Prompt Oil Price ($/bbl) $40.65 $1.93 5.0% Let’s follow ... · 7/6/2020 · contract closed up...
Transcript of Prompt Oil Price ($/bbl) $40.65 $1.93 5.0% Let’s follow ... · 7/6/2020 · contract closed up...
1
July 6, 2020
IndicatorCurrent
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $40.65 $1.93 5.0%
Prompt Gas Price ($/mmbtu) $1.73 $0.25 17.0%
Wkly Trans. Value ($mm) $33 ($97) (75%)
Wkly Trans. Count 3 1 50%
US Rig Count 263 (2) (0.8%)
US Oil Prod'n (mmbbl/d) 11.0 -- --
US Gas Prod'n (bcf/d)(1) 112.3 (2.6) (2.3%)
US Oil Storage (mmbbl) 533.5 (7.2) (1.3%)
US Gas Storage (tcf) 3.1 0.1 2.2%
$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 $2.6
--
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
61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 95% 74% 78% 67% 43%
Nu
mb
er
of
Tra
ns
acti
on
s
Tra
nsacti
on
Valu
e (
$b
n)
Asset Corporate Number of Transactions
% Oil% Oil% Oil
$64.3
Echo Energy Partners secured an approximate $33 million
bid from MP III Echo for their Anadarko Basin assets
BMO Capital Market has launched a new digital resource to
help clients navigate the impact of the pandemic, with new
insights on the reopening published every two weeks – read
more here
Debt
Markets
10 issuers priced 13 tranches for approximately $6.1 billion in proceeds last week
U.S. high yield funds reported an outflow of $5.6 billion
ETFs reported an outflow of $4.2 billion, while mutual funds reported an outflow of $1.3 billion
High yield index yield was 6.57%; high yield energy index yield was 10.37%
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 Mar 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 4.5% vs. SPX(2) 4.0%
The U.S. equity indexes all finished up last week. Real estate, industrials, consumer discretionary,
consumer staples, materials, healthcare, tech, and financials finished up
Equity
Markets
Oil ended last week up. Oil prices bounced back and forth last week due to bullish prices in Europe
coupled with investors’ concerns about spikes in new coronavirus infections around the world. Europe’s
economic recovery intensified in June with improvements across all sectors. In addition, China’s profits at
industrial firms rose for the first time in six months, signaling China’s economic recovery is on the horizon.
However, the fears of a second pandemic wave are preventing prices from going higher. The near-term
contract closed up $1.93, or 5.0%, at $40.65
Gas ended last week up. The supply of natural gas rose last week driven by an increase in imports from
Canada, with increased flows at border crossing points in the Northeast to meet regional demand.
Despite this, natural gas prices bounced last week due to a less-than-expected inventory build. The near-
term contract closed up $0.25, or 17.0%, at $1.73
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 June 26 to July 2, 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 $500 million of 4.20% senior notes due
2049. BMO Capital Markets acted as a Joint
Bookrunner on this transaction
All references to last week in the comments below are through Thursday
Better international/demand data and promise for strict quota adherence by Russia
Demand signals continue to trend positively, with China’s total oil demand is nearly back to the pre-COVID levels of 13.4MM. U.S. real-time
mobility data indicated that driving activity has also recovered much of the April losses. Markets were also affected by greater than expected
Lower 48 shut-ins announced during earnings season. Jet-fuel market remains extremely weak thought travel started to tick higher off historic
lows.
Fighting in Libya intensified
The EIA announced a smaller-than-expected natural gas storage build. EQT confirmed that they had shut-in a large percentage of production
due to pricing, with management noting that sales were being deferred to take advantage of an expected significant improvement in price in the
coming months. LNG cancellations continued. Temperatures across the southern states expected to increase.
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
2
July 6, 2020
Ann'd
Date Buyer Seller Area Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
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.
22-Jun-20 Tapstone Energy LLC Templar Energy LLC Mid-Continent 273,400 net acres in Anadarko Basin $65 $1.27 $3,611 $238
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.
11-May-20 Morning Star Oil Co Southland Royalty Co Other Rockies 205,000 net acres in San Juan Basin $53 n.a. $3,635 $260
04-May-20 National Fuel Gas Shell Marcellus/Utica 450,000 net acres in Appalachia $541 $4.57 $12,983 $1,202
14-Apr-20 Undisclosed Buyer Ring Energy Permian 19,998 net acres in Delaware Basin $32 $3.15 $34,615 $1,575
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
Permian21%
Rockies (ex. Bakken)
9%
Bakken4%
Appalachia8%
Mid-Con12%
Eagle Ford6%
Ark-La-Tex4%
Gulf of Mexico8%
Other29%
LTM By Region
y = 22.622e-0.061x
R² = 0.2785
--
$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 $13.84 $0.92
10x $12.24 $0.82
15x $9.00 $0.60
20x $6.62 $0.44
Oil45%
Gas55%
LTM By Commodity
Public Company
45%
PE / PE-Backed
15%
Private12%
Other28%
LTM By Buyer Type
$15.4 $26.2
$17.6 $6.3 $2.6
$5.5
$14.9
$11.4
$59.8
$0.9
$20.9
$41.1
$29.0
$66.0
$3.5
2016 2017 2018 2019 2020
535 896 614 108 62
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)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
3
July 6, 2020
7/2/2020
Appalachia 5
Ark-La-Tex 1
Bakken --
Eagle Ford 4
Mid-Con --
Other 1
Permian --
Rockies 1
12
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
1 Deal
Rockies
1 Deal
Bakken
0 Deals
Ark-La-Tex
1 Deal
BMO Deals (Status)
Siltstone Appalachia (In Market) – See page 6
U.S. Crude Stockpile Draw, Manufacturing Activity
Improves Oil Prices' Prospects
Third-Largest Oil Market Projects Faster Recovery
Than OPEC's Estimates
OPEC+ Likely to Roll Back Oil Cuts in August, As
Market Continues to Recover
Norway Sets Oil Export Records as OPEC+ Cuts
Leave a Void in the Market
Trump Administration Has Denied Most Onshore
Drilling Relief Requests
Chesapeake Asks to Cancel Pipeline Contracts, Sets
Drilling Cuts
House Democrats Chart Course to Solve Climate
Crisis by 2050
Echo Energy Partners Reports Chapter 11 Bankruptcy
(includes M&A&D activity)
Talos Energy Announces Full Year 2019 Operating
and Financial Guidance (includes A&D
announcement)
+ the EQT mineral/JV Deal
+ Antero ORRI deal
[TBU]
4
July 6, 2020
Market Insight: Assessing the Impact on M&A Activity Levels During Crises
from 1998 through Q1 2020
Source: FactSet
Note: The CBOE Volatility Index (VIX) is used as a proxy for equity volatility; ‘low volatility’ defined as periods with VIX levels below 20 and ‘high volatility’ defined as periods
with VIX levels above 20.
1. Aggregate North American transaction volumes and values over $50mm by quarter from 1998 through Q1 2020.
2. Financial buyers as a percentage of total transactions. 3. Public sellers as a percentage of total corporate transactions; asset sales are excluded.
[TBU]
DEAL VOLUME BY QUARTER(1)
--
150
300
450
600
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Dot Com
Bubble
Global
Financial
Crisis
9/11
Attack COVID-19
OPEC+
M&A activity has typically
rebounded within 2 to 4
quarters post crisis
299
251
Low Volatility High Volatility
DEALS PER QUARTER(1)
AVERAGE DEAL VALUE
(US$MM)
$916 $802
Low Volatility High Volatility
Fewer deals get done…
14%
11%
Low Volatility High Volatility
…and deals that do get done
are smaller
FINANCIAL BUYERS(1)(2) PUBLIC SELLERS(1)(3)
37%
46%
Low Volatility High Volatility
Financial buyers retrench due
to constrained access to
leverage
More public companies
become targets in part due to
observable distressed
valuation benchmarks vs.
private companies
Sharp decline in aggregate M&A deal volume and value during periods of high volatility is typically
followed by robust recovery when volatility subsides
5
July 6, 2020
NYMEX WTI Futures as of 02-Jul-20 Close ($/bbl) NYMEX Gas Futures as of 02-Jul-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $41.20 $39.58 $58.53 $55.41
2020 $40.89 $39.08 $59.17 $54.61
2021 $41.61 $40.20 $54.82 $52.82
2022 $42.47 $41.33 $52.50 $52.32
2023 $43.48 $42.45 $51.69 $52.58
2024 $44.52 $43.54 $51.80 $53.16
NYMEX Gas Futures as of 02-Jul-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.42 $2.22 $2.25 $2.41
2020 $2.09 $1.86 $2.25 $2.49
2021 $2.63 $2.57 $2.42 $2.55
2022 $2.45 $2.41 $2.41 $2.59
2023 $2.40 $2.35 $2.45 $2.66
2024 $2.42 $2.37 $2.49 $2.76
Historical Prices as of 02-Jul-20 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.20 $0.19 $0.15 $0.14
Propane $0.47 $0.48 $0.45 $0.44
Butane $0.46 $0.45 $0.67 $0.42
Iso-butane $0.54 $0.53 $0.82 $0.57
Pentane+ $0.60 $0.24 $1.23 $1.08
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
$5
Jul-19 Jan-20 Jul-20 Jan-21 Jul-21
($/m
mb
tu)
$10
$20
$30
$40
$50
$60
$70
Jul-19 Jan-20 Jul-20 Jan-21 Jul-21
($/b
bl)
Historical Prices as of 25-Jun-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.19$0.23$0.18$0.15Propane$0.48$0.51$0.47$0.47Butane$0.45$0.51$0.68$0.46Iso-butane$0.53$0.57$0.84$0.62Pentane+$0.24$0.42$1.25$1.12
NGL PRICING(2)
HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)
Commodity Prices
NYMEX WTI Futures as of 25-Jun-20 Close ($/bbl)NYMEX Gas Futures as of 25-Jun-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$39.58$39.66$58.50$56.842020$39.08$39.27$59.15$56.032021$40.20$40.37$54.73$54.412022$41.33$41.53$52.30$54.012023$42.45$42.71$51.36$54.282024$43.54$43.92$51.38$54.71
NYMEX Gas Futures as of 25-Jun-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.22$2.36$2.25$2.452020$1.86$2.03$2.25$2.552021$2.57$2.65$2.41$2.612022$2.41$2.46$2.42$2.642023$2.35$2.39$2.46$2.712024$2.37$2.40$2.50$2.81 NYMEX Gas Futures as of 25-Jun-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.22$2.36$2.25$2.452020$1.86$2.03$2.25$2.552021$2.57$2.65$2.41$2.612022$2.41$2.46$2.42$2.642023$2.35$2.39$2.46$2.712024$2.37$2.40$2.50$2.81
Historical Prices as of 25-Jun-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.19$0.23$0.18$0.15Propane$0.48$0.51$0.47$0.47Butane$0.45$0.51$0.68$0.46Iso-butane$0.53$0.57$0.84$0.62Pentane+$0.24$0.42$1.25$1.12
NYMEX WTI Futures as of 25-Jun-20 Close ($/bbl)NYMEX Gas Futures as of 25-Jun-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$39.58$39.66$58.50$56.842020$39.08$39.27$59.15$56.032021$40.20$40.37$54.73$54.412022$41.33$41.53$52.30$54.012023$42.45$42.71$51.36$54.282024$43.54$43.92$51.38$54.71
Source: BMO Commodity Products Group, Bloomberg, FactSet
1. Future prices are calendar year average unless stated otherwise.
2. Assumes typical Gulf Coast barrel composition.
WTI OIL (HISTORICAL / FORECAST)
Links:
http://www.nasdaq.com/markets/crude-oil.aspx
http://www.bloomberg.com/quote/CL1:COM
http://www.nasdaq.com/markets/natural-gas.aspx
http://www.bloomberg.com/quote/NG1:COM
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
[TBU]
[TBU]
[TBU]
6
July 6, 2020
Clearbrook
Midland
Cushing
St. James
(LLS)
East Coast
U.S. (Brent)
Midland Sweet-
Sour Spread
EMS
AECO
Northern
California
Sumas
Southern
California
El Paso - SJ
Waha
HSC
Henry Hub
Panhandle
CIG Chicago
Dominion
Transco
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 2-JUL-20
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 2-JUL-20
$2.41
$0.68
Legend
Price
Diff.
Legend
Price
Diff.
Source: BMO Commodity Products Group, Bloomberg
Note: Prices and differentials are for prompt month futures except for Clearbrook which is based on spot prices.
MAPS IN
MASTER VIEW
[TBU]
[TBU]
[TBU]
$1.37
($0.36)
$37.97
($2.68)
$1.54
($0.19)
$1.50
($0.23)
$1.47
($0.26)
$41.91
$1.26
$1.50
($0.23)
$1.67
($0.06)
$1.92
$0.19
$1.68
($0.05)
$43.14
$2.49
($0.01)
$40.65
$40.81
$0.16
$1.34
($0.39)
$1.73
--
$1.73
$1.40
($0.33)
$39.05
($1.60)
7
July 6, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 126 (5) 131 Oil Differential $0.35 $0.45 ($0.10)
Permitting Activity 91 (9) 100 Gas Differential ($0.31) ($0.06) ($0.25)
-$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
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
784 753596
851744
803967
843706
544
296
475
15
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-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 Gas4,723
16,675
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 29-FEB-20)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU] [TBU]
[TBU] [TBU]
[TBU]
[TBU]
[TBU]
[TBU]
8
July 6, 2020
-$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
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 15 -- 15 Oil Differential $1.05 $0.35 $0.70
Permitting Activity 7 1 6 Gas Differential ($0.01) $0.02 ($0.03)
0%
5%
10%
15%
20%
--
100
200
300
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
173201 192
221 204 204
302
170180
7843 28
0
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20
H V+D
6,000
6,500
7,000
7,500
8,000
1,000
1,200
1,400
1,600
1,800
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
1,412
7,368
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($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 29-FEB-20)
[TBU]
9
July 6, 2020
-$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
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 33 1 32 Oil Differential $1.40 $0.50 $0.90
Permitting Activity 10 (3) 13 Gas Differential -- -- --
0%
5%
10%
15%
20%
--
20
40
60
80
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
108
198218
99
171
81 82 84 8039 34 43
3
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20
H V+D
5,000
6,500
8,000
9,500
11,000
12,500
14,000
60
70
80
90
100
110
120
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
74
12,650
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
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
19-Nov-18 Aethon III QEP Resources Inc 49,700 net acres in Haynesville $735 $0.77 $2,475 $14,789
05-Sep-18 Viking Energy Group Multiple Sellers Texas and Louisiana assets $100 n.a. n.a. n.a.
Mean $300 $0.47 $2,198 $6,944
Median $100 $0.47 $2,475 $6,270
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
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 3 1 1 2 1 3 0 1 2 0 1 1 1 1 0 1 1 0 0
$ /
acre
# Deals
$3,180
--$2,000$4,000$6,000$8,000
$10,000$12,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 5 1 1 3 2 3 0 2 2 0 1 1 2 1 0 1 1 1 0
$ /
mcfe
/d
# Deals
$3,983
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 29-FEB-20)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
10
July 6, 2020
347302 295
258232
188157
226253
186
92128
0
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20
H V+D
-$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
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 36 -- 36 Oil Differential $2.49 $0.11 $2.38
Permitting Activity 2 (33) 35 Gas Differential ($0.43) ($0.23) ($0.20)
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
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
153
33,528
--$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
0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1 1 0 2 1 1 3
$ /
mcfe
/d
# Deals
$4,722
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
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
24-Jan-20 KeyBank EdgeMarc Energy Holdings 32,217 net acres in Pennsylvania $70 $0.09 $801 $2,163
Mean $250 $0.38 $1,783 $1,145
Median $125 $0.34 $2,008 $1,202
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
0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0 0 0 0 0 0 1
$ /
acre
# Deals
$497
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]
11
July 6, 2020
-$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
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 10 -- 10 Oil Differential ($1.60) $0.15 ($1.75)
Permitting Activity 9 (9) 18 Gas Differential ($0.23) ($0.17) ($0.05)
0%
5%
10%
15%
20%
--
50
100
150
200
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
154138
110
157
8380
7867 76 67 61
79
0
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20
H V+D
1,500
1,800
2,100
2,400
2,700
3,000
3,300
3,600
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas 1,443
3,147
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($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 29-FEB-20)
[TBU]
[TBU]
[TBU]
12
July 6, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 6 1 5 Oil Differential ($1.60) $0.15 ($1.75)
Permitting Activity 19 (27) 46 Gas Differential ($0.23) ($0.17) ($0.05)
-$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
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
286
434
327297
168213
268199
286
210 225197
0
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20
H V+D
13,000
13,500
14,000
14,500
15,000
15,500
500
600
700
800
900
1,000
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas 934
13,643
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 29-FEB-20)
[TBU]
[TBU]
[TBU]
13
July 6, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 12 -- 12 Oil Differential -- -- --
Permitting Activity 23 9 14 Gas Differential ($0.22) ($0.04) ($0.19)
-$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
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
356329 348 344 347
296 283261
202
73 81105
1
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-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 Gas733
13,102
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
26-Jun-20 MP III Echo LLC Echo Energy Partners 19,989 net acres in Anadarko Basin $33 n.a. $4,198 $1,649
22-Jun-20 Tapstone Energy LLC Templar Energy LLC 273,400 net acres in Anadarko Basin $65 $1.27 $3,611 $238
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 $98 $1.69 $5,490 $884
Median $100 $1.57 $4,758 $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
--
$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 4 1 3 1 6 3 1 4 2 4 5 2 2 5 4 2 0 4 2 0 3
$ /
bo
e/d
# Deals
$17,535
--
$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
1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 1 0 0 0 0 0 0
$ /
acre
# Deals
$4,284
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 29-FEB-20)
[TBU]
[TBU]
[TBU]
14
July 6, 2020
-$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
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 12 1 11 Oil Differential $1.40 $0.50 $0.90
Permitting Activity 11 7 4 Gas Differential -- -- --
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
3027
21 2123
16
22 2220
1115
19
4
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-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 29-FEB-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
1,962
2,851
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
15
July 6, 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 11 IPAA Leaders in Industry Luncheon
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 19-21 DUG Permian (Fort Worth)
Apr 20 Houston Producers Forum Luncheon
July 2020 Jul 20-22 SPE Unconventional Resources Tech. (virtual)
August 2020 Aug 10-11 Mineral & Royalty Conference (virtual)
Aug 11-27 Summer NAPE (virtual)
Aug 17-19 Enercom Oil & Gas Conference
Aug 18 Houston Producers Forum Luncheon
Aug 18-19 DUG Midcontinent (virtual)
Aug 21 ADAM-Houston Monthly Luncheon
September 2020 Sep 9 IPAA Leaders in Industry Luncheon
Sep 8-10 DUG Permian Basin & Eagle Ford (San Antonio)
Sep 15 Houston Producers Forum Luncheon
Sep 18 ADAM-Houston Monthly Luncheon
October 2020 Oct 13-14 DUG Haynesville (Shreveport)
Oct 14 IPAA Leaders in Industry Luncheon
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 9 IPAA Leaders in Industry Luncheon
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
February 2021 Feb DUG Energy ESG 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
March 2021 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 12 IPAA Leaders in Industry Luncheon
May 18 Houston Producers Forum Luncheon
May 21 ADAM-Houston Monthly Luncheon
May 26-27 DUG Haynesville (Shreveport)
16
July 6, 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
Investment Industry Regulatory Organization of Canada and Member Canadian Investor Protection Fund) in Canada and Asia, Bank of Montreal Europe p.l.c. (authorised and regulated
by the Central Bank of Ireland) in Europe and BMO Capital Markets Limited (authorised and regulated by the Financial Conduct Authority) in the UK and Australia. “Nesbitt Burns” is a
registered trademark of BMO Nesbitt Burns Inc., used under license. “BMO Capital Markets” is a trademark of Bank of Montreal, used under license. "BMO (M-Bar roundel symbol)" is a
registered trademark of Bank of Montreal, used under license. ® Registered trademark of Bank of Montreal in the United States, Canada and elsewhere. TM Trademark of Bank of
Montreal in the United States and Canada. © 2020 BMO Financial Group.
Bank of Montreal or its subsidiaries (“BMO Financial Group”) has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets.
The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital
Markets endeavors to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and
complete. However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained
herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its
affiliates that is not reflected in this report. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual client
objectives, should not be construed as advice designed to meet the particular investment needs of any investor. This material is for information purposes only and is not an offer to sell or
the solicitation of an offer to buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.
BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securities discussed herein, related securities or in options, futures or
other derivative instruments based thereon. BMO Capital Markets may act as financial advisor and/or underwriter for the issuers mentioned herein and may receive remuneration for
same. The reader should assume that BMO Capital Markets or its affiliates may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or
sell securities of issuers discussed herein. All values in this document are in US$ unless otherwise specified.
Source of rig count stats: Baker Hughes
Rig Count Summary MAPS IN
MASTER VIEW
Contacts
Disclaimer
Jason Martinez
MD & Head of U.S. A&D
713-546-9771
Howard Barnwell
MD & Transactions Mgr.
713-546-9767
Rob Priske
MD & Transactions Mgr.
713-546-9727
Dan Schockling
MD & Head of Commercial
713-518-1223
Michael Hackett
Vice President
Marian Yu
Associate
Aaron Moeller
Associate
BMO uses updated basin outlines, and the resulting rig counts, to more accurately represent current basin knowledge. The data below reflect these changes
and is different than those shown by Baker Hughes. The totals are the same.
126
(5)
10
--
8
(1)
28
14
--
12
1
--
--9
--
33
1
15
--
4
--
1
--
--
--1
1
Michelle Tankimovich
Analyst
This
Week Change
Last
Week
Last
Year
Total Rigs 263 (2) 265 963
Oil 185 (3) 188 788
Gas 76 1 75 174
Miscellaneous 2 -- 2 1
Directional 20 -- 20 66
Horizontal 226 (4) 230 839
Vertical 17 2 15 58
Basin
Permian 126 (5) 131 443
SCOOP/STACK/Merge 9 -- 9 78
Granite Wash -- -- -- 9
Eagle Ford 15 -- 15 87
Haynesville 33 1 32 57
Marcellus 28 1 27 59
Utica 8 (1) 9 18
Williston 10 -- 10 55
DJ-Niobrara 4 -- 4 26
Green River 1 1 -- 17
Powder River -- -- -- 19
Piceance 1 -- 1 5
Gulf Coast Onshore 4 -- 4 23
GOM 12 1 11 24
Alaska 3 -- 3 9
Other 9 -- 9 34
Mid-Con 3 -- 3 14
Rockies -- -- -- 2
Western 5 -- 5 18
Eastern 1 -- 1 --
[TBU]