1
June 17, 2019
IndicatorCurrent
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $52.28 ($0.31) (0.6%)
Prompt Gas Price ($/mmbtu) $2.33 $0.01 0.4%
Wkly Trans. Value ($mm) $2,241 $2,241 nmf
Wkly Trans. Count 5 5 nmf
US Rig Count 969 (6) (0.6%)
US Oil Prod'n (mmbbl/d) 12.3 (0.1) (0.8%)
US Gas Prod'n (bcf/d)(1) 108.5 -- --
US Oil Storage (mmbbl) 485.5 2.2 0.5%
US Gas Storage (tcf) 2.1 0.1 5.1%
$2.2 $8.0
$9.9 $10.7 $4.9
$15.8 $21.2 $21.9 $24.1
$17.0
$9.1 $9.2
$20.8
$8.2
$31.6
$19.5
$1.7
$63.3
--
50
100
150
200
250
300
350
400
450
500
--
$10
$20
$30
$40
$50
$60
$70
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 96%
Nu
mb
er
of
Tra
ns
acti
on
s
Tra
ns
acti
on
Valu
e (
$b
n)
Asset Corporate Number of Transactions
% Oil
Debt
Markets
Nine issuers priced nine tranches for $5.3 billion in proceeds
U.S. high yield funds reported an inflow of $1.7 billion
ETFs reported an inflow of $1.35 billion, while mutual funds reported an outflow of $368 million
High yield index yield was 6.32%; high yield energy index yield was 8.68%
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, EIA, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. EIA U.S. natural gas gross withdrawals and production reported monthly as of February 2019.
2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index.
Key Industry Indicators
Quarterly Deal Activity
S&P E&P(2) underperformed last week (1.2)% vs. SPX(2) 1.7%
The major U.S. equity indexes all finished up last week as the markets continued to rebound. Consumer
discretionary, consumer staples, financials, health care, industrials, materials, real estate, and tech all
finished higher
Equity
Markets
Oil ended last week down. Russia and Saudi Arabia reiterated that they would coordinate their actions to
prevent a supply glut and support prices. The Trump administration once again threatened sanctions
against Iran’s Special Trade and Finance Institute, the financial entity set up to trade with Europe in order
to avoid U.S. sanctions. Two tankers were attacked in the Gulf of Oman. The U.S. administration blamed
Iran for the attacks. If these attacks continue, U.S. military escorts for tankers passing through the region
might occur, which would signal an escalation and likely cause higher prices in crude oil. The near-term
contract closed down $0.31, or 0.6%, at $52.28
Natural gas ended last week up. The build in natural gas storage was right on market consensus. There
were mixed weather reports but overall sentiment was supportive. The near-term contract closed up
$0.01, or 0.4%, at $2.33
Commodities
Week in Review
Let’s follow these guidelines when sorting articles:
• First priority: Domestic A&D, ranked by size
• Next: Domestic M&A
• Then: US companies doing international deals (like
Noble’s Tamar)
• Then: Others (Cabot’s Lackawanna)
• Then: Prices, rig count, completions, etc.
To paste the arrows with colors,
• FactSet
• Settings
• Presentation Linking and Formatting
• Import
• Colors
• Change Color Font Covering the Week of June 7 to June 13, 2019
[TBU]
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This is the final issue for 2018. The Market Monitor will
return on Monday, January 7th. Happy Holidays from the
BMO Capital Markets team!
The October issue of BMO Calgary’s A&D (Canadian) Market
Monitor went live last week – read more here
Comstock Resources entered into an agreement to acquire
Covey Park Energy in a cash and stock transaction valued at
approximately $2.2 billion. BMO Capital Markets served as
Financial Advisor to Comstock and also served as Lead
Left Arranger, Lead Left Bookrunner, and Administrative
Agent on Comstock’s pro forma $2.5 billion senior
secured credit facility (see page 4 for details)
TPG Sixth Street Partners and Glendale Energy Ventures
announced a new oil and gas investment partnership with an
initial $500 million in capital commitments. The partnership
has already deployed funds with the completion of $55 million
in acquisitions
Prime Rock Resources and New Dawn Energy announced a
joint development agreement in Louisiana targeting the Austin
Chalk
All references to last week in the comments below are through Thursday
Russia and Saudi Arabia reiterated that they would coordinate their actions to prevent a
supply glut and support prices. Tariffs on Mexico were postponed. The legislature in Mexico
has to finalize the agreement or the tariffs could go back into effect. The Trump
administration once again threatened sanctions against Iran’s Special Trade and Finance
Institute, the financial entity set up to trade with Europe in order to avoid U.S. sanctions.
Two tankers were attacked in the Gulf of Oman. The U.S. administration blamed Iran for the
attacks. If these attacks continue, U.S. military escorts for tankers passing through the
region might occur, which would signal an escalation and likely cause higher prices in crude
oil
The build in natural gas storage was right on market consensus. There were mixed weather
reports but overall sentiment was supportive
2
June 17, 2019
R / P
Sales Value /
Proved Reserves
(15:1)
(ratio) ($ / boe) ($ / mcfe)
8x $18.08 $1.21
10x $15.78 $1.05
15x $11.21 $0.75
20x $7.97 $0.53
Permian25%
Rockies (ex. Bakken)
11%
Bakken6%Appalachia
4%
Mid-Con16%
Eagle Ford6%
Ark-La-Tex6%
Gulf of Mexico3%
Other21%
LTM By Region
y = 31.222e-0.068x
R² = 0.3404
--
$10
$20
$30
$40
$50
$60
-- 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x
Sa
les
Pri
ce
/ P
rove
d R
es
erv
es
($
/bo
e @
15
:1)
R / P
Oil66%
Gas34%
LTM By Commodity
Ann'd
Date Buyer Seller Area Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
12-Jun-19 Glendale Energy; TPG Undisclosed Seller Mid-Continent Non-op interests in STACK $55 n.a. n.a. n.a.
23-May-19 Riverside Energy Riviera Resources Inc Other 1,400 net wells in Michigan $45 $1.38 n.a. n.a.
13-May-19 Equinor Shell Gulf of Mexico 22.45% WI in Caesar-Tonga Field $965 n.a. $60,313 n.a.
07-May-19 Sabinal; Undisclosed Diamondback Energy Permian CBP, NW Shelf, & Midland Basin $322 n.a. $49,538 $2,927
02-May-19 Undisclosed Buyer California Resources Corp California 50% WI in assets in San Joaquin Basin $203 n.a. $88,000 n.a.
29-Apr-19 Undisclosed Buyer Riviera Resources Inc Mid-Continent Non-op Hugoton Basin $31 n.a. n.a. n.a.
23-Apr-19 Murphy LLOG Bluewater LLC Gulf of Mexico Mississippi Canyon & Green Canyon $1,375 $20.83 $36,184 n.a.
22-Apr-19 Northern Oil and Gas Flywheel Energy LLC Bakken 18,000 net acres in Williston Basin $310 n.a. $47,014 $17,238
08-Apr-19 Sequitur Energy Resources Callon Permian 9,850 net acres in Reagan & Upton, TX $260 n.a. $65,000 $26,396
02-Apr-19 Dorchester Minerals, L.P. H. Huffman & Co. Multi-Region Mineral & royalty assets across the U.S. $44 n.a. $139,419 nmf
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Public Company
43%
PE / PE-Backed
20%
Private10%
Other27%
LTM By Buyer Type
The 10 Most Recent Asset Transactions Over $20 Million
A&D Valuation Trends(3)
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, PLS
1. Represents total enterprise value. 2. Calculated as percentage of total LTM transaction count (number of transactions, not dollar value).
3. 65 transactions from January 2015 to 2019 with transaction value >$20mm. Adjusted for changes in price outlooks. Recalculated boe reserves are on a 15:1
(gas:oil) basis. Acreage transactions excluded by using deals with PDP of >= 40% of total proved.
4. Year-to-date data is through this week’s date for each respective year.
(2) (2) (2)
Confirm number of transactions weekly --->
[TBU]
[TBU]
[TBU]
YTD Deal Activity ($bn)(4)
$12.4 $23.4
$14.6 $5.3
$4.4
$8.8
$11.1
$59.8
$16.8
$32.2
$25.7
$65.1
2016 2017 2018 2019
433 768 571 95
Asset Corporate
Deal Count
3
June 17, 2019
Select Significant Deals on the Market
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Source of Select Significant Deals on the Market: BMO Transaction Database
Source of Headlines: Press releases
Industry Headlines
Appalachia
1 Deals
Mid-Con
8 Deals
Eagle Ford
8 Deals
Permian
17 Deals
Other
10 Deals
Rockies
4 Deals
(Click headline to link to the full article)
M&A&D Headlines
Bakken
4 Deals
Ark-La-Tex
5 Deals
BMO Deals (Status)
Enerplus Elm Coulee (In Market) – See page 6
Bulls Beware: The 2020 Oil Market Is Quickly Turning
Ugly
Russia Warns of $40 Oil Even as It Holds Out on
OPEC+ Deal
OPEC Warns That Trade Tensions Are Hurting Global
Oil Demand
Oil Demand Signals Are Flashing Red as Price Dives
Toward $50
The U.S. Will Maintain Oil Production Despite Falling
Prices, Says Deputy Energy Secretary
Texas Producers Experiment, Pumping Gas Down
Wells Amid Glut
Drilling Down: Spraberry Play Heats Up in West Texas
Comstock Resources to Become Haynesville Basin
Leader With Acquisition of Covey Park Energy for
$2.2 Billion
Prime Rock Resources and New Dawn Energy
Announce Joint Development Agreement in Louisiana
Targeting the Austin Chalk
TPG Sixth Street Partners and Glendale Energy
Ventures Form $500 Million Partnership to Fund
Acquisitions of Non-Operated Oil and Gas Properties
Talos Energy Announces Full Year 2019 Operating
and Financial Guidance (includes A&D
announcement)
BMO Deals (Status)
Juno Permian (In Market) – See page 4
Rio Glasscock County (In Market) – See page 5
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6/12/2019
Appalachia 1
Ark-La-Tex 5
Bakken 4
Eagle Ford 8
Mid-Con 8
Other 10
Permian 17
Rockies 4
57
4
June 17, 2019
On June 10, 2019, Comstock Resources, Inc.
(“Comstock”) announced that it entered into an
agreement to acquire Covey Park Energy, LLC
(“Covey Park”) in a cash and stock transaction valued
at approximately $2.2 billion
Includes the assumption of Covey Park’s
outstanding debt and the retirement of Covey
Park’s existing preferred units which in aggregate
total approximately $1.1 billion
Covey Park will receive $700 million cash, $210
million of newly issued perpetual convertible
preferred stock, and 28.8 million shares of newly
issued Comstock common stock
Jerry Jones, owner of the Dallas Cowboys Football
Club Ltd., will invest an additional $475 million in cash
for 50 million of newly issued shares of Comstock
common stock to be issued at an agreed upon price of
$6.00 per share and $175 million of newly issued
shares of perpetual convertible preferred stock
The transaction is expected to close on or before July
31, 2019
BMO Capital Markets served as Financial Advisor
to Comstock on this transaction and also served
as Lead Left Arranger, Lead Left Bookrunner, and
Administrative Agent on Comstock’s pro forma
$2.5 billion senior secured credit facility
TRANSACTION SUMMARY
Source: Press releases, company presentations
1. Based on $2,000/mcfe/d production multiple.
ASSET SUMMARY
248,830 total net acres, with 205,946 net acres in the
Haynesville/Bossier
Q1 2019 net production of 705 mmcfe/d
1,180 net drilling locations
SEC proved reserves of 2,940 bcfe
SEC proved PV-10 of $2,357 million
Includes approximately 500 miles of gathering
systems
BMO Deal of the Week:
Comstock Resources Acquires Covey Park Energy for $2.2 Billion
ACQUIRED ASSETS TRANSACTION METRICS
Rockies
Permian
Gulf of Mexico
Algeria
Ghana
Mozambique
Covey Park Assets
OBSERVATIONS
Transforms Comstock into the basin leader of the
Haynesville
Over $25 million in annual corporate overhead
savings
Pro forma the transaction, Jerry Jones will own 75%
and Denham Capital will own 16% interest
Purchase Price (US$ mm)
Total Consideration $2,200
Metrics
Net Haynesville/Bossier Acres 205,946
Q1 2019 Net Production (mcfe/d) 705,000
Net Locations 1,180
Proved Reserves (bcfe) 2,940
SEC Proved PV-10 $2,357
Multiples
TEV / Net Haynesville/Bossier Acres($/acre) $10,682
TEV / Adj. Net Haynesville/Bossier Acres ($/acre)(1) $3,836
TEV / Q1 2019 Net Production ($/mcfe/d) $3,121
TEV / Net Location ($mm/location) $1.9
TEV / Adj. Net Location ($mm/location)(1) $0.7
TEV / Proved Reserves ($/mcfe) $0.75
TEV / SEC Proved PV-10 0.93x
Financial Co-Advisor Pending
Acquisition of
$2.2 billion
Lead Left Arranger, Lead
Left Bookrunner, and
Administrative Agent Pending
Senior Secured Credit
Facility
$2.5 billion
5
June 17, 2019
$20
$30
$40
$50
$60
$70
$80
Jun-18 Dec-18 Jun-19 Dec-19 Jun-20
($/b
bl)
$1
$2
$3
$4
$5
Jun-18 Dec-18 Jun-19 Dec-19 Jun-20
($/m
mb
tu)
25%
35%
45%
55%
65%
Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19
% o
f W
TI
NGL as % of WTI
Historical Prices as of 13-Jun-19 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.16 $0.19 $0.29 $0.33
Propane $0.42 $0.42 $0.70 $0.89
Butane $0.38 $0.35 $0.73 $0.97
Iso-butane $0.49 $0.48 $0.80 $1.37
Pentane+ $1.02 $0.99 $1.09 $1.52
NYMEX Gas Futures as of 13-Jun-19 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.50 $2.51 $3.15 $2.93
2019 $2.40 $2.41 $3.15 $2.80
2020 $2.61 $2.60 $2.70 $2.70
2021 $2.63 $2.64 $2.61 $2.66
2022 $2.79 $2.80 $2.79 $2.80
2023 $2.79 $2.80 $2.79 $2.80
NYMEX WTI Futures as of 13-Jun-19 Close ($/bbl) NYMEX Gas Futures as of 13-Jun-19 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $52.59 $52.44 $53.75 $65.14
2019 $52.66 $52.72 $53.75 $63.89
2020 $52.25 $51.82 $54.09 $61.00
2021 $51.52 $50.89 $53.42 $58.80
2022 $51.55 $50.71 $52.82 $57.10
2023 $52.09 $51.10 $52.58 $55.90
NGL PRICING(2)
HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)
Commodity Prices
Source: BMO Commodity Products Group, Bloomberg, FactSet
1. Future prices are calendar year average unless stated otherwise.
2. Assumes typical Gulf Coast barrel composition.
WTI OIL (HISTORICAL / FORECAST)
Links:
http://www.nasdaq.com/markets/crude-oil.aspx
http://www.bloomberg.com/quote/CL1:COM
http://www.nasdaq.com/markets/natural-gas.aspx
http://www.bloomberg.com/quote/NG1:COM
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
[TBU]
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[TBU]
Historical Prices as of 06-Jun-19 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.19 $0.22 $0.31 $0.32
Propane $0.42 $0.52 $0.72 $0.87
Butane $0.35 $0.51 $0.70 $0.91
Iso-butane $0.48 $0.60 $0.90 $1.35
Pentane+ $0.99 $1.11 $1.03 $1.49
NYMEX Gas Futures as of 06-Jun-19 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.51 $2.67 $3.22 $2.89
2019 $2.41 $2.63 $3.22 $2.78
2020 $2.60 $2.68 $2.69 $2.69
2021 $2.64 $2.65 $2.64 $2.66
2022 $2.80 $2.81 $2.81 $2.81
2023 $2.80 $2.81 $2.81 $2.81
NYMEX WTI Futures as of 06-Jun-19 Close ($/bbl) NYMEX Gas Futures as of 06-Jun-19 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $52.44 $56.26 $52.68 $63.48
2019 $52.72 $56.69 $52.68 $62.18
2020 $51.82 $55.24 $53.50 $59.22
2021 $50.89 $53.43 $53.35 $56.89
2022 $50.71 $52.57 $53.12 $55.20
2023 $51.10 $52.40 $53.14 $53.97
6
June 17, 2019
Clearbrook
Midland
Cushing
St. James
(LLS)
East Coast
U.S. (Brent)
Midland Sweet-
Sour Spread
EMS
AECO
Northern
California
Sumas
Southern
California
El Paso - SJ
Waha
HSC
Henry Hub
Panhandle
CIG Chicago
Dominion
Transco
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 13-JUN-19
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 13-JUN-19
Legend
Price
Diff.
Legend
Price
Diff.
Source: BMO Commodity Products Group, Bloomberg
Note: Prices and differentials are for prompt month futures except for Clearbrook which is based on spot prices.
MAPS IN
MASTER VIEW
TBU
[TBU]
[TBU]
$52.28
($0.41) $58.65
$6.37
$1.96
($0.37)
$1.71
($0.62)
$2.33
$2.13
($0.20)
$52.34
$0.06
$61.31
$9.03
$53.28
$1.00
$45.90
($6.38)
$2.05
($0.28)
$2.36
$0.03
$0.28
($2.05)
$1.52
($0.81)$1.81
($0.52)$2.77
$0.44
$0.62
($1.71)$2.19
($0.14)
$2.81
$0.48
7
June 17, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 441 (5) 446 Oil Differential ($0.80) ($0.45) ($0.35)
Permitting Activity 178 (44) 222 Gas Differential ($2.05) ($0.02) ($2.03)
0%
10%
20%
30%
40%
50%
--
100
200
300
400
500
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$4.80
-$3.20
-$1.60
$0.00
$1.60
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$18.00
-$12.00
-$6.00
$0.00
$6.00
$ /
mm
btu
$ /
bb
l
Midland Waha
1,0911,1481,223
993
1,212
1,010868
1,247
1,0651,207
1,050
1,256
345
Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19
H V+D
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
mm
cf/
d
mb
bl/
d
Oil Gas
3,846
12,871
--$10,000$20,000$30,000$40,000$50,000$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 2 8 8 6 6 12 13 15 7 3 2 7 2 5 4 1 2
$ /
acre
# Deals
$25,753
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
07-May-19 Sabinal; Undisclosed Diamondback Energy CBP, NW Shelf, & Midland Basin $322 n.a. $49,538 $2,927
08-Apr-19 Sequitur Energy Resources Callon 9,850 net acres in Reagan & Upton, TX $260 n.a. $65,000 $26,396
27-Mar-19 Undisclosed Buyer Rosehill Resources ~880 net acres in Lea Co., NM $22 n.a. n.a. $25,000
26-Feb-19 Ring Energy Inc Wishbone Energy Partners 37,206 net Central Basin Platform acres $300 $8.75 $50,000 $8,063
19-Feb-19 Undisclosed Buyer Noble Energy Non-core acreage in the Delaware Basin $63 n.a. n.a. n.a.
Mean $193 $8.75 $54,846 $15,597
Median $260 $8.75 $50,000 $16,532
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$50,000
$100,000
$150,000
$200,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 2 6 9 5 7 11 9 9 6 1 0 7 2 5 4 1 2
$ /
bo
e/d
# Deals
$117,551
GROSS PRODUCTION
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS
Permian Snapshot
RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
[TBU]
[TBU]
[TBU] [TBU]
[TBU] [TBU]
[TBU]
8
June 17, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 90 1 89 Oil Differential $7.00 ($0.10) $7.10
Permitting Activity 76 25 51 Gas Differential $0.03 $0.01 $0.02
0%
5%
10%
15%
20%
--
100
200
300
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$0.30
-$0.20
-$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$6.00
-$4.00
-$2.00
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
MEH HSC
440379
455
329402
350315
398 353
472
351401
104
Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19
H V+D
6,000
6,500
7,000
7,500
8,000
8,500
9,000
9,500
10,000
10,500
1,000
1,200
1,400
1,600
1,800
2,000
2,200
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
mm
cf/
d
mb
bl/
d
Oil Gas
1,535
8,472
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
19-Nov-18 Lonestar Resources Inc Sabine Oil & Gas Corp 2,706 net acres in Eagle Ford $39 $2.98 $48,375 $14,302
20-Sep-18 WildHorse Undisclosed Seller 20,305 net Eagle Ford/Austin Chalk acres $35 n.a. n.a. $1,743
07-Sep-18 Undisclosed Buyer Viking Minerals LLC 1,191 net royalty acres in Eagle Ford $28 n.a. n.a. nmf
31-Jul-18 EP Energy Corp Undisclosed Seller Additional working interests in Eagle Ford $31 n.a. n.a. n.a.
26-Jul-18 BP BHP Billiton Permian, Eagle Ford, and Haynesville $10,500 n.a. n.a. n.a.
Mean $2,127 $2.98 $48,375 $8,022
Median $35 $2.98 $48,375 $8,022
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$50,000
$100,000
$150,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 1 3 1 2 2 2 4 4 3 1 2 7 2 0 3 0 0
$ /
bo
e/d
# Deals
$70,217
--$10,000$20,000$30,000$40,000$50,000$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 1 2 1 2 2 0 4 2 3 1 2 4 2 1 3 0 0
$ /
acre
# Deals
$6,130
Eagle Ford Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
9
June 17, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 60 (1) 61 Oil Differential $7.70 $0.10 $7.60
Permitting Activity 17 7 10 Gas Differential -- -- --
0%
5%
10%
15%
20%
--
20
40
60
80
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
--
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
--
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
154 163 168 177 180
115105
174
113116 116
132
25
Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19
H V+D
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
80
90
100
110
120
130
140
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
mm
cf/
d
mb
bl/
d
Oil Gas
95
11,355
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 3 1 1 2 1 3 0 1 2 0 1 1 1 1 0 0
$ /
acre
# Deals
$3,349
--$2,000$4,000$6,000$8,000
$10,000$12,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 5 1 1 3 2 3 0 2 2 0 1 1 2 1 0 0
$ /
mcfe
/d
# Deals
$5,209
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
19-Dec-18 Comstock Shelby Shale LLC 6,023 net acres in Haynesville $21 n.a. n.a. $3,404
19-Nov-18 Aethon III QEP Resources Inc 49,700 net acres in Haynesville $735 $0.77 $2,475 $14,789
05-Sep-18 Viking Energy Group Multiple Sellers Texas and Louisiana assets $100 n.a. n.a. n.a.
05-Sep-18 Equinor Texegy LLC 60,000 net acres in Austin Chalk $75 n.a. n.a. $1,250
06-Aug-18 Mission Creek Resources Bonanza Creek Energy Inc 11,132 net acres in the Cotton Valley $117 $1.69 $6,500 $10,510
Mean $210 $1.23 $4,487 $7,488
Median $100 $1.23 $4,487 $6,957
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Ark-La-Tex Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
10
June 17, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 76 -- 76 Oil Differential $9.03 ($0.05) $9.08
Permitting Activity 21 (51) 72 Gas Differential ($0.41) ($0.10) ($0.30)
0%
5%
10%
15%
20%
--
50
100
150
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$3.00
-$2.00
-$1.00
$0.00
$1.00
$2.00
$3.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$15.00
-$10.00
-$5.00
$0.00
$5.00
$10.00
$15.00
$ /
mm
btu
$ /
bb
l
Brent Dominion
299 269
493
373 370305
258
397
276
382419
384
86
Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19
H V+D
14,000
19,000
24,000
29,000
34,000
50
70
90
110
130
150
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
mm
cf/
d
mb
bl/
d
Oil Gas
105
29,561
--$5,000
$10,000$15,000$20,000$25,000$30,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1 1 0
$ /
mcfe
/d
# Deals
$4,758
--$2,000$4,000$6,000$8,000
$10,000$12,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0 0 0
$ /
acre
# Deals
$2,083
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
27-Mar-19 Diversified Gas & Oil HG Energy II LLC Huckleberry assets in Appalachia $400 n.a. $3,227 n.a.
15-Oct-18 Undisclosed Buyer Range Resources Corp Overriding royalty interests in Appalachia $300 n.a. $17,649 nmf
27-Aug-18 PennEnergy Resources Rex Energy Corp 141,026 net acres in PA and OH $601 $0.58 $2,781 $4,258
26-Jul-18 Encino Acquisition Partners Chesapeake 938,000 net acres in the Utica $1,900 $0.66 $2,960 $2,026
29-Jun-18 Ascent Resources LLC Utica Minerals; Undisclosed 35,400 acres in the Utica $700 n.a. $15,217 $19,774
Mean $780 $0.62 $8,367 $8,686
Median $601 $0.62 $3,227 $4,258
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Appalachia Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
11
June 17, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 56 -- 56 Oil Differential $1.00 $1.85 ($0.85)
Permitting Activity 14 (22) 36 Gas Differential ($0.58) ($0.06) ($0.52)
0%
5%
10%
15%
20%
--
50
100
150
200
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
126
171 164
127
201
12896
133114
144 138 145
37
Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19
H V+D
1,100
1,300
1,500
1,700
1,900
2,100
2,300
2,500
2,700
2,900
800
900
1,000
1,100
1,200
1,300
1,400
1,500
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
mm
cf/
d
mb
bl/
d
Oil Gas
1,425
2,806
--
$20,000
$40,000
$60,000
$80,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 1 1 4 0 2 3 3 0 1 3 3 0 6 3 0 0 1
$ /
bo
e/d
# Deals
$43,737
--
$5,000
$10,000
$15,000
$20,000
$25,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 1 2 0 0 2 3 1 0 3 2 0 5 2 0 0 1
$ /
acre
# Deals
$2,702
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
22-Apr-19 Northern Oil and Gas Flywheel Energy LLC 18,000 net acres in Williston Basin $310 n.a. $47,014 $17,238
31-Jul-18 Northern Oil and Gas W Energy Partners 10,600 net acres in Williston Basin $288 n.a. $42,708 $27,196
18-Jul-18 Northern Oil and Gas Pivotal Petroleum Partners LP Producing assets in Williston Basin $152 n.a. $37,032 n.a.
12-Jul-18 PetroShale Inc Slawson Exploration Co 1,981 net acres in Williston Basin $55 $6.04 $100,000 $27,764
06-Jul-18 Energy Resources 12 LP Bruin E&P Partners LLC 2.8% non-operated WI in Bakken assets $83 n.a. n.a. n.a.
Mean $178 $6.04 $56,688 $24,066
Median $152 $6.04 $44,861 $27,196
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Bakken Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
12
June 17, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 71 -- 71 Oil Differential $1.00 $1.85 ($0.85)
Permitting Activity 12 (20) 32 Gas Differential ($0.58) ($0.06) ($0.52)
0%
5%
10%
15%
20%
--
50
100
150
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
558683
526 512
689829
812
352402
494
328
164
29
Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19
H V+D
11,500
12,000
12,500
13,000
13,500
14,000
400
500
600
700
800
900
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
mm
cf/
d
mb
bl/
d
Oil Gas
858
12,941
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 3 3 0 1 1 0 1 0 1 5 2 0 2 1 0 0
$ /
acre
# Deals
$4,655
--$20,000$40,000$60,000$80,000
$100,000$120,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
2 0 4 4 1 6 2 0 1 6 3 9 3 1 3 1 1 0
$ /
bo
e/d
# Deals
$37,548
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
14-Feb-19 Undisclosed Buyer Harvest Oil & Gas Corp San Juan Basin assets $43 $1.57 $10,835 n.a.
31-Jan-19 Undisclosed Buyer Extraction Oil & Gas 5,000 net acres in Powder River $22 n.a. n.a. $4,480
01-Oct-18 DJR Energy LLC Encana 182,000 net acres in San Juan Basin $480 n.a. $88,889 $2,637
28-Aug-18 Vermilion Energy Inc Massif Oil & Gas LLC 55,000 acres in Powder River Basin $150 n.a. $56,604 $2,727
28-Aug-18 Rebellion Energy II LLC Liberty Resources II LLC 19,000 net acres in Powder River Basin $100 n.a. n.a. $5,263
Mean $159 $1.57 $52,109 $3,777
Median $100 $1.57 $56,604 $3,604
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS
Rockies (excl. Bakken) Snapshot
RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
13
June 17, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 105 -- 105 Oil Differential -- -- --
Permitting Activity 84 6 78 Gas Differential ($0.80) ($0.14) ($0.66)
0%
5%
10%
15%
20%
--
100
200
300
400
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
$ /
mm
btu
$ /
bb
l
Cushing Panhandle
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
12-Jun-19 Glendale Energy; TPG Undisclosed Seller Non-op interests in STACK $55 n.a. n.a. n.a.
29-Apr-19 Undisclosed Buyer Riviera Resources Inc Non-op Hugoton Basin $31 n.a. n.a. n.a.
31-Mar-19 Red Wolf Apache 56k net acres in SCOOP/STACK/Merge $245 n.a. $18,421 $4,375
19-Feb-19 Mid-Con Energy Partners Scout Energy Partners Caddo, Grady, and Osage cos., OK $28 n.a. $20,960 n.a.
31-Dec-18 Unit Corp Undisclosed Seller ~8,700 net acres in Western OK $30 $11.38 n.a. $3,402
Mean $78 $11.38 $19,691 $3,889
Median $31 $11.38 $19,691 $3,889
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
496 465497
449405 382 355 403 339
435389
298
147
Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19
H V+D
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
400
450
500
550
600
650
700
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
mm
cf/
d
mb
bl/
d
Oil Gas
573
7,897
--
$50,000
$100,000
$150,000
$200,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 4 1 3 1 6 3 1 4 2 4 5 2 2 5 4 2 0
$ /
bo
e/d
# Deals
$43,516
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 1 0 0
$ /
acre
# Deals
$5,760
Mid-Continent Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
14
June 17, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 24 1 23 Oil Differential $7.70 $0.10 $7.60
Permitting Activity 9 (2) 11 Gas Differential -- -- --
0%
5%
10%
15%
20%
--
10
20
30
40
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
Deep Water Shelf % of Total Rigs
--
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
--
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
29 2932 33
39
32 30 32 33
26 2926
16
Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-192,000
2,500
3,000
3,500
4,000
4,500
1,000
1,200
1,400
1,600
1,800
2,000
2,200
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
mm
cf/
d
mb
bl/
d
Oil Gas
1,915
2,971
--
$15,000
$30,000
$45,000
$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 1 1 0 0 2 0 0 0 0 1 2 2 2 1 1 2
$ /
bo
e/d
# Deals
$34,195
Ann'd
Date Buyer Seller Asset Description Value(2)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(3)
13-May-19 Equinor Shell 22.45% WI in Caesar-Tonga Field $965 n.a. $60,313 n.a.
23-Apr-19 Murphy LLOG Bluewater LLC Mississippi Canyon & Green Canyon $1,375 $20.83 $36,184 n.a.
16-Jan-19 Talos Energy Inc Samson Energy Co LLC Non-op Gulf of Mexico working interest $30 $13.45 $17,939 n.a.
10-Oct-18 Murphy Petrobras Gulf of Mexico joint venture $900 $15.00 $21,951 n.a.
04-Sep-18 Talos Energy Inc Whistler Energy II LLC Leases in Green Canyon federal waters $91 n.a. $60,667 n.a.
Mean $672 $16.43 $39,411 n.a.
Median $900 $15.00 $36,184 n.a.
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$10
$20
$30
$40
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 1 0 0 0 2 1 0 0 0 1 2 1 0 1 1 1
$ /
bo
e
# Deals
$18.49
Gulf of Mexico Snapshot
PERMITTING ACTIVITY BY MONTH(1)
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Permits include directional and unidentified drilling permits. 2. Represents total enterprise value. Excludes transactions with deal value <$20 million.
3. $/acre multiple not adjusted for value associated with production.
4. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
GROSS PRODUCTION
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(4) TRANSACTION PROVED RESERVE MULTIPLES(4)
15
June 17, 2019
Upcoming Industry Events
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Click event to open
July 2019 Jul 10 Houston Producers Forum Luncheon
Jul 10 IPAA Leaders in Industry Luncheon
Jul 19 ADAM-Houston Monthly Luncheon April 2019
Apr 22-23 Mineral & Royalty Conference
June 2019 Jun 18 Houston Producers Forum Luncheon
Jun 18-20 DUG East (Pittsburgh)
Jun 19-20 IADC World Drilling Conference & Exhibition
Jun 21 ADAM-Houston Monthly Luncheon
Jun 24-26 IPAA Midyear Meeting
Jun 25 176th OPEC Meeting
August 2019 Aug 16 ADAM-Houston Monthly Luncheon
Aug 20 IPAA Oil & Gas Overview Course
Aug 20 Houston Producers Forum Luncheon
Aug 21-22 Summer NAPE
September 2019 Sep 17 Houston Producers Forum Luncheon
Sep 20 ADAM-Houston Monthly Luncheon
Sep 24-26 DUG Eagle Ford (San Antonio)
Sep 30-Oct 2 SPE Annual Technical Conference and Exhibition
October 2019 Oct 9 IPAA Leaders in Industry Luncheon
Oct 15 Houston Producers Forum Luncheon
Oct 18 ADAM-Houston Monthly Luncheon
Oct 22-23 A&D Strategies and Opportunities Conference
2020
Jun 16-18 DUG East (Pittsburgh)
Jul 22-24 SPE Unconventional Resources Technology
Aug 11-14 Enercom Oil & Gas Conference
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Oct 27-28 A&D Strategies and Opportunities Conference
Nov 2-4 Executive Oil Conference & Exhibition
November 2019 Nov 4-6 Executive Oil Conference & Exhibition
Nov 15 ADAM-Houston Monthly Luncheon
Nov 19 IPAA Oil & Gas for Newcomers
Nov 19 Houston Producers Forum Luncheon
Nov 19-21 DUG Midcontinent (Oklahoma City)
December 2019 Dec 11 IPAA Leaders in Industry Luncheon
Dec 17 Houston Producers Forum Luncheon
Dec 20 ADAM-Houston Monthly Luncheon
January 2019 Jan 15 Houston Producers Forum Luncheon
Jan 25 ADAM-Houston Monthly Luncheon
Jan 24 IPAA Private Capital Conference
May 2019
May 21 Houston Producers Forum Luncheon
May 22 SPE Business Development Group Meeting
March 2019 Mar 26-28 International Petroleum Technology Conference
January 2020 Jan 23 IPAA Private Capital Conference
Jan 17 ADAM-Houston Monthly Luncheon
Jan 21 Houston Producers Forum Luncheon
February 2020 Feb 3-7 NAPE Summit Week
Feb 19 Houston Producers Forum Luncheon
Feb 18-19 DUG Rockies (Denver)
March 2020 Mar 2 Energy Capital Conference
Mar 4 Women in Energy Luncheon
Mar 3-5 IADC/SPE International Drilling Conference
Mar 9-13 Houston CERA Week
Mar 17 Houston Producers Forum Luncheon
Mar 20 ADAM-Houston Monthly Luncheon
April 2020 Apr 6-8 DUG Permian (Fort Worth)
Apr 17 ADAM-Houston Monthly Luncheon
Apr 20-22 OGIS New York
Apr 21 Houston Producers Forum Luncheon
May 2020 May 15 ADAM-Houston Monthly Luncheon
May 19 Houston Producers Forum Luncheon
May 19-20 DUG Haynesville (Shreveport)
16
June 17, 2019
SCOOP/STACK/Merge
DJ-Niobrara
Eagle Ford
Haynesville
Granite Wash
GOM
Permian
Marcellus
Utica
Williston
Gulf Coast Onshore
Piceance
Powder River Green River
Legend
Current
Change
This material is prepared by the BMO Capital Markets’ Investment and Corporate Banking Department, for distribution to BMO Capital Markets’ clientele. It is not a product of
BMO Capital Markets’ Research Department. The views of the Investment and Corporate Banking Department may differ from those of the Research Department.
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(M-Bar roundel symbol)" is a registered trademark of Bank of Montreal, used under license.
Bank of Montreal or its subsidiaries (“BMO Financial Group”) has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets.
The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital
Markets endeavors to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and
complete. However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained
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the solicitation of an offer to buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.
BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securities discussed herein, related securities or in options, futures or
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All values in this document are in US$ unless otherwise specified.
Source of rig count stats: Baker Hughes
Rig Count Summary MAPS IN
MASTER VIEW
Contacts
Disclaimer
Jason Martinez
MD & Head of U.S. A&D
713-546-9771
Howard Barnwell
MD & Transactions Mgr.
713-546-9767
Rob Priske
MD & Transactions Mgr.
713-546-9727
Dan Schockling
Director & Head of Commercial
713-518-1223
Michael Hackett
Vice President
Marian Yu
Associate
Aaron Moeller
Associate
BMO uses updated basin outlines, and the resulting rig counts, to more accurately represent current basin knowledge. The data below reflect these changes
and is different than those shown by Baker Hughes. The totals are the same.
441
(5)
56
--
18
--
58
--28
--
24
1
12
--77
--
60
(1)
90
1
23
(1)
5
--
19
--16
(1)
[TBU]
This
Week Change
Last
Week
Last
Year
Total Rigs 969 (6) 975 1,059
Oil 788 (1) 789 863
Gas 181 (5) 186 194
Miscellaneous -- -- -- 2
Directional 68 (6) 74 67
Horizontal 852 (3) 855 932
Vertical 49 3 46 60
Basin
Permian 441 (5) 446 476
SCOOP/STACK/Merge 77 -- 77 107
Granite Wash 12 -- 12 25
Eagle Ford 90 1 89 99
Haynesville 60 (1) 61 63
Marcellus 58 -- 58 54
Utica 18 -- 18 23
Williston 56 -- 56 57
DJ-Niobrara 28 -- 28 26
Green River 16 (1) 17 17
Powder River 19 -- 19 14
Piceance 5 -- 5 8
Gulf Coast Onshore 23 (1) 24 20
GOM 24 1 23 19
Alaska 5 (1) 6 7
Other 37 1 36 44
Mid-Con 16 -- 16 23
Rockies 3 1 2 3
Western 18 -- 18 17
Eastern -- -- -- 1
Chelsea Neville
Transactions Coordinator