prompt oil price ($/bbl) $54.18 ($2.05) (3.6% ... · alberta plans to allow oil companies to exceed...

1

November 4, 2019

IndicatorCurrent

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $54.18 ($2.05) (3.6%)

Prompt Gas Price ($/mmbtu) $2.63 $0.31 13.4%

Wkly Trans. Value ($mm) -- ($150) (100%)

Wkly Trans. Count -- (2) (100%)

US Rig Count 822 (8) (1.0%)

US Oil Prod'n (mmbbl/d) 12.6 -- --

US Gas Prod'n (bcf/d)(1) 111.4 2.5 2.3%

US Oil Storage (mmbbl) 438.9 5.7 1.3%

US Gas Storage (tcf) 3.7 0.1 2.5%

$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

$17.0

$3.4

--

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 1Q19 2Q19 3Q19 4Q19

61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 95% 74% 66%

Nu

mb

er

of

Tra

ns

ac

tio

ns

Tra

ns

ac

tio

n V

alu

e (

$b

n)

Asset Corporate Number of Transactions

% Oil% Oil% Oil

$64.3

Encana Corporation announced its intention to establish

corporate domicile in the U.S. and rebrand under the name

Ovintiv Inc.

Debt

Markets

Three issuers priced three tranches for $4 billion in proceeds

U.S. high yield funds reported an inflow of $940 million

ETFs reported an inflow of $860 million, while mutual funds reported an inflow of $80 million

High yield index yield was 5.88%; high yield energy index yield was 9.53%

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 Aug 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 (1.5)% vs. SPX(2) 0.9%

The major U.S. equity indexes finished mostly higher last week. Financials, industrials, materials, and

tech were all up. Consumer staples, consumer discretionary, and real estate finished down

Equity

Markets

Oil ended last week down. Oil markets were affected by continued turmoil in the Middle East. Escalating

protests in Iraq and Lebanon likely added some additional risk premium in prices. It was also reported

that Saudi Arabia’s Energy Minister is ready to make deeper cuts in oil output than the OPEC+

agreement call for, but this was not from Saudi officials directly. The build in overall crude oil inventories

last week of 5.7 mmbbls surprised the market. TC Energy’s Keystone pipeline was shut after a spill in

North Dakota. The spill occurred ahead of the split where crude flows either to Patoka or Cushing.

Alberta plans to allow oil companies to exceed their output caps if the excess output is shipped by rail,

starting in December. The near-term contract closed down $2.05, or 3.6%, at $54.18

Gas ended last week up. The November contract expired. The extreme cold forecasted to drop into the

Mid-Continent was a big driver of front-loaded price movements. However, if the cold does not

materialize, it will create a good selling opportunity since the market is pricing polar vortex type conditions

in. The near-term contract closed up $0.31, or 13.4%, at $2.63

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 October 25, 2019 to October 31, 2019

This is the final issue for 2018. The Market Monitor will

return on Monday, January 7th. Happy Holidays from the

BMO Capital Markets team!

BMO is marketing PayRock Energy’s divestiture of South

Texas Eagle Ford assets (see page [x])

The October issue of BMO Calgary’s A&D (Canadian) Market

Monitor went live last week – read more here

One E&P deal priced last week

WPX Energy (b1/BB-) priced $600 million of x% Senior

Notes due 2027

One E&P issuer priced last week

Noble Energy priced $500 million of 3.25% senior notes

due 2029 and $500 million of 4.20% senior notes due

2049. BMO Capital Markets acted as a Joint

Bookrunner on this transaction

All references to last week in the comments below are through Thursday

Saudi Aramco announced that it is producing more than 9.9 mmbbl/d of crude as it fully recovers from attacks much sooner than

expected. Overall market decline has been driven by the U.S.-China trade war as well as concerns that demand will weaken despite

the return of Saudi supplies after last month’s attack on two oil processing centers that briefly halted more than 5% of the world’s oil

production. Ecuador announced that it will leave OPEC.

Longer term forecasts indicate normal to above normal weather in the second half of October. Gas storage numbers indicated the

market is still very oversupplied despite warmer weather from the mid-Atlantic to Texas. Most analysts believe that the summer heat is

almost done for the year. However, with production at near record levels, it will take prolonged cold temperatures to make a large

difference

Continued downward momentum combined with production destined for new record highs affected the markets.

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

http://click.bmocapitalmarkets.bmo.com/?qs=06431ffcb9e46ff9ceb552c71599979cce1497589a985c6f6db2bcdad857fec824bec1ef9245eef7759c94d656a26e446b38de2e8b6d3a20

2

November 4, 2019

$36.6 $35.5 $40.6

$18.6

$14.5 $16.4

$28.0 $67.9 $51.1 $51.9

$68.6

$86.5

2016 2017 2018 2019

1,057 1,380 762 173

Asset Corporate

Deal Count

y = 30.509e-0.068x

R² = 0.3414

--

$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

Ann'd

Date Buyer Seller Area Asset Description Value (1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)

21-Oct-19 Heritage Resources Inc Range Resources Marcellus/Utica Southw est Applachia ORRIs $150 n.a. $92,025 nmf

30-Sep-19 Viper Energy Partners Undisclosed Seller Permian 1,045 net royalty acres in Permian $168 n.a. $143,959 nmf

27-Sep-19 Contango White Star Petroleum LLC Mid-Continent 314,800 net acres in Mid-Con $133 $1.57 $8,833 $421

13-Sep-19 Viper Energy Partners Santa Elena Minerals LP Permian 1,358 net royalty acres in Permian $150 n.a. $107,143 nmf

12-Sep-19 Contango Will Energy Corporation Mid-Continent TX Panhandle, W. Anadarko, and N.LA $23 n.a. $16,429 $144

03-Sep-19 Spur Energy Partners Concho Resources Inc Permian ~70,000 net acres in Eddy and Lea, NM $925 n.a. $37,000 $13,214

03-Sep-19 Undisclosed Buyer Crescent Point Other Rockies 224,000 net undeveloped acres in Uinta $525 n.a. $32,051 $2,344

28-Aug-19 Scout Energy Partners Riviera Resources Inc Mid-Continent Hugoton Basin assets $295 $2.30 $17,020 $295

27-Aug-19 Hilcorp Energy Co BP Alaska Alaskan area exit $5,600 n.a. $75,676 n.a.

06-Aug-19 Undisclosed Buyer Pioneer Permian 3,300 net acres in Martin County $66 n.a. n.a. $20,000

Blue = BM O provided transaction advisory services Green = BM O provided acquisit ion f inancing or related services

Purple = BM O provided both transaction advisory services and acquisit ion f inancing or related services

Public Company

42%

PE / PE-Backed

16%

Private11%

Other31%

LTM By Buyer Type

Oil55%Gas

45%

LTM By Commodity

Permian26%

Rockies (ex. Bakken)

8%

Bakken4%

Appalachia5%

Mid-Con15%

Eagle Ford4%

Ark-La-Tex5%

Gulf of Mexico5%

Other28%

LTM By Region

R / P

Sales Value /

Proved Reserves

(15:1)

(ratio) ($ / boe) ($ / mcfe)

8x $17.57 $1.17

10x $15.33 $1.02

15x $10.88 $0.73

20x $7.73 $0.52

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 --->

YTD Deal Activity ($bn)(4)

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

3

November 4, 2019

10/31/2019

Appalachia 3

Ark-La-Tex 5

Bakken 7

Eagle Ford 13

Mid-Con 10

Other 13

Permian 22

Rockies 11

84

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

3 Deals

Mid-Con

10 Deals

Eagle Ford

13 Deals

Permian

22 Deals

Other

13 Deals

Rockies

11 Deals

(Click headline to link to the full article)

M&A&D Headlines

Bakken

7 Deals

Ark-La-Tex

5 Deals

BMO Deals (Status)

Siltstone Appalachia (In Market) – See page 6

Oil Posts Biggest Weekly Gain in Five Weeks on

Trade Optimism

Asian Gas Demand Looks Strong, EIA Assures

Big Oil Gets Bigger

BP Profit Beats as Strong Refining Offsets Lower Oil

Price

Conoco Generates Almost $1 Billion of Free Cash

Flow in Q3

Halliburton and Repsol Sign E&P Cloud Data

Management Agreement

Encana to Establish Corporate Domicile in the U.S.

and Change Its Name to Ovintiv Inc.

Talos Energy Announces Full Year 2019 Operating

and Financial Guidance (includes A&D

announcement)

BMO Deals in Market

Caerus Piceance Basin – See page 4

Siltstone Appalachia – See page 5

[TBU]

[TBU]

[TBU]

[TBU]

https://www.worldoil.com/news/2019/10/27/oil-posts-biggest-weekly-gain-in-five-weeks-on-trade-optimism




https://www.chron.com/business/energy/article/Asian-gas-demand-looks-strong-EIA-assures-14567916.php?cmpid=ffcp

https://www.chron.com/business/energy/article/Asian-gas-demand-looks-strong-EIA-assures-14567916.php?cmpid=ffcp

https://www.rigzone.com/news/big_oil_gets_bigger-30-oct-2019-160190-article/

https://www.worldoil.com/news/2019/10/29/bp-profit-beats-as-strong-refining-offsets-lower-oil-price

https://www.worldoil.com/news/2019/10/29/bp-profit-beats-as-strong-refining-offsets-lower-oil-price

https://www.worldoil.com/news/2019/10/29/conoco-generates-almost-1-billion-of-free-cash-flow-in-q3

https://www.worldoil.com/news/2019/10/29/conoco-generates-almost-1-billion-of-free-cash-flow-in-q3

https://www.worldoil.com/news/2019/10/29/halliburton-and-repsol-sign-ep-cloud-data-management-agreement





http://investor.encana.com/2019-10-31-Encana-to-Establish-Corporate-Domicile-in-the-U-S





https://www.prnewswire.com/news-releases/talos-energy-announces-full-year-2019-operating-and-financial-guidance-300779250.html





4

November 4, 2019

Caerus Operating, LLC (“Caerus”) and its subsidiary, Grand

Valley Mineral Company LLC, are offering for sale select

producing mineral and overriding royalty interests in the

Piceance Basin

Opportunity to acquire ~4,150 developed mineral acres in

the Piceance Basin located in Garfield County, Colorado

Offering includes mineral and overriding royalty

interests in the Areas of Interest: East Fork, Battlement

Mesa, and Mamm Creek

ORRI interest in ~1,650 wells

All assets are held-by-production (“HBP”)

Future acquisition opportunities are expected as the

company owns ~45,000 net mineral acres in the basin

and is actively acquiring and developing additional

interests

~4 mmcfe/d (95% gas) Q4 2019E net production from

>2,200 gross producing wells

Q4 2019E annualized cash flow of >$3 million

Source: Caerus 2019 Piceance Minerals Divestiture announcement

Currently on the Market from BMO: Caerus Piceance Minerals Divestiture

ASSET HIGHLIGHTS

ASSET OVERVIEW PROCESS OVERVIEW

VDR available November 2019 with ARIES model and LOS

Contact Chelsea Neville at [email protected] or

713-546-9703 for a Confidentiality Agreement, access to the

VDR, and/or to request a data room presentation

Grand Valley Minerals

Areas of Interest

Piceance

Represents One

of the Premier

U.S. Onshore

Natural Gas

Basins

One of the largest natural gas accumulations in North America, with an estimated 300 tcf gas-in-place

Drilling activity began to increase in 2017 with operators primarily focused on directional Mesaverde exploitation

16,000+ wells drilled to-date in the basin with cumulative production > 8 tcf

3,000’ – 5,000’ of vertical pay in the Williams Fork sands within the Mesaverde Group

Large Minerals

and ORRI Position

in the Piceance

Basin

~4,150 net mineral acres in Garfield County, CO and ORRI interest in ~1,650 wells

Average NRI of 2.7%

All assets are HBP and largely developed

Stable Production

and Cash Flow

Q4 2019E annualized cash flow of >$3 million

While asset is largely producing, any future developments would be free of capital contributions given leased mineral and

ORRI nature

Cost free royalties enhance economics by improving realizations

~4 mmcfe/d (95% gas) Q4 2019E net production

Low decline of 8% provides predictable production stream, as wells were generally developed between 2006 and 2012

Low concentration risk as properties contain interests in >2,200 gross wells

Forecast utilizes key decline curve parameters based off year-end NSAI reserves

Caerus is a Top

Piceance

Operator

Caerus is the second largest producer in the Piceance Basin and the second largest mineral owner

Position located in the core of the basin with ample takeaway options

Actively involved in acquisitions and development of the basin with 2 rigs currently running

Since 2014, Caerus has drilled and completed >350 Williams Fork wells

Caerus formed Grand Valley Mineral in 2018 to manage existing minerals and, alongside its partners, acquire additional

minerals

Caerus owns a total of ~45,000 net mineral acres in the Piceance with the majority in the North Parachute Ranch area

90% of total minerals operated by Caerus

ASSET MAP (PICEANCE BASIN – GARFIELD COUNTY)

mailto:[email protected]

5

November 4, 2019

Opportunity to acquire a substantial portfolio of mineral and

overriding royalty assets in the core of the Utica, Marcellus,

and Upper Devonian

55,329 net royalty acres(1), 1,866 ORRI acres(1), and

1,760 additional leased working interest acres

Low concentration risk, with interest in greater than 675

currently producing wells across 20 counties in OH, PA, and

WV

March 2019 production of 16.8 net mmcfe/d (91% gas)

with drilling inventory consisting of more than 3,800

locations

Siltstone has exposure to a significant number of future

development locations in core Utica

Siltstone continues to actively acquire mineral positions

Source: Siltstone 2019 Appalachia Divestiture announcement

1. Net royalty acres normalized to 1/8th royalty.

2. March 2019 daily production. Upper Devonian production represents <1% of total production.

Currently on the Market from BMO: Siltstone Appalachia Minerals Divestiture

ASSET HIGHLIGHTS

ASSET OVERVIEW ASSET MAP

VDR available now

Contact Sandra Ramsey at [email protected]

or 713-518-1187 for a Confidentiality Agreement, access to

the VDR, and/or to request a data room presentation

PROCESS OVERVIEW

Acreage concentrated in the core of the play

Exposure to premier acreage within areas of activity for major Appalachian operators including Antero, Ascent, Encino, EQT,

and Gulfport, plus well-capitalized operators including Chevron, ExxonMobil, and Shell

Increasing development activity due to unrestricted market access following recent completion of midstream de-bottlenecking

programs

Substantial free cash flow generation

Royalty revenue from interest in greater than 675 producing horizontal wells

Lease extensions and renewals provide additional revenue source

Significant potential upside

Portfolio contains repeatable drilling inventory of highly economic locations with line of sight to more than 150 DUCs/PUDs

Wells spud on Siltstone acreage increasing annually

Comprehensive land and title documentation (both digital and hard copy)

52% in

Belmont and

Jefferson, OH

42% in

Washington and

Greene, PA

Concentrated in most

economic and actively

developed areas

Elk

Erie

York

Tioga

Erie

Potter

Steuben

Centre

Oneida

Berks

Butler

Bradford

Kent

Lycoming

Bedford

Clinton

McKeanWarren

Clearfield

Augusta

Allegany

Blair

Indiana

Crawford

Luzerne

Somerset

Stark

Otsego

Wayne

Cattaraugus

Randolph

Bath

Fayette

Perry

Lancaster

Hardy

Mercer

Kanawha

Franklin

Chester

Garrett

Sussex

Cayuga

Tioga Delaware

Oswego

Broome

Ontario

Knox

Wayne

Chautauqua

Monroe

Chenango

Grant

Clarion

Preston

Schuylkill

Gallia

Cambria

Wayne

Monroe

Herkimer

Pike

Pocahontas

Lorain

Madison

Huntingdon

Onondaga

Venango

Greene

Perry

Clay

Nicholas

Allegheny

Adams

Fauquier

Trumbull

Washington

Meigs

Roane

Athens

Westmoreland

Cecil

Jefferson

Ashtabula

Frederick

Mifflin

Fulton

Rockingham

Licking

Noble

Pendleton

Carroll

Louisa

Yates

Fayette

Lewis

Wayne

Forest

Niagara

Webster

Braxton

Dauphin

Ritchie

Belmont

Mason

Wyoming

Wood

Armstrong

Portage

Baltimore

Livingston

Tucker

Beaver

Caroline

Lincoln

Albemarle

Carroll

Monroe

Boone

Susquehanna

Fairfax

Loudoun

Page

Hampshire

Cortland

Charles

Kent

Harford

Muskingum

Wirt

Medina

Sullivan

Jackson

Holmes

Morgan

Bucks

Summit

Washington

Guernsey

Genesee

Juniata

Union

Tyler

Carbon

Coshocton

Wetzel

Ashland

Greenbrier

Columbia

Tompkins

Lehigh

Gilmer

Geauga

Dorchester

Orleans

Vinton

Harrison

Upshur

Allegany

Harrison

Salem

Lake

Tuscarawas

Highland

Snyder

Orange

Frederick

Marion

Putnam

Cuyahoga

Cumberland

Jefferson

Columbiana

Cabell

Mineral

Wyoming

Cameron

Mahoning

Barbour

Culpeper

Chemung

Lebanon

Huron

Montgomery

Washington

Schuyler

Hocking

Wicomico

Essex

Lawrence

Marshall

Berkeley

Montgomery

Stafford

Howard

Monongalia

Morgan

Warren

Taylor

Clarke

Erie

Ohio

Doddridge

Ohio

Pennsylvania

New York

Virginia

West Virginia Maryland

Pad / Well Name OperatorAvg. Peak

(mmcfe/d)

Jack Hamilton E SMF JF Ascent 29.1

Bounty Hunter EQT 21.7

Cosgray EQT 22.0

Quarto Mining Co. CNX 20.9

Coastal Forest Res. Co. Antero 22.3

My TB Investments 25H Shell 16.3

1

2

3

4

5

6

6

1

2

3 4

5

OH31,674

PA14,190

WV9,465

Net Royalty Acres

by State(1)

OH84%

PA11%

WV5%

Production

by State(2)

Production

by Operator(2)

Utica86%

Marcellus14%

Production

by Formation(2)

EQT22%

Encino21%

GPOR21%

Ascent13%

AR6%

CNX5%

MR4%

SWN2%

Other6%

mailto:[email protected]

6

November 4, 2019

Historical Prices as of 31-Oct-19 Close ($/gal)

NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago

Ethane $0.20 $0.18 $0.24 $0.36

Propane $0.51 $0.46 $0.63 $0.85

Butane $0.64 $0.59 $0.65 $0.92

Iso-butane $0.81 $0.78 $0.74 $0.96

Pentane+ $1.12 $1.16 $1.30 $1.34

25%

35%

45%

55%

65%

Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19

% o

f W

TI

NGL as % of WTI

NYMEX Gas Futures as of 31-Oct-19 Close ($/mmbtu)

Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago

12 Mo. Strip $2.48 $2.37 $2.72 $2.87

2019 $2.63 $2.39 $2.68 $2.84

2020 $2.48 $2.39 $2.70 $2.68

2021 $2.47 $2.43 $2.66 $2.61

2022 $2.64 $2.60 $2.83 $2.74

2023 $2.64 $2.60 $2.83 $2.74

$1

$2

$3

$4

$5

Oct-18 Apr-19 Oct-19 Apr-20 Oct-20

($/m

mb

tu)

NYMEX WTI Futures as of 31-Oct-19 Close ($/bbl) NYMEX Gas Futures as of 31-Oct-19 Close ($/mmbtu)


12 Mo. Strip $53.06 $54.85 $62.97 $65.80

2019 $54.18 $56.23 $63.68 $65.80

2020 $52.83 $54.58 $60.73 $64.07

2021 $50.78 $52.11 $57.29 $61.48

2022 $50.32 $51.36 $55.20 $59.09

2023 $50.58 $51.39 $54.22 $57.16

$20

$30

$40

$50

$60

$70

$80

Oct-18 Apr-19 Oct-19 Apr-20 Oct-20

($/b

bl)

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]

[TBU]

[TBU]

Historical Prices as of 03-Oct-19 Close ($/gal)

NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago

Ethane $0.20 $0.19 $0.21 $0.54

Propane $0.43 $0.47 $0.62 $1.06

Butane $0.54 $0.55 $0.62 $1.25

Iso-butane $0.80 $0.84 $0.76 $1.30

Pentane+ $1.06 $1.15 $1.28 $1.70

NYMEX Gas Futures as of 03-Oct-19 Close ($/mmbtu)


12 Mo. Strip $2.41 $2.46 $2.85 $2.93

2019 $2.41 $2.49 $2.80 $2.86

2020 $2.43 $2.47 $2.75 $2.65

2021 $2.45 $2.46 $2.67 $2.59

2022 $2.63 $2.64 $2.84 $2.72

2023 $2.63 $2.64 $2.84 $2.72

NYMEX WTI Futures as of 03-Oct-19 Close ($/bbl) NYMEX Gas Futures as of 03-Oct-19 Close ($/mmbtu)


12 Mo. Strip $51.16 $54.32 $61.90 $75.14

2019 $52.41 $56.35 $62.34 $74.88

2020 $50.72 $53.60 $59.83 $70.56

2021 $49.42 $51.37 $56.82 $66.52

2022 $49.52 $51.05 $54.73 $63.42

2023 $50.16 $51.43 $53.72 $61.27

[TBU]

[TBU]

[TBU]














http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html

http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html



http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html

http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html



7

November 4, 2019

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 31-OCT-19

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 31-OCT-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

$2.63

TBU

TBU

TBU

TBU

TBU

TBU

$2.23

($0.40)

$2.25

($0.38)

$3.48

$0.85

$2.32

($0.31)

$2.75

$0.12

$2.29

($0.34)

$60.23

$6.05

$57.39

$3.21

$2.95

$0.32

$54.18

$52.33

($1.85)

($0.46)

$3.17

$0.54

$46.78

($7.40)

TBU

TBU

TBU

$55.04

$0.86

$2.19

($0.44)

$2.52

($0.11)

$2.01

($0.62)

$1.44

($1.19)

8

November 4, 2019

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 416 (1) 417 Oil Differential $0.70 $0.05 $0.65

Permitting Activity 173 29 144 Gas Differential ($1.80) ($0.22) ($1.59)

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


-$18.00

-$12.00

-$6.00

$0.00

$6.00

$ /

mm

btu

$ /

bb

l

Midland Waha

5,000

7,000

9,000

11,000

13,000

15,000

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

4,189

14,4381,212

1,010868

1,247

1,065

1,207

1,050

1,256

905765 743

596777

Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19

H V+D

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

30-Sep-19 Viper Energy Partners Undisclosed Seller 1,045 net royalty acres in Permian $168 n.a. $143,959 nmf

13-Sep-19 Viper Energy Partners Santa Elena Minerals LP 1,358 net royalty acres in Permian $150 n.a. $107,143 nmf

03-Sep-19 Spur Energy Partners Concho Resources Inc ~70,000 net acres in Eddy and Lea, NM $925 n.a. $37,000 $13,214

06-Aug-19 Undisclosed Buyer Pioneer 3,300 net acres in Martin County $66 n.a. n.a. $20,000

31-Jul-19 Ecopetrol Oxy Midland Basin JV $1,500 n.a. n.a. $31,559

Mean $562 n.a. $96,034 $21,591

Median $168 n.a. $107,143 $20,000

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

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

3Q

19

4Q

19

1 2 8 8 6 6 12 13 15 7 2 2 7 2 5 4 1 2 0 1

$ /

acre

# Deals

$26,951

--

$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

3Q

19

4Q

19

1 2 6 9 5 7 11 9 9 6 1 0 7 2 5 4 1 2 4 1

$ /

bo

e/d

# Deals

$91,724

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


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

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU TBU

TBU TBU

TBU

9

November 4, 2019


Rig Count 75 -- 75 Oil Differential $3.00 $0.40 $2.60

Permitting Activity 55 13 42 Gas Differential ($0.09) $0.01 ($0.10)

0%

5%

10%

15%

20%

--

100

200

300



-$0.30

-$0.20

-$0.10

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50


-$6.00

-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

MEH HSC

6,000

6,500

7,000

7,500

8,000

1,000

1,200

1,400

1,600

1,800

2,000


mm

cf/

d

mb

bl/

d

Oil Gas

1,378

7,190

402350

315

398353

472

351 401

222173 201 192 209


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

17-Jul-19 Undisclosed Buyer Sundance Energy 6,100 net acres in Dimmit County $30 n.a. $28,069 $4,836

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.

Mean $33 $2.98 $38,222 $6,960

Median $31 $2.98 $38,222 $4,836



--$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

3Q

19

4Q

19

0 1 2 1 2 2 0 4 2 3 1 2 4 2 1 3 0 0 0 0

$ /

acre

# Deals

$8,045

--

$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

3Q

19

4Q

19

1 1 3 1 2 2 2 4 4 3 1 2 7 2 0 3 0 0 1 0

$ /

bo

e/d

# Deals

$78,467

Eagle Ford Snapshot



DIFFERENTIALS RIG COUNT







GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

10

November 4, 2019



Permitting Activity 10 2 8 Gas Differential -- -- --

0%

5%

10%

15%

20%

--

20

40

60

80



--

$2.00

$4.00

$6.00

$8.00

$10.00


--

$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

11,000

12,000

13,000

70

80

90

100

110

120


mm

cf/

d

mb

bl/

d

Oil Gas

77

12,226

180

115 105

174

113116 116

132

9499

181

9067


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)

29-Jul-19 Osaka Gas Sabine Oil & Gas Corp 175,000 net acres in East TX $610 n.a. $2,905 $9,136

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

Mean $308 $0.77 $2,690 $7,145

Median $100 $0.77 $2,690 $6,270



--

$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

3Q

19

4Q

19

0 0 3 1 1 2 1 3 0 1 2 0 1 1 1 1 0 1 1 0

$ /

acre

# Deals

$3,180

--$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

3Q

19

4Q

19

0 0 5 1 1 3 2 3 0 2 2 0 1 1 2 1 0 1 1 0

$ /

mcfe

/d

# Deals

$4,378

Ark-La-Tex Snapshot








4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.


GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

11

November 4, 2019



Permitting Activity 23 (33) 56 Gas Differential ($0.88) ($0.28) ($0.61)

0%

5%

10%

15%

20%

--

50

100

150



-$3.00

-$2.00

-$1.00

$0.00

$1.00

$2.00

$3.00


-$15.00

-$10.00

-$5.00

$0.00

$5.00

$10.00

$15.00

$ /

mm

btu

$ /

bb

l

Brent Dominion

14,000

19,000

24,000

29,000

34,000

50

70

90

110

130

150


mm

cf/

d

mb

bl/

d

Oil Gas

123

30,319

370

305258

397

276

382419

384334 346

303 293231


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)

21-Oct-19 Heritage Resources Inc Range Resources Southwest Applachia ORRIs $150 n.a. $15,337 nmf

24-Jul-19 Diversified Gas & Oil EdgeMarc Energy Holdings 12,730 net acres in Ohio Utica $50 $0.32 $769 $3,928

19-Jul-19 Multiple Range Resources Corp Southwest Applachia ORRIs $600 n.a. $15,790 nmf

30-Jun-19 Undisclosed Buyer Range Resources Corp 20,000 non-producing net acres in PA $34 n.a. n.a. $1,700

27-Mar-19 Diversified Gas & Oil HG Energy II LLC Huckleberry assets in Appalachia $400 n.a. $3,227 n.a.

Mean $247 $0.32 $8,781 $2,814

Median $150 $0.32 $9,282 $2,814



--$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

3Q

19

4Q

19

0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0 0 0 0 0

$ /

acre

# Deals

$564

--$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

3Q

19

4Q

19

0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1 1 0 2 1

$ /

mcfe

/d

# Deals

$5,500

Appalachia Snapshot








4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.


GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

12

November 4, 2019


Rig Count 53 -- 53 Oil Differential ($1.85) $0.40 ($2.25)


0%

5%

10%

15%

20%

--

50

100

150

200



-$1.00

-$0.50

$0.00

$0.50


-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

1,500

1,800

2,100

2,400

2,700

3,000

800

900

1,000

1,100

1,200

1,300

1,400

1,500


mm

cf/

d

mb

bl/

d

Oil Gas

1,421

2,941

201

12896

133114 144 138 145 144 154

137110

134


H V+D

Ann'd


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



--

$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

3Q

19

4Q

19

0 0 1 2 0 0 2 3 1 0 3 2 0 5 2 0 0 1 0 0

$ /

acre

# Deals

$1,751

--

$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

3Q

19

4Q

19

0 1 1 4 0 2 3 3 0 1 3 3 0 6 3 0 0 1 0 0

$ /

bo

e/d

# Deals

$45,752

Bakken Snapshot










GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

13

November 4, 2019


Rig Count 62 1 61 Oil Differential ($1.85) $0.40 ($2.25)


0%

5%

10%

15%

20%

--

50

100

150



-$1.00

-$0.50

$0.00

$0.50


-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

12,000

12,500

13,000

13,500

14,000

14,500

15,000

15,500

500

600

700

800

900

1,000


mm

cf/

d

mb

bl/

d

Oil Gas919

13,841

689

829 812

352 402494

328

164

306 283

434327

266


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

03-Sep-19 Undisclosed Buyer Crescent Point 224,000 net undeveloped acres in Uinta $525 n.a. $32,051 $2,344

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

Mean $244 $1.57 $47,095 $3,047

Median $150 $1.57 $44,328 $2,682



--

$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

3Q

19

4Q

19

0 0 3 3 0 1 1 0 1 0 1 5 2 0 2 1 0 0 0 0

$ /

acre

# Deals

$2,380

--$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

3Q

19

4Q

19

2 0 4 4 1 6 2 0 1 6 3 9 3 1 3 1 1 0 2 0

$ /

bo

e/d

# Deals

$36,255



DIFFERENTIALS

Rockies (excl. Bakken) Snapshot

RIG COUNT







GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

14

November 4, 2019


Rig Count 57 (3) 60 Oil Differential -- -- --

Permitting Activity 66 -- 66 Gas Differential ($0.57) ($0.11) ($0.46)

0%

5%

10%

15%

20%

--

100

200

300

400



-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25


-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25

$ /

mm

btu

$ /

bb

l

Cushing Panhandle

8,000

10,000

12,000

14,000

16,000

18,000

550

600

650

700

750

800

850


mm

cf/

d

mb

bl/

d

Oil Gas 739

13,796

405 382355

403339

435 389

298

360 343 319 340 322


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

27-Sep-19 Contango White Star Petroleum LLC 314,800 net acres in Mid-Con $133 $1.57 $8,833 $421

12-Sep-19 Contango Will Energy Corporation TX Panhandle, W. Anadarko, and N.LA $23 n.a. $16,429 $144

28-Aug-19 Scout Energy Partners Riviera Resources Inc Hugoton Basin assets $295 $2.30 $17,020 $295

31-Jul-19 Continental Resources Inc Undisclosed Seller SCOOP assets $80 n.a. n.a. n.a.

08-Jul-19 NextEra Energy Inc Encana 140,000 net acres in Arkoma Basin $165 n.a. $12,857 $1,179

Mean $139 $1.93 $13,785 $510

Median $133 $1.93 $14,643 $358



--

$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

3Q

19

4Q

19

1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 1 0 0 0 0

$ /

acre

# Deals

$4,284

--

$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

3Q

19

4Q

19

1 4 1 3 1 6 3 1 4 2 4 5 2 2 5 4 2 0 4 1

$ /

bo

e/d

# Deals

$19,665

Mid-Continent Snapshot










GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

15

November 4, 2019


Rig Count 21 1 20 Oil Differential $3.15 $0.30 $2.85

Permitting Activity 7 (5) 12 Gas Differential -- -- --

0%

5%

10%

15%

20%

--

10

20

30

40


Deep Water Shelf % of Total Rigs

--

$2.00

$4.00

$6.00

$8.00

$10.00


--

$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

1,200

1,400

1,600

1,800

2,000

2,200


mm

cf/

d

mb

bl/

d

Oil Gas1,914

2,870

39

32 30 32 33

2629

26 27 29

21 23

40


Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(3)

27-Jun-19 W&T Offshore ExxonMobil Mobile Bay assets $200 $2.70 $10,101 n.a.

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.

Mean $694 $13.00 $29,298 n.a.

Median $900 $14.23 $21,951 n.a.



--

$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

3Q

19

4Q

19

0 0 1 0 0 0 2 1 0 0 0 1 2 1 0 1 1 2 0 0

$ /

bo

e

# Deals

$16.44

--

$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

3Q

19

4Q

19

0 0 1 1 0 0 2 0 0 0 0 1 2 2 2 1 1 3 0 0

$ /

bo

e/d

# Deals

$30,643

Gulf of Mexico Snapshot

PERMITTING ACTIVITY BY MONTH(1)




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.


GROSS PRODUCTION


TRANSACTION PRODUCTION MULTIPLES(4) TRANSACTION PROVED RESERVE MULTIPLES(4)

TBU

TBU TBU

TBU TBU

TBU

TBU

TBU TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

16

November 4, 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

April 2019 Apr 22-23 Mineral & Royalty Conference

June 2019 Jun 24-26 IPAA Midyear Meeting

2020

Sep 8-10 DUG Eagle Ford (San Antonio)

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 13 IPAA Leaders in Industry Luncheon

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)

Nov 20-21 11th Annual North America Assembly & Dinner

December 2019 Dec 3 SPE - Financing A Team & A Dream

Dec 5 177th OPEC Meeting

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

February 2020 Feb 3-7 NAPE Summit Week

Feb 11-12 Enercom Dallas

Feb 18-19 DUG Rockies (Denver)

Feb 19 Houston Producers Forum Luncheon

March 2020 Mar 2 Energy Capital Conference

Mar 4 Women in Energy Luncheon

Mar 5-7 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)

June 2020 Jun 16 Houston Producers Forum Luncheon

Jun 16-18 DUG East (Pittsburgh)

Jun 19 ADAM-Houston Monthly Luncheon

January 2020 Jan 15 ADI Forum

Jan 17 ADAM-Houston Monthly Luncheon

Jan 21 Houston Producers Forum Luncheon

Jan 23 IPAA Private Capital Conference

July 2020 Jul 17 ADAM-Houston Monthly Luncheon

Jul 21 Houston Producers Forum Luncheon

Jul 22-24 SPE Unconventional Resources Technology

August 2020 Aug 9-12 Enercom Oil & Gas Conference

Aug 18 Houston Producers Forum Luncheon

Aug 21 ADAM-Houston Monthly Luncheon

September 2020 Sep 9 IPAA Leaders in Industry Luncheon

Sep 9-11 DUG Eagle Ford (San Antonio)

Sep 15 Houston Producers Forum Luncheon

Sep 18 ADAM-Houston Monthly Luncheon

https://mineralconference.com/





https://www.ipaa.org/events/midyear-meeting-2019/





https://www.hartenergyconferences.com/dug-eagle-ford






https://www.hartenergyconferences.com/ad-strategies-and-opportunities





https://www.hartenergyconferences.com/executive-oil-conference










https://www.ipaa.org/events/leaders-industry-luncheon-november-2019/



http://adamhouston.org/events






https://www.ipaa.org/events/oil-gas-orientation-november-2019/




http://www.houstonproducersforum.org/Luncheons.aspx




https://www.hartenergyconferences.com/dug-midcontinent






https://oilandgascouncil.com/event-events/north-america-assembly-and-dinner/





https://www.spegcs.org/events/4537/






https://www.opec.org/opec_web/en/311.htm



https://www.ipaa.org/events/

















http://www.ipaa.org/events/private-capital-conference-2019/



http://www.spegcs.org/events/4214/

https://ace.aapg.org/2019


https://events.mergermarket.com/energy







http://www.iptcnet.org/19iptc/home/?_ga=2.149135166.98797786.1524242931-1252836126.1522358097





https://www.ipaa.org/events/nape-summit-week/





http://www.enercomdallas.com/







https://www.hartenergyconferences.com/dug-rockies









https://www.hartenergyconferences.com/energy-capital-conference



https://www.hartenergyconferences.com/women-in-energy



https://www.spe.org/en/events/drilling-conference/home/

https://www.spe.org/events/en/2019/conference/19dc/schedule-overview.html





https://ceraweek.com/register.html













https://www.hartenergyconferences.com/dug-permian-basin





https://www.ipaa.org/events/ogis-new-york-2020/























https://www.hartenergyconferences.com/dug-haynesville








https://www.hartenergyconferences.com/dug-east












https://www.adi-forum.com/












https://www.ipaa.org/events/private-capital-conference-2019-2/












https://www.spe.org/events/calendar/







https://www.theoilandgasconference.com/















https://www.ipaa.org/events/leaders-industry-luncheon-september-2020/

















17

November 4, 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. No part of this

publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted, or otherwise reproduced, stored, disseminated, transferred or used, in any form or

by any means by any third parties, except with the prior written permission of BMO Capital Markets.

BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Harris Bank N.A. (member FDIC), Bank of Montreal

Europe p.l.c, and Bank of Montreal (China) Co. Ltd and the institutional broker dealer businesses of BMO Capital Markets Corp. (Member FINRA and SIPC) in the U.S., BMO Nesbitt

Burns Inc. (Member Investment Industry Regulatory Organization of Canada and Member Canadian Investor Protection Fund) in Canada and Asia, Bank of Montreal Europel p.l.c.

(authorised and regulated by the Central Bank of Ireland) in Europe and BMO Capital Markets Limited (authorised and regulated by the Financial Conduct Authority) in the UK and

Australia. “Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Inc., used under license. “BMO Capital Markets” is a trademark of Bank of Montreal, used under license. "BMO

(M-Bar roundel symbol)" is a registered trademark of Bank of Montreal, used under license. ® Registered trademark of Bank of Montreal in the United States, Canada and elsewhere. ™

Trademark of Bank of Montreal in the United States and Canada. © 2018 BMO Financial Group

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

affiliates that is not reflected in this report. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual client

objectives, should not be construed as advice designed to meet the particular investment needs of any investor. This material is for information purposes only and is not an offer to sell or

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

other derivative instruments based thereon. BMO Capital Markets may act as financial advisor and/or underwriter for the issuers mentioned herein and may receive remuneration for

same. The reader should assume that BMO Capital Markets or its affiliates may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or

sell securities of issuers discussed herein. 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

[email protected]

Howard Barnwell

MD & Transactions Mgr.

713-546-9767

[email protected]

Rob Priske

MD & Transactions Mgr.

713-546-9727

[email protected]

Dan Schockling

Director & Head of Commercial

713-518-1223

[email protected]

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.

416

(1)

53

--

11

--

40

(2)

22

--

21

1

5

(1)

42

(1)

53

(1)

75

--

11

(2)

3

(1)

23

--13

2

This

Week Change

Last

Week

Last

Year

Total Rigs 822 (8) 830 1,067

Oil 691 (5) 696 874

Gas 130 (3) 133 193

Miscellaneous 1 -- 1 --

Directional 53 2 51 73

Horizontal 717 (11) 728 929

Vertical 52 1 51 65

Basin

Permian 416 (1) 417 487

SCOOP/STACK/Merge 42 (1) 43 112

Granite Wash 5 (1) 6 25

Eagle Ford 75 -- 75 97

Haynesville 53 (1) 54 59

Marcellus 40 (2) 42 54

Utica 11 -- 11 20

Williston 53 -- 53 56

DJ-Niobrara 22 -- 22 27

Green River 13 2 11 18

Pow der River 23 -- 23 15

Piceance 3 (1) 4 7

Gulf Coast Onshore 11 (2) 13 26

GOM 21 1 20 18

Alaska 7 (1) 8 5

Other 27 (1) 28 41

Mid-Con 10 (1) 11 20

Rockies 1 -- 1 4

Western 15 -- 15 15

Eastern 1 -- 1 2

Michelle Tankimovich

Analyst

TBU TBU

prompt oil price ($/bbl) $54.18 ($2.05) (3.6% ... · alberta plans to allow oil companies to exceed...

Documents