prompt oil price ($/bbl) $62.87 $1.17 1.9% prompt gas price … · 2019-05-20 · 3 may 20, 2019...
TRANSCRIPT
![Page 1: Prompt Oil Price ($/bbl) $62.87 $1.17 1.9% Prompt Gas Price … · 2019-05-20 · 3 May 20, 2019 5/16/2019 Appalachia 2 Ark-La-Tex 8 Bakken 4 Eagle Ford 4 Mid-Con 8 Other 13 Permian](https://reader031.vdocument.in/reader031/viewer/2022011814/5e50ef57cd16644828707875/html5/thumbnails/1.jpg)
1
May 20, 2019
IndicatorCurrent
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $62.87 $1.17 1.9%
Prompt Gas Price ($/mmbtu) $2.64 $0.04 1.5%
Wkly Trans. Value ($mm) $965 ($56,885) (98%)
Wkly Trans. Count 2 (7) (78%)
US Rig Count 987 (1) (0.1%)
US Oil Prod'n (mmbbl/d) 12.1 (0.1) (0.8%)
US Gas Prod'n (bcf/d)(1) 108.6 -- --
US Oil Storage (mmbbl) 472.0 5.4 1.2%
US Gas Storage (tcf) 1.7 0.1 6.9%
$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
$1.4
$61.1
--
50
100
150
200
250
300
350
400
450
500
--
$10
$20
$30
$40
$50
$60
$70
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 99%
Nu
mb
er
of
Tra
ns
acti
on
s
Tra
ns
acti
on
Valu
e (
$b
n)
Asset Corporate Number of Transactions
% Oil
Debt
Markets
Seven issuers priced eight tranches for $3.6 billion in proceeds
U.S. high yield funds reported an outflow of $2.57 billion
ETFs reported an outflow of $711 million, while mutual funds reported an outflow of $1.86 billion
High yield index yield was 6.45%; high yield energy index yield was 8.18%
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, EIA, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. EIA U.S. natural gas gross withdrawals and production reported monthly as of February 2019.
2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index.
Key Industry Indicators
Quarterly Deal Activity
S&P E&P(2) outperformed last week 1.5% vs. SPX(2) 0.2%
The major U.S. equity indexes finished mixed last week. Consumer staples, materials, real estate, and
tech finished higher. Consumer discretionary, financials, health care, and industrials finished lower
Equity
Markets
Oil ended last week up. Higher tariffs on Chinese exports to the U.S. were implemented. The trade war
between China and the U.S. escalated, with China responding to Trump’s increased tariffs with increased
tariffs on U.S. LNG, biodiesel, and rare earth metals. Saudi Arabian oil tankers were attacked off the UAE
coast. There were also drone strikes against two pumping stations on one of the main cross-country
crude pipelines in Saudi Arabia. Saudi Arabia formally accused Iran of sabotage, increasing tensions not
only between Saudi Arabia and Iran, but also between Saudi Arabia and Yemen where Saudi warplanes
bombed Yemeni rebel strongholds. Russia finally reached its OPEC+ quota for production just a few
months after the initial target date. The near-term contract closed up $1.17, or 1.9%, at $62.87
Natural gas ended last week up as weather trended more bullish over the last few days. The natural gas
market shrugged off any potential impact the tariff situation could have on LNG. EIA's weekly storage
figure showed a 106 bcf build for gas. The near-term contract closed up $0.04, or 1.5%, at $2.64
Commodities
Week in Review
In Commodities, ECM and DCM, let’s go to journalism standards, even
though that’s not how we get the text from those groups. Main change is
that any number below 10 is spelled out (one instead of 1). This does not
apply to statistical analyses, percentages, or money, of course.
Let’s follow these guidelines when sorting articles:
• First priority: Domestic A&D, ranked by size
• Next: Domestic M&A
• Then: US companies doing international deals (like
Noble’s Tamar)
• Then: Others (Cabot’s Lackawanna)
• Then: Prices, rig count, completions, etc.
To paste the arrows with colors,
• FactSet
• Settings
• Presentation Linking and Formatting
• Import
• Colors
• Change Color Font
For the primary Commodities bullet points on oil and gas
prices, please start with “The near-term contract opened the
week at $___” and end that same bullet point with “The
near-term contract closed the week at $____, down(up)
$___, or ___%.” You don’t have to use exactly those words
as long as the opening and closing prices are included . For
example, you could write, “Opening the week at $45.21, the
near-term oil contract declined steadily based on …” – you
know, think like a journalist, be creative.
Covering the Week of May 10 to May 16, 2019
The October issue of BMO Calgary’s A&D (Canadian)
Market Monitor went live last week – read more here
[TBU]
[TBU]
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This is the final issue for 2018. The Market Monitor will
return on Monday, January 7th. Happy Holidays from the
BMO Capital Markets team!
Equinor announced it exercised its preferential rights to
acquire an additional 22.45% interest in the Caesar Tonga oil
field from Shell Offshore for $965 million, preempting the
previously proposed $965 million acquisition by Delek Group
(see page 4 for more detail)
KKR and Spur Energy Partners announced the formation of a
partnership to pursue oil and gas opportunities. They also
announced the signing of a definitive agreement to acquire
Permian Northwest Shelf assets from Percussion Petroleum
Rattler Midstream, a subsidiary of Diamondback Energy,
announced the launch of Rattler’s initial public offering
All references to last week in the comments below are through Thursday
(3)
(3)
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2
May 20, 2019
Public Company
40%
PE / PE-Backed
23%
Private14%
Other23%
LTM By Buyer Type
Ann'd Date Buyer Seller Area Asset Description Value(1)
Proved Multiple
Prod.Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
13-May-19 Equinor Shell Gulf of Mexico 22.45% WI in Caesar-Tonga Field $965 n.a. $60,313 n.a.
07-May-19 Sabinal; Undisclosed Diamondback Energy Permian CBP, NW Shelf, & Midland Basin $322 n.a. $49,538 $2,927
02-May-19 Undisclosed Buyer California Resources Corp California 50% WI in assets in San Joaquin Basin $203 n.a. $88,000 n.a.
29-Apr-19 Undisclosed Buyer Riviera Resources Inc Mid-Continent Non-op Hugoton Basin $31 n.a. n.a. n.a.
23-Apr-19 Murphy LLOG Bluewater LLC Gulf of Mexico Mississippi Canyon & Green Canyon $1,375 $20.83 $36,184 n.a.
22-Apr-19 Northern Oil and Gas Flywheel Energy LLC Bakken 18,000 net acres in Williston Basin $310 n.a. $47,014 $17,238
08-Apr-19 Sequitur Energy Resources Callon Permian 9,850 net acres in Reagan & Upton, TX $260 n.a. $65,000 $26,396
02-Apr-19 Dorchester Minerals, L.P. H. Huffman & Co. Multi-Region Mineral & royalty assets across the U.S. $44 n.a. $139,419 nmf
27-Mar-19 Undisclosed Buyer Rosehill Resources Permian ~880 net acres in Lea Co., NM $22 n.a. n.a. $25,000
27-Mar-19 Diversified Gas & Oil HG Energy II LLC Marcellus/Utica Huckleberry assets in Appalachia $400 n.a. $19,364 n.a.
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Permian30%
Rockies (ex. Bakken)
11%Bakken
5%Appalachia
4%
Mid-Con16%
Eagle Ford6%
Ark-La-Tex5%
Gulf of Mexico3%
Other19%
LTM By Region
y = 36.354e-0.072x
R² = 0.3583
--
$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
R / PSales Value /
Proved Reserves (15:1)
(ratio) ($ / boe) ($ / mcfe)
8x $20.40 $1.36
10x $17.66 $1.18
15x $12.31 $0.82
20x $8.58 $0.57
Oil69%
Gas31%
LTM By Commodity
The 10 Most Recent Asset Transactions Over $20 Million
A&D Valuation Trends(3)
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, PLS1. 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 >$20mm. Adjusted for changes in price outlooks. Recalculated boe reserves are on a 15:1
(gas:oil) basis. Acreage transactions excluded by using deals with PDP of >= 40% of total proved. 4. Year-to-date data is through this week’s date for each respective year.
(2) (2) (2)
YTD Deal Activity ($bn)(4)
$10.5 $21.3
$13.4 $4.9
$4.4
$8.8 $10.2
$57.6
$14.9
$30.1 $23.7
$62.5
2016 2017 2018 2019
353 642 513 83
Asset Corporate
Deal Count
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3
May 20, 2019
5/16/2019
Appalachia 2
Ark-La-Tex 8
Bakken 4
Eagle Ford 4
Mid-Con 8
Other 13
Permian 18
Rockies 4
61
Select Significant Deals on the Market
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Source of Select Significant Deals on the Market: BMO Transaction Database
Industry Headlines
Appalachia
2 Deals
Mid-Con
8 Deals
Eagle Ford
4 Deals
Permian
18 Deals
Other
13 Deals
Rockies
4 Deals
(Click headline to link to the full article)
M&A&D Headlines
Bakken
4 Deals
Ark-La-Tex
8 Deals
BMO Deals (Status)
Enerplus Elm Coulee (In Market) – See page 6
OPEC+ Grapples with Iran Crisis as Ministers Meet in
Jeddah
Saudi Arabia Claims Oil Tankers Attacked as Iran
Tensions Rise
Iran-Backed Drone Attacks Damage Saudi Pumping
Stations
Houston Ship Channel Reopens After Crash Polluted
Air and Water
Trade War Could Delay LNG Projects on Gulf Coast,
Analyst Says
Rattler Midstream LP, a Subsidiary of Diamondback
Energy, Inc., Announces Launch of Initial Public
Offering
Equinor to Increase Share in High Value Asset in
Deepwater U.S. Gulf of Mexico
KKR and Spur Energy Partners Form Partnership to
Pursue Oil and Gas Opportunities
[TBU]
Talos Energy Announces Full Year 2019 Operating
and Financial Guidance (includes A&D
announcement)
BMO Deals (Status)
Juno Permian (In Market) – See page 4
Rio Glasscock County (In Market) – See page 5
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OPEC Gambles with Success of Production Cuts as
$80 Oil Looms
Saudis See No Need For Immediate Action on Oil
Market
Oil Leaps to 6-Month High as U.S. Vows to Strangle
Iran Exports
Rebounding Haynesville Shale Breaks 2011
Production Record
U.S. Gulf Coast Crude Oil Imports Hit Lowest in Three
Decades
Colorado Begins Rewriting Oil and Gas Rules With
Focus on Safety
Apache Corporation Announces Temporary Deferral
of Alpine High Natural Gas Production in Response to
Recent Pricing at Waha Hub
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4
May 20, 2019
On May 13, 2019, Equinor (NYSE: EQNR) announced
it exercised its preferential rights to acquire an
additional 22.45% interest in the Caesar Tonga oil field
from Shell Offshore for $965 million, preempting the
previously announced $965 million acquisition by
Delek Group
Anadarko and Chevron are the other owners
Anadarko (33.75% operated interest)
Chevron (20.25% non-op interest)
This transaction increases Equinor’s interest to 46%
TRANSACTION SUMMARY
Source: Press releases, company presentations
ASSET SUMMARY
Located in the Gulf of Mexico 300 kilometers south of
Louisiana, the Caesar-Tonga oil field is one of the top
ten largest deepwater resources in the Gulf of Mexico
Depth of 1,500 meters
Production horizon spanning tens of years
Currently contains eight wells connected by undersea
pipeline network to a production platform owned by
Anadarko
Gross production of 71,000 boe/d (90% oil)
Net production ~16,000 boe/d
Net 2P reserves of 78 mmboe
Annual EBITDA of $230 million
Interesting Deal of the Week:
Equinor Acquires Non-Operated Gulf of Mexico Assets for $965 Million
ACQUIRED ASSETS TRANSACTION METRICS
Purchase Price (US$ mm)
Cash $965
Total Consideration $965
Metrics
Net Production (boe/d) 16,000
Net 2P Reserves (mmboe) 78
Annual EBITDA ($mm) $230
Multiples
TEV / Net Production ($/boe/d) $60,313
TEV / Net 2P Reserves ($/boe) $12.37
TEV / Annual EBITDA 4.2x
Shell Assets
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5
May 20, 2019
Historical Prices as of 16-May-19 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.23 $0.23 $0.35 $0.24
Propane $0.61 $0.61 $0.80 $0.96
Butane $0.57 $0.57 $0.82 $0.95
Iso-butane $0.65 $0.66 $0.89 $1.43
Pentane+ $1.30 $1.26 $1.12 $1.63
25%
35%
45%
55%
65%
Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19
% o
f W
TI
NGL as % of WTI
$1
$2
$3
$4
$5
Apr-18 Oct-18 Apr-19 Oct-19 Apr-20
($/m
mb
tu)
NYMEX Gas Futures as of 16-May-19 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.77 $2.74 $3.19 $2.85
2019 $2.73 $2.70 $3.08 $2.72
2020 $2.75 $2.71 $2.67 $2.66
2021 $2.66 $2.64 $2.63 $2.67
2022 $2.81 $2.80 $2.77 $2.82
2023 $2.81 $2.80 $2.77 $2.82
NYMEX WTI Futures as of 16-May-19 Close ($/bbl) NYMEX Gas Futures as of 16-May-19 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $62.46 $61.08 $57.37 $69.12
2019 $63.01 $61.66 $57.50 $65.95
2020 $60.35 $59.15 $57.69 $60.61
2021 $56.60 $55.86 $57.16 $57.23
2022 $54.38 $53.98 $56.76 $55.12
2023 $53.39 $53.26 $56.35 $53.87
$20
$30
$40
$50
$60
$70
$80
Apr-18 Oct-18 Apr-19 Oct-19 Apr-20
($/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
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6
May 20, 2019
Clearbrook
Midland
Cushing
St. James
(LLS)
East Coast
U.S. (Brent)
Midland Sweet-
Sour Spread
EMS
AECO
Northern
California
Sumas
Southern
California
El Paso - SJ
Waha
HSC
Henry Hub
Panhandle
CIG Chicago
Dominion
Transco
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 16-MAY-19
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 16-MAY-19
Legend
Price
Diff.
Legend
Price
Diff.
Source: BMO Commodity Products Group, Bloomberg
Note: Prices and differentials are for prompt month futures except for Clearbrook which is based on spot prices.
MAPS IN
MASTER VIEW
TBU
[TBU]
[TBU]
$62.87
($0.86) $69.61
$6.74
$2.20
($0.44)
$1.92
($0.72)
$2.64
$2.38
($0.26)
$61.48
($1.39)
$72.62
$9.75
$61.62
($1.25)
$56.34
($6.53)
$2.35
($0.29)
$2.68
$0.04
$0.37
($2.27)
$1.89
($0.75)$1.79
($0.85)$2.17
($0.47)
$0.60
($2.04)$1.96
($0.68)
$3.16
$0.52
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7
May 20, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 454 (3) 457 Oil Differential ($3.25) $0.85 ($4.10)
Permitting Activity 271 16 255 Gas Differential ($2.24) $0.12 ($2.36)
0%
10%
20%
30%
40%
50%
--
100
200
300
400
500
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$4.80
-$3.20
-$1.60
$0.00
$1.60
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$18.00
-$12.00
-$6.00
$0.00
$6.00
$ /
mm
btu
$ /
bb
l
Midland Waha
1,294
1,0911,1491,223
993
1,212
1,010868
1,247
1,0711,207
1,073
645
May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19
H V+D
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
mm
cf/
d
mb
bl/
d
Oil Gas3,914
12,650
--$10,000$20,000$30,000$40,000$50,000$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 2 8 8 6 6 12 13 15 7 3 2 7 2 5 4 1 2
$ /
acre
# Deals
$25,753
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
07-May-19 Sabinal; Undisclosed Diamondback Energy CBP, NW Shelf, & Midland Basin $322 n.a. $49,538 $2,927
08-Apr-19 Sequitur Energy Resources Callon 9,850 net acres in Reagan & Upton, TX $260 n.a. $65,000 $26,396
27-Mar-19 Undisclosed Buyer Rosehill Resources ~880 net acres in Lea Co., NM $22 n.a. n.a. $25,000
26-Feb-19 Ring Energy Inc Wishbone Energy Partners 37,206 net Central Basin Platform acres $300 $8.75 $50,000 $8,063
19-Feb-19 Undisclosed Buyer Noble Energy Non-core acreage in the Delaware Basin $63 n.a. n.a. n.a.
Mean $193 $8.75 $54,846 $15,597
Median $260 $8.75 $50,000 $16,532
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$50,000
$100,000
$150,000
$200,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 2 6 9 5 7 11 9 9 6 1 0 7 2 5 4 1 2
$ /
bo
e/d
# Deals
$117,551
GROSS PRODUCTION
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS
Permian Snapshot
RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
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8
May 20, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 89 1 88 Oil Differential $8.25 $0.75 $7.50
Permitting Activity 69 (40) 109 Gas Differential $0.04 $0.00 $0.04
0%
5%
10%
15%
20%
--
100
200
300
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$0.30
-$0.20
-$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$6.00
-$4.00
-$2.00
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
MEH HSC
474438
379
455
329402
345312
396353
473
357
203
May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19
H V+D
6,000
6,500
7,000
7,500
8,000
8,500
9,000
9,500
10,000
10,500
1,000
1,200
1,400
1,600
1,800
2,000
2,200
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
mm
cf/
d
mb
bl/
d
Oil Gas
1,587
8,500
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
19-Nov-18 Lonestar Resources Inc Sabine Oil & Gas Corp 2,706 net acres in Eagle Ford $39 $2.98 $48,375 $14,302
20-Sep-18 WildHorse Undisclosed Seller 20,305 net Eagle Ford/Austin Chalk acres $35 n.a. n.a. $1,743
07-Sep-18 Undisclosed Buyer Viking Minerals LLC 1,191 net royalty acres in Eagle Ford $28 n.a. n.a. nmf
31-Jul-18 EP Energy Corp Undisclosed Seller Additional working interests in Eagle Ford $31 n.a. n.a. n.a.
26-Jul-18 BP BHP Billiton Permian, Eagle Ford, and Haynesville $10,500 n.a. n.a. n.a.
Mean $2,127 $2.98 $48,375 $8,022
Median $35 $2.98 $48,375 $8,022
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$50,000
$100,000
$150,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 1 3 1 2 2 2 4 4 3 1 2 7 2 0 3 0 0
$ /
bo
e/d
# Deals
$70,217
--$10,000$20,000$30,000$40,000$50,000$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 1 2 1 2 2 0 4 2 3 1 2 4 2 1 3 0 0
$ /
acre
# Deals
$6,130
Eagle Ford Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
BMO A&D has changed the Eagle Ford oil differential
to Magellan East Houston (“MEH”) instead of LLS to
better reflect what producers in the area are receiving
(changed from LLS to MEH – refer to page 1)
![Page 9: Prompt Oil Price ($/bbl) $62.87 $1.17 1.9% Prompt Gas Price … · 2019-05-20 · 3 May 20, 2019 5/16/2019 Appalachia 2 Ark-La-Tex 8 Bakken 4 Eagle Ford 4 Mid-Con 8 Other 13 Permian](https://reader031.vdocument.in/reader031/viewer/2022011814/5e50ef57cd16644828707875/html5/thumbnails/9.jpg)
9
May 20, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 60 (1) 61 Oil Differential $8.75 $0.90 $7.85
Permitting Activity 17 (9) 26 Gas Differential -- -- --
0%
5%
10%
15%
20%
--
20
40
60
80
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
--
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
--
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
169154 163 167 177
179
111 105
168
112 117 116
50
May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19
H V+D
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
80
90
100
110
120
130
140
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
mm
cf/
d
mb
bl/
d
Oil Gas
95
10,814
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 3 1 1 2 1 3 0 1 2 0 1 1 1 1 0 0
$ /
acre
# Deals
$3,349
--$2,000$4,000$6,000$8,000
$10,000$12,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 5 1 1 3 2 3 0 2 2 0 1 1 2 1 0 0
$ /
mcfe
/d
# Deals
$5,209
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
19-Dec-18 Comstock Shelby Shale LLC 6,023 net acres in Haynesville $21 n.a. n.a. $3,404
19-Nov-18 Aethon III QEP Resources Inc 49,700 net acres in Haynesville $735 $0.77 $2,475 $14,789
05-Sep-18 Viking Energy Group Multiple Sellers Texas and Louisiana assets $100 n.a. n.a. n.a.
05-Sep-18 Equinor Texegy LLC 60,000 net acres in Austin Chalk $75 n.a. n.a. $1,250
06-Aug-18 Mission Creek Resources Bonanza Creek Energy Inc 11,132 net acres in the Cotton Valley $117 $1.69 $6,500 $10,510
Mean $210 $1.23 $4,487 $7,488
Median $100 $1.23 $4,487 $6,957
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Ark-La-Tex Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
![Page 10: Prompt Oil Price ($/bbl) $62.87 $1.17 1.9% Prompt Gas Price … · 2019-05-20 · 3 May 20, 2019 5/16/2019 Appalachia 2 Ark-La-Tex 8 Bakken 4 Eagle Ford 4 Mid-Con 8 Other 13 Permian](https://reader031.vdocument.in/reader031/viewer/2022011814/5e50ef57cd16644828707875/html5/thumbnails/10.jpg)
10
May 20, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 80 -- 80 Oil Differential $9.75 $1.06 $8.69
Permitting Activity 40 (35) 75 Gas Differential ($0.45) ($0.03) ($0.42)
0%
5%
10%
15%
20%
--
50
100
150
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$3.00
-$2.00
-$1.00
$0.00
$1.00
$2.00
$3.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$15.00
-$10.00
-$5.00
$0.00
$5.00
$10.00
$15.00
$ /
mm
btu
$ /
bb
l
Brent Dominion
328 299 269
493
373 370305
258
397
278
393434
177
May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19
H V+D
12,000
17,000
22,000
27,000
32,000
50
70
90
110
130
150
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
mm
cf/
d
mb
bl/
d
Oil Gas
122
30,746
--$5,000
$10,000$15,000$20,000$25,000$30,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1 1 0
$ /
mcfe
/d
# Deals
$4,758
--$2,000$4,000$6,000$8,000
$10,000$12,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0 0 0
$ /
acre
# Deals
$2,083
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
27-Mar-19 Diversified Gas & Oil HG Energy II LLC Huckleberry assets in Appalachia $400 n.a. $3,227 n.a.
15-Oct-18 Undisclosed Buyer Range Resources Corp Overriding royalty interests in Appalachia $300 n.a. $17,649 nmf
27-Aug-18 PennEnergy Resources Rex Energy Corp 141,026 net acres in PA and OH $601 $0.58 $2,781 $4,258
26-Jul-18 Encino Acquisition Partners Chesapeake 938,000 net acres in the Utica $1,900 $0.66 $2,960 $2,026
29-Jun-18 Ascent Resources LLC Utica Minerals; Undisclosed 35,400 acres in the Utica $700 n.a. $15,217 $19,774
Mean $780 $0.62 $8,367 $8,686
Median $601 $0.62 $3,227 $4,258
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Appalachia Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
![Page 11: Prompt Oil Price ($/bbl) $62.87 $1.17 1.9% Prompt Gas Price … · 2019-05-20 · 3 May 20, 2019 5/16/2019 Appalachia 2 Ark-La-Tex 8 Bakken 4 Eagle Ford 4 Mid-Con 8 Other 13 Permian](https://reader031.vdocument.in/reader031/viewer/2022011814/5e50ef57cd16644828707875/html5/thumbnails/11.jpg)
11
May 20, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 56 -- 56 Oil Differential ($1.25) $0.25 ($1.50)
Permitting Activity 20 (8) 28 Gas Differential ($0.71) ($0.02) ($0.68)
0%
5%
10%
15%
20%
--
50
100
150
200
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
138 126
171 164
127
201
12896
133114
144 138
68
May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19
H V+D
1,100
1,300
1,500
1,700
1,900
2,100
2,300
2,500
2,700
2,900
800
900
1,000
1,100
1,200
1,300
1,400
1,500
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
mm
cf/
d
mb
bl/
d
Oil Gas
1,428
2,720
--
$20,000
$40,000
$60,000
$80,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 1 1 4 0 2 3 3 0 1 3 3 0 6 3 0 0 1
$ /
bo
e/d
# Deals
$43,737
--
$5,000
$10,000
$15,000
$20,000
$25,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 1 2 0 0 2 3 1 0 3 2 0 5 2 0 0 1
$ /
acre
# Deals
$2,702
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
22-Apr-19 Northern Oil and Gas Flywheel Energy LLC 18,000 net acres in Williston Basin $310 n.a. $47,014 $17,238
31-Jul-18 Northern Oil and Gas W Energy Partners 10,600 net acres in Williston Basin $288 n.a. $42,708 $27,196
18-Jul-18 Northern Oil and Gas Pivotal Petroleum Partners LP Producing assets in Williston Basin $152 n.a. $37,032 n.a.
12-Jul-18 PetroShale Inc Slawson Exploration Co 1,981 net acres in Williston Basin $55 $6.04 $100,000 $27,764
06-Jul-18 Energy Resources 12 LP Bruin E&P Partners LLC 2.8% non-operated WI in Bakken assets $83 n.a. n.a. n.a.
Mean $178 $6.04 $56,688 $24,066
Median $152 $6.04 $44,861 $27,196
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Bakken Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
![Page 12: Prompt Oil Price ($/bbl) $62.87 $1.17 1.9% Prompt Gas Price … · 2019-05-20 · 3 May 20, 2019 5/16/2019 Appalachia 2 Ark-La-Tex 8 Bakken 4 Eagle Ford 4 Mid-Con 8 Other 13 Permian](https://reader031.vdocument.in/reader031/viewer/2022011814/5e50ef57cd16644828707875/html5/thumbnails/12.jpg)
12
May 20, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 75 3 72 Oil Differential ($1.25) $0.25 ($1.50)
Permitting Activity 41 24 17 Gas Differential ($0.71) ($0.02) ($0.68)
0%
5%
10%
15%
20%
--
50
100
150
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
456551
666
523 510
681824 807
347 394475
320
80
May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19
H V+D
11,500
12,000
12,500
13,000
13,500
14,000
400
500
600
700
800
900
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
mm
cf/
d
mb
bl/
d
Oil Gas
872
13,077
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 3 3 0 1 1 0 1 0 1 5 2 0 2 1 0 0
$ /
acre
# Deals
$4,655
--$20,000$40,000$60,000$80,000
$100,000$120,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
2 0 4 4 1 6 2 0 1 6 3 9 3 1 3 1 1 0
$ /
bo
e/d
# Deals
$37,548
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
14-Feb-19 Undisclosed Buyer Harvest Oil & Gas Corp San Juan Basin assets $43 $1.57 $10,835 n.a.
31-Jan-19 Undisclosed Buyer Extraction Oil & Gas 5,000 net acres in Powder River $22 n.a. n.a. $4,480
01-Oct-18 DJR Energy LLC Encana 182,000 net acres in San Juan Basin $480 n.a. $88,889 $2,637
28-Aug-18 Vermilion Energy Inc Massif Oil & Gas LLC 55,000 acres in Powder River Basin $150 n.a. $56,604 $2,727
28-Aug-18 Rebellion Energy II LLC Liberty Resources II LLC 19,000 net acres in Powder River Basin $100 n.a. n.a. $5,263
Mean $159 $1.57 $52,109 $3,777
Median $100 $1.57 $56,604 $3,604
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS
Rockies (excl. Bakken) Snapshot
RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
![Page 13: Prompt Oil Price ($/bbl) $62.87 $1.17 1.9% Prompt Gas Price … · 2019-05-20 · 3 May 20, 2019 5/16/2019 Appalachia 2 Ark-La-Tex 8 Bakken 4 Eagle Ford 4 Mid-Con 8 Other 13 Permian](https://reader031.vdocument.in/reader031/viewer/2022011814/5e50ef57cd16644828707875/html5/thumbnails/13.jpg)
13
May 20, 2019
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 107 (2) 109 Oil Differential -- -- --
Permitting Activity 52 (2) 54 Gas Differential ($0.71) ($0.05) ($0.66)
0%
5%
10%
15%
20%
--
100
200
300
400
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
H V+D % of Total Rigs
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
$ /
mm
btu
$ /
bb
l
Cushing Panhandle
355
439381
429391
338 335306
340293
357302
126
May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19
H V+D
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
400
450
500
550
600
650
700
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
mm
cf/
d
mb
bl/
d
Oil Gas
575
7,920
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
29-Apr-19 Undisclosed Buyer Riviera Resources Inc Non-op Hugoton Basin $31 n.a. n.a. n.a.
19-Feb-19 Mid-Con Energy Partners Scout Energy Partners Caddo, Grady, and Osage cos., OK $28 n.a. $20,960 n.a.
31-Dec-18 Unit Corp Undisclosed Seller ~8,700 net acres in Western OK $30 $11.38 n.a. $3,402
11-Dec-18 Undisclosed Buyer Riviera Resources Inc 37,000 net acres in the Arkoma Basin $68 n.a. $17,000 $1,838
02-Nov-18 SandRidge Energy Undisclosed Seller Mississippi Lime and NW STACK assets $25 n.a. $6,649 n.a.
Mean $36 $11.38 $14,870 $2,620
Median $30 $11.38 $17,000 $2,620
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$50,000
$100,000
$150,000
$200,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 4 1 3 1 6 3 1 4 2 4 5 2 2 5 4 1 0
$ /
bo
e/d
# Deals
$44,453
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 1 0 0
$ /
acre
# Deals
$5,760
Mid-Continent Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
![Page 14: Prompt Oil Price ($/bbl) $62.87 $1.17 1.9% Prompt Gas Price … · 2019-05-20 · 3 May 20, 2019 5/16/2019 Appalachia 2 Ark-La-Tex 8 Bakken 4 Eagle Ford 4 Mid-Con 8 Other 13 Permian](https://reader031.vdocument.in/reader031/viewer/2022011814/5e50ef57cd16644828707875/html5/thumbnails/14.jpg)
14
May 20, 2019
Ann'd
Date Buyer Seller Asset Description Value(2)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(3)
13-May-19 Equinor Shell 22.45% WI in Caesar-Tonga Field $965 n.a. $60,313 n.a.
23-Apr-19 Murphy LLOG Bluewater LLC Mississippi Canyon & Green Canyon $1,375 $20.83 $36,184 n.a.
16-Jan-19 Talos Energy Inc Samson Energy Co LLC Non-op Gulf of Mexico working interest $30 $13.45 $17,939 n.a.
10-Oct-18 Murphy Petrobras Gulf of Mexico joint venture $900 $15.00 $21,951 n.a.
04-Sep-18 Talos Energy Inc Whistler Energy II LLC Leases in Green Canyon federal waters $91 n.a. $60,667 n.a.
Mean $672 $16.43 $39,411 n.a.
Median $900 $15.00 $36,184 n.a.
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 22 2 20 Oil Differential $8.75 $0.90 $7.85
Permitting Activity 2 (7) 9 Gas Differential -- -- --
0%
5%
10%
15%
20%
--
10
20
30
40
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
Deep Water Shelf % of Total Rigs
--
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
--
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
--
$15,000
$30,000
$45,000
$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 1 1 0 0 2 0 0 0 0 1 2 2 2 1 1 2
$ /
bo
e/d
# Deals
$34,283
--
$10
$20
$30
$40
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
0 0 1 0 0 0 2 1 0 0 0 1 2 1 0 1 1 1
$ /
bo
e
# Deals
$18.49
3329 29
32 3339
32 30 32 33
26 29
12
May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-192,000
2,500
3,000
3,500
4,000
4,500
1,000
1,200
1,400
1,600
1,800
2,000
2,200
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
mm
cf/
d
mb
bl/
d
Oil Gas
1,921
2,915
Gulf of Mexico Snapshot
PERMITTING ACTIVITY BY MONTH(1)
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Permits include directional and unidentified drilling permits. 2. Represents total enterprise value. Excludes transactions with deal value <$20 million.
3. $/acre multiple not adjusted for value associated with production.
4. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.
GROSS PRODUCTION
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(4) TRANSACTION PROVED RESERVE MULTIPLES(4)
![Page 15: Prompt Oil Price ($/bbl) $62.87 $1.17 1.9% Prompt Gas Price … · 2019-05-20 · 3 May 20, 2019 5/16/2019 Appalachia 2 Ark-La-Tex 8 Bakken 4 Eagle Ford 4 Mid-Con 8 Other 13 Permian](https://reader031.vdocument.in/reader031/viewer/2022011814/5e50ef57cd16644828707875/html5/thumbnails/15.jpg)
15
May 20, 2019
Upcoming Industry Events
Note: Event features a speaker from BMO Houston’s A&D Group.
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Click event to open
July 2019 Jul 10 Houston Producers Forum Luncheon
Jul 19 ADAM-Houston Monthly Luncheon
April 2019 Apr 22-23 Mineral & Royalty Conference
June 2019 Jun 5-6 Midstream Texas Conference & Exhibition
Jun 18 Houston Producers Forum Luncheon
Jun 18-20 DUG East (Pittsburgh)
Jun 19-20 IADC World Drilling Conference & Exhibition
Jun 21 ADAM-Houston Monthly Luncheon
Jun 24-26 IPAA Midyear Meeting
Jun 25 176th OPEC Meeting
August 2019 Aug 16 ADAM-Houston Monthly Luncheon
Aug 20 IPAA Oil & Gas Overview Course
Aug 20 Houston Producers Forum Luncheon
Aug 21-22 Summer NAPE
September 2019 Sep 17 Houston Producers Forum Luncheon
Sep 20 ADAM-Houston Monthly Luncheon
Sep 24-26 DUG Eagle Ford (San Antonio)
Sep 30-Oct 2 SPE Annual Technical Conference and Exhibition
January 2019
October 2019 Oct 9 IPAA Leaders in Industry Luncheon
Oct 15 Houston Producers Forum Luncheon
Oct 18 ADAM-Houston Monthly Luncheon
Oct 22-23 A&D Strategies and Opportunities Conference
2020
Apr 20-22 OGIS New York
Jul 22-24 SPE Unconventional Resources Technology
Aug 11-14 Enercom Oil & Gas Conference
November 2019 Nov 4-6 Executive Oil Conference & Exhibition
Nov 15 ADAM-Houston Monthly Luncheon
Nov 19 IPAA Oil & Gas for Newcomers
Nov 19 Houston Producers Forum Luncheon
Nov 19-21 DUG Midcontinent (Oklahoma City)
December 2019 Dec 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
May 19-22 AAPG Annual Convention & Exhibition 2019
May 21 Mergermarket Energy Forum
March 2019 Mar 26-28 International Petroleum Technology Conference
January 2020 Jan 23 IPAA Private Capital Conference
Jan 17 ADAM-Houston Monthly Luncheon
Jan 21 Houston Producers Forum Luncheon
February 2020 Feb 19 Houston Producers Forum Luncheon
Feb 25-26 DUG Haynesville (Shreveport)
March 2020 Mar 3-5 IADC/SPE International Drilling Conference
Mar 9-13 Houston CERA Week
Mar 17 Houston Producers Forum Luncheon
Mar 20 ADAM-Houston Monthly Luncheon
![Page 16: Prompt Oil Price ($/bbl) $62.87 $1.17 1.9% Prompt Gas Price … · 2019-05-20 · 3 May 20, 2019 5/16/2019 Appalachia 2 Ark-La-Tex 8 Bakken 4 Eagle Ford 4 Mid-Con 8 Other 13 Permian](https://reader031.vdocument.in/reader031/viewer/2022011814/5e50ef57cd16644828707875/html5/thumbnails/16.jpg)
16
May 20, 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.
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 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 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
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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
Howard Barnwell
MD & Transactions Mgr.
713-546-9767
Rob Priske
MD & Transactions Mgr.
713-546-9727
Dan Schockling
Director & Head of Commercial
713-518-1223
Michael Hackett
Vice President
Marian Yu
Associate
Aaron Moeller
Associate
BMO uses updated basin outlines, and the resulting rig counts, to more accurately represent current basin knowledge. The data below reflect these changes
and is different than those shown by Baker Hughes. The totals are the same.
454
(3)
56
--
20
3
60
(3)30
1
22
2
10
(1)80
(1)
60
(1)
89
1
22
1
4
--
20
119
1
[TBU]
This
Week Change
Last
Week
Last
Year
Total Rigs 987 (1) 988 1,046
Oil 802 (3) 805 844
Gas 185 2 183 200
Miscellaneous -- -- -- 2
Directional 73 2 71 66
Horizontal 866 (6) 872 919
Vertical 48 3 45 61
Basin
Permian 454 (3) 457 467
SCOOP/STACK/Merge 80 (1) 81 109
Granite Wash 10 (1) 11 24
Eagle Ford 89 1 88 94
Haynesville 60 (1) 61 66
Marcellus 60 (3) 63 55
Utica 20 3 17 24
Williston 56 -- 56 56
DJ-Niobrara 30 1 29 24
Green River 19 1 18 17
Powder River 20 1 19 14
Piceance 4 -- 4 7
Gulf Coast Onshore 22 1 21 21
GOM 22 2 20 18
Alaska 7 (2) 9 7
Other 34 -- 34 43
Mid-Con 17 -- 17 22
Rockies 2 -- 2 3
Western 15 -- 15 17
Eastern -- -- -- 1
Chelsea Neville
Transactions Coordinator