1
November 5, 2018
IndicatorCurrent
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $63.69 ($3.64) (5.4%)
Prompt Gas Price ($/mmbtu) $3.24 $0.04 1.3%
Wkly Trans. Value ($mm) $13,728 $13,727 nmf
Wkly Trans. Count 6 3 100%
US Rig Count 1,067 (1) (0.1%)
US Oil Prod'n (mmbbl/d) 11.2 0.3 2.8%
US Gas Prod'n (bcf/d)(1) 102.5 2.3 2.3%
US Oil Storage (mmbbl) 426.0 3.2 0.8%
US Gas Storage (tcf) 3.1 0.0 1.6%
$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
$8.0
$31.5
$16.5
--
50
100
150
200
250
300
350
400
450
500
--
$5
$10
$15
$20
$25
$30
$35
$40
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 99%
Nu
mb
er
of
Tra
nsacti
on
s
Tra
nsacti
on
Valu
e (
$b
n)
Asset Corporate Number of Transactions
% Oil
Debt
Markets
Five issuers priced six tranches for $2.6 billion in proceeds
U.S. volume is down 33% year-on-year
U.S. high yield funds reported an outflow of $1 billion
ETFs reported an inflow of $153 million, while mutual funds reported an outflow of $1.2 billion
High yield index yield was 6.87%; high yield energy index yield was 7.57%
Encana Corporation acquired Newfield Exploration for
approximately $7.7 billion (see page 4 for more details)
Chesapeake acquired WildHorse for approximately $4.0
billion (see page 5 for more detail)
Denbury Resources acquired Penn Virginia for approximately
$1.7 billion (see page 6 for more detail)
Parsley Energy sold Midland Basin assets for $170 million
Pioneer Natural Resources divested its South Texas Sinor
Nest assets for $132 million
Halcón Resources divested its Delaware Basin water
infrastructure assets for $325 million. BMO Capital Markets
acted as co-advisor on this transaction
BMO is hosting a call to discuss U.S. midterm elections and
market implications on November 7, 2018 at 9:00 am ET
(1-800-952-5114, conference code 3279053#)
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 August 2018.
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 1.1% vs. SPX(2) 1.3%
The major U.S. equity indexes finished slightly higher last week, with generally higher sector
performance. Consumer discretionary, consumer staples, financials, health care, industrials, materials,
and tech were all up. Real estate ended down 0.3%
Equity
Markets
Oil ended last week down as sanctions on Iran are expected to start soon. Initial indications suggest that
OPEC output in October reached the highest level since late 2016. Libya and Saudi Arabia showed the
biggest gains month-over-month. Refineries returning to service should help alleviate pressure from an
abundance of lighter barrels. WCS diffs were supported by BP’s announcement that BP Whiting work will
finish in late November. The near-term contract closed down $3.64, or 5.4%, at $63.69
Natural gas ended last week up. Gas production and gas storage increased. Mid-day weather runs
showed some impressive cold creeping into the longer term forecast. The near-term contract closed up
$0.04, or 1.3%, at $3.24
Commodities
Week in Review
In Commodities, ECM and DCM, let’s go to journalism standards, even
though that’s not how we get the text from those groups. Main change is
that any number below 10 is spelled out (one instead of 1). This does not
apply to statistical analyses, percentages, or money, of course.
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
For the primary Commodities bullet points on oil and gas
prices, please start with “The near-term contract opened the
week at $___” and end that same bullet point with “The
near-term contract closed the week at $____, down(up)
$___, or ___%.” You don’t have to use exactly those words
as long as the opening and closing prices are included . For
example, you could write, “Opening the week at $45.21, the
near-term oil contract declined steadily based on …” – you
know, think like a journalist, be creative.
Covering the Week of October 26 to November 1, 2018
The October issue of BMO Calgary’s A&D (Canadian)
Market Monitor went live last week – read more here
[TBU]
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2
November 5, 2018
Ann'd
Date Buyer Seller Area Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
01-Nov-18 Undisclosed Buyer Parsley Energy LP Permian 11,850 net acres in Midland Basin $170 n.a. $141,667 $14,346
31-Oct-18 Undisclosed Buyer Newpek Other 725 net acres in Live Oak Co., TX $33 n.a. $42,581 $45,517
31-Oct-18 Undisclosed Buyer Pioneer Other 2,900 net acres in Live Oak Co., TX $132 n.a. $42,581 $45,517
17-Oct-18 Earthstone Energy Inc Sabalo Energy Permian 20,800 net acres in Midland Basin $976 $10.73 $87,143 $46,923
15-Oct-18 Undisclosed Buyer Range Resources Corp Marcellus/Utica Overriding royalty interests in Appalachia $300 n.a. $105,895 nmf
10-Oct-18 Murphy Petrobras Gulf of Mexico Gulf of Mexico joint venture $900 $15.00 $21,951 n.a.
01-Oct-18 DJR Energy LLC EnCana Other Rockies 182,000 net acres in San Juan Basin $480 n.a. $88,889 $2,637
25-Sep-18 Undisclosed Buyer W&T Offshore Permian Royalty interests in 25,493 net acres $57 n.a. n.a. nmf
20-Sep-18 WildHorse Undisclosed Seller Eagle Ford 20,305 net Eagle Ford/Austin Chalk acres $35 n.a. n.a. $1,743
11-Sep-18 Carlyle Group Diamondback Energy Permian JV in Pecos Co., TX; Carlyle funds ~85% $527 n.a. n.a. n.a.
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
R / P
Sales Value /
Proved Reserves
(15:1)
(ratio) ($ / boe) ($ / mcfe)
8x $19.89 $1.33
10x $17.56 $1.17
15x $12.86 $0.86
20x $9.41 $0.63
y = 32.952e-0.062x
R² = 0.3088
--
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
-- 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x
Sale
s P
rice /
Pro
ved
R
eserv
es (
$/b
oe @
15:1
)
R / P
Public Company
31%
PE / PE-Backed
31%
Private24%
Other14%
LTM By Buyer Type
Permian40%
Rockies (ex. Bakken)
8%
Bakken3%
Appalachia3%
Mid-Con17%
Eagle Ford5%
Ark-La-Tex4%
Gulf of Mexico1%
Other17%
LTM By Region
Oil71%
Gas29%
LTM By Commodity
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. 59 transactions from January 2015 to 2018YTD 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.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
(2) (2) (2)
Confirm number of transactions weekly --->
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3
November 5, 2018
10/28/2018
Appalachia 2
Ark-La-Tex 6
Bakken 7
Eagle Ford 6
Mid-Con 8
Other 15
Permian 20
Rockies 10
74
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
Industry Headlines
Appalachia
2 Deals
Mid-Con
8 Deals
Eagle Ford
6 Deals
Permian
20 Deals
Other
15 Deals
Rockies
10 Deals
(Click headline to link to the full article)
A&D Headlines
Bakken
7 Deals
Ark-La-Tex
6 Deals
Upstream Uncertainty Tempers Otherwise Upbeat
Outlook
Rising U.S. Crude Output Sparks Race to Build Export
Terminals
China's Tariff on U.S. Natural Gas Delays Louisiana
LNG Project
Adams County Approves Moratorium on New Drilling
Permits Through End of November
Big Oil Outspends Billionaires in Washington State
Carbon Tax Fight
Encana Announces Strategic Combination with
Newfield Exploration Company; Intends to Raise
Dividend by 25 Percent and Expand its Share
Buyback Program to $1.5 Billion, Post Closing
Chesapeake Energy Corporation Accelerates
Strategic Plan with Acquisition of WildHorse Resource
Development Corporation For a Combination of
Chesapeake Common Stock and Cash
Denbury to Acquire Penn Virginia in $1.7 Billion
Transaction
Parsley Energy Announces Third Quarter 2018
Financial and Operating Results (includes A&D
announcement)
Pioneer Natural Resources Sells South Texas Assets
for $132 Million
Halcón Resources Announces the Sale of its
Delaware Basin Water Infrastructure Assets for $325
Million
BMO Deals (Status)
Wishbone CBP (In Market) – Pg. 4
[TBU]
[TBU] [TBU]
BMO Deals (Status)
Wishbone CBP (In Market) – Pg. 7
4
November 5, 2018
On November 1, 2018, Encana Corporation (TSX,
NYSE: ECA) (“Encana”) and Newfield Exploration
Company (NYSE: NFX) (“Newfield”) announced that
they entered into a definitive agreement whereby
Encana will acquire Newfield for a total consideration
of $7.7 billion
Newfield shareholders will receive 2.6719 Encana
common shares for each share of Newfield
common stock
– Valued at approximately $5.5 billion
Encana will also assume $2.2 billion in net debt
Upon completion of the transaction, Encana
shareholders will own approximately 63.5% of the
combined company and Newfield shareholders will
own approximately 36.5%
The transaction is expected to close in Q1 2019
TRANSACTION SUMMARY
Source: Company press release, Company presentation, PLS, 1Derrick, Company teaser
1. Excludes China production.
2. Value adjusted by $35,000 per flowing boe/d.
ASSET SUMMARY
~874,000 total net acres across the Anadarko,
Williston, Uinta, and Arkoma basins
369,000 net acres in the Anadarko Basin
82,000 net acres in the Williston Basin
221,000 net acres in the Uinta Basin
144,000 net acres in the Arkoma Basin
~283,000 net acres in mineral interests and other
areas
Q3 2018 production of 199 mboe/d (61% liquids)(1)
2017 YE proved reserves of 678 mmboe
Q3 2018 LTM Adj. EBITDA of $1.4 billion
~6,000 gross risked locations with ~3 billion BOE of
net unrisked resources in Anadarko Basin
Interesting Deal of the Week #1:
Encana Corporation Acquires Newfield Exploration for $7.7 Billion
ACQUIRED ASSETS ACQUISITION METRICS
Purchase Price (US$ mm)
Cash $2,200
Stock $5,500
Total Consideration $7,700
Metrics
3Q 2018 Production (boe/d) 199,000
Proved Reserves (mboe) 678,000
Net Acres 874,000
3Q 2018 LTM Adj. EBITDA ($mm) $1,400
Multiples
TEV / 3Q 2018 Production ($/boe/d) $38,693
TEV / Proved Reserves ($/boe) $11.36
TEV / Net Acre $8,810
TEV / Adj. Net Acre(2) $841
TEV / 3Q 2018 LTM Adj. EBITDA 5.5x
Newfield Assets
5
November 5, 2018
On October 30, 2018, Chesapeake Resources
Corporation (NYSE: CHK) (“Chesapeake”) announced
that it entered into an agreement to buy WildHorse
Resource Development Corporation (NYSE: WRD)
(“WildHorse”) for a total consideration of $3,977 million
The transaction consideration consists of $930
million of assumed debt and the option to
exchange each WildHorse share for either:
– 5.989 Chesapeake shares
– 5.336 Chesapeake shares and $3.00 cash
The cash consideration is expected to be between
$275 million and $400 million
Upon closing of the transaction, Chesapeake
stockholders will own ~55% of the combined company
and WildHorse shareholders will own ~45%
The transaction is expected to close in Q1 2019
TRANSACTION SUMMARY
Source: Company press release, Company presentation, PLS, 1Derrick, Company teaser
1. Pro forma for sale of Louisiana assets.
2. Consideration consists of $930 million of assumed debt and the option of either 5.989 shares of CHK or 5.336 shares of CHK and $3.00 per share of WRD.
3. Value adjusted by $35,000 per flowing boe/d.
ASSET SUMMARY
420,000 net acres in the Eagle Ford
84% WI, 66% NRI
~80% undeveloped
2Q 2018 production of 47,000 boe/d
88% liquids / 73% oil
Proved reserves of 385.6 mmboe(1)
Proved PV-10 of $3,209 million(1)
3,207 net locations
Interesting Deal of the Week #2:
Chesapeake Resources Acquires WildHorse Resource Development for $4.0 Billion
ACQUIRED ASSETS
WildHorse
ACQUISITION METRICS
Purchase Price (US$ mm)
Assumed Debt(2) $930
Stock(2) $3,047
Total Consideration $3,977
Metrics
2Q 2018 Production (boe/d) 47,000
Proved Reserves (mboe) 385,640
Net Acres 420,000
Net Locations 3,207
Proved PV-10 ($mm) $3,209
Multiples
TEV / 2Q 2018 Production ($/boe/d) $84,617
TEV / Proved Reserves ($/boe) $10.31
TEV / Net Acre $9,469
TEV / Adj. Net Acre(3) $5,552
TEV / Net Location $1,240,100
TEV / Adj. Net Location(3) $727,159
TEV / Proved PV-10 1.24x
6
November 5, 2018
On October 28, 2018, Denbury Resources Inc.
(NYSE: DNR) (“Denbury”) announced that it entered
into an agreement to acquire Penn Virginia
Corporation (NASDAQ: PVAC) (“Penn Virginia”) for a
total consideration of $1,716 million
The transaction consideration consists of $400
million in cash, the assumption of $483 million in
debt, and approximately 191.6 million shares of
Denbury stock valued at $833 million (assuming
26-Oct-18 closing price of $4.35)
Upon closing of the transaction, Denbury stockholders
will own 71% of the combined company and Penn
Virginia shareholders will own 29%
The transaction is expected to close in Q1 2019
TRANSACTION SUMMARY
Source: Company press release, Company presentation, PLS, 1Derrick, Company teaser
1. As of 1Q earnings presentation at strip pricing.
2. Value adjusted by $35,000 per flowing boe/d.
ASSET SUMMARY
84,060 net (97,900 gross) acres in the Eagle Ford
Ongoing nearby EOR pilots
99% operated
93% HBP
2Q 2018 production of 22,000 boe/d
87% liquids / 74% oil
Proved reserves of 85 mmboe(1)
Proved PV-10 of $823 million(1)
461 net (560 gross) locations
Interesting Deal of the Week #3:
Denbury Resources Inc. Acquires Penn Virginia Corporation for $1.7 Billion
ACQUIRED ASSETS
Penn Virginia
ACQUISITION METRICS
Purchase Price (US$ mm)
Cash $883
Stock $833
Total Consideration $1,716
Metrics
2Q 2018 Production (boe/d) 22,000
Proved Reserves (mboe)(1) 85,000
Net Acres 84,060
Net Locations 461
Proved PV-10 ($mm)(1) $823
Multiples
TEV / 2Q 2018 Production ($/boe/d) $78,000
TEV / Proved Reserves ($/boe) $20.19
TEV / Net Acre $20,414
TEV / Adj. Net Acre(2) $11,254
TEV / Net Location $3,722,343
TEV / Adj. Net Location(2) $2,052,061
TEV / Proved PV-10 2.09x
7
November 5, 2018
Opportunity to acquire ~37,206 net contiguous acres in the core of
the San Andres horizontal play in Northern Central Basin Platform
Operated average WI/NRI of 77%/58%
Approaching 50% HBP with minimal annual drilling
commitments
96% operated by production
Net production of ~8,100 boe/d (November 2018E)
80% oil, 13% NGL
100%+ ROR oil play in the highly coveted Permian Basin
Future drilling opportunities have reserve models of 385 to
700 Mboe (80% oil)
Position has largely been de-risked through active development by
Wishbone and offset operators
Extensive inventory of high return drilling remains with over 344
San Andres horizontal drilling locations
5,000’ laterals – 323 locations
7,500’ laterals – 21 locations
Controlled surface lands/water infrastructure creates high margins
and empowers the buyer to be a play consolidator
WTS barrels and crude pipeline infrastructure in place with no
takeaway issues
VDR available now
Contact Mark Nelson at [email protected] or 713-452-1595
to request a Confidentiality Agreement, access to the VDR, and/or
a data room presentation
Source: Wishbone CBP Divestiture announcement
Integrated
Water
Infrastructure
Owned and operated SWD system and fresh water source wells keep operating expenses low and enhance well
economics
Water infrastructure generates additional income
Infrastructure provides flow assurance for disposal and source water
1,385 acres of owned surface acreage allows buyer to expand system
Ample existing disposal capacity of 178,000 bw/d with excess available for third-party or commercialization
Improved
Horizontal
San Andres
Performance
Highly oil-saturated, oil-wet, dolomite reservoir located in the core area of very active development in the horizontal San
Andres play
Over the last four years, operators have developed a significant understanding of the reservoir and operational
characteristics defining the play
Recent drilling activity has yielded improved well performance
Time to peak production is less than 60 days
Initial peak 30-day rates of 400-700 bo/d
Operators continue to commit significant capital to the play with multiple active drilling rigs and 54 horizontal San Andres
permits
Wishbone’s
Premier
Position
Contiguous leasehold, adjacent to the prolific Wasson and Brahaney fields offering the best combination of reservoir
quality, quantity, and oil saturations in the core of the horizontal San Andres play
Position has largely been de-risked through active development by Wishbone and offset operators
Most recent quarter (2Q18) annualized cash flow of $60 MM can easily support a one rig drilling program
Acreage is approaching 50% HBP with minimal annual drilling commitments
High
Return
Inventory
Extensive inventory of high return drilling remains with over 344 San Andres horizontal drilling locations
Well economics of greater than 100% ROR compete with other top Permian plays
Future drilling opportunities have reserve models of 385 to 700 Mboe (80% oil)
Spacing of 4 to 8 wells per section supported by volumetrics with a recovery factor of 12-15% of OOIP; further supported
by an independent Von Gonten report
Stacked potential in San Andres could add additional drilling locations
Successful step-out completion helps prove play continuity in northern area
Currently on the Market from CIBC and BMO: Wishbone CBP Divestiture
ASSET HIGHLIGHTS
ASSET OVERVIEW PROCESS OVERVIEW
8
November 5, 2018
--
$1
$2
$3
$4
Nov-17 May-18 Nov-18 May-19 Nov-19
($/m
mb
tu)
$20
$30
$40
$50
$60
$70
$80
Nov-17 May-18 Nov-18 May-19 Nov-19
($/b
bl)
25%
35%
45%
55%
65%
Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17 Jul-17 Dec-17May-18 Oct-18
% o
f W
TI
NGL as % of WTI
Historical Prices as of 01-Nov-18 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.32 $0.33 $0.27 $0.26
Propane $0.82 $0.86 $0.91 $0.95
Butane $0.93 $0.91 $0.89 $1.02
Iso-butane $0.97 $0.96 $1.11 $1.05
Pentane+ $1.30 $1.43 $1.55 $1.34
NYMEX Gas Futures as of 01-Nov-18 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.85 $2.91 $2.85 $2.94
2018 $3.24 $3.23 $2.86 $2.94
2019 $2.83 $2.84 $2.74 $2.89
2020 $2.67 $2.67 $2.71 $2.87
2021 $2.61 $2.60 $2.73 $2.88
2022 $2.74 $2.73 $2.88 $3.03
NYMEX WTI Futures as of 01-Nov-18 Close ($/bbl) NYMEX Gas Futures as of 01-Nov-18 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $64.14 $67.48 $64.91 $53.94
2018 $63.69 $67.33 $66.19 $53.94
2019 $64.15 $67.43 $61.33 $51.48
2020 $62.51 $65.11 $56.43 $50.22
2021 $59.96 $62.10 $53.26 $49.73
2022 $57.63 $59.43 $51.41 $49.80
NGL PRICING(2)
HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)
Commodity Prices
Source: BMO Commodity Products Group, Bloomberg, FactSet
1. Future prices are calendar year average unless stated otherwise.
2. Assumes typical Gulf Coast barrel composition.
WTI OIL (HISTORICAL / FORECAST)
Links:
http://www.nasdaq.com/markets/crude-oil.aspx
http://www.bloomberg.com/quote/CL1:COM
http://www.nasdaq.com/markets/natural-gas.aspx
http://www.bloomberg.com/quote/NG1:COM
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
[TBU]
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9
November 5, 2018
AECO
Northern
California
Sumas
Southern
California
El Paso - SJ
Waha
HSC
Henry Hub
Panhandle
CIG Chicago
Dominion
Transco
Clearbrook
Midland
Cushing
St. James
(LLS)
East Coast
U.S. (Brent)
Midland Sweet-
Sour Spread
EMS
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 01-NOV-18
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 01-NOV-18
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]
$75.47
$11.78
$30.19
($33.50)
$58.32
($5.37)
$63.69
($0.88)
$42.69
($21.00)
$71.44
$7.75
$2.79
($0.45)
$3.48
$0.24
$3.24
$3.01
($0.23)
$3.39
$0.15
$1.64
($1.60)
$2.79
($0.45)$2.63
($0.61)$4.04
$0.80
$3.62
$0.38
$6.99
$3.75
$1.84
($1.40)
$2.75
($0.49)
10
November 5, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 487 (2) 489 Oil Differential ($5.65) $1.60 ($7.25)
Permitting Activity 187 (132) 319 Gas Differential ($1.51) $0.20 ($1.71)
0%
10%
20%
30%
40%
50%
--
100
200
300
400
500
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
-$1.95
-$1.30
-$0.65
$0.00
$0.65
Jan-15 Nov-15 Sep-16 Jul-17 May-18
-$18.00
-$12.00
-$6.00
$0.00
$6.00
$ /
mm
btu
$ /
bb
l
Midland Waha
--$10,000$20,000$30,000$40,000$50,000$60,000
1Q
14
2Q
14
3Q
14
4Q
14
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
3 6 8 5 1 2 8 8 6 6 12 13 15 7 3 2 7 1 5 2
$ /
acre
# Deals
$21,225
--
$50,000
$100,000
$150,000
$200,000
1Q
14
2Q
14
3Q
14
4Q
14
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
3 7 9 5 1 2 6 9 5 7 11 9 9 6 1 0 7 1 5 2
$ /
bo
e/d
# Deals
$122,200
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
01-Nov-18 Undisclosed Buyer Parsley Energy LP 11,850 net acres in Midland Basin $170 n.a. $141,667 $14,346
17-Oct-18 Earthstone Energy Inc Sabalo Energy 20,800 net acres in Midland Basin $976 $10.73 $87,143 $46,923
25-Sep-18 Undisclosed Buyer W&T Offshore Royalty interests in 25,493 net acres $57 n.a. n.a. nmf
11-Sep-18 Carlyle Group Diamondback Energy JV in Pecos Co., TX; Carlyle funds ~85% $527 n.a. n.a. n.a.
07-Sep-18 Matador Resources Bureau of Land Mgmt. 8,400 net acres in Lea and Eddy, NM $387 $23.74 n.a. $46,071
Mean $423 $17.23 $114,405 $35,780
Median $387 $17.23 $114,405 $46,071
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
5,000
6,000
7,000
8,000
9,000
10,000
1,000
1,500
2,000
2,500
3,000
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas2,867
9,321
873
1,123
805
1,053990
1,1791,157
1,298
1,0931,159
1,225
1,009
1,229
Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18
H V+D
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 10-Jan-15. 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.
[TBU]
[TBU]
[TBU] [TBU]
[TBU] [TBU]
[TBU]
11
November 5, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 97 -- 97 Oil Differential $7.85 ($0.15) $8.00
Permitting Activity 89 (22) 111 Gas Differential $0.12 ($0.10) $0.22
0%
5%
10%
15%
20%
--
100
200
300
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
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 Nov-15 Sep-16 Jul-17 May-18
-$6.00
-$4.00
-$2.00
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS HSC
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-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
1,501
8,430
371 375 386419
449
377425 470 435
375
456
319
424
Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18
H V+D
--$10,000$20,000$30,000$40,000$50,000$60,000
1Q
14
2Q
14
3Q
14
4Q
14
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
2 4 3 2 0 1 2 1 2 2 0 4 2 3 1 2 4 2 1 2
$ /
acre
# Deals
$10,222
--
$50,000
$100,000
$150,000
1Q
14
2Q
14
3Q
14
4Q
14
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
3 6 3 2 1 1 3 1 2 2 2 4 4 3 1 2 7 2 0 2
$ /
bo
e/d
# Deals
$64,268
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
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
26-Jul-18 BP BHP Billiton Permian, Eagle Ford, and Haynesville $10,500 n.a. n.a. n.a.
03-May-18 Apollo Global Management EP Energy Corp Eagle Ford JV in La Salle County, TX $38 n.a. n.a. n.a.
02-Apr-18 NextEra Energy Inc Comstock 9,900 net acres in South TX Eagle Ford $125 $14.12 $49,466 $12,626
Mean $2,145 $14.12 $49,466 $7,185
Median $38 $14.12 $49,466 $7,185
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
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-15. 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.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
12
November 5, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 59 -- 59 Oil Differential $7.85 ($0.15) $8.00
Permitting Activity 25 (16) 41 Gas Differential -- -- --
0%
5%
10%
15%
20%
--
20
40
60
80
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
--
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-15 Nov-15 Sep-16 Jul-17 May-18
--
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
5,000
6,000
7,000
8,000
9,000
10,000
80
90
100
110
120
130
140
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
101
9,752
210
163
120
164180
237
152160 141 136 146
126145
Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18
H V+D
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
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
26-Jul-18 BP BHP Billiton Permian, Eagle Ford, and Haynesville $10,500 n.a. n.a. n.a.
19-Jul-18 Comstock Enduro Resource Partners 9,900 net acres in North Louisiana $31 $0.11 $1,192 $3,131
Mean $2,165 $0.90 $3,846 $4,964
Median $100 $0.90 $3,846 $3,131
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
--
$5,000
$10,000
$15,000
$20,000
1Q
14
2Q
14
3Q
14
4Q
14
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
0 1 2 2 0 0 3 1 1 2 1 3 0 1 2 0 1 1 1 0
$ /
acre
# Deals
$4,886
--
$5,000
$10,000
$15,000
1Q
14
2Q
14
3Q
14
4Q
14
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
1 3 2 3 0 0 5 1 1 3 2 3 0 2 2 0 1 1 2 0
$ /
mcfe
/d
# Deals
$5,901
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-15. 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, and 2018.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
13
November 5, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 74 (1) 75 Oil Differential $9.20 ($0.36) $9.56
Permitting Activity 25 (93) 118 Gas Differential ($0.47) ($0.26) ($0.21)
0%
5%
10%
15%
20%
--
50
100
150
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
-$3.00
-$2.00
-$1.00
$0.00
$1.00
$2.00
$3.00
Jan-15 Nov-15 Sep-16 Jul-17 May-18
-$15.00
-$10.00
-$5.00
$0.00
$5.00
$10.00
$15.00
$ /
mm
btu
$ /
bb
l
Brent Dominion
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
30,000
50
70
90
110
130
150
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
115
27,303453395
347390 367
454
282328 299 269
491
370315
Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18
H V+D
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
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
29-Jun-18 Ascent Resources LLC CNX Resources; Hess 78,000 acres in the Utica $800 n.a. $4,762 $10,256
Mean $860 $0.62 $8,674 $9,079
Median $700 $0.62 $4,762 $7,257
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
--
$10,000
$20,000
$30,000
$40,000
1Q
14
2Q
14
3Q
14
4Q
14
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
1 2 4 3 0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1
$ /
mcfe
/d
# Deals
$5,999
--
$5,000
$10,000
$15,000
$20,000
$25,000
1Q
14
2Q
14
3Q
14
4Q
14
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
1 2 4 3 0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0
$ /
acre
# Deals
$3,707
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-15. 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, and 2018.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
14
November 5, 2018
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Nov-15 Sep-16 Jul-17 May-18
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 56 -- 56 Oil Differential ($21.00) ($13.00) ($8.00)
Permitting Activity 27 (11) 38 Gas Differential ($0.46) ($0.26) ($0.20)
0%
5%
10%
15%
20%
--
50
100
150
200
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
1,100
1,300
1,500
1,700
1,900
2,100
2,300
800
900
1,000
1,100
1,200
1,300
1,400
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
1,232
2,214156136
92111 104
125108
138126
171 164
127
176
Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18
H V+D
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
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.
25-Jun-18 Riverbend Oil & Gas LLC Oasis Petroleum 10,167 net acres in Williston Basin $153 n.a. $49,196 $15,049
Mean $146 $6.04 $57,234 $23,336
Median $152 $6.04 $45,952 $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
--
$5,000
$10,000
$15,000
$20,000
$25,000
1Q
14
2Q
14
3Q
14
4Q
14
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
4 2 6 2 0 0 1 2 0 0 2 3 1 0 3 2 0 5 2 0
$ /
acre
# Deals
$3,992
--
$50,000
$100,000
$150,000
$200,000
1Q
14
2Q
14
3Q
14
4Q
14
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
4 2 5 2 0 1 1 4 0 2 3 3 0 1 3 3 0 6 3 0
$ /
bo
e/d
# Deals
$44,564
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-15. 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.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
15
November 5, 2018
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Nov-15 Sep-16 Jul-17 May-18
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 71 -- 71 Oil Differential ($21.00) ($13.00) ($8.00)
Permitting Activity 162 90 72 Gas Differential ($0.46) ($0.26) ($0.20)
0%
5%
10%
15%
20%
--
50
100
150
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
11,500
12,000
12,500
13,000
13,500
14,000
400
450
500
550
600
650
700
750
800
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas745
13,120
570622 653
435 460
650
327
456551
665
523 510
663
Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18
H V+D
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
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
09-Aug-18 Undisclosed Buyer Ultra Petroleum ~8,000 net acres in the Uinta $75 n.a. $37,500 $9,375
10-Jul-18 Middle Fork Energy Part. QEP Resources Inc ~230,000 net acres in the Uinta $155 $1.54 $17,222 $674
Mean $192 $1.54 $50,054 $4,135
Median $150 $1.54 $47,052 $2,727
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
--$20,000$40,000$60,000$80,000
$100,000$120,000
1Q
14
2Q
14
3Q
14
4Q
14
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
4 7 3 4 2 0 4 4 1 6 2 0 1 6 3 9 3 1 3 1
$ /
bo
e/d
# Deals
$40,251
--
$5,000
$10,000
$15,000
$20,000
1Q
14
2Q
14
3Q
14
4Q
14
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
3 7 2 2 0 0 3 3 0 1 1 0 1 0 1 5 2 0 2 1
$ /
acre
# Deals
$4,226
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-15. 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.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
16
November 5, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 157 1 156 Oil Differential -- -- --
Permitting Activity 50 (17) 67 Gas Differential ($0.46) ($0.11) ($0.36)
0%
5%
10%
15%
20%
--
100
200
300
400
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
Jan-15 Nov-15 Sep-16 Jul-17 May-18
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
$ /
mm
btu
$ /
bb
l
Cushing Panhandle
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
400
450
500
550
600
650
700
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
595
10,093
260
365 346392
351 354 366 355
427367
414366
313
Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18
H V+D
--
$50,000
$100,000
$150,000
$200,000
1Q
14
2Q
14
3Q
14
4Q
14
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
3 2 6 4 1 4 1 3 1 6 3 1 4 2 4 5 2 1 5 1
$ /
bo
e/d
# Deals
$53,482
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
04-Sep-18 Flywheel Energy LLC Southwestern Energy 915,000 net acres in Fayetteville Shale $1,865 $3.04 $15,629 $2,038
06-Aug-18 Franco Nevada Corp Continental Resources Inc Mineral rights JV in the SCOOP/STACK $220 n.a. n.a. nmf
02-Aug-18 Sanguine Gas Exploration Vanguard Natural Res. 9,530 net acres in the Arkoma Basin $23 $4.79 $24,981 $2,403
31-Jul-18 Undisclosed Buyer Chaparral Energy Non-core assets in TX and OK $27 n.a. $19,536 n.a.
31-Jul-18 Scout Energy Partners Pioneer 239,500 net acres in West Panhandle $201 n.a. n.a. $839
Mean $467 $3.91 $20,048 $1,760
Median $201 $3.91 $19,536 $2,038
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
--
$5,000
$10,000
$15,000
$20,000
1Q
14
2Q
14
3Q
14
4Q
14
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
0 1 3 3 1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 0
$ /
acre
# Deals
$6,841
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-15. 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.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
17
November 5, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 18 -- 18 Oil Differential $7.85 ($0.15) $8.00
Permitting Activity 6 5 1 Gas Differential -- -- --
0%
5%
10%
15%
20%
--
10
20
30
40
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
Deep Water Shelf % of Total Rigs
--
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-15 Nov-15 Sep-16 Jul-17 May-18
--
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
2,000
2,500
3,000
3,500
4,000
4,500
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas1,699
2,667
10
2321
24
13
19
27
3329 29 32
33
24
Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18
Ann'd
Date Buyer Seller Asset Description Value(2)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(3)
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.
27-Apr-18 Stone Energy Shell; ExxonMobil; Anadarko GOM Ram Powell assets $234 n.a. $38,361 n.a.
28-Mar-18 W&T Offshore Cobalt International Energy 9.375% non-op WI in the Heidelberg unit $31 $23.92 $9,345 n.a.
12-Mar-18 Total Cobalt International Energy Non-op interest in 13 blocks $25 n.a. n.a. n.a.
Mean $256 $19.46 $32,581 n.a.
Median $91 $19.46 $30,156 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
--
$20,000
$40,000
$60,000
$80,000
1Q
14
2Q
14
3Q
14
4Q
14
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
5 2 0 0 0 0 1 1 0 0 2 0 0 0 0 1 2 2 2 1
$ /
bo
e/d
# Deals
$29,039
--
$10
$20
$30
$40
1Q
14
2Q
14
3Q
14
4Q
14
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
3Q
18
5 2 0 0 0 0 1 0 0 0 2 1 0 0 0 1 2 1 0 1
$ /
bo
e
# Deals
$15.40
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-15. 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)
18
November 5, 2018
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
August 2018 Aug 19-22 Enercom Oil & Gas Conference
Aug 21 Houston Producers Forum Luncheon
September 2018 Sep 24-26 SPE Annual Technical Conference and Exhibition
November 2018 Nov 5-7 Executive Oil Conference
Nov 7-9 IADC Annual General Meeting
Nov 9 Rice Energy Finance Summit 2018
Nov 11-13 IPAA Annual Meeting
Nov 11-13 AICPA Oil & Gas Conference
Nov 13-15 DUG Midcontinent
Nov 14 IPAA Leaders in Industry Luncheon
Nov 16 ADAM-Houston Monthly Luncheon
Nov 28 Houston Producers Forum Luncheon
July 2019 Jul 16 Houston Producers Forum Luncheon
Jul 19 ADAM-Houston Monthly Luncheon
December 2018 Dec 3-5 Marcellus-Utica Midstream Conference & Exhibition
Dec 12 IPAA Leaders in Industry Luncheon
Dec 18 Houston Producers Forum Luncheon
Dec 21 ADAM-Houston Monthly Luncheon
January 2019 Jan 15 Houston Producers Forum Luncheon
Jan 18 ADAM-Houston Monthly Luncheon
Jan 24 IPAA Private Capital Conference
February 2019 Feb 5-7 SPE Hydraulic Fracturing Technology Conference
Feb 11-15 NAPE Summit Week
Feb 15 ADAM-Houston Monthly Luncheon
Feb 19 Houston Producers Forum Luncheon
Feb 19-20 DUG Haynesville
March 2019 Mar 5-7 IADC/SPE Drilling Conference
Mar 15 ADAM-Houston Monthly Luncheon
Mar 19 Houston Producers Forum Luncheon
Mar 26-28 International Petroleum Technology Conference
April 2019 Apr 8-10 IPAA Oil & Gas Investment Symposium
Apr 15-17 DUG Permian
Apr 16 Houston Producers Forum Luncheon
Apr 19 ADAM-Houston Monthly Luncheon
ADAM-Houston Monthly Luncheon – 3rd Friday
Houston Producers Forum Luncheon – 3rd Tuesday
2019
Nov 19 IPAA Oil & Gas for Newcomers
Nov 19-21 DUG Midcontinent
July 2018 Jul 23-25 SPE Unconventional Resources Technology
May 2019 May 6-9 Offshore Technology Conference
May 13-17 SPE Electric Submersible Pumps Symposium
May 14-15 DUG Rockies
May 14 Houston Producers Forum Luncheon
May 17 ADAM-Houston Monthly Luncheon
June 2019 Jun 5-6 Midstream Texas Conference & Exhibition
Jun 18 Houston Producers Forum Luncheon
Jun 18-20 DUG East
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Jun 24-26 IPAA Midyear Meeting
August 2019 Aug 16 ADAM-Houston Monthly Luncheon
Aug 20 IPAA Oil & Gas Overview Course
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Aug 21-22 Summer NAPE
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Covering the Week of October 19 to October 25, 2018
September 2019 Sep 17 Houston Producers Forum Luncheon
Sep 20 ADAM-Houston Monthly Luncheon
Sep 24-26 DUG Eagle Ford
Sep 30-Oct 2 SPE Annual Technical Conference and Exhibition
19
November 5, 2018
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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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
herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its
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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
Geoff Roberts
MD & Co-Head of U.S. A&D
713-518-1268
Jason Martinez
MD & Co-Head of U.S. A&D
713-546-9771
Howard Barnwell
MD & Transactions Mgr.
713-546-9767
Rob Priske
Director & Transactions Mgr.
713-546-9727
Marian Yu
Associate
Elliott Finch
Analyst
Aaron Moeller
Analyst
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.
487
(2)
56
--
20
1
54
(2)27
--
18
--
25
(2)112
5
59
--
97
--
26
1
7
--
15
--18
--
This
Week Change
Last
Week
Last
Year
Total Rigs 1,067 (1) 1,068 898
Oil 874 (1) 875 729
Gas 193 -- 193 169
Miscellaneous -- -- -- --
Directional 73 -- 73 73
Horizontal 929 2 927 764
Vertical 65 (3) 68 61
Basin
Permian 487 (2) 489 380
SCOOP/STACK/Merge 112 5 107 94
Granite Wash 25 (2) 27 18
Eagle Ford 97 -- 97 82
Haynesville 59 -- 59 54
Marcellus 54 (2) 56 43
Utica 20 1 19 30
Williston 56 -- 56 48
DJ-Niobrara 27 -- 27 26
Green River 18 -- 18 22
Powder River 15 -- 15 9
Piceance 7 -- 7 8
Gulf Coast Onshore 26 1 25 17
GOM 18 -- 18 18
Alaska 5 -- 5 5
Other 41 (2) 43 44
Mid-Con 20 (2) 22 22
Rockies 4 -- 4 5
Western 15 -- 15 14
Eastern 2 -- 2 3
[TBU]
Chelsea Neville
Transactions Coordinator