1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of January 9th to January 13th.

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$1,428

6

~$3

16

Mid-Continent

 

1

$2

7

Gulf Coast

$3,075

4

~$4-5

8

Rockies

$102

3

~$6

7

Ark-La-Tex

 

1

<$1

2

Eastern

$30

1

$2

7

Gulf of Mexico

-

-

~$10

12

Alaska

-

-

-

-

West Coast

-

-

-

-

Multi Region

 

1

<$1

1

Total

$4,634

17

~$28

60

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

*Only includes packages valued >$100 million

Deal flow
Upstream

  • Anadarko Petroleum has entered into an agreement to divest Eagle Ford assets in South Texas to a 50:50 partnership of Sanchez and funds managed by Blackstone Energy Partners for ~$2.3 billion. The transaction includes ~155,000 net operated acres primarily in Dimmit Co., and Webb Co., TX, with current production of ~67 MBOE/d.
  • WPX Energy has entered into an agreement to acquire bolt-on Delaware basin assets from Panther Energy ll (backed by Kayne Anderson) and Carrier Energy (backed by Riverstone Holdings) for $775 million. The transaction includes 18,100 net acres in Reeves Co., Loving Co., Ward Co., and Winkler Co., TX, with current production of ~6.5 MBOE/d. WPX reports the value of Production to be $260 million (at $40,000/Daily BOE) and value of Undeveloped Acreage to be $515 million (at ~$28,500/Acre).
  • Parsley Energy has entered into two agreements to acquire Midland basin and Southern Delaware basin assets for $402 million and $248 million, respectively. Midland basin assets include ~17,800 net acres in Upton Co., Reagan Co., Glasscock Co., and Midland Co., TX, with current production of ~1.2 MBOE/d. Southern Delaware basin assets include ~5,200 net acres in Reeves Co., Pecos Co., and Ward Co., TX, with current production of ~1.1 MBOE/d. Parsley also acquired ~660 net royalty acres in Reeves Co., and Pecos Co., TX.
  • Synergy Resources Corp. has entered into an agreement to sell non-core DJ basin acreage for $71 million. The transaction includes 10,000 net undeveloped acres with production of 700 BOE/d.
  • On 9-Jan-2017, Noble completed the previously announced acquisition of additional Delaware basin acreage for $300 million.
  • On 9-Jan-2017, Sanchez completed the previously announced sale of Eagle Ford assets to Carrizo for $181 million.

Deals in play

  • SM Energy has retained Tudor, Pickering, Holt & Co to assist in the sale of its remaining operated Williston basin assets in Divide Co., ND.
  • BMO Capital Markets has been retained by a confidential seller to assist in the sale of its Barnett assets.

Midstream

  • Williams Companies (WMB) has agreed to acquire additional stake in Williams Partners (WPZ), through two separate transactions, for ~$13.2 billion. According to the terms of the first transaction, WMB permanently waived off WPZ’s payment obligations under the Incentive Distribution Rights and converted its 2% general partner interest to a non-economic interest, in return for 289 million WPZ common units. Through the second transaction (private placement), WMB acquired ~51.047 million additional WPZ common units for ~$1,842.08 million at $36.0859 per unit. Post the private placement and IDR waiver transactions, WMB will hold a total of ~711.249 million WPZ units.

 

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