1

August 10, 2020

IndicatorCurrent

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $41.95 $2.03 5.1%

Prompt Gas Price ($/mmbtu) $2.17 $0.34 18.4%

Wkly Trans. Value ($mm) $356 $330 nmf

Wkly Trans. Count 4 1 33%

US Rig Count 247 (4) (1.6%)

US Oil Prod'n (mmbbl/d) 11.1 -- --

US Gas Prod'n (bcf/d)(1) 106.5 (5.9) (5.3%)

US Oil Storage (mmbbl) 518.6 (7.4) (1.4%)

US Gas Storage (tcf) 3.3 0.0 1.0%

$2.2

$8.0

$9.9 $10.7

$4.9

$15.8

$21.2 $21.9 $24.1

$17.0

$9.1 $9.2

$20.8

$8.2

$31.6

$19.5

$1.7

$17.0

$9.0

$0.9 $2.5

$13.5

--

50

100

150

200

250

300

350

400

450

500

--

$5

$10

$15

$20

$25

$30

$35

$40

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 95% 74% 78% 67% 45% 40%

Nu

mb

er

of

Tra

nsacti

on

s

Tra

nsacti

on

Valu

e (

$b

n)

Asset Corporate Number of Transactions

% Oil% Oil% Oil

$64.3

Range Resources Corporation announced the sale of its

Terryville assets to Castleton Resources LLC for up to $335

million (see page 4 for more detail) BMO served as

exclusive financial advisor to Range on this transaction

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

Monitor went live last week – read here

Debt

Markets

22 issuers priced 28 tranches for approximately $19.9 billion in proceeds last week

U.S. high yield funds reported an inflow of $4.4 billion

ETFs reported an inflow of $2.83 billion, while mutual funds reported an inflow of $2.55 million

High yield index yield was 5.35%; high yield energy index yield was 8.86%

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 May 2020.

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 3.4% vs. SPX(2) 2.4%

The U.S. equity indexes mostly finished up last week. Consumer discretionary, consumer staples,

financials, healthcare, industrials, materials, and tech finished up. Real estate finished down

Equity

Markets

Oil ended last week up. Crude futures rallied earlier last week following the massive explosion in Beirut,

Lebanon. According to the EIA, U.S. crude inventories decreased again, falling by 7.4 million barrels. The

near-term contract closed up $2.03, or 5.1%, at $41.95

Gas ended last week up. Natural gas futures continued to be quite volatile, rising over 15% last Monday.

Hotter summer weather forecasts and increased LNG exports have led to expectation of higher demand.

The near-term contract closed up $0.34, or 18.4%, at $2.17

Commodities

Week in Review

Let’s follow these guidelines when sorting articles:

• First priority: Domestic A&D, ranked by size

• Next: Domestic M&A

• Then: US companies doing international deals (like

Noble’s Tamar)

• Then: Others (Cabot’s Lackawanna)

• Then: Prices, rig count, completions, etc.

To paste the arrows with colors,

• FactSet

• Settings

• Presentation Linking and Formatting

• Import

• Colors

• Change Color Font Covering the Week of July 31 to August 6, 2020

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

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

BMO Capital Markets team!

BMO is marketing PayRock Energy’s divestiture of South

Texas Eagle Ford assets (see page [x])

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

Monitor went live last week – read more here

One E&P deal priced last week

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

Notes due 2027

One E&P issuer priced last week

Noble Energy priced $500 million of 3.25% senior notes

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

2049. BMO Capital Markets acted as a Joint

Bookrunner on this transaction

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

Better international/demand data and promise for strict quota adherence by Russia

Demand signals continue to trend positively, with China’s total oil demand is nearly back to the pre-COVID levels of 13.4MM. U.S. real-time

mobility data indicated that driving activity has also recovered much of the April losses. Markets were also affected by greater than expected

Lower 48 shut-ins announced during earnings season. Jet-fuel market remains extremely weak thought travel started to tick higher off historic

lows.

Fighting in Libya intensified

The EIA announced a smaller-than-expected natural gas storage build. EQT confirmed that they had shut-in a large percentage of production

due to pricing, with management noting that sales were being deferred to take advantage of an expected significant improvement in price in the

coming months. LNG cancellations continued. Temperatures across the southern states expected to increase.

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August 10, 2020

Ann'd

Date Buyer Seller Area Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

03-Aug-20 Castleton Resources Range Resources Ark-La-Tex North Louisiana Terryville assets $335 $2.32 $12,563 $3,190

28-Jul-20 Undisclosed Buyer Riviera Operating LLC Ark-La-Tex 8,100 net acres in North Louisiana $27 $3.30 $9,925 $3,272

10-Jul-20 Presidio Petroleum Templar Energy LLC Mid-Continent 273,400 net acres in Anadarko Basin $91 $1.78 $5,056 $333

08-Jul-20 Undisclosed Buyer Harvest Oil & Gas Corp Marcellus/Utica 713,401 net acres in Appalachia $21 $1.23 $4,201 $29

26-Jun-20 MP III Echo LLC Echo Energy Partners Mid-Continent 19,989 net acres in Anadarko Basin $33 n.a. $4,198 $1,649

22-Jun-20 Talos Energy Castex Energy Gulf of Mexico Gulf of Mexico assets $65 $3.69 $10,156 n.a.

15-Jun-20 Sixth Street Partners Antero Resources Marcellus/Utica Overriding royalty interests in Appalachia $402 n.a. n.a. nmf

04-Jun-20 Undisclosed Buyer Black Stone Minerals Permian Midland Basin mineral and royalty assets $55 n.a. n.a. nmf

04-Jun-20 Pegasus Resources LLC Black Stone Minerals Permian Permian Basin mineral and royalty assets $100 n.a. n.a. nmf

11-May-20 Diversified Gas & Oil EQT Marcellus/Utica Appalachia Basin asset in PA and WV $125 $2.60 $13,889 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

Permian20%

Rockies (ex. Bakken)

12%

Bakken3%

Appalachia8%

Mid-Con10%

Eagle Ford5%

Ark-La-Tex7%

Gulf of Mexico8%

Other27%

LTM By Region

y = 21.6e-0.059x

R² = 0.2514

--

$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 / P

Sales Value /

Proved Reserves

(15:1)

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

8x $13.44 $0.90

10x $11.94 $0.80

15x $8.87 $0.59

20x $6.60 $0.44

Oil43%

Gas57%

LTM By Commodity

Public Company

45%

PE / PE-Backed

11% Private14%

Other30%

LTM By Buyer Type

$18.3 $30.8 $32.5

$10.6 $3.0

$7.6

$14.9 $12.6

$63.0

$13.9

$25.9

$45.8 $45.2

$73.5

$16.9

2016 2017 2018 2019 2020

674 1,046 675 136 77

Asset Corporate

Deal Count

The 10 Most Recent Asset Transactions Over $20 Million

A&D Valuation Trends(3)

Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, PLS

1. Represents total enterprise value. 2. Calculated as percentage of total LTM transaction count (number of transactions, not dollar value).

3. 68 transactions from January 2015 to 2019 with transaction value >$20mm. Adjusted for changes in price outlooks. Recalculated boe reserves are on a 15:1

(gas:oil) basis. Acreage transactions excluded by using deals with PDP of >= 40% of total proved.

4. Year-to-date data is through this week’s date for each respective year.

(2) (2) (2)

Confirm number of transactions weekly --->

Deal Activity – YTD ($bn)(4)

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August 10, 2020

7/30/2020

Appalachia 5

Ark-La-Tex 1

Bakken --

Eagle Ford 4

Mid-Con --

Other 2

Permian --

Rockies 1

13

Select Significant Deals on the Market

Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes

no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.

Source of Select Significant Deals on the Market: BMO Transaction Database

Source of Headlines: Press releases

Industry Headlines

(Click headline to link to the full article)

M&A&D Headlines

Appalachia

5 Deals

Mid-Con

0 Deals

Eagle Ford

4 Deals

Permian

0 Deals

Other

2 Deals

Rockies

1 Deal

Bakken

0 Deals

Ark-La-Tex

1 Deals

BMO Deals (Status)

Siltstone Appalachia (In Market) – See page 6

Oil Jumps as Lebanon Explosion Sparks Fears Over

Instability

U.S. Crude Oil Prices Surge on Continued Inventory

Draws

U.S. Natgas Rise to Highest Since Dec on Rising LNG

Exports, Hot Weather

BP CEO Says Dividend Cut ‘Deeply Rooted in

Strategy’ as Energy Giant Ramps Up Renewable

Investment

Range Announces Second Quarter 2020 Financial

Results & North Louisiana Asset Sale

Castleton Resources LLC Announces Agreement to

Acquire the Terryville Upstream Assets in Northern

Louisiana from Range Resources

Talos Energy Announces Full Year 2019 Operating

and Financial Guidance (includes A&D

announcement)

+ the EQT mineral/JV Deal

+ Antero ORRI deal

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August 10, 2020

Purchase Price (US$ mm)

Total Consideration $335

Metrics

Net Acreage 105,000

Net Production (mmcfe/d) 160

Proved Reserves (bcfe) 886

Multiples

TEV / Net Acre ($/acre) $3,190

TEV / Production ($/mcfe/d) $2,094

TEV / Proved Reserves ($/mcfe) $0.38

Purchase Price (US$ mm)

Total Consideration $525

Metrics

Net Undeveloped Acres(1) 224,000

2020E Net Production (boe/d)(2) 16,380

PDP Reserves (mmboe)(2) 24

2P Reserves (mmboe)(2) 101

Cash Flow ($mm) $109

Multiples

TEV / Net Undeveloped Acres ($/acre) $2,344

TEV / Adj. Net Undeveloped Acres ($/acre)(3) $540

TEV / 2020E Net Production ($/boe/d) $32,051

TEV / PDP Reserves ($/boe) $21.73

TEV / 2P Reserves ($/boe) $5.21

TEV / Cash Flow $4.8

Increases Parsley’s corporate flexibility and

operational scale with the integration of Jagged Peak’s

$90 million investment in water infrastructure

Facilitates margin expansion and enhances free cash

flow by producing G&A savings of ~$25 million in the

first year and $40-50 million of annual savings

thereafter, translating to a NPV of $250-300 million

On August 3, 2020, Range Resources Corporation

(“Range”) announced the sale of its Terryville assets

to Castleton Resources LLC (“Castleton”) for up to

$335 million

Range will receive $245 million in cash at closing and

up to $90 million in contingent payments based on

future commodity prices

Tokyo Gas America Ltd. will increase its ownership in

Castleton from 46% to 70% when the acquisition

closes

Transaction is expected to close in August 2020

BMO served as exclusive financial advisor to

Range on this transaction

TRANSACTION SUMMARY

Source: Company disclosure, Enverus

ASSET OVERVIEW

~105,000 net acres in the North Louisiana core of the

liquids rich, Terryville Cotton Valley play

Current net production of ~160 mmcfe/d

200+ Lower Cotton Valley horizontal wells

Nearly 100% operated

866 bcfe proved reserves as of year end 2019

BMO Deal of the Week:

Range Resources Announces Sale to Castleton Resources for up to $335 Million

ASSET MAP ACQUISITION METRICS

OBSERVATIONS

HighPeak Assets

Adjusted based on production multiple of

$2,000/mcfe/d.

TRANSACTION OBSERVATIONS

This divestiture marks a complete exit from the basin

and transitions Range into an Appalachian Basin pure

play

Range intends to use $28.5 million of the sale

proceeds to reduce a portion of its retained midstream

commitments

Noble Acreage

Range Acreage

5

August 10, 2020

--

200

400

600

800

1,000

1,200

40%

50%

60%

70%

80%

90%

100%

Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20

To

tal

Rig

Co

un

t

% o

f T

ota

l R

igs

Permian Appalachia Rockies Eagle Ford Midcontinent

Haynesville Williston GOM Other Total Rig Count

U.S. rig count has fallen sharply year over year (~74%) as commodity prices have declined

Rockies and Mid-Con have seen the largest decline, both down 93% from 2019’s peak rig count

Gas-weighted basins like Appalachia and Haynesville have been more resilient, down 63% and 54%, respectively, from

2019’s peak rig count

Market Insight: US Rig Activity Over Time

Source: Baker Hughes

Note: Rig count as of 7-Aug-20.

BASIN PERCENTAGE OF TOTAL U.S. RIGS SINCE 2018

Cash scarcity and absolute valuation issues lead to fewer all-cash transactions in periods of market

dislocation

63%

54%

75%

88%

82%

93% 93%

54%

--

50

100

150

200

Appalachia Haynesville Permian Eagle Ford Bakken Mid-Con Rockies GOM

# o

f R

igs

2019 Peak Rig Count Current Rig Count % Reduction in Rigs

ALL-CASH DEALS(1)

U.S. RIG COUNT REDUCTION SINCE 2019 PEAK

Gas Weighted Oil Weighted

63%

54%

74%

87%

84%

93% 93%

300

350

400

450

500

Appalachia Haynesville Permian Eagle Ford Bakken Mid-Con Rockies

2019 Peak Rig Count Current Rig Count % Decline

6

August 10, 2020

Historical Prices as of 06-Aug-20 Close ($/gal)

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

Ethane $0.23 $0.21 $0.13 $0.15

Propane $0.50 $0.48 $0.38 $0.41

Butane $0.49 $0.47 $0.57 $0.43

Iso-butane $0.63 $0.60 $0.64 $0.66

Pentane+ $0.82 $0.72 $1.07 $1.01

25%

35%

45%

55%

65%

Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20

% o

f W

TI

NGL as % of WTI

$1

$2

$3

$4

$5

Aug-19 Feb-20 Aug-20 Feb-21 Aug-21

($/m

mb

tu)

NYMEX Gas Futures as of 06-Aug-20 Close ($/mmbtu)

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

12 Mo. Strip $2.71 $2.56 $2.15 $2.32

2020 $2.53 $2.28 $2.08 $2.40

2021 $2.78 $2.70 $2.33 $2.50

2022 $2.55 $2.53 $2.39 $2.57

2023 $2.47 $2.48 $2.44 $2.66

2024 $2.53 $2.51 $2.45 $2.73

NYMEX WTI Futures as of 06-Aug-20 Close ($/bbl) NYMEX Gas Futures as of 06-Aug-20 Close ($/mmbtu)

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

12 Mo. Strip $43.47 $41.43 $51.46 $52.78

2020 $42.40 $40.42 $51.49 $52.31

2021 $44.29 $42.25 $51.03 $51.05

2022 $45.54 $43.70 $50.87 $51.05

2023 $46.43 $44.78 $51.09 $51.77

2024 $47.16 $45.73 $51.57 $52.57

$10

$20

$30

$40

$50

$60

$70

Aug-19 Feb-20 Aug-20 Feb-21 Aug-21

($/b

bl)

NYMEX Gas Futures as of 23-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.42$2.41$2.16$2.452020$2.14$2.10$2.12$2.522021$2.61$2.61$2.38$2.562022$2.47$2.46$2.41$2.602023$2.45$2.42$2.46$2.672024$2.48$2.43$2.50$2.75 NYMEX Gas Futures as of 23-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.42$2.41$2.16$2.452020$2.14$2.10$2.12$2.522021$2.61$2.61$2.38$2.562022$2.47$2.46$2.41$2.602023$2.45$2.42$2.46$2.672024$2.48$2.43$2.50$2.75

NYMEX WTI Futures as of 23-Jul-20 Close ($/bbl)NYMEX Gas Futures as of 23-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$41.86$41.57$54.35$56.062020$41.29$41.08$54.67$55.472021$42.37$42.20$51.79$53.402022$43.54$43.26$50.35$52.542023$44.63$44.32$50.07$52.552024$45.61$45.38$50.35$53.00 NYMEX WTI Futures as of 23-Jul-20 Close ($/bbl)NYMEX Gas Futures as of 23-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$41.86$41.57$54.35$56.062020$41.29$41.08$54.67$55.472021$42.37$42.20$51.79$53.402022$43.54$43.26$50.35$52.542023$44.63$44.32$50.07$52.552024$45.61$45.38$50.35$53.00

Historical Prices as of 23-Jul-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.22$0.22$0.14$0.16Propane$0.52$0.48$0.40$0.50Butane$0.53$0.49$0.80$0.47Iso-butane$0.59$0.58$0.91$0.67Pentane+$0.70$0.64$1.17$1.04 Historical Prices as of 23-Jul-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.22$0.22$0.14$0.16Propane$0.52$0.48$0.40$0.50Butane$0.53$0.49$0.80$0.47Iso-butane$0.59$0.58$0.91$0.67Pentane+$0.70$0.64$1.17$1.04

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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August 10, 2020

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

$42.06

$0.11

$45.09

$3.14

$1.69

($0.48)

$2.15

($0.02)

$38.50

($3.45)

$1.92

($0.25)

$41.95

($0.06)

$2.03

($0.14)

$1.92

($0.25)

$1.79

($0.38)

$43.06

$1.11

$1.73

($0.44)

$1.70

($0.47)

NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 6-AUG-20

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 6-AUG-20

$1.36

($0.81)

$2.17

$41.40

($0.55)

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

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$2.74

$0.57

$1.77

($0.40)

$1.32

($0.85)

8

August 10, 2020

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

Rig Count 122 (2) 124 Oil Differential $0.05 -- $0.05

Permitting Activity 37 (23) 60 Gas Differential ($0.74) ($0.22) ($0.53)

0%

10%

20%

30%

40%

50%

60%

--

100

200

300

400

500

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

H V+D % of Total Rigs

-$4.80

-$3.20

-$1.60

$0.00

$1.60

2015 2016 2017 2018 2019 2020

-$18.00

-$12.00

-$6.00

$0.00

$6.00

$ /

mm

btu

$ /

bb

l

Midland Waha

753596

851744803

967843

706

544

296

493415

28

Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20

H V+D

4,000

8,000

12,000

16,000

20,000

1,000

2,000

3,000

4,000

5,000

Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19

mm

cf/

d

mb

bl/

d

Oil Gas4,802

16,919

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

04-Jun-20 Undisclosed Buyer Black Stone Minerals Midland Basin mineral and royalty assets $55 n.a. n.a. nmf

04-Jun-20 Pegasus Resources LLC Black Stone Minerals Multi-Permian mineral and royalty assets $100 n.a. n.a. nmf

14-Apr-20 Undisclosed Buyer Ring Energy 19,998 net acres in Delaware Basin $32 $3.15 $34,615 $1,575

31-Mar-20 Viper Energy Partners Undisclosed Sellers 410 net royalty acres in Permian Basin $63 n.a. n.a. nmf

14-Feb-20 Undisclosed Buyer Lilis Energy Inc 1,185 net acres in Delaware Basin $25 n.a. n.a. $21,013

Mean $55 $3.15 $34,615 $11,294

Median $55 $3.15 $34,615 $11,294

Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services

Purple = BMO provided both transaction advisory services and acquisition financing or related services

--

$20,000

$40,000

$60,000

$80,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

1 2 8 8 6 6 121315 7 2 2 7 2 5 4 1 2 0 3 0 2

$ /

acre

# Deals

$23,957

--

$50,000

$100,000

$150,000

$200,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

1 2 6 9 5 7 11 9 9 6 1 0 7 2 5 4 1 2 4 3 0 1

$ /

bo

e/d

# Deals

$86,402

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-18. 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, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.

GROSS PRODUCTION (THROUGH 31-MAR-20)

[TBU]

[TBU]

[TBU] [TBU]

[TBU] [TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

9

August 10, 2020

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

Rig Count 12 (1) 13 Oil Differential $0.80 ($0.15) $0.95

Permitting Activity 17 13 4 Gas Differential ($0.02) ($0.01) ($0.01)

0%

5%

10%

15%

20%

--

100

200

300

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

H V+D % of Total Rigs

-$0.30

-$0.20

-$0.10

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

2015 2016 2017 2018 2019 2020

-$6.00

-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

MEH HSC

201 192221 204 204

302

170 180

7843 28 27 12

Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20

H V+D

6,000

6,500

7,000

7,500

8,000

1,000

1,200

1,400

1,600

1,800

Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19

mm

cf/

d

mb

bl/

d

Oil Gas

1,397

7,371

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

21-Feb-20 Magnolia Oil & Gas Corp Undisclosed Seller Non-op Eagle Ford assets $71 n.a. $39,176 n.a.

12-Nov-19 Kimbell Royalty Partners Buckhorn Resources 400 net royalty acres in Eagle Ford $32 n.a. $117,752 nmf

07-Nov-19 Repsol Equinor 100% ownership in former Eagle Ford JV $325 n.a. $9,559 $7,476

06-Nov-19 Marathon Rocky Creek & Delago 18,000 net acres in Eagle Ford $185 n.a. $26,429 $10,278

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

Mean $129 n.a. $44,197 $7,530

Median $71 n.a. $28,069 $7,476

Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services

Purple = BMO provided both transaction advisory services and acquisition financing or related services

--$10,000$20,000$30,000$40,000$50,000$60,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

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

$ /

acre

# Deals

$8,045

--

$50,000

$100,000

$150,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

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

$ /

bo

e/d

# Deals

$64,626

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-18. 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, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

[TBU]

[TBU]

[TBU]

GROSS PRODUCTION (THROUGH 31-MAR-20)

[TBU]

[TBU]

[TBU]

10

August 10, 2020

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

03-Aug-20 Castleton Resources Range Resources North Louisiana Terryville assets $335 $0.39 $2,094 $3,190

28-Jul-20 Undisclosed Buyer Riviera Operating LLC 8,100 net acres in North Louisiana $27 $0.55 $1,654 $3,272

20-Dec-19 Undisclosed Buyer Riviera Operating LLC 75,873 net acres in East Texas $34 $0.17 $1,213 $448

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

19-Dec-18 Comstock Shelby Shale LLC 6,023 net acres in Haynesville $21 n.a. n.a. $3,404

Mean $205 $0.37 $1,967 $3,890

Median $34 $0.39 $1,874 $3,272

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

0%

5%

10%

15%

20%

--

20

40

60

80

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

H V+D % of Total Rigs

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

Rig Count 32 -- 32 Oil Differential $1.65 $0.10 $1.55

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

-$10.00

-$5.00

$0.00

$5.00

$10.00

2015 2016 2017 2018 2019 2020

-$10.00

-$5.00

$0.00

$5.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

197219

92

167

8383 89

94

44 35 43 344

Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20

H V+D

--

$5,000

$10,000

$15,000

$20,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

3Q

20

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

$ /

acre

# Deals

$2,746

--$2,000$4,000$6,000$8,000

$10,000$12,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

3Q

20

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

$ /

mcfe

/d

# Deals

$3,597

5,000

6,500

8,000

9,500

11,000

12,500

14,000

60

70

80

90

100

110

120

Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19

mm

cf/

d

mb

bl/

d

Oil Gas

72

12,738

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-18. 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, 2019, and 2020.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

GROSS PRODUCTION (THROUGH 31-MAR-20)

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

11

August 10, 2020

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

Rig Count 31 -- 31 Oil Differential $3.14 $0.12 $3.02

Permitting Activity 30 (4) 34 Gas Differential ($0.85) ($0.27) ($0.58)

0%

5%

10%

15%

20%

--

50

100

150

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

H V+D % of Total Rigs

-$3.00

-$2.00

-$1.00

$0.00

$1.00

$2.00

$3.00

2015 2016 2017 2018 2019 2020

-$15.00

-$10.00

-$5.00

$0.00

$5.00

$10.00

$15.00

$ /

mm

btu

$ /

bb

l

Brent Dominion

302 295260 254

207180

247289

200

97141

189

9

Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20

H V+D

15,000

20,000

25,000

30,000

35,000

80

100

120

140

160

Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19

mm

cf/

d

mb

bl/

d

Oil Gas

155

33,549

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

08-Jul-20 Undisclosed Buyer Harvest Oil & Gas Corp 713,401 net acres in Appalachia $21 $0.21 $700 $29

15-Jun-20 Sixth Street Partners Antero Resources Overriding royalty interests in Appalachia $402 n.a. n.a. nmf

11-May-20 Diversified Gas & Oil EQT Appalachia Basin asset in PA and WV $125 $0.43 $2,315 n.a.

04-May-20 National Fuel Gas Shell 450,000 net acres in Appalachia $541 $0.76 $2,164 $1,202

08-Apr-20 Diversified Gas & Oil Carbon Energy Corp (USA) 1,553,754 net acres in Appalachia $110 $0.25 $1,852 $71

Mean $240 $0.41 $1,758 $434

Median $125 $0.34 $2,008 $71

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

--$2,000$4,000$6,000$8,000

$10,000$12,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

3Q

20

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

$ /

acre

# Deals

$497

--$5,000

$10,000$15,000$20,000$25,000$30,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

3Q

20

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

$ /

mcfe

/d

# Deals

$4,521

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-18. 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, 2019, and 2020.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

GROSS PRODUCTION (THROUGH 31-DEC-19)

[TBU]

[TBU]

[TBU]

12

August 10, 2020

0%

5%

10%

15%

20%

--

50

100

150

200

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

H V+D % of Total Rigs

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

Rig Count 11 -- 11 Oil Differential ($0.55) $0.20 ($0.75)

Permitting Activity 13 (16) 29 Gas Differential ($0.36) ($0.10) ($0.26)

-$1.00

-$0.50

$0.00

$0.50

2015 2016 2017 2018 2019 2020

-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

135110

157

83 8074 67 76 66 65

92105

9

Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20

H V+D

1,500

1,800

2,100

2,400

2,700

3,000

3,300

3,600

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19

mm

cf/

d

mb

bl/

d

Oil Gas 1,412

3,156

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

--

$20,000

$40,000

$60,000

$80,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

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

$ /

bo

e/d

# Deals

$45,752

--

$5,000

$10,000

$15,000

$20,000

$25,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

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

$ /

acre

# Deals

$1,751

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-18. 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, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

GROSS PRODUCTION (THROUGH 31-MAR-20)

[TBU]

[TBU]

[TBU]

13

August 10, 2020

0%

5%

10%

15%

20%

--

50

100

150

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

H V+D % of Total Rigs

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

Rig Count 6 -- 6 Oil Differential ($0.55) $0.20 ($0.75)

Permitting Activity 20 (15) 35 Gas Differential ($0.36) ($0.10) ($0.26)

-$1.00

-$0.50

$0.00

$0.50

2015 2016 2017 2018 2019 2020

-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

434

327297

168213

268

199

286210 225

197

113

20

Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20

H V+D

13,000

13,500

14,000

14,500

15,000

15,500

16,000

500

600

700

800

900

1,000

1,100

Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19

mm

cf/

d

mb

bl/

d

Oil Gas914

13,528

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

11-May-20 Morning Star Oil Co Southland Royalty Co 205,000 net acres in San Juan Basin $53 n.a. $3,635 $260

31-Jan-20 Undisclosed Buyer ConocoPhillips 98,000 net acres in DJ Basin $380 $27.14 $34,545 $3,878

09-Dec-19 YTEF Drilling Capital LLC Bayswater E&P LLC DJ Basin JV $125 n.a. n.a. n.a.

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

14-Feb-19 Undisclosed Buyer Harvest Oil & Gas Corp San Juan Basin assets $43 $1.57 $10,835 n.a.

Mean $225 $14.36 $20,267 $2,160

Median $125 $14.36 $21,443 $2,344

Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services

Purple = BMO provided both transaction advisory services and acquisition financing or related services

--$20,000$40,000$60,000$80,000

$100,000$120,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

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

$ /

bo

e/d

# Deals

$33,614

--

$5,000

$10,000

$15,000

$20,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

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

$ /

acre

# Deals

$2,069

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-18. 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, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

GROSS PRODUCTION (THROUGH 31-MAR-20)

[TBU]

[TBU]

[TBU]

14

August 10, 2020

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

Rig Count 11 -- 11 Oil Differential -- -- --

Permitting Activity 24 2 22 Gas Differential ($0.43) ($0.22) ($0.22)

0%

5%

10%

15%

20%

--

100

200

300

400

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

H V+D % of Total Rigs

-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25

2015 2016 2017 2018 2019 2020

-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25

$ /

mm

btu

$ /

bb

l

Cushing Panhandle

330 348 346 347296

284 261

203

74 82109

132

19

Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20

H V+D

12,000

13,200

14,400

15,600

16,800

18,000

600

650

700

750

800

850

Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19

mm

cf/

d

mb

bl/

d

Oil Gas702

13,138

--

$5,000

$10,000

$15,000

$20,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

3Q

20

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

$ /

acre

# Deals

$4,284

--

$50,000

$100,000

$150,000

$200,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

3Q

20

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

$ /

bo

e/d

# Deals

$17,593

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

10-Jul-20 Presidio Petroleum Templar Energy LLC 273,400 net acres in Anadarko Basin $91 $1.78 $5,056 $333

26-Jun-20 MP III Echo LLC Echo Energy Partners 19,989 net acres in Anadarko Basin $33 n.a. $4,198 $1,649

03-Apr-20 BCE-Mach III LLC Alta Mesa Resources 130,000 net acres in STACK $160 $2.22 $5,317 $1,227

10-Dec-19 Dow Devon Energy STACK Basin JV $100 n.a. n.a. n.a.

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

Mean $103 $1.86 $5,851 $907

Median $100 $1.78 $5,186 $824

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

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-18. 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, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

GROSS PRODUCTION (THROUGH 31-MAR-20)

[TBU]

[TBU]

[TBU]

15

August 10, 2020

0%

5%

10%

15%

20%

--

10

20

30

40

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

Deep Water Shelf % of Total Rigs

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

Rig Count 12 -- 12 Oil Differential $1.65 $0.10 $1.55

Permitting Activity 5 (4) 9 Gas Differential -- -- --

-$10.00

-$5.00

$0.00

$5.00

$10.00

2015 2016 2017 2018 2019 2020

-$10.00

-$5.00

$0.00

$5.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

26

2220

22

16

22 2320

11

15

10

20

5

Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20

--

$10

$20

$30

$40

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

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

$ /

bo

e

# Deals

$14.65

--

$15,000

$30,000

$45,000

$60,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

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

$ /

bo

e/d

# Deals

$29,229

Ann'd

Date Buyer Seller Asset Description Value(2)

Proved

Multiple

Prod.

Multiple Net Acres

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

22-Jun-20 Talos Energy Castex Energy Gulf of Mexico assets $65 $3.69 $10,156 n.a.

12-Dec-19 W&T Offshore ConocoPhillips Deepwater GOM assets $20 $4.88 $8,696 n.a.

10-Dec-19 Talos Energy Multiple GOM assets and exploration prospects $640 $14.71 $33,684 n.a.

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

13-May-19 Equinor Shell 22.45% WI in Caesar-Tonga Field $965 n.a. $60,313 n.a.

Mean $378 $6.49 $24,590 n.a.

Median $200 $4.29 $10,156 n.a.

Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services

Purple = BMO provided both transaction advisory services and acquisition financing or related services

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-18. Calculated as the weighted average of each quarter’s transactions.

GROSS PRODUCTION (THROUGH 31-MAR-20)

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

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

[TBU]

2,000

2,500

3,000

3,500

4,000

4,500

1,200

1,400

1,600

1,800

2,000

2,200

Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19

mm

cf/

d

mb

bl/

d

Oil Gas

1,937

2,893

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

16

August 10, 2020

Upcoming Industry Events

Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes

no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.

Click event to open

2021

November 2020 Nov 3-4 Executive Oil Conference & Exhibition (Midland)

Nov 17 Houston Producers Forum Luncheon

Nov 20 ADAM-Houston Monthly Luncheon

April 2021 Apr 14 IPAA Leaders in Industry Luncheon

Apr 16 ADAM-Houston Monthly Luncheon

Apr 19-20 Mineral & Royalty Conference

Apr 19-21 DUG Permian (Fort Worth)

Apr 20 Houston Producers Forum Luncheon

Apr 27-30 SPE Western Regional Meeting

Apr 29 SPE Permian Basin Summit

August 2020 Aug 10 Mineral & Royalty Conference (virtual)

Aug 11-27 Summer NAPE (virtual)

Aug 17-19 Enercom Oil & Gas Conference (virtual)

Aug 18-19 DUG Midcontinent (virtual)

Aug 31-Sep 4 SPE Improved Oil Recovery Conference (virtual)

September 2020 Sep 15 Houston Producers Forum Luncheon

Sep 21 ADAM-Houston Monthly Luncheon

Sep 29-30 DUG Permian Basin & Eagle Ford (virtual)

October 2020 Oct 11-14 SPE Technical Conference and Exhibition (virtual)

Oct 13-14 DUG Haynesville (Shreveport)

Oct 14-15 OilComm Conference & Exposition

Oct 16 ADAM-Houston Monthly Luncheon

Oct 20 Houston Producers Forum Luncheon

Oct 27-28 A&D Strategies and Opportunities Conference

December 2020 Dec 1-3 DUG East (Pittsburgh)

Dec 3 IPAA Texas Hold'Em Tournament

Dec 15 Houston Producers Forum Luncheon

January 2021 Jan 13 IPAA Leaders in Industry Luncheon

Jan 15 ADAM-Houston Monthly Luncheon

Jan 18-22 API E&P Winter Standards Meeting

Jan 19 Houston Producers Forum Luncheon

Jan 21 IPAA Private Capital Conference

February 2021 Feb DUG Energy ESG Conference

Feb 2-4 SPE Hydraulic Fracturing Technology Conference

Feb 8-12 NAPE Summit

Feb 10 IPAA Leaders in Industry Luncheon

Feb 16 Houston Producers Forum Luncheon

Feb 19 ADAM-Houston Monthly Luncheon

Feb 21-24 Energy in Data Conference

March 2021 Mar 1-3 SPE Reservoir Simulation Conference

Mar 10 IPAA Leaders in Industry Luncheon

Mar 16 Houston Producers Forum Luncheon

Mar 19 ADAM-Houston Monthly Luncheon

Mar 25-26 DUG Bakken and Rockies (Denver)

May 2021 May 3-6 Offshore Technology Conference

May 12 IPAA Leaders in Industry Luncheon

May 18 Houston Producers Forum Luncheon

May 21 ADAM-Houston Monthly Luncheon

May 26-27 DUG Haynesville (Shreveport)

17

August 10, 2020

SCOOP/STACK/Merge

DJ-Niobrara

Eagle Ford

Haynesville

Granite Wash

GOM

Permian

Marcellus

Utica

Williston

Gulf Coast Onshore

Piceance

Powder River Green River

Legend

Current

Change

This material is prepared by the BMO Capital Markets’ Investment and Corporate Banking Department, for distribution to BMO Capital Markets’ clientele. It is not a product of

BMO Capital Markets’ Research Department. The views of the Investment and Corporate Banking Department may differ from those of the Research Department. No part of this

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

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

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

Europe p.l.c, and Bank of Montreal (China) Co. Ltd, the institutional broker dealer business of BMO Capital Markets Corp. (Member FINRA and SIPC) and the agency broker dealer

business of Clearpool Execution Services, LLC (Member FINRA and SIPC) in the U.S., and the institutional broker broker dealer businesses of BMO Nesbitt Burns Inc. (Member

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by the Central Bank of Ireland) in Europe and BMO Capital Markets Limited (authorised and regulated by the Financial Conduct Authority) in the UK and Australia. “Nesbitt Burns” is a

registered trademark of BMO Nesbitt Burns Inc., used under license. “BMO Capital Markets” is a trademark of Bank of Montreal, used under license. "BMO (M-Bar roundel symbol)" is a

registered trademark of Bank of Montreal, used under license. ® Registered trademark of Bank of Montreal in the United States, Canada and elsewhere. TM Trademark of Bank of

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Bank of Montreal or its subsidiaries (“BMO Financial Group”) has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets.

The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital

Markets endeavors to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and

complete. However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained

herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its

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

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

the solicitation of an offer to buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securities discussed herein, related securities or in options, futures or

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

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

sell securities of issuers discussed herein. All values in this document are in US$ unless otherwise specified.

Source of rig count stats: Baker Hughes

Rig Count Summary MAPS IN

MASTER VIEW

Contacts

Disclaimer

Jason Martinez

MD & Head of U.S. A&D

713-546-9771

jason.martinez@bmo.com

Howard Barnwell

MD & Transactions Mgr.

713-546-9767

howard.barnwell@bmo.com

Rob Priske

MD & Transactions Mgr.

713-546-9727

rob.priske@bmo.com

Dan Schockling

MD & Head of Commercial

713-518-1223

dan.schockling@bmo.com

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.

122

(2)

11

--

6

--

25

--4

--

12

--

1

--8

--

32

--

12

(1)

1

(1)

1

--

--

--1

--

Michelle Tankimovich

Analyst

This

Week Change

Last

Week

Last

Year

Total Rigs 247 (4) 251 934

Oil 176 (4) 180 764

Gas 69 -- 69 169

Miscellaneous 2 -- 2 1

Directional 24 2 22 65

Horizontal 211 (5) 216 817

Vertical 12 (1) 13 52

Basin

Permian 122 (2) 124 444

SCOOP/STACK/Merge 8 -- 8 72

Granite Wash 1 -- 1 8

Eagle Ford 12 (1) 13 81

Haynesville 32 -- 32 57

Marcellus 25 -- 25 57

Utica 6 -- 6 15

Williston 11 -- 11 47

DJ-Niobrara 4 -- 4 29

Green River 1 -- 1 17

Powder River -- -- -- 23

Piceance 1 -- 1 6

Gulf Coast Onshore 1 (1) 2 16

GOM 12 -- 12 23

Alaska 3 -- 3 8

Other 8 -- 8 31

Mid-Con 2 -- 2 11

Rockies -- -- -- 2

Western 5 -- 5 18

Eastern 1 -- 1 --

[TBU]

[TBU]