1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of May 1 to May 5.

 

US Announced Deals YTD

US Deals In Play*

Region

Value ($mn)

Count

Value ($bn)

Count

Permian

$17,493

81

~$7

16

Mid-Continent

$1,025

24

$4-$5

13

Gulf Coast

$4,641

21

~$4

7

Rockies

$3,609

19

~$5-$6

13

Ark-La-Tex

$15

9

~$1

3

Eastern

$2,017

12

~$2-$3

9

Gulf of Mexico

 

3

~$11

12

Alaska

-

-

-

-

West Coast

$71

6

<$1

2

Multi Region

$86

3

<$1

1

Total

$28,957

178

~$36

76

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

*Only includes packages valued >$100 million

Deal flow

Upstream

  • Noble Energy has entered into an agreement to divest its Appalachian basin assets to HG Energy LLC. Noble Energy will receive $1.125 billion in cash and an additional contingent payment of $100 million, structured as three separate payments of $33.3 million. The transaction includes 100% interest in ~385,000 net acres in Northern West Virginia and Southern Pennsylvania, with current net Production of 69.167 MBOE/d. HG Energy will assume the responsibility for ~430 MMcf/d of Noble Energy's firm transportation.
  • Jonah Energy (backed by TPG Capital LLC and EIG Global Energy Partners) has entered into an agreement to acquire interests in Green River basin assets including the Jonah and Pinedale tight gas fields from Linn Energy Inc (reorganized successor to Linn Energy LLC) for $581.5 million. The transaction includes ~27,500 net acres in Sublette Co., WY, with net Production of 21.5 MBOE/d during Q1-2017.
  • Centennial Resource Development has entered into an agreement to acquire certain undeveloped acreage and producing assets in Northern Delaware basin from GMT Exploration for ~$350 million. The transaction includes 11,860 net acres in Lea Co., NM, with net Production of ~2.1 MBOE/d during Q1-2017. Centennial reports the value of Production to be $84 million (at $40,000/Daily BOE) and value of Undeveloped Acreage to be ~$266 million (at ~$22,400/Acre).
  • Diversified Gas & Oil Plc has entered into an agreement to acquire certain Appalachian basin assets in Ohio, Pennsylvania, Southern New York and Northeast Tennessee from Titan Energy LLC (formerly Atlas Resource Partners) for $84.2 million. The transaction includes 494,229 net acres and ~7,300 wells with net production of 40.878 MMcfe/d
  • On 4-May-2017, Trilantic Capital Management and Waveland Energy Partners announced an equity commitment to invest in DJR Energy LLC, a newly formed E&P company focused on developing oil and gas resources in San Juan basin in New Mexico.
  • On 4-May-2017, Memorial Production Partners LP successfully completed its financial restructuring and emerged from Chapter 11 as Amplify Energy Corp, by eliminating ~$1.3 billion of debt. Concurrently, Amplify Energy announced the initiation of strategic alternatives, including the sale of certain non-core assets, and has retained Jefferies LLC as the lead financial advisor to assist in the process.
  • On 3-May-2017, WPX completed the previously announced acquisition of Delaware basin assets from Panther Energy and Carrier Energy for $775 million.
  • On 1-May-2017, PetroLegacy Energy II LLC completed the previously announced acquisition of Midland basin acreage from Pioneer for $266 million.

Deals In Play

  • Devon Energy is looking to divest certain non-core Upstream assets worth $1 billion over the next 12 to 18 months. The non-core assets identified for monetization include select leasehold within Barnett Shale, focused primarily around Johnson Co., TX, and other assets located within its United States portfolio. The divestiture program is expected to commence in Q2-2017.

Midstream

  • TC PipeLines entered into agreements to acquire 49.34% interest in Iroquois Gas Transmission and additional 11.81% interest in Portland Natural Gas Transmission System (PNGTS) from TransCanada for $765 million. TC PipeLines will pay $597 million in cash and also assume $168 million of proportional debt associated with the assets. Iroquois Gas Transmission owns and operates 416 miles of interstate natural gas pipeline serving Northeast United States and PNGTS owns and operates 295-mile interstate natural gas pipeline serving New England.
  • Shell Midstream Partners LP has entered into an agreement to acquire 100% interest in Refinery Gas pipelines located in Western Gulf basin and Delta and Na Kika pipelines serving in Gulf of Mexico from wholly owned subsidiaries of Shell Plc for $630 million. The transaction includes ~100 miles Refinery Gas pipelines located in Texas and Louisiana, ~128-mile onshore Delta pipeline in Louisiana, ~75-mile offshore Na Kika pipeline in Eastern GoM with capacity of 160 Mbbl/d.
  • On 4-May-2017, NuStar Energy completed the previously announced acquisition of Navigator Energy for $1.475 billion.
  • On 2-May-2017, Lucid Energy Group announced that it secured a preferred equity commitment of ~$250 million from Magnetar Capital. The investment will be specifically used to support the development of Lucid’s gas gathering and processing system in the Delaware Basin.

Downstream:

  • On 1-May-2017, Shell announced the completion of the transaction with Saudi Aramco for the separation of assets, liabilities and businesses of Motiva Enterprises LLC. 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...