prompt oil price ($/bbl) $61.68 $2.48 4.2% prompt gas ... page document library/adlibrary... ·...

1

February 19, 2018

Oil ended last week up. At first glance, the inventory numbers did not seem incredibly bullish however

WTI managed to trade up last week. The decline in Cushing inventories was 1.84 mmbbls. The U.S. oil rig

count increased by seven rigs, even with a four rig decline in the Permian. The near term contract closed

up $2.48, or 4.2%, at $61.68

Natural gas stayed relatively flat last week. The basis markets were the more interesting story. A Permian

to Mid-Con 5-year transport deal was apparently signed causing an aggressive rally in the Perm and

Waha. The near-term contract closed down $0.02, or 0.8%, at $2.56

Debt

Markets

S&P E&P(2) outperformed last week 4.7% vs. SPX(2) 4.3%

US equities were higher this week, with the S&P 500 gaining 4.3% for its best week since January 2013.

While the index remains down for the month, it is once again positive YTD and has gained ~6% since the

February 9th low. Treasuries were mostly weaker with the curve flattening, and much of the yield rise

coming on Wednesday following hotter-than-expected January CPI data. The dollar was down on the

major crosses. Gold finished the week up 3.1%. The S&P 500 consensus 2018 EPS estimate is $156.8

for an implied P/E multiple of 16.8x. The 5-year historical average is 16.1x

One issuer priced one issue to raise $450 million last week

Year-to-date volume stands at $49.2 billion, compared to $51.3 billion in year-to-date 2017

Retail cash outflows from US high yield mutual funds totaled $6.3 billion last week, compared to the prior

week’s outflows of $2.7 billion. This brings year-to-date outflows for 2018 to $12.1 billion, compared to

$900 million of inflows in year-to-date 2017

The sole deal to price in the High Yield market last week was an E&P issuer:

Jones Energy (CFR: Caa2/CCC (Fitch); Issue: B2/B (Fitch)) priced $450 million of 9.25% Senior

Secured 1L Notes at 97.526 to yield 9.875%. The 5NC2 Notes priced in line with talk. Proceeds will

be used to repay borrowings under its revolver and for general corporate purposes

Noble Energy announced that it executed an agreement to

sell its deepwater Gulf of Mexico assets to Fieldwood Energy

LLC for a total value of $710 million plus a contingent

payment of up to $100 million; Fieldwood Energy

concurrently filed a prepackaged Chapter 11 bankruptcy

WildHorse Resource Development Corporation announced

that it executed a definitive agreement to divest its North

Louisiana assets to Tanos Exploration II LLC for $217 million

WildHorse concurrently announced the acquisition of 17,453

net acres in Lee County, TX from an undisclosed seller for

$19.3 million

LINN Energy, Inc. announced that it signed a definitive

agreement to divest West Texas conventional assets for

$119.5 million

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 November 2017.

2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index.

Key Industry Indicators

Quarterly Deal Activity

Equity

Markets

Commodities

$2.2

$8.1

$10.2

$10.0

$4.7

$17.2

$21.0 $20.5 $24.0

$19.4

$9.6 $9.4 $6.3

--

50

100

150

200

250

300

--

$5

$10

$15

$20

$25

$30

$35

$40

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

61% 82% 76% 79% 52% 55% 56% 71% 91% 31% 75% 78% 96%

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

IndicatorCurrent

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $61.68 $2.48 4.2%

Prompt Gas Price ($/mmbtu) $2.56 ($0.02) (0.8%)

Wkly Trans. Value ($mm) $1,066 ($2,264) (68%)

Wkly Trans. Count 4 (5) (56%)

US Rig Count 975 -- --

US Oil Prod'n (mmbbl/d) 10.3 0.0 0.2%

US Gas Prod'n (bcf/d)(1) 95.8 -- --

US Oil Storage (mmbbl) 422.1 1.8 0.4%

US Gas Storage (tcf) 1.9 (0.2) (9.3%)

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 February 10 to February 16, 2018

2

February 19, 2018

Ann'd

Date Buyer Seller Area Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

15-Feb-18 Fieldwood Energy LLC Noble Energy Gulf of Mexico Deepwater GOM assets $710 $30.87 $35,500 $2,996

14-Feb-18 Scout Energy Partners Linn Energy LLC Permian Conventional Permian assets $120 $8.30 $18,968 $4,268

12-Feb-18 Tanos Exploration II LLC WildHorse Ark-La-Tex 90,000 net acres in North Louisiana $217 $3.16 $27,760 $2,411

06-Feb-18 Undisclosed Buyer Chesapeake Mid-Continent 238,000 net acres in Anadarko Basin $500 n.a. $21,739 $2,101

06-Feb-18 Halcon Resources Corp Shell Permian 10,524 net acres in Delaware Basin $200 n.a. $181,818 $19,004

06-Feb-18 Halcon Resources Corp Undisclosed Seller Permian 4,413 net acres in Delaware Basin $104 n.a. $462,222 $23,567

06-Feb-18 Viper Energy Partners LP Undisclosed Seller Permian 219 net royalty acres in Permian Basin $26 n.a. n.a. nmf

05-Feb-18 Enduring Resources IV LLC WPX Energy Inc Other Rockies 105,000 net acres in San Juan Basin $700 n.a. $43,750 $6,667

01-Feb-18 Viper Energy Partners LP Royal Resources Eagle Ford 681 net royalty acres in Eagle Ford $123 n.a. $136,667 nmf

01-Feb-18 ConocoPhillips Anadarko Alaska Working interests in Western North Slope $400 n.a. $35,628 $1,380

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

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.

3. 100 transactions from June 2013 to 2017YTD 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.

Permian25%

Rockies (ex. Bakken)

17%

Bakken7%

Appalachia13%

Mid-Con10%

Eagle Ford7%

Ark-La-Tex4%

Gulf of Mexico1%

Other16%

LTM By Region

Oil62%

Gas38%

LTM By Commodity

Public Company

46%

PE / PE-Backed

20%

Private12%

MLP1%

Other21%

LTM By Buyer Type

R / P

Sales Value /

Proved Reserves

(15:1)

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

8x $20.94 $1.40

10x $18.14 $1.21

15x $12.67 $0.84

20x $8.85 $0.59

y = 37.188e-0.072x

R² = 0.3576

--

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

-- 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x

Sa

les

Pri

ce /

Pro

ve

d

Re

serv

es (

$/b

oe

@ 1

5:1

)

R / P

Asset descriptions are all hard-coded and need to be

adjusted if new deals are added

(2) (2) (2)

3

February 19, 2018

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

Noble Energy Selling its Gulf of Mexico

Business to Fieldwood

Fieldwood Energy Files Prepackaged

Chapter 11 Cases and Announces Gulf of

Mexico Acquisition

WildHorse Resource Development

Corporation Announces Divestment of North

Louisiana Assets and Acquisition of Lee

County Properties

LINN Energy Announces Sale of

Conventional West Texas Properties for

$119.5 Million

Bakken

4 Deals Appalachia

4 Deals

Mid-Con

16 Deals

Eagle Ford

12 Deals

Permian

15 Deals

Other

10 Deals

Ark-La-Tex

5 Deals

Rockies

10 Deals

2/16/2018

Appalachia 4

Ark-La-Tex 5

Bakken 4

Eagle Ford 12

Mid-Con 16

Other 10

Permian 15

Rockies 10

76

BMO Deals (Status)

Texas American Eagle Ford (In Market) – See Page 5

Elk River Midland Basin (Post Bid)

Comstock Eagle Ford (Post Bid)

EOG Green River (Post Bid)

(Click headline to link to the full article)

A&D Headlines

Saudi Arabia to Restrain Oil Exports in

March, Confident Cuts Will Stabilize Market

Russia is Taking Over Syria’s Oil and Gas

Mexican Officials Hope Third Time’s a Charm

for Unconventionals

The Oil and Gas Situation: Volatility Returns,

as the Market Overreacts

U.S. Spending Bill Expands Carbon Tax

Credit, Boosting Oil Producers

Is the Era of Austerity Over? Bankers,

Investors Jump Back Into Oil

Exxon Sues the Suers in Fierce Climate-

Change Case

https://www.chron.com/business/energy/article/Noble-Energy-selling-its-Gulf-of-Mexico-business-12616231.php

https://www.chron.com/business/energy/article/Noble-Energy-selling-its-Gulf-of-Mexico-business-12616231.php

https://www.prnewswire.com/news-releases/fieldwood-energy-files-prepackaged-chapter-11-cases-and-announces-gulf-of-mexico-acquisition-300599645.html



https://www.businesswire.com/news/home/20180212005544/en/WildHorse-Resource-Development-Corporation-Announces-Divestment-North




https://globenewswire.com/news-release/2018/02/14/1348225/0/en/LINN-Energy-Announces-Sale-of-Conventional-West-Texas-Properties-For-119-5-Million.html



https://www.cnbc.com/2018/02/14/saudi-arabia-to-restrain-oil-exports-in-march-confident-cuts-will-stabilize-market.html

https://www.cnbc.com/2018/02/14/saudi-arabia-to-restrain-oil-exports-in-march-confident-cuts-will-stabilize-market.html

https://oilprice.com/Energy/Energy-General/Russia-Is-Taking-Over-Syrias-Oil-And-Gas.html

http://www.naturalgasintel.com/articles/113366-mexican-officials-hope-third-times-a-charm-for-unconventionals

http://www.naturalgasintel.com/articles/113366-mexican-officials-hope-third-times-a-charm-for-unconventionals

https://www.forbes.com/sites/davidblackmon/2018/02/14/the-oil-and-gas-situation-volatility-returns-as-the-market-overreacts/#24d33811bcd6

https://www.forbes.com/sites/davidblackmon/2018/02/14/the-oil-and-gas-situation-volatility-returns-as-the-market-overreacts/#24d33811bcd6

https://www.reuters.com/article/us-occidental-results-credit/u-s-spending-bill-expands-carbon-tax-credit-boosting-oil-producers-idUSKCN1G01XJ

https://www.reuters.com/article/us-occidental-results-credit/u-s-spending-bill-expands-carbon-tax-credit-boosting-oil-producers-idUSKCN1G01XJ

https://www.houstonchronicle.com/business/article/Is-the-era-of-austerity-over-Bankers-investors-12619099.php

https://www.houstonchronicle.com/business/article/Is-the-era-of-austerity-over-Bankers-investors-12619099.php

https://www.bloomberg.com/news/articles/2018-02-13/exxon-sues-the-suers-in-fierce-bid-to-defeat-climate-lawsuits



4

February 19, 2018

Purchase Price (US$ mm)

Cash Proceeds $480

Liabilities Assumed $230

Total Consideration(1) $710

Metrics

Daily Production (boe/d) 20,000

Proved Reserves (mmboe) 23.0

Multiples

TEV / Production ($/boe/d) $35,500

TEV / Proved Reserves ($/boe) $30.87

On February 15, 2018, Noble Energy executed an

agreement to sell its deepwater Gulf of Mexico

assets to Fieldwood Energy for a total value of

$710 million

Cash proceeds of $480 million

Fieldwood will assume all abandonment

obligations of ~$230 million

Additional contingent payment of up to $100

million payable from closing through 2022,

determined by Louisiana Light Sweet oil prices

Expected closing during Q2 2018

Fieldwood Energy concurrently filed a prepackaged

Chapter 11 bankruptcy

TRANSACTION SUMMARY

ACQUISITION METRICS

Source: Company press release, Company presentation, PLS, 1Derrick

1. Value (and multiples) are not grossed up for midstream obligations.

ACQUIRED ASSETS

ASSET SUMMARY

Acquired Acreage

237,000 net acres across 67 leases in the

deepwater GOM

6 producing fields with liquids weighted and stable

production profile

5 of the 6 subsea fields operated by Noble, 1 by

Anadarko

Proved reserves of 23 mmboe as of 31-Dec-17

2018E net production of ~20,000 boe/d

Production weighted average WI of 38% and

NRI of 34%

Interesting Deal of the Week:

Noble Energy Divests Gulf of Mexico Assets to Fieldwood Energy for $710 million

OBSERVATIONS

GOM has been a part of Noble’s portfolio for ~50

years

Since November 2017, Noble has divested more

than $2.5 billion worth of assets with GOM being

last major step in portfolio transformation

Noble will focus on assets with growing cash flows

and margins, primarily U.S. onshore and the

Eastern Mediterranean

Noble Energy Deepwater Gulf of

Mexico (Oct 2017, JPM) Page 2

https://globenewswire.com/news-release/2018/02/15/1348833/0/en/Noble-Energy-

Announces-750-Million-Share-Repurchase-Program.html



https://www.offshoreenergytoday.com/fieldwood-buys-nobles-gulf-of-mexico-assets-for-710-million/



https://www.epmag.com/noble-gulf-mexico-sale-fieldwood-1684201#p=full

5

February 19, 2018

Highly economic, large, contiguous, and derisked acreage position in

the Eagle Ford black oil window

24,675 gross / 23,164 net largely undeveloped acres located in

southwest Atascosa and southeast Frio counties, Texas

100% operated with high average working interest of ~94%

Executable optimized development plan on 400' well spacing

supports ~230 gross drilling locations in the Lower Eagle Ford

Development plan employs long laterals (~9,400’ average length),

higher intensity / modern completions, targeted lateral placement,

and drilling order to minimize parent well effects

Austin Chalk analogous to development in the Sugarkane Field

Rapidly growing oil-weighted net production estimated to be ~5,000

boe/d by April 2018

Appraisal strategy implemented through data gathering, targeting, and

completion modernization and optimization

Achieving robust performance with recent slickwater completion

wells outperforming 2013 / 2014 Bowman wells’ EUR/ft by over

66% with continuous improvement on subsequent wells

Excellent Eagle Ford reservoir quality with porosity up to 12% and rich

TOC values ranging from 3% to 6%

Ideal lease inventory (~20 leases) with easily managed continuous

development obligations

Favorable marketing contracts and no minimum volume commitments

Currently on the Market from BMO: Texas American Resources Eagle Ford Divestiture

VDR available late February

Bids due mid-April

Contact Chelsea Neville ([email protected] or 713-546-

9703) to request a Confidentiality Agreement, access to the VDR,

and/or a data room presentation

ASSET OVERVIEW

PACKAGE HIGHLIGHTS

Source: Texas American Resources 2018 Eagle Ford Divestiture announcement. https://datarooms.us.bmo.com/_layouts/15/Petris/LoginPageBMOUS.aspx?ClientId=79

PROCESS OVERVIEW

Growing

Production and

Cash Flow with

Advantaged

Position for Full

Development

April 2018E net production of ~5,000 boe/d (~86% oil) from 22 operated wells; rapid growth from January 2017 production of

~50 boe/d

High degree of control as asset is 100% operated with easily managed continuous development obligations

NTM cash flow projected to be approximately $90 million at flat $60/bbl WTI oil and $3.00/mcf Henry Hub gas pricing

Very favorable marketing contracts relative to other Eagle Ford operators; no minimum volume commitments

Extensive infrastructure with proximity to Gulf Coast refineries and international export markets

Premium oil price realizations with LLS pricing – positive differentials of ~$3.00 compared to WTI over the last three months

Positioned for full field development with company-owned gathering system and access to electricity and SWD systems

Largely

Undeveloped

Contiguous Eagle

Ford Position

Attractive entry vehicle or bolt-on acquisition with exposure to highly economic parts of the Eagle Ford

Contiguous 23,164 net acre position in the prolific black oil window located in southwest Atascosa and southeast Frio counties,

Texas ideal for future development

100% operational control with average working interest of ~94%

Optimal maturity and shallow depth to Eagle Ford target of 7,800’ to 8,700’ allows for lateral lengths in excess of 10,000’

Extensive and

Highly Economic

Drilling Inventory

through Modern

Completions

~230 gross operated Lower Eagle Ford drilling locations at 400’ lateral spacing providing ample running room for years of

development

Entire position de-risked by existing wells and extensive data gathering and seismic surveys

~100% of locations have IRRs over 20% at flat $55/bbl WTI oil and $3.00/mcf Henry Hub gas pricing

Significant performance uplift over historical results in the area due to modern completions

Lateral targeting, higher proppant/fluid loading, and tighter cluster spacing are resulting in 66% EUR/ft uplift over legacy

wells with continual improvement

High Quality

Sub-Surface

Attributes

Compact and well-contained 80’ to 100’ thick Lower Eagle Ford quality source rock with oil in place sufficient to fully support

significant uplifts in EUR and recovery per foot

Proven development plan supported by 70 square miles of 3-D seismic and 385’ of proprietary whole core through the entire

prospective Eagle Ford and Austin Chalk reservoir intervals

Favorable structural, fracture setting, high matrix porosity, and oil saturation of the Austin Chalk across TAR’s position supports

a viable secondary target with ~115 locations at 800’ spacing

Austin Chalk in Frio County is prolific in numerous offsets

Oil saturated proprietary core in Atascosa County

Austin Chalk well performance in Sugarkane Field a direct analog

mailto:[email protected]

https://datarooms.us.bmo.com/_layouts/15/Petris/LoginPageBMOUS.aspx?ClientId=79



6

February 19, 2018

--

$1

$2

$3

$4

Jan-17 Jul-17 Jan-18 Jul-18 Jan-19

($/m

mb

tu)

$20

$30

$40

$50

$60

$70

$80

Jan-17 Jul-17 Jan-18 Jul-18 Jan-19

($/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)

NYMEX WTI Futures as of 16-Feb-18 Close ($/bbl) NYMEX Gas Futures as of 16-Feb-18 Close ($/mmbtu)

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

12 Mo. Strip $59.40 $57.21 $47.47 $54.69

2018 $59.85 $57.61 $47.77 $54.93

2019 $55.55 $53.88 $48.12 $54.50

2020 $52.84 $51.54 $48.73 $54.32

2021 $51.27 $50.17 $49.62 $54.46

2022 $50.62 $49.55 $50.73 $54.96

NYMEX Gas Futures as of 16-Feb-18 Close ($/mmbtu)

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

12 Mo. Strip $2.75 $2.75 $3.00 $3.29

2018 $2.70 $2.70 $2.98 $3.03

2019 $2.76 $2.77 $2.83 $2.85

2020 $2.77 $2.78 $2.78 $2.84

2021 $2.81 $2.82 $2.78 $2.84

2022 $2.95 $2.96 $2.95 $3.00

Historical Prices as of 16-Feb-18 Close ($/gal)

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

Ethane $0.24 $0.25 $0.27 $0.27

Propane $0.81 $0.82 $0.75 $0.81

Butane $0.76 $0.70 $0.83 $1.16

Iso-butane $0.94 $0.91 $0.94 $1.03

Pentane+ $1.34 $1.29 $1.08 $1.17

25%

35%

45%

55%

65%

Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18

% o

f W

TI

NGL as % of WTI

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














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

February 19, 2018

$2.56

AECO

Northern

California

Sumas

Southern

California

El Paso - SJ

Waha

HSC

Henry Hub

Panhandle

CIG Chicago

Dominion

Transco

NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 16-FEB-18

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 16-FEB-18

Clearbrook

Midland

Cushing

St. James

(LLS)

East Coast

U.S. (Brent)

Midland Sweet-

Sour Spread

EMS 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.

$61.68

$63.67

$1.99

$61.26

($0.42)

$55.55

($6.13)$59.68

($2.00)

$64.84

$3.16

($1.53)

$2.76

$0.20

$1.80

($0.76)

$2.32

($0.24)

MAPS IN

MASTER VIEW

$1.21

($1.35)

$2.15

($0.41)

$2.47

($0.09)

$2.53

($0.03)

$1.93

($0.63)

$2.03

($0.53)$2.08

($0.48)

$2.03

($0.53)

$2.31

($0.25)

8

February 19, 2018

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

14-Feb-18 Scout Energy Partners Linn Energy LLC Conventional Permian assets $120 $8.30 $18,968 $4,268

06-Feb-18 Halcon Resources Corp Shell 10,524 net acres in Delaware Basin $200 n.a. $181,818 $19,004

06-Feb-18 Halcon Resources Corp Undisclosed Seller 4,413 net acres in Delaware Basin $104 n.a. $462,222 $23,567

06-Feb-18 Viper Energy Partners LP Undisclosed Seller 219 net royalty acres in Permian Basin $26 n.a. n.a. nmf

31-Jan-18 Lilis Energy Inc OneEnergy Partners LLC 2,798 net acres in Delaware Basin $70 n.a. $164,706 $25,018

Mean $104 $8.30 $206,929 $17,964

Median $104 $8.30 $173,262 $21,285



--

$10,000

$20,000

$30,000

$40,000

$50,000

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

3 6 8 4 1 3 8 7 5 5 11 13 15 7 2 2 4

$ /

acre

# Deals

$22,338

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 1-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.

0%

10%

20%

30%

40%

50%

--

100

200

300

400

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

H V+D % of Total Rigs

-$1.20

-$0.60

$0.00

$0.60

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18

-$4.00

-$2.00

$0.00

$2.00

$ /

mm

btu

$ /

bb

l

Midland Waha

--

$100,000

$200,000

$300,000

$400,000

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

3 7 9 6 1 3 8 8 5 9 12 14 15 8 0 1 5

$ /

bo

e/d

# Deals

$168,768

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

Rig Count 433 (4) 437 Oil Differential ($0.20) $0.30 ($0.50)

Permitting Activity 171 (137) 308 Gas Differential ($0.61) $0.17 ($0.78)

835

1087

702

930

1112

8871029

909 875

1126

818

1110

605

Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18

V+D H

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

1,300

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17

mm

cf/

d

mb

bl/

d

Oil Gas

2,769

9,095



9

February 19, 2018

-$0.30

-$0.15

$0.00

$0.15

$0.30

$0.45

$0.60


-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$ /

mm

btu

$ /

bb

l

LLS HSC


Rig Count 70 1 69 Oil Differential $2.15 ($0.10) $2.25


6,000

7,000

8,000

9,000

10,000

11,000

1,200

1,400

1,600

1,800

2,000

2,200


mm

cf/

d

mb

bl/

d

Oil Gas

1,384

8,280

402476

389 356

496

353 348287

371 372320

416

285


V+D H

--$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

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

$ /

acre

# Deals

$14,979

--

$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

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

$ /

bo

e/d

# Deals

$60,424

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

01-Feb-18 Viper Energy Partners LP Royal Resources 681 net royalty acres in Eagle Ford $123 n.a. $136,667 nmf

02-Jan-18 Penn Virginia Hunt Oil 9,700 net acres in South TX Eagle Ford $86 n.a. $45,989 $8,866

20-Dec-17 Venado Oil & Gas Cabot Oil & Gas 74,500 net acres in South TX Eagle Ford $765 $13.38 $48,863 $10,268

12-Dec-17 EP Energy Corp Carrizo Oil & Gas 24,500 net acres in South TX Eagle Ford $245 n.a. $72,059 $10,000

17-Aug-17 Vitruvian Exploration IV Sanchez Energy Corp 68,000 net acres in Eagle Ford $105 n.a. n.a. $1,544

Mean $265 $13.38 $75,894 $7,670

Median $123 $13.38 $60,461 $9,433



0%

5%

10%

15%

20%

--

50

100

150

200

250



Eagle Ford Snapshot

GROSS PRODUCTION



DIFFERENTIALS RIG COUNT









10

February 19, 2018

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

12-Feb-18 Tanos Exploration II LLC WildHorse 90,000 net acres in North Louisiana $217 $0.53 $4,627 $2,411

06-Sep-17 Tellurian Inc Undisclosed Sellers 9,200 net acres in Haynesville $85 n.a. $21,264 $9,250

01-Aug-17 Rockcliff Energy II LLC Samson Resources II LLC 210,000 net acres in East TX & North LA $525 n.a. $5,833 $2,500

12-Jun-17 GEP Haynesville, LLC Sabine Oil & Gas 5,256 net acres in North LA Haynesville $45 n.a. $16,188 $8,562

08-Jun-17 Black Stone Minerals Undisclosed Haynesville / Bossier acreage in East TX $24 n.a. n.a. n.a.

Mean $179 $0.53 $11,978 $5,681

Median $85 $0.53 $11,011 $5,531



--

$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


Rig Count 50 -- 50 Oil Differential $2.15 ($0.10) $2.25

Permitting Activity 21 (14) 35 Gas Differential -- -- --

5,000

6,000

7,000

8,000

9,000

80

90

100

110

120

130

140

150


mm

cf/

d

mb

bl/

d

Oil Gas

98

8,603

127

187148

124162

133 160

101

198

143

89125

79


V+D H

--

$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

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

$ /

acre

# Deals# Deals

$5,387

--

$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

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

$ /

mc

fe/d

# Deals

$7,072

0%

2%

4%

6%

8%

10%

--

10

20

30

40

50

60



Ark-La-Tex Snapshot

GROSS PRODUCTION








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




11

February 19, 2018

-$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


Rig Count 78 (1) 79 Oil Differential $3.16 ($0.43) $3.59

Permitting Activity 27 (68) 95 Gas Differential ($0.58) ($0.23) ($0.34)

12,000

14,000

16,000

18,000

20,000

22,000

24,000

50

75

100

125

150


mm

cf/

d

mb

bl/

d

Oil Gas

63

19,979

393 415 390341

429

293

465

590

453395

356409

148


V+D H

--

$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

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

$ /

ac

re

# Deals

$5,193

--

$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

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

$ /

mcfe

/d

# Deals

$5,842

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

31-Jan-18 Diversified Gas & Oil Lake Fork Resources Entire share capital of Alliance Petroleum $95 $0.32 $1,799 n.a.

31-Jan-18 Diversified Gas & Oil CNX Resources Corp Appalachia Basin asset in PA and WV $85 $0.22 $1,574 n.a.

29-Jan-18 Undisclosed Buyer Blue Ridge Mountain Non-op WI in Marcellus / Utica $56 n.a. n.a. $6,667

21-Dec-17 Alta Resources LLC Ultra Petroleum 72,000 non-op net acres in Marcellus $115 n.a. $3,833 $1,597

12-Dec-17 Banpu Public Co Ltd Warren Resources Inc 5,200 net acres in PA Marcellus $105 $0.36 $1,826 $20,192

Mean $91 $0.30 $2,258 $9,485

Median $95 $0.32 $1,813 $6,667



0%

5%

10%

15%

20%

--

50

100

150



Appalachia Snapshot

GROSS PRODUCTION








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




12

February 19, 2018

-$0.90

-$0.45

$0.00

$0.45


-$9.00

-$4.50

$0.00

$4.50

$ /

mm

btu

$ /

bb

l

Clearbrook CIG




1,200

1,400

1,600

1,800

2,000

2,200

800

900

1,000

1,100

1,200

1,300

1,400


mm

cf/

d

mb

bl/

d

Oil Gas

1,138

2,065

47

97

62

116 113 111

145

101

150

120

73100

58


V+D H

--

$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

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

$ /

acre

# Deals

$5,703

--

$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

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

$ /

bo

e/d

# Deals

$54,719

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

22-Jan-18 Firehawk Oil and Gas LLC Samson Oil & Gas Limited Foreman Butte Project in Williston Basin $42 $6.66 n.a. $809

18-Jan-18 Undisclosed Buyer Vanguard Natural Resources Williston Basin properties $39 n.a. $38,500 n.a.

21-Nov-17 Energy Resources 12 LP Bruin E&P Partners LLC Non-op Bakken assets $88 n.a. n.a. n.a.

20-Nov-17 Statoil Earthstone Energy Inc 1,323 non-op acres in ND $27 n.a. $35,433 $20,408

23-Oct-17 Valorem Energy LINN Energy LLC 20,000 net acres in Williston Basin $285 n.a. $35,625 $14,250

Mean $96 $6.66 $36,519 $11,822

Median $42 $6.66 $35,625 $14,250



0%

5%

10%

15%

20%

--

50

100

150

200



Bakken Snapshot

GROSS PRODUCTION












13

February 19, 2018




0%

5%

10%

15%

20%

--

20

40

60

80

100

120



-$0.90

-$0.45

$0.00

$0.45


-$9.00

-$4.50

$0.00

$4.50

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

11,000

11,500

12,000

12,500

13,000

13,500

14,000

200

300

400

500

600

700

800


mm

cf/

d

mb

bl/

d

Oil Gas

655

12,085

934 874

1436

1081855 750

1748

695570 622 652

435260


V+D H

--

$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

3 7 2 2 0 0 3 3 0 1 0 0 1 0 1 5 3

$ /

acre

# Deals

$4,011

--

$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

4 9 3 4 2 0 4 4 1 6 0 0 2 5 4 9 3

$ /

bo

e/d

# Deals

$39,645

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

05-Feb-18 Enduring Resources IV LLC WPX Energy Inc 105,000 net acres in San Juan Basin $700 n.a. $43,750 $6,667

16-Jan-18 Undisclosed Buyer LINN Energy 36,000 net acres in Uinta Basin $132 n.a. $91,034 $3,667

09-Jan-18 Northwoods Energy LLC SM Energy 112,200 net acres in Powder River Basin $500 nmf $227,273 $4,456

14-Dec-17 Undisclosed Buyer Samson Resources II LLC 11,300 net acres in Green River Basin $34 n.a. $22,667 $3,009

14-Dec-17 Undisclosed Buyer EP Energy Corp 23,330 net acres in Uinta Basin $180 n.a. $120,000 $7,715

Mean $309 n.a. $100,945 $5,103

Median $180 n.a. $91,034 $4,456



GROSS PRODUCTION



DIFFERENTIALS

Rockies (excl. Bakken) Snapshot

RIG COUNT









14

February 19, 2018

-$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


Rig Count 91 1 90 Oil Differential -- -- --


5,000

7,000

9,000

11,000

13,000

15,000

200

300

400

500

600

700

800


mm

cf/

d

mb

bl/

d

Oil Gas

578

9,778

334371

303

371 373 352 347

236 255

355324

376

165


V+D H

--

$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

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

$ /

acre

# Deals

$8,167

--

$50,000

$100,000

$150,000

$200,000

$250,000

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

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

$ /

bo

e/d

# Deals

$80,272

# Deals

$80,272

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

06-Feb-18 Undisclosed Buyer Chesapeake 238,000 net acres in Anadarko Basin $500 n.a. $21,739 $2,101

25-Jan-18 Revolution Resources LLC Gastar Exploration Inc 26,100 net acres in the Anadarko Basin $108 $5.60 $37,906 $4,119

27-Dec-17 Chaparral Energy Multiple 7,000 net acres in STACK $60 n.a. n.a. $8,500

14-Nov-17 Exponent Energy III Mid-Con Energy Partners LP 6,591 net acres in Southern Oklahoma $22 $8.09 $40,741 $3,338

13-Oct-17 Perdure Petroleum LLC Chaparral Burbank and TX Panhandle EOR assets $170 $2.35 $29,825 n.a.

Mean $172 $5.35 $32,552 $4,514

Median $108 $5.60 $33,865 $3,728



0%

5%

10%

15%

20%

--

50

100

150

200



Mid-Continent Snapshot

GROSS PRODUCTION












15

February 19, 2018

--

$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

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

$ /

bo

e

# Deals

$11.38

# Deals

--

$20,000

$40,000

$60,000

$80,000

$100,000

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

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

$ /

bo

e/d

# Deals

$29,387

# Deals

$29,387


Rig Count 18 2 16 Oil Differential $2.15 ($0.10) $2.25

Permitting Activity 1 -- 1 Gas Differential -- -- --

--

$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

5,000

1,000

1,200

1,400

1,600

1,800

2,000


mm

cf/

d

mb

bl/

d

Oil Gas

1,760

3,103

19 17

0

31

24 26

17 16

10

23 21 22

2


0%

2%

4%

6%

8%

10%

--

20

40

60

80



Gulf of Mexico Snapshot

GROSS PRODUCTION


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 4. Red line denotes average since 1-Jan-15. Calculated as the

weighted average of each quarter’s transactions..

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



Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

15-Feb-18 Fieldwood Energy LLC Noble Energy Deepwater GOM assets $710 $30.87 $35,500 $2,996

12-Sep-16 Anadarko Freeport-McMoRan Inc Deepwater GOM assets $2,000 $15.88 $25,000 n.a.

29-Aug-16 EnVen Energy Ventures Shell Brutus and Glider fields $425 n.a. $17,000 n.a.

09-Nov-15 EnVen Energy Ventures Marathon Petronius and Neptune fields $205 n.a. $20,500 n.a.

11-Aug-15 Energy XXI M21K GOM Shelf assets $25 $1.94 $4,582 n.a.

Mean $673 $16.23 $20,516 $2,996

Median $425 $15.88 $20,500 $2,996



16

February 19, 2018

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October 2018 Oct 10 IPAA Leaders in Industry Luncheon

Oct 16 Houston Producers Forum Luncheon

Oct 19 ADAM-Houston Monthly Luncheon

Oct 22-23 Midstream Finance Conference

Oct 23-24 IADC International Well Control 2018 Conference

Oct 23-25 SPE Asia Pacific Oil & Gas Conference

November 2018 Nov 5-7 Executive Oil Conference

Nov 7-9 IADC Annual General Meeting

Nov 11-13 IPAA Annual Meeting

Nov 13-15 DUG Midcontinent

Nov 14 IPAA Leaders in Industry Luncheon

Nov 16 ADAM-Houston Monthly Luncheon

Nov 20 Houston Producers Forum Luncheon

June 2018 Jun 15 ADAM-Houston Monthly Luncheon

Jun 19 Houston Producers Forum Luncheon

Jun 19-20 IADC World Drilling Conference & Exhibition

Jun 19-21 DUG East

Jun 25-27 IPAA Midyear Meeting

Jun 27 SPE Business Development Study Group

December 2018 Dec 12 IPAA Leaders in Industry Luncheon

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




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






http://www.enercomdallas.com/





http://www.spegcs.org/study-groups/business-development/



https://ceraweek.com/





http://www.spe.org/events/en/2018/conference/18dc/homepage.html






http://adamhouston.org/events















http://www.ipaa.org/meetings-events/





http://www.speior.org/















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








http://2018.otcnet.org/





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






http://www.iadc.org/event/2018-iadc-drilling-onshore-conference-exhibition/









http://ace.aapg.org/2018/





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









http://www.ipaa.org/events/leaders-industry-luncheon-july-2018/





http://urtec.org/2018/





http://www.ipaa.org/events/leaders-industry-luncheon-august-2018/







http://www.theoilandgasconference.com/







http://napeexpo.com/shows/about-the-show/houston












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





http://www.iadc.org/event/iadc-advanced-rig-technology-conference-exhibition/







http://www.ipaa.org/events/leaders-industry-luncheon-september-2018/











http://www.atce.org/welcome






http://www.ipaa.org/events/leaders-industry-luncheon-october-2018/











https://www.hartenergyconferences.com/midstream-finance





http://www.iadc.org/event/wc2018/





http://www.spe.org/events/en/2018/conference/18apog/asia-pacific-oil-and-gas-conference-and-exhibition.html







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





http://www.iadc.org/event/2018-iadc-annual-general-meeting/





http://www.ipaa.org/events/annual-meeting-2018/





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





http://www.ipaa.org/events/leaders-industry-luncheon-november-2018/




















http://www.iadc.org/event/world-drilling-2018/





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






http://www.ipaa.org/events/midyear-meeting-2018/








http://www.ipaa.org/events/leaders-industry-luncheon-december-2018/



17

February 19, 2018

This

Week Change

Last

Week

Last

Year

Total Rigs 975 -- 975 751

Oil 798 7 791 597

Gas 177 (7) 184 153

Miscellaneous -- -- -- 1

Directional 71 (2) 73 72

Horizontal 839 7 832 614

Vertical 65 (5) 70 65

Basin

Arkoma 7 (1) 8 5

Barnett 2 -- 2 5

Cana 67 1 66 49

DJ-Niobrara 25 (1) 26 21

Eagle Ford 70 1 69 61

Fayetteville -- -- -- 1

Granite Wash 12 1 11 13

GOM 18 2 16 17

Haynesville 50 -- 50 34

Marcellus 56 1 55 42

Mississippian 4 1 3 3

Permian 433 (4) 437 303

Utica 22 (2) 24 21

Williston 49 (1) 50 36

Other 160 2 158 140

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.

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

Ireland p.l.c, and Bank of Montreal (China) Co. Ltd and the institutional broker dealer businesses of BMO Capital Markets Corp. (Member 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 and BMO Capital Markets Limited (authorised

and regulated by the Financial Conduct Authority) in Europe 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.

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.

Geoff Roberts

MD & Head of U.S. A&D

713-518-1268

[email protected]

Howard Barnwell

MD & Transactions Mgr.

713-546-9767

[email protected]

TRANSACTIONS NEWSLETTER

Contacts

Disclaimer

Source of rig count stats: Baker Hughes

Rig Count Summary

MAPS IN

MASTER VIEW

Rob Priske

Director & Transactions Mgr.

713-546-9727

[email protected]

Legend

Current

Change

Arkoma

Barnett

Cana

DJ-Niobrara

Eagle Ford

Haynesville

Fayetteville

Granite Wash

GOM

Permian

Marcellus

Mississippian

Utica

Williston

7

(1)

2

--

67

1

25

(1)

70

1

--

--

12

1

18

2

50

--

56

1

4

1

433

(4)

22

(2)

49

(1)

Chelsea Neville

Transactions Coordinator

713-546-9703

[email protected]

Rob Priske

Director & Transactions Mgr.

713-546-9727

[email protected]

Geoff Roberts

MD & Head of U.S. A&D

713-518-1268

[email protected]

Marshall Soper

Analyst

713-546-9706

[email protected]

Aaron Moeller

Analyst

713-518-1262

[email protected]

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