1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of July 31 to August 4. 

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$20,940

192

$6

15

Mid-Continent

$1,645

75

$2-$3

9

Gulf Coast

$5,679

56

~$4

9

Rockies

$6,887

49

~$4

13

Ark-La-Tex

$699

24

<$1

3

Eastern

$10,385

25

~$3

11

Gulf of Mexico

 

8

~$10

10

Alaska

-

-

-

-

West Coast

$436

11

<$1

1

Multi Region

$234

10

<$1

1

Total

$46,904

450

~$32

72

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

*Only includes packages valued >$100 million

Deal flow
Upstream

 

  • Samson Resources II has entered into an agreement to divest its East Texas and North Louisiana assets to an affiliate of Rockcliff Energy II (backed by Quantum Energy Partners) for $525 million. The sale of these assets comes after Samson Resources Corp emerged from Chapter 11 bankruptcy on 1-Mar-2017. The transaction includes ~210,000 net acres located primarily in Nacogdoches Co., Harrison Co., Panola Co., and Rusk Co., TX, as well as in Caddo Pa., Red River Pa., Natchitoches Pa., De Soto Pa., and Sabine Pa., LA, with net Production of ~90 MMcfe/d or 15 MBOE/d. Samson Resources II also sold non-core assets and equipment for $14 million, subsequent to 1-Mar-2017.
  • Penn Virginia has entered into an agreement to acquire Eagle Ford assets from Devon Energy for $205 million. The transaction includes ~19,600 net acres located in Lavaca Co., Gonzales Co., and DeWitt Co., TX, with current net Production of ~3 MBOE/d as well as infield gathering and compression systems. Penn Virginia reports the value of midstream assets, net cash flow as well as ORRI in non-Devon acreage to be $43 million, value of Production to be $105 million (at $35,000/Daily BOE) and value of Undeveloped Acreage to be $57 million (at ~$2,900/Acre). In total, Devon has sold or agreed to sell non-core assets located across the United States for $340 million, during 2017.
  • Berry Petroleum has sold its non-operated Hugoton basin assets in Kansas and Oklahoma. The transaction includes 596,184 net acres, including 490,220 net acres in Kansas and 105,964 net acres in Oklahoma, with estimated net Production of ~56.7 MMcfe/d or 9.45 MBOE/d during May-2017.  
  • On 1-Aug-2017, Vanguard Natural Resources announced that it successfully completed its financial restructuring and emerged from Chapter 11 as a new corporation under the name of Vanguard Natural Resources Inc. Through its financial restructuring and the sale of non-core assets while in Chapter 11, Vanguard eliminated ~$820 million of secured and unsecured debt from its balance sheet.
  • On 31-Jul-2017, ConocoPhillips completed the previously announced divestiture of its San Juan basin assets to Hilcorp and Carlyle Group for $2.7 billion.
  • On 31-Jul-2017, Berry Petroleum completed the previously announced acquisition of South Belridge field assets from Linn Energy for $263 million.

Oil Field Services

  • On 31-Jul-2017, Enerflex completed the previously announced acquisition of the compression business of Mesa Compression for $106 million.
  • On 31-Jul-2017, Tidewater Inc announced that it successfully emerged from Chapter 11 bankruptcy pursuant to its plan of reorganization. Tidewater eliminated ~$1.6 billion in principal of outstanding debt.


Midstream

  • Energy Transfer Partners has entered into an agreement to sell 49.9% stake in ET Rover Pipeline LLC to Blackstone Energy Partners and Blackstone Capital Partners for $1.57 billion in cash. ET Rover holds 65% stake in Rover Pipeline LLC which is constructing the Rover pipeline and will serve as operator of the pipeline once the pipeline is in service in Nov-2017. Rover Pipeline is a 712-mile pipeline with capacity of 3.25 Bcf/d, transporting gas from Marcellus and Utica shale production areas to markets across the United States and into Union Gas Dawn Hub in Ontario.

Downstream

  • International-Matex Tank Terminals LLC (IMTT, a subsidiary of Macquarie Infrastructure) has entered into an agreement to acquire Epic Midstream LLC, from affiliates of White Deer Energy (50%) and Blue Water Energy (50%), for $171.5 million. IMTT will pay $46.5 million in cash and issue new Macquarie Infrastructure shares valued at $125 million. Epic Midstream operates a network of 7 terminals with aggregate capacity of ~3.1 MMbbl in Southeast and Southwest United States. The products stored include refined petroleum, asphalt, biofuels and chemicals.

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