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Transcript of Prompt Oil Price ($/bbl) $62.34 $0.30 0.5% Prompt Gas Price … Page Document Library... ·...
1
March 19, 2018
Oil ended last week up slightly. Gasoline stocks declined by a whopping 6.3 mmbbls and distillate stocks by 4.4
mmbbls barrels, and that was enough to put a bid into crude despite the 5.0 mmbbls gain in oil inventories. In other
news, OPEC compliance to production cuts reached new levels in February. Compliance is now at 147% with seven
nations in the deal cutting more than they agreed to. The near term contract closed up $0.30, or 0.5%, at $62.34
Natural gas ended last week down. There was a slightly bearish EIA report showing an inventory draw of 93 bcf as
compared to the estimated draw of 100 bcf. The gas rig count increased by one. The near-term contract closed down
$0.04, or 1.6%, at $2.69
Debt
Markets
S&P E&P(2) underperformed last week (2.1%) vs. SPX(2) (1.2%)
US equities were lower last week, with the S&P 500 posting four successive declines before logging a modest
increase on Friday. Treasuries were mixed, with the curve flattening and the 10-year pulling farther back from the 3%
level. The dollar was marginally better overall, though it lost ground on the yen and sterling crosses. Gold was
somewhat lower, finishing the week down 0.9%. The S&P 500 consensus 2018 EPS estimate is $157.3 for an implied
P/E multiple of 17.5x (the 5-year historical average is 16.1x)
The High Yield primary market saw another active week, with 16 Issuers pricing 17 tranches with $9.0 bn in proceeds
BMO was Joint Bookrunner on Husky's $650 million of Senior Notes, the first LBO High Yield Notes this year
New issue paper saw strong execution, with deals upsizing and generally trading higher on the break
Last week saw a modest inflow to High Yield funds of $11 million; the first inflow to High Yield funds since early
January
Secondary markets were flat to slightly wider, even as treasury yields tightened amid concerns of trade
protectionism
Two E&P issuances priced last week
Tullow Oil (B3/B) priced $800 million of 7.00% Senior Notes. The 8NC3 notes priced at the tight end of 7.00%-
7.25% talk and were upsized by $150 million. Proceeds from the transaction will be used with cash on hand to
redeem the company’s existing 6.00% Senior Notes due 2020
Aker BP (Ba2/BB+) priced $500 million of 5.875% Senior Notes due 2025. The 7NC3 notes priced at the tight
end of 6.00% area talk. Proceeds from the transaction will be used to repay RBL borrowings
Sundance Energy announced that it acquired 21,900 net
acres primarily in the volatile oil window of the Eagle Ford
from a joint venture between Pioneer Natural Resources,
Reliance Industries, and Newpek for $221.5 million
Amplify Energy announced that it signed a definitive
agreement to divest 98,000 non-core net acres in South
Texas to an undisclosed buyer for $20 million
W&T Offshore announced that it entered into joint
exploration and development agreements with a group of
investors in the Gulf of Mexico
Amazing Energy Oil and Gas announced a joint venture
with Encore Natural Resources in Pecos County, Texas
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 December 2017.
2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index.
Key Industry Indicators
Quarterly Deal Activity
Equity
Markets
Commodities
$2.2
$8.1
$10.2
$10.0
$4.7
$17.2
$21.0 $20.5 $24.0
$19.4
$9.6 $9.4 $7.9
--
50
100
150
200
250
300
--
$5
$10
$15
$20
$25
$30
$35
$40
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
61% 82% 76% 79% 52% 55% 56% 71% 91% 31% 75% 78% 88%
Nu
mb
er
of
Tra
nsacti
on
s
Tra
nsacti
on
Valu
e (
$b
n)
Asset Corporate Number of Transactions
% Oil
IndicatorCurrent
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $62.34 $0.30 0.5%
Prompt Gas Price ($/mmbtu) $2.69 ($0.04) (1.6%)
Wkly Trans. Value ($mm) $265 ($288) (52%)
Wkly Trans. Count 7 5 250%
US Rig Count 990 6 0.6%
US Oil Prod'n (mmbbl/d) 10.4 0.0 0.1%
US Gas Prod'n (bcf/d)(1) 96.6 -- --
US Oil Storage (mmbbl) 430.9 5.0 1.2%
US Gas Storage (tcf) 1.5 (0.1) (5.7%)
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 $45.21, the
near-term oil contract declined steadily based on …” – you
know, think like a journalist, be creative.
Covering the Week of March 10 to March 16, 2018
2
March 19, 2018
Ann'd
Date Buyer Seller Area Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
15-Mar-18 Sundance Energy Pioneer; Reliance; Newpek Eagle Ford 21,900 net acres in South TX Eagle Ford $222 $3.38 $123,056 $10,114
13-Mar-18 Undisclosed Buyer Amplify Energy Corp Other 98,000 non-core net acres in South TX $20 n.a. $7,499 $204
07-Mar-18 Fleur de Lis Energy LLC Devon Energy Barnett 146,000 net acres in Barnett Shale $553 $2.95 $16,590 n.a.
01-Mar-18 BP Goodrich Ark-La-Tex 3,800 net acres in East Texas $23 n.a. n.a. $6,053
27-Feb-18 Undisclosed Buyer Extraction Oil & Gas Other Rockies Various non-core Rockies assets $70 n.a. n.a. n.a.
26-Feb-18 Undisclosed Buyer PDC Marcellus/Utica 43,000 net acres in Utica $40 $9.52 $25,000 $930
20-Feb-18 Luxe Energy II; Colgate Concho Resources Inc Permian 20,000 net acres in Delaware Basin $280 n.a. n.a. $14,000
15-Feb-18 Fieldwood Energy LLC Noble Energy Gulf of Mexico Deepwater GOM assets $710 $30.87 $35,500 $2,996
14-Feb-18 Scout Energy Partners Linn Energy LLC Permian Conventional Permian assets $120 $8.30 $18,968 $4,268
12-Feb-18 Tanos Exploration II LLC WildHorse Ark-La-Tex 90,000 net acres in North Louisiana $217 $3.16 $27,760 $2,411
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
The 10 Most Recent Asset Transactions Over $20 Million
A&D Valuation Trends(3)
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, PLS
1. Represents total enterprise value.
2. Calculated as percentage of total LTM transaction count.
3. 100 transactions from June 2013 to 2017YTD with transaction value >$20mm. Adjusted for changes in price outlooks. Recalculated boe reserves are on a 15:1
(gas:oil) basis. Acreage transactions excluded by using deals with PDP of >= 40% of total proved.
Permian23%
Rockies (ex. Bakken)
18%
Bakken7%
Appalachia14%
Mid-Con10%
Eagle Ford7%
Ark-La-Tex4%
Gulf of Mexico1%
Other16%
LTM By Region
Oil61%
Gas39%
LTM By Commodity
Public Company
45%
PE / PE-Backed
21%
Private11%
MLP1%
Other22%
LTM By Buyer Type
R / P
Sales Value /
Proved Reserves
(15:1)
(ratio) ($ / boe) ($ / mcfe)
8x $21.84 $1.46
10x $18.94 $1.26
15x $13.26 $0.88
20x $9.28 $0.62
y = 38.623e-0.071x
R² = 0.3766
--
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
-- 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x
Sa
les
Pri
ce /
Pro
ve
d
Re
serv
es (
$/b
oe
@ 1
5:1
)
R / P
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
(2) (2) (2)
3
March 19, 2018
Select Significant Deals on the Market
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Source of Select Significant Deals on the Market: BMO Transaction Database
Industry Headlines
Sundance Energy Unveils $221 Million Eagle
Ford Buy
Amplify Energy Announces Sale of Non-Core
South Texas Properties for $20 Million
W&T Offshore Announces Gulf of Mexico
Joint Exploration and Development Program
with Investor Group
Amazing Energy Oil and Gas, Co.
Announces Joint Venture Term Sheet
Agreement with Encore Natural Resources
Bakken
3 Deals Appalachia
4 Deals
Mid-Con
16 Deals
Eagle Ford
9 Deals
Permian
17 Deals
Other
10 Deals
Ark-La-Tex
4 Deals
Rockies
12 Deals
3/16/2018
Appalachia 4
Ark-La-Tex 4
Bakken 3
Eagle Ford 9
Mid-Con 16
Other 10
Permian 17
Rockies 12
75
BMO Deals (Status)
Texas American Eagle Ford (In Market) – See Page 5
Elk River Midland Basin (Post Bid)
Comstock Eagle Ford (Post Bid)
EOG Green River (Post Bid)
(Click headline to link to the full article)
A&D Headlines
The Shale Boom Could Prove a Two-edged
Sword for America
Oil and Gas Leaders Warn Trump He Risks
Harming Their Industry
China's "Dash to Natural Gas" Bolsters U.S.
LNG
Enhanced Completions, Production
Strategies Spark Haynesville’s Emergence
Thanks to the Anti-fracking Lobby, Britain
Can’t Avoid Russian Gas
Pipeline Stocks Plunge After FERC Kills Key
Income-Tax Allowance
Statoil to Change Name to Equinor
4
March 19, 2018
Purchase Price (US$ mm)
Total Consideration $221.5
Metrics
Daily Production (boe/d) 1,800
Proved Reserves (mmboe) 65.5
Net Acres 21,900
Net Locations 255
Multiples
TEV / Production ($/boe/d) $123,056
TEV / Proved Reserves ($/boe) $3.38
TEV / Net Acre $10,114
TEV / Adj. Net Acre(1) $7,237
TEV / Location $868,627
TEV / Adj. Location(1) $621,569
On March 14, 2018, Sundance Energy Australia
Ltd announced that it entered into an agreement to
acquire Eagle Ford assets from Pioneer Natural
Resources and its JV partners, Reliance Industries
Ltd and Newpek LLC, for $221.5 million
The transaction is expected to close April 23, 2018
TRANSACTION SUMMARY
ACQUISITION METRICS
Source: Company press release, Company presentation, PLS, 1Derrick
1. Adj. Net Acre and Adj. Location multiples based on flowing production adjustment of $35,000 per flowing boe.
ACQUIRED ASSETS
ASSET SUMMARY
Acquired Acreage
21,900 net acres in McMullen, Live Oak, Atascosa,
and La Salle counties, TX (100% HBP)
1,800 boe/d net production (72% oil)
65.5 mmboe proved reserves
255 net Eagle Ford locations
Interesting Deal of the Week:
Sundance Acquires Eagle Ford Assets From Pioneer and JV Partners for $222 Million
OBSERVATIONS
Sundance concurrently announced that it is raising
$260 million to fund the acquisition and subsequent
development
Sundance intends to deploy two rigs on the
acquired acreage in Q2 2018
This transaction is in line with Pioneer’s February 6,
2018 announcement to become a Permian pure-
play
Pioneer intends to divest its remaining Eagle
Ford, Raton, and West Panhandle assets
https://globenewswire.com/news-release/2018/02/15/1348833/0/en/Noble-Energy-
Announces-750-Million-Share-Repurchase-Program.html
[tbu kristina]
5
March 19, 2018
Highly economic, large, contiguous, and de-risked acreage position in
the Eagle Ford black oil window
24,675 gross / 23,164 net largely undeveloped acres located in
southwest Atascosa and southeast Frio counties, Texas
100% operated with high average working interest of ~94%
Executable optimized development plan on 400' well spacing
supports 214 gross drilling locations in the Lower Eagle Ford
Development plan employs long laterals (~9,300’ average length),
higher intensity / modern completions, targeted lateral placement,
and drilling order to minimize parent well effects
Austin Chalk analogous to development in the Sugarkane Field
Rapidly growing oil-weighted net production estimated to be ~5,100
boe/d by April 2018
Appraisal strategy implemented through data gathering, targeting, and
completion modernization and optimization
Achieving robust performance with recent slickwater completion
wells outperforming 2013 / 2014 Bowman wells’ EUR/ft by over
66% with continuous improvement on subsequent wells
Excellent Eagle Ford reservoir quality with porosity up to 12% and rich
TOC values ranging from 3% to 6%
Ideal lease inventory (~20 leases) with easily managed continuous
development obligations
Favorable marketing contracts and no minimum volume commitments
Currently on the Market from BMO: Texas American Resources Eagle Ford Divestiture
VDR available now
Bids due mid April
Contact Chelsea Neville ([email protected] or 713-546-
9703) to request a Confidentiality Agreement, access to the VDR,
and/or a data room presentation
ASSET OVERVIEW
PACKAGE HIGHLIGHTS
Source: Texas American Resources 2018 Eagle Ford Divestiture announcement. https://datarooms.us.bmo.com/_layouts/15/Petris/LoginPageBMOUS.aspx?ClientId=79
1. NYMEX strip pricing as of 2-Feb-18. WTI oil price of $63.18, $57.95, $54.38, $52.29, $51.34 per bbl and Henry Hub gas price of $2.87, $2.84, $2.82, $2.86, $2.89 per
mmbtu for 2018, 2019, 2020, 2021, 2022 respectively. Prices are held flat thereafter.
PROCESS OVERVIEW
Growing
Production and
Cash Flow with
Advantaged
Position for Full
Development
April 2018E net production of 5,100 boe/d (83% oil) from 22 operated wells; rapid growth from January 2017 production of <300
boe/d
High degree of control as asset is 100% operated with easily managed continuous development obligations
NTM cash flow projected to be approximately $87 million at strip pricing(1)
Very favorable marketing contracts relative to other Eagle Ford operators; no minimum volume commitments
Extensive infrastructure with proximity to Gulf Coast refineries and international export markets
Premium oil price realizations with LLS pricing – positive differentials of ~$3.00 compared to WTI over the last three months
Positioned for full field development with company-owned gathering system and access to electricity and SWD systems
Largely
Undeveloped
Contiguous Eagle
Ford Position
Attractive entry vehicle or bolt-on acquisition with exposure to a highly economic part of the Eagle Ford Play
Contiguous 23,164 net acre position in the prolific black oil window located in southwest Atascosa and southeast Frio counties,
Texas ideal for future development
100% operational control with average working interest of ~94%
Optimal maturity and shallow depth to Eagle Ford target of 7,800’ to 8,700’ allows for lateral lengths in excess of 10,000’
Extensive and
Highly Economic
Drilling Inventory
through Modern
Completions
171 gross operated Lower Eagle Ford drilling locations at 500’ lateral spacing providing ample running room for years of
development
Assuming tighter well spacing, an optimized plan at 400’ supports 214 gross Lower Eagle Ford locations
Entire position de-risked by existing wells and extensive data gathering and seismic surveys
100% of locations have IRRs over 30% at strip pricing(1)
Significant performance uplift over historical results in the area due to modern completions
Lateral targeting, higher proppant/fluid loading, and tighter cluster spacing are resulting in 66% EUR/ft uplift over legacy
wells with continual improvement
High Quality
Subsurface
Attributes
Compact and well-contained 100’ to 80’ thick Lower Eagle Ford quality source rock with oil in place sufficient to fully support
significant uplifts in EUR and recovery per foot
Proven development plan supported by 70 square miles of 3-D seismic and 385’ of proprietary whole core through the entire
prospective Eagle Ford and Austin Chalk reservoir intervals
Favorable structural, fracture setting, high matrix porosity, and oil saturation of the Austin Chalk across TAR’s position supports
a viable secondary target with ~85 locations at 800’ spacing
Austin Chalk in Frio County is prolific in numerous offsets
Oil saturated proprietary core in Atascosa County
Austin Chalk well performance in Sugarkane Field a direct analog
6
March 19, 2018
--
$1
$2
$3
$4
Feb-17 Aug-17 Feb-18 Aug-18 Feb-19
($/m
mb
tu)
$20
$30
$40
$50
$60
$70
$80
Feb-17 Aug-17 Feb-18 Aug-18 Feb-19
($/b
bl)
NGL PRICING(2)
HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)
Commodity Prices
Source: BMO Commodity Products Group, Bloomberg, FactSet
1. Future prices are calendar year average unless stated otherwise.
2. Assumes typical Gulf Coast barrel composition.
WTI OIL (HISTORICAL / FORECAST)
NYMEX WTI Futures as of 16-Mar-18 Close ($/bbl) NYMEX Gas Futures as of 16-Mar-18 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $60.62 $60.16 $51.18 $50.40
2018 $61.23 $60.77 $51.45 $50.62
2019 $57.30 $56.91 $51.32 $50.30
2020 $54.32 $54.14 $51.30 $50.49
2021 $52.48 $52.47 $51.59 $51.19
2022 $51.59 $51.76 $52.20 $52.17
NYMEX Gas Futures as of 16-Mar-18 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.88 $2.90 $3.09 $3.20
2018 $2.83 $2.85 $3.07 $3.00
2019 $2.81 $2.81 $2.91 $2.84
2020 $2.76 $2.75 $2.84 $2.81
2021 $2.81 $2.78 $2.83 $2.83
2022 $2.96 $2.92 $2.98 $2.98
Historical Prices as of 16-Mar-18 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.25 $0.24 $0.27 $0.24
Propane $0.80 $0.76 $0.88 $0.64
Butane $0.74 $0.75 $0.98 $0.70
Iso-butane $0.90 $0.92 $1.01 $0.77
Pentane+ $1.43 $1.48 $1.17 $1.08
25%
35%
45%
55%
65%
Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18
% o
f W
TI
NGL as % of WTI
Links:
http://www.nasdaq.com/markets/crude-oil.aspx
http://www.bloomberg.com/quote/CL1:COM
http://www.nasdaq.com/markets/natural-gas.aspx
http://www.bloomberg.com/quote/NG1:COM
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
7
March 19, 2018
$2.69
AECO
Northern
California
Sumas
Southern
California
El Paso - SJ
Waha
HSC
Henry Hub
Panhandle
CIG Chicago
Dominion
Transco
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 16-MAR-18
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 16-MAR-18
Clearbrook
Midland
Cushing
St. James
(LLS)
East Coast
U.S. (Brent)
Midland Sweet-
Sour Spread
EMS Legend
Price
Diff.
Legend
Price
Diff.
Source: BMO Commodity Products Group, Bloomberg
Note: Prices and differentials are for prompt month futures except for Clearbrook which is based on spot prices.
$62.34
$64.66
$2.32
$60.96
($1.38)
$56.70
($5.64)$60.59
($1.75)
$66.21
$3.87
($0.37)
$2.79
$0.10
$1.80
($0.89)
$2.48
($0.21)
MAPS IN
MASTER VIEW
$1.08
($1.61)
$1.96
($0.73)
$2.45
($0.24)
$2.72
$0.03
$1.52
($1.17)
$2.21
($0.48)$1.72
($0.97)
$1.97
($0.72)
$2.07
($0.62)
8
March 19, 2018
--
$10,000
$20,000
$30,000
$40,000
$50,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
3 6 8 4 1 3 8 7 5 5 11 13 15 7 2 2 5
$ /
acre
# Deals
$22,261
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
20-Feb-18 Luxe Energy II; Colgate Concho Resources Inc 20,000 net acres in Delaware Basin $280 n.a. n.a. $14,000
14-Feb-18 Scout Energy Partners Linn Energy LLC Conventional Permian assets $120 $8.30 $18,968 $4,268
08-Feb-18 Centennial Resource Dev. OneEnergy Partners LLC 4,000 net acres in Delaware Basin $95 n.a. n.a. $23,675
06-Feb-18 Halcon Resources Corp Shell 10,524 net acres in Delaware Basin $200 n.a. $181,818 $19,004
06-Feb-18 Halcon Resources Corp Undisclosed Seller 4,413 net acres in Delaware Basin $104 n.a. $462,222 $23,567
Mean $160 $8.30 $221,003 $16,903
Median $120 $8.30 $181,818 $19,004
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
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 1-Jan-15. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018.
0%
10%
20%
30%
40%
50%
--
100
200
300
400
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
-$1.20
-$0.60
$0.00
$0.60
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
-$4.00
-$2.00
$0.00
$2.00
$ /
mm
btu
$ /
bb
l
Midland Waha
--
$100,000
$200,000
$300,000
$400,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
3 7 9 6 1 3 8 8 5 9 12 14 15 8 0 1 6
$ /
bo
e/d
# Deals
$168,543
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 437 1 436 Oil Differential ($1.70) ($0.55) ($1.15)
Permitting Activity 287 22 265 Gas Differential ($1.07) ($0.17) ($0.90)
1087
702
930
1112
8871029
909 875
1126
808
10711051
649
Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18
V+D H
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
9,000
9,500
1,300
1,500
1,700
1,900
2,100
2,300
2,500
2,700
2,900
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
2,847
9,284
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
9
March 19, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 71 1 70 Oil Differential $2.50 $0.20 $2.30
Permitting Activity 86 (13) 99 Gas Differential $0.03 $0.02 $0.01
-$0.30
-$0.15
$0.00
$0.15
$0.30
$0.45
$0.60
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
-$4.00
-$2.00
$0.00
$2.00
$4.00
$6.00
$8.00
$ /
mm
btu
$ /
bb
l
LLS HSC
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
15-Mar-18 Sundance Energy Pioneer; Reliance; Newpek 21,900 net acres in South TX Eagle Ford $222 $3.38 $123,056 $10,114
01-Feb-18 Viper Energy Partners LP Royal Resources 681 net royalty acres in Eagle Ford $123 n.a. $136,667 nmf
02-Jan-18 Penn Virginia Hunt Oil 9,700 net acres in South TX Eagle Ford $86 n.a. $45,989 $8,866
20-Dec-17 Venado Oil & Gas Cabot Oil & Gas 74,500 net acres in South TX Eagle Ford $765 $13.38 $48,863 $10,268
12-Dec-17 EP Energy Corp Carrizo Oil & Gas 24,500 net acres in South TX Eagle Ford $245 n.a. $72,059 $10,000
Mean $288 $8.38 $85,327 $9,812
Median $222 $8.38 $72,059 $10,057
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
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
3 6 3 3 1 1 3 1 2 4 2 4 4 3 2 2 3
$ /
bo
e/d
# Deals
$62,651
--$10,000$20,000$30,000$40,000$50,000$60,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
3 4 3 2 0 1 2 1 2 4 1 3 1 3 2 2 2
$ /
acre
# Deals
$14,731
476389 356
496
353 349288
370 372 383 413452
213
Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18
V+D H
6,000
7,000
8,000
9,000
10,000
11,000
1,200
1,400
1,600
1,800
2,000
2,200
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
1,463
8,335
0%
5%
10%
15%
20%
--
50
100
150
200
250
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
Eagle Ford Snapshot
GROSS PRODUCTION
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 1-Jan-15. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
10
March 19, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 53 2 51 Oil Differential $2.50 $0.20 $2.30
Permitting Activity 14 (35) 49 Gas Differential -- -- --
--
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
--
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
187148
124162
136160
103
200
146
88126 137
66
Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18
V+D H
5,000
6,000
7,000
8,000
9,000
80
90
100
110
120
130
140
150
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
98
8,897
0%
2%
4%
6%
8%
10%
--
10
20
30
40
50
60
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
--
$5,000
$10,000
$15,000
$20,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
1 3 2 3 0 0 4 1 1 3 1 2 0 1 2 0 1
$ /
mc
fe/d
# Deals
$7,072
--
$5,000
$10,000
$15,000
$20,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
0 1 2 1 0 0 3 1 1 2 1 2 0 1 2 0 1
$ /
acre
# Deals# Deals
$5,387
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
01-Mar-18 BP Goodrich 3,800 net acres in East Texas $23 n.a. n.a. $6,053
12-Feb-18 Tanos Exploration II LLC WildHorse 90,000 net acres in North Louisiana $217 $0.53 $4,627 $2,411
06-Sep-17 Tellurian Inc Undisclosed Sellers 9,200 net acres in Haynesville $85 n.a. $21,264 $9,250
01-Aug-17 Rockcliff Energy II LLC Samson Resources II LLC 210,000 net acres in East TX & North LA $525 n.a. $5,833 $2,500
12-Jun-17 GEP Haynesville, LLC Sabine Oil & Gas 5,256 net acres in North LA Haynesville $45 n.a. $16,188 $8,562
Mean $179 $0.53 $11,978 $5,755
Median $85 $0.53 $11,011 $6,053
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
GROSS PRODUCTION
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 1-Jan-15. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, and 2018.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
11
March 19, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 80 -- 80 Oil Differential $3.73 $0.28 $3.45
Permitting Activity 10 (109) 119 Gas Differential ($0.25) $0.02 ($0.26)
-$3.00
-$2.00
-$1.00
$0.00
$1.00
$2.00
$3.00
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
-$15.00
-$10.00
-$5.00
$0.00
$5.00
$10.00
$15.00
$ /
mm
btu
$ /
bb
l
Brent Dominion
424 398346
430
293
466
590
453395
350402 389
142
Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18
V+D H
12,000
14,000
16,000
18,000
20,000
22,000
24,000
50
75
100
125
150
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
68
20,226
0%
5%
10%
15%
20%
--
50
100
150
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
--
$10,000
$20,000
$30,000
$40,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
1 2 4 3 0 1 0 0 1 2 2 5 2 5 1 4 3
$ /
mcfe
/d
# Deals
$5,706
--
$5,000
$10,000
$15,000
$20,000
$25,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
1 2 4 3 0 1 0 0 1 2 2 4 2 4 0 2 1
$ /
ac
re
# Deals
$4,945
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
26-Feb-18 Undisclosed Buyer PDC 43,000 net acres in Utica $40 $1.59 $4,167 $930
31-Jan-18 Diversified Gas & Oil Lake Fork Resources Entire share capital of Alliance Petroleum $95 $0.32 $1,799 n.a.
31-Jan-18 Diversified Gas & Oil CNX Resources Corp Appalachia Basin asset in PA and WV $85 $0.22 $1,574 n.a.
29-Jan-18 Undisclosed Buyer Blue Ridge Mountain Non-op WI in Marcellus / Utica $56 n.a. n.a. $6,667
21-Dec-17 Alta Resources LLC Ultra Petroleum 72,000 non-op net acres in Marcellus $115 n.a. $3,833 $1,597
Mean $78 $0.71 $2,843 $3,065
Median $85 $0.32 $2,816 $1,597
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
GROSS PRODUCTION
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 1-Jan-15. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, and 2018.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
12
March 19, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 54 3 51 Oil Differential ($1.75) ($0.75) ($1.00)
Permitting Activity 19 (12) 31 Gas Differential ($0.67) ($0.03) ($0.64)
-$0.90
-$0.45
$0.00
$0.45
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
-$9.00
-$4.50
$0.00
$4.50
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
97
62
116 113 111
145
101
150
120
73100 94
53
Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18
V+D H
1,200
1,400
1,600
1,800
2,000
2,200
800
900
1,000
1,100
1,200
1,300
1,400
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
1,169
2,113
0%
5%
10%
15%
20%
--
50
100
150
200
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
--
$50,000
$100,000
$150,000
$200,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
4 2 6 2 0 0 1 4 0 3 3 3 1 1 3 2 1
$ /
bo
e/d
# Deals
$54,719
--
$5,000
$10,000
$15,000
$20,000
$25,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
4 2 6 2 0 0 1 1 0 0 2 3 1 0 2 2 0
$ /
acre
# Deals
$5,703
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
31-Jan-18 Undisclosed Buyer WPX Energy Inc Non-op mineral interests in Williston Basin $20 n.a. n.a. n.a.
22-Jan-18 Firehawk Oil and Gas LLC Samson Oil & Gas Limited Foreman Butte Project in Williston Basin $42 $6.66 n.a. $809
18-Jan-18 Undisclosed Buyer Vanguard Natural Resources Williston Basin properties $39 n.a. $38,500 n.a.
21-Nov-17 Energy Resources 12 LP Bruin E&P Partners LLC Non-op Bakken assets $88 n.a. n.a. n.a.
20-Nov-17 Statoil Earthstone Energy Inc 1,323 non-op acres in ND $27 n.a. $35,433 $20,408
Mean $43 $6.66 $36,967 $10,609
Median $39 $6.66 $36,967 $10,609
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
GROSS PRODUCTION
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 1-Jan-15. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
13
March 19, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 70 (2) 72 Oil Differential ($1.75) ($0.75) ($1.00)
Permitting Activity 61 (94) 155 Gas Differential ($0.67) ($0.03) ($0.64)
-$0.90
-$0.45
$0.00
$0.45
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
-$9.00
-$4.50
$0.00
$4.50
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
874
1436
1082855 750
1748
695570 622 652
435 459228
Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18
V+D H
11,000
11,500
12,000
12,500
13,000
13,500
14,000
200
300
400
500
600
700
800
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
724
12,456
0%
5%
10%
15%
20%
--
20
40
60
80
100
120
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
27-Feb-18 Undisclosed Buyer Extraction Oil & Gas Various non-core Rockies assets $70 n.a. n.a. n.a.
05-Feb-18 Enduring Resources IV LLC WPX Energy Inc 105,000 net acres in San Juan Basin $700 n.a. $43,750 $6,667
16-Jan-18 Undisclosed Buyer LINN Energy 36,000 net acres in Uinta Basin $132 n.a. $91,034 $3,667
09-Jan-18 Northwoods Energy LLC SM Energy 112,200 net acres in Powder River Basin $500 nmf $227,273 $4,456
14-Dec-17 Undisclosed Buyer Samson Resources II LLC 11,300 net acres in Green River Basin $34 n.a. $22,667 $3,009
Mean $287 n.a. $96,181 $4,450
Median $132 n.a. $67,392 $4,061
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
4 9 3 4 2 0 4 4 1 6 0 0 2 5 4 9 3
$ /
bo
e/d
# Deals
$39,645
--
$5,000
$10,000
$15,000
$20,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
3 7 2 2 0 0 3 3 0 1 0 0 1 0 1 5 3
$ /
acre
# Deals
$4,011
GROSS PRODUCTION
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 1-Jan-15. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
14
March 19, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 90 3 87 Oil Differential -- -- --
Permitting Activity 56 (6) 62 Gas Differential ($0.70) ($0.03) ($0.67)
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
$ /
mm
btu
$ /
bb
l
Cushing Panhandle
371
303
371 373 352 348
236 257
356326
379
310
130
Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18
V+D H
5,000
7,000
9,000
11,000
13,000
15,000
200
300
400
500
600
700
800
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
530
9,038
0%
5%
10%
15%
20%
--
50
100
150
200
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
06-Feb-18 Camino; Mach Resources Chesapeake 238,000 net acres in Anadarko Basin $500 n.a. $21,739 $2,101
25-Jan-18 Revolution Resources LLC Gastar Exploration Inc 26,100 net acres in the Anadarko Basin $108 $5.60 $37,906 $4,119
27-Dec-17 Chaparral Energy Multiple 7,000 net acres in STACK $60 n.a. n.a. $8,500
14-Nov-17 Exponent Energy III Mid-Con Energy Partners LP 6,591 net acres in Southern Oklahoma $22 $8.09 $40,741 $3,338
13-Oct-17 Perdure Petroleum LLC Chaparral Burbank and TX Panhandle EOR assets $170 $2.35 $29,825 n.a.
Mean $172 $5.35 $32,552 $4,514
Median $108 $5.60 $33,865 $3,728
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$5,000
$10,000
$15,000
$20,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
0 1 3 3 0 2 1 2 0 3 3 2 4 1 2 1 0
$ /
acre
# Deals
$8,167
--
$50,000
$100,000
$150,000
$200,000
$250,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2 2 5 4 0 3 1 2 1 6 4 2 4 2 2 2 2
$ /
bo
e/d
# Deals
$80,272
# Deals
$80,272
Mid-Continent Snapshot
GROSS PRODUCTION
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 1-Jan-15. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
15
March 19, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 13 -- 13 Oil Differential $2.50 $0.20 $2.30
Permitting Activity 2 (6) 8 Gas Differential -- -- --
--
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
--
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
17
0
31
24 26
17 16
10
23 2124
1310
Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-182,000
2,500
3,000
3,500
4,000
4,500
5,000
1,000
1,200
1,400
1,600
1,800
2,000
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
mm
cf/
d
mb
bl/
d
Oil Gas
1,759
3,100
0%
2%
4%
6%
8%
10%
--
20
40
60
80
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
H V+D % of Total Rigs
--
$10
$20
$30
$40
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
5 2 0 0 0 0 2 0 0 0 1 0 0 0 0 1 1
$ /
bo
e
# Deals
$11.38
# Deals
--
$20,000
$40,000
$60,000
$80,000
$100,000
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
5 2 0 0 0 0 2 1 0 0 2 0 0 0 0 1 1
$ /
bo
e/d
# Deals
$29,387
# Deals
$29,387
Gulf of Mexico Snapshot
GROSS PRODUCTION
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
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. $/acre multiple not adjusted for value associated with production 4. Red line denotes average since 1-Jan-15. Calculated as the
weighted average of each quarter’s transactions..
TRANSACTION PROVED RESERVE MULTIPLES(4) TRANSACTION PRODUCTION MULTIPLES(4)
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
Ann'd
Date Buyer Seller Asset Description Value(2)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(3)
15-Feb-18 Fieldwood Energy LLC Noble Energy Deepwater GOM assets $710 $30.87 $35,500 $2,996
12-Sep-16 Anadarko Freeport-McMoRan Inc Deepwater GOM assets $2,000 $15.88 $25,000 n.a.
29-Aug-16 EnVen Energy Ventures Shell Brutus and Glider fields $425 n.a. $17,000 n.a.
09-Nov-15 EnVen Energy Ventures Marathon Petronius and Neptune fields $205 n.a. $20,500 n.a.
11-Aug-15 Energy XXI M21K GOM Shelf assets $25 $1.94 $4,582 n.a.
Mean $673 $16.23 $20,516 $2,996
Median $425 $15.88 $20,500 $2,996
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
16
March 19, 2018
Upcoming Industry Events
March 2018
Mar 20 Houston Producers Forum Luncheon
Mar 23 ADAM-Houston Monthly Luncheon
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Click event to open
April 2018 Apr 9-10 OGIS New York
Apr 11 IPAA Leaders in Industry Luncheon
Apr 14-18 SPE Improved Oil Recovery Conference
Apr 17 Houston Producers Forum Luncheon
Apr 20 ADAM-Houston Monthly Luncheon
Apr 24-25 DUG Rockies
Apr 25 SPE Business Development Study Group
Apr 30-May 3 Offshore Technology Conference
May 2018 May 7 Energy Capital Conference
May 9 IPAA Leaders in Industry Luncheon
May 15 Houston Producers Forum Luncheon
May 17 IADC Drilling Onshore Conference & Exhibition
May 18 ADAM-Houston Monthly Luncheon
May 20-23 AAPG 2018 Annual Convention & Exhibition
May 21-23 DUG Permian
May 30 SPE Business Development Study Group
July 2018 Jul 11 IPAA Leaders in Industry Luncheon
Jul 23-25 SPE Unconventional Resources Technology
August 2018 Aug 8 IPAA Leaders in Industry Luncheon
Aug 15-16 NAPE Summer
Aug 17 ADAM-Houston Monthly Luncheon
Aug 19-23 Enercom Oil & Gas Conference
Aug 21 Houston Producers Forum Luncheon
September 2018 Sep 5-6 A&D Strategies & Opportunities
Sep 11-12 IADC Advanced Rig Technology Conference
Sep 12 IPAA Leaders in Industry Luncheon
Sep 18 Houston Producers Forum Luncheon
Sep 19-21 DUG Eagle Ford
Sep 21 ADAM-Houston Monthly Luncheon
Sep 24-26 SPE Annual Technical Conference and Exhibition
October 2018 Oct 10 IPAA Leaders in Industry Luncheon
Oct 16 Houston Producers Forum Luncheon
Oct 19 ADAM-Houston Monthly Luncheon
Oct 22-23 Midstream Finance Conference
Oct 23-24 IADC International Well Control 2018 Conference
Oct 23-25 SPE Asia Pacific Oil & Gas Conference
November 2018 Nov 5-7 Executive Oil Conference
Nov 7-9 IADC Annual General Meeting
Nov 11-13 IPAA Annual Meeting
Nov 11-13 AICPA Oil & Gas Conference
Nov 13-15 DUG Midcontinent
Nov 14 IPAA Leaders in Industry Luncheon
Nov 16 ADAM-Houston Monthly Luncheon
Nov 20 Houston Producers Forum Luncheon
June 2018 Jun 13 IPAA Leaders in Industry Luncheon
Jun 15 ADAM-Houston Monthly Luncheon
Jun 19 Houston Producers Forum Luncheon
Jun 19-20 IADC World Drilling Conference & Exhibition
Jun 19-21 DUG East
Jun 25-27 IPAA Midyear Meeting
Jun 27 SPE Business Development Study Group
December 2018 Dec 12 IPAA Leaders in Industry Luncheon
January 2019 Jan 15 Houston Producers Forum Luncheon
Jan 18 ADAM-Houston Monthly Luncheon
Jan 24 IPAA Private Capital Conference
Jan 29-31 Marcellus-Utica Midstream Conference & Exhibition
17
March 19, 2018
This
Week Change
Last
Week
Last
Year
Total Rigs 990 6 984 789
Oil 800 4 796 631
Gas 189 1 188 157
Miscellaneous 1 1 -- 1
Directional 68 (7) 75 61
Horizontal 865 17 848 658
Vertical 57 (4) 61 70
Basin
Arkoma 7 (1) 8 9
Barnett 2 -- 2 4
Cana 64 2 62 48
DJ-Niobrara 23 (1) 24 25
Eagle Ford 71 1 70 70
Fayetteville 1 1 -- 1
Granite Wash 14 2 12 12
GOM 13 -- 13 19
Haynesville 52 1 51 37
Marcellus 56 (1) 57 42
Mississippian 4 -- 4 6
Permian 437 1 436 308
Utica 24 1 23 22
Williston 54 3 51 42
Other 168 (3) 171 144
This material is prepared by the BMO Capital Markets’ Investment and Corporate Banking Department, for distribution to BMO Capital Markets’ clientele. It is not a product of
BMO Capital Markets’ Research Department. The views of the Investment and Corporate Banking Department may differ from those of the Research Department.
BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Harris Bank N.A. (member FDIC), Bank of Montreal
Ireland p.l.c, and Bank of Montreal (China) Co. Ltd and the institutional broker dealer businesses of BMO Capital Markets Corp. (Member SIPC) in the U.S., BMO Nesbitt Burns Inc.
(Member Investment Industry Regulatory Organization of Canada and Member Canadian Investor Protection Fund) in Canada and Asia and BMO Capital Markets Limited (authorised
and regulated by the Financial Conduct Authority) in Europe and Australia. “Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Inc., used under license. “BMO Capital
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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.
Geoff Roberts
MD & Head of U.S. A&D
713-518-1268
Howard Barnwell
MD & Transactions Mgr.
713-546-9767
Contacts
Disclaimer
Source of rig count stats: Baker Hughes
Rig Count Summary
MAPS IN
MASTER VIEW
Rob Priske
Director & Transactions Mgr.
713-546-9727
Legend
Current
Change
Arkoma
Barnett
Cana
DJ-Niobrara
Eagle Ford
Haynesville
Fayetteville
Granite Wash
GOM
Permian
Marcellus
Mississippian
Utica
Williston
7
(1)
2
--
64
2
23
(1)
71
1
1
1
14
2
13
--
52
1
56
(1)
4
--
437
1
24
1
54
3
Chelsea Neville
Transactions Coordinator
713-546-9703