1Derrick US M&A weekly update

 

US announced deals YTD

US deals in play*

Region

Value ($MM)

Count

Value ($B)

Count

Permian

$21,381

228

~$7

17

Mid-Continent

$3,817

114

~$3-$4

10

Gulf Coast

$5,537

78

~$4

9

Rockies

$7,539

64

~$4

13

Ark-La-Tex

$718

34

~$1

4

Eastern

$10,880

35

~$3

11

Gulf of Mexico

$13

16

~$10

10

Alaska

-

-

-

-

West Coast

$440

12

<$1

1

Multi Region

$409

14

~$8-$9

2

Total

$50,734

595

~$41

77

Deal flow

Upstream 

  • On 1-Sep-2017, Whiting Petroleum completed the previously announced sale of Fort Berthold Indian Reservation (FBIR) area assets in North Dakota to RimRock Oil & Gas for $500 million.   
  • On 30-Aug-2017, Enduro Royalty Trust disclosed Occidental Petroleum, Parsley Energy, Double Eagle Energy Holdings III (backed by Apollo Global Management), Forge Energy (backed EnCap Investments and Pine Brook Partners), Summit West Resources, Tracker Resources Development III (backed by EnCap Investments and 1901 Partners Management), Chisholm Energy Holdings (backed by Warburg Pincus) and QEP Resources as the buyers for its recently announced sale of Permian basin acreage for $50 million.

 Deals in play

  • PDC Energy has retained Peter J Solomon Co to assist in the divestiture of its Utica assets in Eastern Ohio. The assets include ~43,000 net acres spread across Washington Co., Morgan Co., Noble Co., Belmont Co., Guernsey Co., and Monroe Co., OH, with net Production of 2.25 MBOE/d as of Jun-2017.

 Oilfield services

  • Forum Energy Technologies has agreed to acquire remaining stake in Global Tubing from Quantum Energy Partners and Global Tubing for $237 million. Forum Energy will issue 10 million common shares valued at $209.5 million and pay the remaining $27.5 million in cash. Global Tubing provides coiled tubing products and related services for well completion and intervention activities.  
  • On 30-Aug-2017, Evolution Engineering secured an equity commitment from EV Private Equity. Evolution Engineering will invest the funds in the expansion and development of its measurement while drilling platform and related directional drilling technologies in North America.

 Midstream

  • On 28-Aug-2017, E2 Energy Services secured an equity commitment from Tailwater Capital. E2 Energy Services is an organization designed to build, own, operate and acquire midstream energy assets. E2 Energy Services currently provides natural gas gathering and processing services as well as extended services and solutions from well pad to market.  

 Downstream

  • Zenith Energy (a portfolio company of Warburg Pincus) has agreed to acquire Arc Logistics Partners and Arc Logistics GP. Arc Logistics common unitholders will receive $16.5 in cash per common unit. Lightfoot Capital Partners will receive $14.5 in cash per common unit for ~5.2 million common units held by it. Lightfoot Capital Partners GP will also receive $95.4 million for 100% membership interests in Arc GP. In total, Zenith Energy will pay $406.61 million in cash. The aggregate deal value including cash, debt of $252 million and working capital surplus of $0.62 million is $657.99 million. Arc Logistics is primarily engaged in terminalling, storage, throughput and transloading of petroleum products and other liquids and holds interest in 21 terminals, 4 rail transloading facilities and 1 LNG facility in United States.  

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