Rex Energy Corp. has entered into an agreement to divest Utica assets in the Warrior South area in Ohio to Antero Resources Corp for ~$30 million. The assets sold include ~4,100 net acres in Guernsey Co., Noble Co., and Belmont Co., OH, with current production of 9 MMcfe/d.
  • On 6-Jan-2017, Kimbell Royalty Partners LP filed a registration statement for its proposed Initial Public Offering. Kimbell owns mineral and royalty interests in ~4.5 million gross acres in 20 states, including ownership in more than 48,000 gross producing wells (~29,000 wells in the Permian basin).
  • On 3-Jan-2017, Enerplus completed the previously announced sale of non-operated Fort Berthold assets in North Dakota for $292 million.

Oilfield services

  • On 6-Jan-2017, C&J Energy Services successfully completed its financial restructuring and emerged from Chapter 11, by eliminating ~$1.4 billion of debt from its balance sheet.  

Midstream

  • DCP Midstream Partners LP (DPM) has acquired all of the assets and debt of DCP Midstream LLC, a 50-50 JV between Phillips 66 and Spectra Energy. DPM issued ~31.1 million shares valued at $1.125 billion. The net deal value including shares, debt of $3.15 billion and cash of $424 million contributed by DCP Midstream is $3.851 billion. DCP Midstream owns 40 gas processing plants with net processing capacity of 4.2 Bcf/d, 3 fractionators, 50,000 miles of gas pipelines and 200 miles of NGL pipelines across the DJ basin, Permian basin and Midcontinent region.  
  • Tallgrass Energy Partners LP has acquired Tallgrass Terminals LLC and Tallgrass NatGas Operator LLC from Tallgrass Development LP for $140 million. Tallgrass Terminals owns Buckingham terminal in Northeast Colorado, Sterling terminal in Colorado and 20% interest in Deeprock Development terminal with combined operational storage capacity of 3.6 MMbbl. Tallgrass NatGas operates Rockies Express pipeline (REX) and receives an annual fee equivalent to 1% of REX's EBITDA.
  • On 1-Jan-2017, Tesoro Logistics completed the previously announced acquisition of Robinson Lake and Belfield processing plants and related gathering systems from Whiting Petroleum, MDU Resources and GBK Investments LLC for $700 million.

Downstream

  • On 3-Jan-2017, Delek increased its offer to Alon USA shareholders from 0.44 to 0.504 Delek shares per Alon USA share. In total, Delek will now issue 19.27 million shares valued at $464 million to acquire the remaining 52.8% stake in Alon USA. The aggregate deal value including shares, debt of $282.93 million and working capital surplus of $20.59 million for 52.8% stake, is ~$726 million.

 

 

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