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 8 to May 12.

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$17,564

95

~$7

16

Mid-Continent

$1,025

24

$4-$5

13

Gulf Coast

$5,266

22

$3-$4

7

Rockies

$3,617

21

~$6

14

Ark-La-Tex

$49

11

~$2

4

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

$29,694

197

~$37

78

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

*Only includes packages valued >$100 million

Deal flow

Upstream

  • WildHorse Resource Development Corp. has entered into an agreement to acquire Eagle Ford assets from Anadarko Petroleum and affiliates of Kohlberg Kravis Roberts & Co (KKR) for ~$625 million. WildHorse will pay ~$556 million in cash to Anadarko and issue 6.3 million shares, valued at ~$69 million, to KKR. The transaction includes ~111,000 net acres in Burleson Co., Brazos Co., Lee Co., Milam Co., Robertson Co., and Washington Co., TX, with net Production of 7.583 MBOE/d during Q4-2016. WildHorse reports the value of Production to be $303.32 million (at $40,000/Daily BOE).

o   On 24-Oct-2016, WildHorse acquired ~160,000 net Eagle Ford acres with net Production of 3.9 MBOE/d from Clayton Williams for $400 million. In total, WildHorse has acquired or agreed to acquire ~269,000 net Eagle Ford acres with ~11.5 MBOE/d of Production for ~$1.025 billion.

o   WildHorse reports the value of ~11.5 MBOE/d of Production to be $460 million (at $40,000/Daily BOE) and value of ~269,000 net Undeveloped Acres to be $565 million (at ~$2,100/Acre).

  • Tokyo Gas America, a wholly owned subsidiary of Tokyo Gas Co, has acquired 30% stake in Castleton Resources LLC, a subsidiary of Castleton Commodities International. Castleton Resources owns and operates 160,000 net acres in East Texas with current net Production of 238 MMcfe/d or 39.667 MBOE/d  (11.9 MBOE/d for 30% interest).
  • On 9-May-2017, Earthstone Energy and Bold Energy III announced the completion of their ~$324 million merger.

Deals in play

  • Anadarko Petroleum has retained UBS Securities to assist in the sale of Moxa Arch assets, located in Greater Green River basin in Wyoming.
  • Samson Resources II (reorganized successor of Samson Resources Corp.) has retained Jefferies and Houlihan Lokey Capital to assist in the sale of its East Texas and North Louisiana assets. The assets will be marketed as a whole and as four separate packages including North Louisiana, Shelby Trough, East Texas Haynesville, and Gregg-Rusk-Nacogdoches.

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