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 16th to January 20th.

Deal stats

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$10,573

10

$3-4

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

$93

2

$2

7

Gulf of Mexico

-

-

~$10

12

Alaska

-

-

-

-

West Coast

-

-

-

-

Multi Region

 

1

<$1

1

Total

$13,843

22

~$28

60

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

*Only includes packages valued >$100 million

Deal flow
Upstream

  • ExxonMobil has acquired companies, including the operating entity Bopco, owned by the Bass family of Fort Worth, Texas for $5.6 billion. ExxonMobil will make an upfront payment of $5.6 billion in ~63 million ExxonMobil shares or ~1.5% stake in ExxonMobil. ExxonMobil will also pay a series of additional contingent cash payments of up to ~$1.02 billion, to be paid beginning in 2020 and ending no later than 2032. Bopco operates ~275,000 net acres primarily in Delaware basin in Eddy Co., and Lea Co., NM, with production of ~18 MBOE/d.
  • Noble Energy has agreed to acquire Clayton Williams for $3.2 billion, including net debt of ~$500 million. Noble Energy will issue 55 million shares, representing 11% stake, and pay $665 million in cash for a total value of $2.7 billion. The transaction includes ~71,000 net acres primarily in Reeves Co., and Ward Co., TX, with current production of ~10 MBOE/d. Noble Energy reports the value of Production to be $350 million (at $35,000/Daily BOE) and value of Undeveloped Acreage to be $2.25 billion (at ~$32,000/Acre).
  • Lario Oil & Gas has entered into multiple agreements to acquire Midland basin acreage for $345 million. The transaction includes ~10,000 net acres, representing ~39,000 effective acres in Midland Co., and Martin Co., TX, with current production of ~1.85 MBOE/d.
  • Banpu Public Co Ltd., through Kalnin Ventures LLC, has acquired non-operated interests in ~170 Marcellus wells in Pennsylvania from Chief Oil & Gas LLC for $63 million. The acquired wells are operated by seven established Marcellus operators.
  • On 18-Jan-2017, Coral Reef Capital made a new investment in Krewe Energy to recapitalize and support its growth. Krewe Energy plans to pursue acquisition of conventional producing assets in the Gulf Coast region.
  • On 17-Jan-2017, Jagged Peak Energy Inc launched an Initial Public Offering (IPO) of 38.2 million common shares at anticipated initial offering price between $16.00 and $18.00 per share.

Deals in play

  • Detring & Associates LLC has been retained by an undisclosed seller to assist in the sale of certain royalty and mineral assets in Midland basin. The seller is looking to sell 7,250 net royalty acres located primarily in Martin Co., Glasscock Co., Midland Co., Howard Co., Reagan Co., TX.

Midstream

  • Valero Energy Partners LP has acquired 40% interest in Hewitt segment of the Red River pipeline from Plains All American Pipeline LP for ~$70 million. The Hewitt segment Includes 138 mile crude oil pipeline with capacity of 150 Mbbl/d and 2 shell barrel capacity tanks with capacity of 150 Mbbl each in Oklahoma.  

 

 

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