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 23rd to January 27th.

Deal Stats

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$11,574

15

$3-4

15

Mid-Continent

 

1

~$2

7

Gulf Coast

$3,575

5

$4-5

8

Rockies

$102

4

~$6

7

Ark-La-Tex

 

1

<$1

2

Eastern

$93

2

~$2

8

Gulf of Mexico

-

-

~$10

12

Alaska

-

-

-

-

West Coast

-

-

-

-

Multi Region

 

1

<$1

1

Total

$15,344

29

~$28

60

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

*Only includes packages valued >$100 million

Deal flow
Upstream

  • Halcon has acquired Delaware basin acreage from Samson Exploration, a wholly owned subsidiary of Samson Energy, for $705 million. The transaction includes 20,748 net acres in Pecos Co., TX and Reeves Co., TX, with production of ~2.6 MBOE/d and associated midstream assets. Halcon reports the value of Production to be $104 million (at $40,000/Daily BOE), value of Undeveloped Acreage to be $546 million (at $26,316/Acre) and value of midstream assets to be $55 million.
  • Halcon has entered into an option agreement to acquire Delaware basin acreage from Sundown Energy for $175 million, including $10 million in option payments. The transaction includes 15,040 net acres in Ward Co., and Winkler Co., TX. Halcon reports the value of Undeveloped Acreage to be $175 million (at $11,636/Acre).
  • Halcon has divested its East Texas Eagle Ford assets to Hawkwood Energy (backed by Warburg Pincus) for $500 million. The transaction includes 80,500 net acres primarily in Burleson Co., and Brazos Co., TX, with current production of ~6 MBOE/d.
  • EP Energy has entered into a drilling joint venture (JV) with Wolfcamp Drillco Operating (owned by Apollo Global Management LLC) to fund the drilling program of 150 wells in EP Energy's acreage in Permian basin. The JV plans to drill up to 150 wells in two 75 well tranches with Wolfcamp Drillco funding $450 million for 60% of the drilling, completion and equipping costs over the life of the program. In return Wolfcamp Drillco will earn 50% interest in each farmout well in the completed Wolfcamp interval.
  • Guidon Energy (backed by Blackstone Energy Partners) has acquired Midland basin acreage from PrimeEnergy for ~$31 million. The transaction includes 1,600 net acres in Martin Co., TX.

Deals in play

  • Titan Energy has retained Detring & Associates LLC to assist in the sale of Appalachian basin assets. Titan is looking to sell 494,229 net acres across Ohio, Pennsylvania, Tennessee, Indiana and New York.

Midstream

  • Targa Resources has acquired 100% interest in Outrigger Delaware Operating LLC, Outrigger Southern Delaware, Operating LLC (Outrigger Delaware) and Outrigger Midland Operating LLC from Outrigger Energy LLC (backed by Denham Capital and Kayne Anderson), for $565 million in cash. Targa Resources will pay $385 million for Outrigger Delaware, $180 million for Outrigger Midland and additional contingent payment of $935 million in two potential earn-out payments based on realized gross margin from existing contracts. Including cash of $565 million and contingent payment of $935 million, Outrigger Energy will receive a total consideration of $1.5 billion. Outrigger operates 70 MMcf/d gas plant, 90 miles of gas gathering pipeline and 50 miles of crude gathering pipeline in Delaware basin and 10 MMcf/d processing facility, 70 miles of gas gathering pipeline and 30 miles of crude gathering pipeline in Midland basin.
  • Plains All American Pipeline (PAA) has entered into two separate agreements to acquire 100% of Alpha Holding Co LLC, a JV between Concho Resources and Frontier Midstream Solutions (backed by Energy Spectrum Partners) for a total consideration of $1.215 billion. Alpha Crude Connector system comprises of ~515 miles of gathering and transmission lines with operational storage capacity of ~320 Mbbl in Northern Delaware basin.
  • Plains All American Pipeline (PAA) has agreed to sell two non-core assets for $310 million. The assets include Bluewater gas storage facility in Michigan and a pipeline segment located in Midwestern United States.  

Downstream

  • AltaGas has acquired WGL Holdings for a total enterprise value of ~US$6.4 billion, including the assumption of ~US$1.8 billion of debt. AltaGas will pay a total value of US$4.51 billion at US$88.25 per WGL Holdings share. WGL Holdings provides natural gas utility services to 1.1 million customers in Washington DC, Maryland and Virginia as well as provides retail gas and electricity to ~275,000 customers in Washington DC, Maryland, Virginia, Delaware and Pennsylvania.

 

 

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