1Derrick US M&A weekly update

1Derrick gives OGFJ readers a snapshot of oil and gas industry M&A activity for the week of August 14 to August 18.

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($bn)

Count

Permian

$21,381

200

~$7

16

Mid-Continent

$3,752

95

$3-$4

11

Gulf Coast

$5,537

64

~$4

9

Rockies

$7,484

56

~$4

13

Ark-La-Tex

$718

30

~$1

3

Eastern

$10,831

32

~$3

11

Gulf of Mexico

 

12

~$10

10

Alaska

-

-

-

-

West Coast

$436

11

<$1

1

Multi Region

$234

10

<$1

1

Total

$50,373

510

~$33

75

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

*Only includes packages valued >$100 million

Deal flow
Upstream

  • Silver Run Acquisition Corp II (Silver Run II, a special purpose acquisition company formed by Riverstone Holdings LLC) has entered into definitive agreements to acquire Alta Mesa Holdings LP, and Kingfisher Midstream LLC. Upon completion, Silver Run II will be renamed as Alta Mesa Resources Inc, with an implied firm (enterprise) value of $3.836 billion. Legacy Alta Mesa Holdings shareholders will roll 100% of their equity into Silver Run II and receive 37% stake in Alta Mesa Resources. The upstream assets include 120,000 net contiguous STACK acres in Kingfisher Co., Major Co., Blaine Co., Logan Co., Garfield Co., and Canadian Co., OK, with net Production of ~20 MBOE/d.
  • Whiting Petroleum has entered into an agreement to sell its Fort Berthold Indian Reservation (FBIR) area assets in North Dakota to RimRock Oil & Gas (backed by Warburg Pincus) for $500 million. The transaction includes 29,637 net acres in North Dakota, with net Production of 7.785 MBOE/d during Q2-2017.
  • Sanchez Energy has entered into an agreement to sell its Eagle Ford acreage in the Javelina area in La Salle Co., and Webb Co., TX, for ~$105 million.
  • Rockcliff Energy II (backed by Quantum Energy Partners) acquired 60,000 net Haynesville acres in primarily in Harrison Co., and Panola Co., TX.
  • On 15-Aug-2017, EXCO Resources announced the termination of its previously announced agreement to divest its Eagle Ford assets to Venado Oil and Gas for $300 million.

Deals In Play

  • Nearburg Producing Co has retained The Oil & Gas Asset Clearinghouse to assist in the sale of its ~3,064 net operated acres in Crane Co., TX.

Midstream

  • Silver Run Acquisition Corp II (Silver Run II, a special purpose acquisition company formed by Riverstone Holdings LLC) has entered into definitive agreements to acquire Alta Mesa Holdings LP and Kingfisher Midstream LLC.  Upon completion, Silver Run II will be renamed as Alta Mesa Resources Inc, with an implied firm (enterprise) value of $3.836 billion. Kingfisher Midstream shareholders will receive $813 million in cash and 14% stake in Alta Mesa Resources. Kingfisher Midstream owns and operates ~300 miles of pipeline, 50 Mbbl of crude storage capacity, 90,000 gallons of NGL storage capacity and a cryogenic plant with gas processing capacity of 60 MMcf/d serving STACK play in Oklahoma.

Downstream

  • Andeavor Logistics has entered into a merger agreement to acquire Western Refining Logistics (WNRL). Andeavor will acquire WNRL in a unit-for-unit exchange at a blended exchange ratio of 0.4921, representing an equity value of $1.5 billion based on Andeavor Logistics closing price of $48.31 on 11-Aug-2017. The aggregate deal value including net debt of $310 million and equity is $1.81 billion. Western Refining Logistics owns and operates ~705 miles of pipelines, 10 terminals with active storage capacity of ~12.4 MMbbl, distribution of wholesale petroleum products and crude oil and asphalt trucking.
  • Andeavor Logistics has agreed to issue 78 million new common units to Andeavor, in exchange for the cancellation of Andeavor Logistics' IDRs held by Andeavor. The 78 million shares are valued at ~$3.8 billion, based on Andeavor Logistics' closing price of $43.81 on 11-Aug-2017. Post-transaction, Andeavor will hold ~127 million Andeavor Logistics common units (representing ~59% stake). Andeavor Logistics owns and operates ~5,800 miles of pipelines and 32 terminals with processing capacity of ~1.6 Bcf/d and storage capacity of 26 MMbbl, primarily serving the Mid-Continent region and Western United States.
  • Husky Energy has entered into an agreement to acquire the Superior refinery from Calumet Specialty Products Partners for $435 million in cash. Superior refinery has a permitted capacity of 50 Mbbl/d, located in Superior, Wisconsin, and associated logistics including two asphalt terminals, 3.6 MMbbl of crude and product storage and a fuels and asphalt marketing business.

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