1

August 5, 2019

$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

$7.4

--

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

61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 95% 73%

Nu

mb

er

of

Tra

ns

ac

tio

ns

Tra

ns

ac

tio

n V

alu

e (

$b

n)

Asset Corporate Number of Transactions

% Oil% Oil% Oil

$64.3

IndicatorCurrent

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $53.95 ($2.07) (3.7%)

Prompt Gas Price ($/mmbtu) $2.20 ($0.04) (1.8%)

Wkly Trans. Value ($mm) $3,015 $2,030 206%

Wkly Trans. Count 8 4 100%

US Rig Count 942 (4) (0.4%)

US Oil Prod'n (mmbbl/d) 12.2 0.9 8.0%

US Gas Prod'n (bcf/d)(1) 109.2 (0.7) (0.6%)

US Oil Storage (mmbbl) 436.5 (8.5) (1.9%)

US Gas Storage (tcf) 2.6 0.1 2.5%

Ecopetrol and Occidental Petroleum Corporation formed a $1.5

billion joint venture to develop acreage in Midland Basin

Viper Energy Partners signed an agreement to acquire mineral

and royalty interests from Diamondback Energy in a transaction

valued at $700 million

Osaka Gas acquired Sabine Oil & Gas for $610 million (see page

4 for more detail)

Continental Resources acquired additional leasehold in the

SCOOP for $79.5 million

Continental concurrently announced that it sold its eastern

STACK water gathering and recycling system in Blaine County,

OK for $85 million to Lagoon Water Solutions

Harvest Oil & Gas Corporation divested Barnett Shale assets for

$72 million

Whiting Petroleum sold 6,800 non-op net acres for $53 million

INPEX Corporation acquired U.S. Gulf of Mexico assets from

Anadarko

Concho Resources and Solaris Water Midstream formed a joint

venture focused on optimizing produced water logistics at scale in

the Northern Delaware Basin

Debt

Markets

Ten issuers priced 12 tranches for $8.1 billion in proceeds

U.S. high yield funds reported an outflow of $115 million

High yield index yield was 6.01%; high yield energy index yield was 8.45%

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

Note: Current quarter’s data is through the week covered by this issue.

1. EIA U.S. natural gas gross withdrawals and production reported monthly as of May 2019.

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

Key Industry Indicators

Quarterly Deal Activity

S&P E&P(2) underperformed last week (3.8)% vs. SPX(2) (1.7)%

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

financials, industrials, materials, health care, and technology finished lower. Real estate finished higher

Equity

Markets

Oil ended last week down. On Thursday, WTI had the worst drop in four years. President Trump announced

10% tariffs on an additional $300 billion of Chinese imports, including technology products and consumer

products. The U.S. Fed announced a rate cut. The news of a tighter military alliance between Russia and Iran

with planned activities in the Strait also affected the market. Additionally, Israel expanded airstrikes against

Iranian assets in Iraq and Syria in the last couple of weeks. The near-term contract closed down $2.07, or

3.7%, at $53.95

Natural gas ended last week down. Cameron LNG received FERC approval to start service. Transwestern

announced a force majeure on its westbound line from WAHA to New Mexico following a compressor

malfunction. There was also an explosion on TETCO that caused a force majeure to be issued south of the

Dansville Compressor station in Kentucky. The EIA storage number had a higher build than expected. The

near-term contract closed down $0.04, or 1.8%, at $2.20

Commodities

Week in Review

Let’s follow these guidelines when sorting articles:

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

• Next: Domestic M&A

• Then: US companies doing international deals (like

Noble’s Tamar)

• Then: Others (Cabot’s Lackawanna)

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

To paste the arrows with colors,

• FactSet

• Settings

• Presentation Linking and Formatting

• Import

• Colors

• Change Color Font Covering the Week of July 26 to August 1, 2019

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

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

BMO Capital Markets team!

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

Monitor went live last week – read more here

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

WTI had the worst drop in four years on Thursday. President Trump

announced 10% tariffs on an additional $300 billion of Chinese imports,

including technology products and many consumer products. The U.S.

Fed announced a rate cut. The news of a tighter military alliance

between Russia and Iran with planned activities in the Strait also

affected the market. Additionally, Israel expanded airstrikes against

Iranian assets in Iraq and Syria in the last couple of weeks.

Cameron LNG received FERC approval to start service. Transwestern

announced a force majeure on its westbound line from WAHA to New

Mexico following a compressor malfunction. There was also an

explosion on TETCO that caused a force majeure to be issued south of

the Dansville Compressor station in Kentucky. The EIA storage number

had a higher build than expected.

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU] [TBU]

[TBU]

2

August 5, 2019

Ann'd

Date Buyer Seller Area Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

31-Jul-19 Continental Resources Inc Undisclosed Seller Mid-Continent SCOOP assets $80 n.a. n.a. n.a.

31-Jul-19 Ecopetrol Oxy Permian Midland Basin JV $1,500 n.a. n.a. $31,559

31-Jul-19 Undisclosed Buyer Whiting Petroleum Multi-Region 6,800 net acres in non-op assets $53 n.a. $75,391 $7,794

30-Jul-19 Bedrock Energy Partners Harvest Oil & Gas Corp Barnett ~32,000 net acres in Barnett Shale $72 $1.56 $7,770 $2,250

30-Jul-19 Viper Energy Partners Diamondback Energy Permian Permian royalty assets $700 n.a. $175,000 nmf

29-Jul-19 Osaka Gas Sabine Oil & Gas Corp Ark-La-Tex 175,000 net acres in East TX $610 n.a. $17,429 $3,486

24-Jul-19 Diversified Gas & Oil EdgeMarc Energy Holdings Marcellus/Utica 12,730 net acres in Ohio Utica $50 $1.92 $4,616 $3,928

23-Jul-19 Colony Capital Inc California Resources Corp California San Joaquin Basin JV $320 n.a. n.a. n.a.

19-Jul-19 Multiple Range Resources Corp Marcellus/Utica Southwest Applachia ORRIs $600 n.a. $94,742 nmf

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

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

Oil66%

Gas34%

LTM By Commodity

Permian25%

Rockies (ex. Bakken)

10%

Bakken4%

Appalachia5%

Mid-Con16%

Eagle Ford6%

Ark-La-Tex5%

Gulf of Mexico5%

Other24%

LTM By Region

Public Company

44%

PE / PE-Backed

20%

Private7%

Other29%

LTM By Buyer Type

R / P

Sales Value /

Proved Reserves

(15:1)

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

8x $18.24 $1.22

10x $15.92 $1.06

15x $11.31 $0.75

20x $8.04 $0.54

y = 31.5e-0.068x

R² = 0.3404

--

$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

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

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

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

(2) (2) (2)

Confirm number of transactions weekly --->

[TBU]

[TBU]

[TBU]

YTD Deal Activity ($bn)(4)

$17.6 $30.4 $31.8

$10.5

$7.6

$14.9 $11.4 $63.0

$25.2

$45.4 $43.2

$73.4

2016 2017 2018 2019

656 1,029 665 132

Asset Corporate

Deal Count

3

August 5, 2019

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

Appalachia

2 Deals

Mid-Con

6 Deals

Eagle Ford

9 Deals

Permian

17 Deals

Other

11 Deals

Rockies

4 Deals

(Click headline to link to the full article)

M&A&D Headlines

Bakken

5 Deals

Ark-La-Tex

3 Deals

BMO Deals (Status)

Enerplus Elm Coulee (In Market) – See page 6

OPEC Production Lowest Since 2014 as U.S. Squeeze on

Iran Continues

Industry Economist Sees Headwinds Inhibiting U.S., Texas

Upstream Expansion During 2H-2019

BP Avoids Sending its Tankers through the Strait of Hormuz

Big Crude Inventories Draw Gives Bullish Boost to Oil

EIA: U.S. Crude Oil Production Continues to Set Records

Global Energy Workforce Shifting from Onshore Shale to

Offshore

Oil Slides as Dollar Strengthens After Fed's Cautious Rate

Cut

Excess Supply Drives Asia LNG to 10-Year Low

Concho Resources Inc. and Solaris Water Midstream Form

Joint Venture for Produced Water Management in the

Northern Delaware Basin

Ecopetrol and Occidental Form Strategic Partnership to

Develop Acreage in Midland Basin

Viper Energy Partners LP, a Subsidiary of Diamondback

Energy, Inc., Reports Second Quarter 2019 Financial and

Operating Results; Announces Significant Drop Down

Transaction

Japan's Osaka Gas to Buy Sabine Oil for $610 Million

ConocoPhillips Reports Second-Quarter 2019 Results;

Delivered Strong Free Cash Flow and Financial Returns;

Raised 2019 Planned Share Buybacks (includes A&D

announcement)

Continental Resources Announces $85 Million Divestiture of

Water Handling Facility in STACK and Strategic Initiatives

(includes A&D announcement)

Harvest Oil & Gas Announces Divestiture of Barnett Shale

Assets

Whiting Petroleum Corporation Announces Second Quarter

2019 Financial and Operating Results (includes A&D

announcement)

INPEX Acquires Keathley Canyon Blocks 921/965

Talos Energy Announces Full Year 2019 Operating

and Financial Guidance (includes A&D

announcement)

BMO Deals (Status)

Juno Permian (In Market) – See page 4

Rio Glasscock County (In Market) – See page 5

[TBU]

[TBU] [TBU]

7/28/2019

Appalachia 2

Ark-La-Tex 3

Bakken 5

Eagle Ford 9

Mid-Con 6

Other 11

Permian 17

Rockies 4

57

[TBU]

4

August 5, 2019

On July 29, 2019, Osaka Gas Co Ltd (“Osaka”)

announced it acquired Sabine Oil & Gas Corporation

(“Sabine”) for $610 million

This transaction is expected to close by YE 2019

TRANSACTION SUMMARY

Source: Press releases, company disclosure, marketing brochure

1. Value adjusted by $2,000 per flowing mcfe/d.

ASSET SUMMARY

175,000 net acres in East Texas

Primarily in Harrison, Panola, Rusk, and Upshur

counties, TX

66,768 net acres targeting the Haynesville

1,200 wells producing 210 mmcfe/d

Significant drilling inventory in the Haynesville and

Cotton Valley formations

Proved developed reserves of 490 bcfe

~1,695 undeveloped locations

1,066 Haynesville

620 Cotton Valley

9 Other

Interesting Deal of the Week:

Osaka Gas Acquires Sabine Oil & Gas for $610 Million

ACQUIRED ASSETS TRANSACTION METRICS

Rockies

Permian

Gulf of Mexico

Algeria

Ghana

Mozambique

This transaction marks the first acquisition of a U.S.

shale gas developer by a Japanese company

In July 2018, Osaka bought a 35% stake in the

eastern half of the asset being developed by Sabine

OBSERVATIONS

Purchase Price (US$ mm)

Total Consideration $610

Metrics

Net Acres 175,000

Haynesville Net Acres 66,768

Net Production (mcfe/d) 210,000

Undeveloped Locations 1,695

Proved Developed Reserves (bcfe) 490

Multiples

TEV / Net Acres ($/acre) $3,486

TEV / Adj. Net Acres ($/acre)(1) $1,086

TEV / Haynesville Net Acres ($/acre) $9,136

TEV / Adj. Haynesville Net Acres ($/acre)(1) $2,846

TEV / Net Production ($/mcfe/d) $2,905

TEV / Net Location ($mm/location) $0.4

TEV / Adj. Net Location ($mm/location)(1) $0.1

TEV / PD Reserves ($/mcfe) $1.24

Sabine Assets

5

August 5, 2019

25%

35%

45%

55%

65%

Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19

% o

f W

TI

NGL as % of WTI

$1

$2

$3

$4

$5

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

($/m

mb

tu)

$20

$30

$40

$50

$60

$70

$80

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

($/b

bl)

Historical Prices as of 01-Aug-19 Close ($/gal)

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

Ethane $0.13 $0.14 $0.35 $0.37

Propane $0.45 $0.49 $0.70 $0.94

Butane $0.47 $0.50 $0.75 $1.03

Iso-butane $0.66 $0.60 $0.93 $1.15

Pentane+ $1.03 $1.03 $1.19 $1.51

NYMEX Gas Futures as of 01-Aug-19 Close ($/mmbtu)

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

12 Mo. Strip $2.40 $2.41 $2.84 $2.76

2019 $2.30 $2.32 $2.79 $2.71

2020 $2.48 $2.49 $2.70 $2.60

2021 $2.55 $2.55 $2.62 $2.57

2022 $2.73 $2.73 $2.80 $2.71

2023 $2.73 $2.73 $2.80 $2.71

NYMEX WTI Futures as of 01-Aug-19 Close ($/bbl) NYMEX Gas Futures as of 01-Aug-19 Close ($/mmbtu)

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

12 Mo. Strip $53.37 $55.71 $56.33 $64.62

2019 $53.99 $56.18 $56.32 $63.69

2020 $52.65 $55.06 $55.82 $60.52

2021 $50.77 $53.09 $54.77 $57.99

2022 $50.21 $52.27 $54.22 $56.13

2023 $50.64 $52.31 $54.13 $54.91

NGL PRICING(2)

HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)

Commodity Prices

Source: BMO Commodity Products Group, Bloomberg, FactSet

1. Future prices are calendar year average unless stated otherwise.

2. Assumes typical Gulf Coast barrel composition.

WTI OIL (HISTORICAL / FORECAST)

Links:

http://www.nasdaq.com/markets/crude-oil.aspx

http://www.bloomberg.com/quote/CL1:COM

http://www.nasdaq.com/markets/natural-gas.aspx

http://www.bloomberg.com/quote/NG1:COM

Link to Detailed

Futures Data

Link to Detailed

Historical Graph

Link to Detailed

Futures Data

Link to Detailed

Historical Graph

[TBU]

[TBU]

[TBU]

6

August 5, 2019

Clearbrook

Midland

Cushing

St. James

(LLS)

East Coast

U.S. (Brent)

Midland Sweet-

Sour Spread

EMS

AECO

Northern

California

Sumas

Southern

California

El Paso - SJ

Waha

HSC

Henry Hub

Panhandle

CIG Chicago

Dominion

Transco

NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 01-AUG-19

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 01-AUG-19

Legend

Price

Diff.

Legend

Price

Diff.

Source: BMO Commodity Products Group, Bloomberg

Note: Prices and differentials are for prompt month futures except for Clearbrook which is based on spot prices.

MAPS IN

MASTER VIEW

TBU

[TBU]

[TBU]

$53.95

($1.08) $57.80

$3.85

$1.67

($0.53)

$1.62

($0.58)

$2.20

$1.99

($0.21)

$54.03

$0.08

$60.50

$6.55

$56.20

$2.25

$47.21

($6.74)

$1.86

($0.34)

$2.11

($0.09)

$1.20

($1.00)

$1.55

($0.65)$1.67

($0.53)$2.27

$0.07

$0.94

($1.26)$1.80

($0.40)

$2.56

$0.36

[TBU]

7

August 5, 2019

0%

10%

20%

30%

40%

50%

--

100

200

300

400

500

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

H V+D % of Total Rigs

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

Rig Count 442 (1) 443 Oil Differential ($1.00) $1.85 ($2.85)

Permitting Activity 122 (90) 212 Gas Differential ($1.03) $0.35 ($1.39)

-$4.80

-$3.20

-$1.60

$0.00

$1.60

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

-$18.00

-$12.00

-$6.00

$0.00

$6.00

$ /

mm

btu

$ /

bb

l

Midland Waha

1,148 1,223993

1,212

1,010868

1,247

1,0651,207

1,050

1,256

910760

Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19

H V+D

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

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

mm

cf/

d

mb

bl/

d

Oil Gas

4,038

13,520

--

$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

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

$ /

bo

e/d

# Deals

$119,063

--$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

1 2 8 8 6 6 12 13 15 7 3 2 7 2 5 4 1 2 0

$ /

acre

# Deals

$25,753

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

31-Jul-19 Ecopetrol Oxy Midland Basin JV $1,500 n.a. n.a. $31,559

30-Jul-19 Viper Energy Partners Diamondback Energy Permian royalty assets $700 n.a. $175,000 nmf

24-Jun-19 Alliance Resource Partners Wing Resources Midland Basin mineral interests $145 n.a. n.a. nmf

07-May-19 Sabinal; Undisclosed Diamondback Energy CBP, NW Shelf, & Midland Basin $322 n.a. $49,538 $2,927

08-Apr-19 Sequitur Energy Resources Callon 9,850 net acres in Reagan & Upton, TX $260 n.a. $65,000 $26,396

Mean $585 n.a. $96,513 $20,294

Median $322 n.a. $65,000 $26,396

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 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.

4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.

[TBU]

[TBU]

[TBU] [TBU]

[TBU] [TBU]

[TBU]

8

August 5, 2019

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

Rig Count 81 -- 81 Oil Differential $4.10 ($0.55) $4.65

Permitting Activity 41 (17) 58 Gas Differential ($0.09) ($0.01) ($0.08)

0%

5%

10%

15%

20%

--

100

200

300

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

H V+D % of Total Rigs

-$0.30

-$0.20

-$0.10

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

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

-$6.00

-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

MEH HSC

379

455

329402

350315

398

353

472

351401

222174

Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19

H V+D

--$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

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

$ /

acre

# Deals

$6,130

--

$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

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

$ /

bo

e/d

# Deals

$68,384

6,000

6,500

7,000

7,500

8,000

1,000

1,200

1,400

1,600

1,800

2,000

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

mm

cf/

d

mb

bl/

d

Oil Gas

1,344

6,908

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

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

19-Nov-18 Lonestar Resources Inc Sabine Oil & Gas Corp 2,706 net acres in Eagle Ford $39 $2.98 $48,375 $14,302

20-Sep-18 WildHorse Undisclosed Seller 20,305 net Eagle Ford/Austin Chalk acres $35 n.a. n.a. $1,743

07-Sep-18 Undisclosed Buyer Viking Minerals LLC 1,191 net royalty acres in Eagle Ford $28 n.a. n.a. nmf

31-Jul-18 EP Energy Corp Undisclosed Seller Additional working interests in Eagle Ford $31 n.a. n.a. n.a.

Mean $33 $2.98 $38,222 $6,960

Median $31 $2.98 $38,222 $4,836

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

Eagle Ford Snapshot

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS RIG COUNT

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

Note: Current quarter’s data is through the week covered by this issue.

1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.

3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.

4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.

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

GROSS PRODUCTION

9

August 5, 2019

0%

5%

10%

15%

20%

--

20

40

60

80

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

H V+D % of Total Rigs

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

Rig Count 58 -- 58 Oil Differential $4.75 ($1.50) $6.25

Permitting Activity 22 2 20 Gas Differential -- -- --

--

$2.00

$4.00

$6.00

$8.00

$10.00

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

--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

163 168 177 180

115

105

174

113 116 116132

82 87

Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19

H V+D

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

70

80

90

100

110

120

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

mm

cf/

d

mb

bl/

d

Oil Gas

79

11,229

--$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

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

$ /

mcfe

/d

# Deals

$4,808

--

$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

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

$ /

acre

# Deals

$3,267

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

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.

05-Sep-18 Equinor Texegy LLC 60,000 net acres in Austin Chalk $75 n.a. n.a. $1,250

Mean $308 $0.77 $2,690 $7,145

Median $100 $0.77 $2,690 $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

Ark-La-Tex Snapshot

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS RIG COUNT

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

Note: Current quarter’s data is through the week covered by this issue.

1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.

3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.

4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.

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

GROSS PRODUCTION

10

August 5, 2019

0%

5%

10%

15%

20%

--

50

100

150

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

H V+D % of Total Rigs

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

Rig Count 72 -- 72 Oil Differential $6.55 ($1.00) $7.55

Permitting Activity 17 (25) 42 Gas Differential ($0.37) ($0.07) ($0.30)

-$3.00

-$2.00

-$1.00

$0.00

$1.00

$2.00

$3.00

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

-$15.00

-$10.00

-$5.00

$0.00

$5.00

$10.00

$15.00

$ /

mm

btu

$ /

bb

l

Brent Dominion

269

493

373 370305

258

397

276

382419

384

248 233

Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19

H V+D

--$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

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

$ /

mcfe

/d

# Deals

$4,878

--$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

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

$ /

acre

# Deals

$2,083

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

24-Jul-19 Diversified Gas & Oil EdgeMarc Energy Holdings 12,730 net acres in Ohio Utica $50 $0.32 $769 $3,928

19-Jul-19 Multiple Range Resources Corp Southwest Applachia ORRIs $600 n.a. $15,790 nmf

30-Jun-19 Undisclosed Buyer Range Resources Corp 20,000 non-producing net acres in PA $34 n.a. n.a. $1,700

27-Mar-19 Diversified Gas & Oil HG Energy II LLC Huckleberry assets in Appalachia $400 n.a. $3,227 n.a.

15-Oct-18 Undisclosed Buyer Range Resources Corp Overriding royalty interests in Appalachia $300 n.a. $17,649 nmf

Mean $277 $0.32 $9,359 $2,814

Median $300 $0.32 $9,509 $2,814

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

14,000

19,000

24,000

29,000

34,000

50

70

90

110

130

150

170

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

mm

cf/

d

mb

bl/

d

Oil Gas

101

30,246

Appalachia Snapshot

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS RIG COUNT

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

Note: Current quarter’s data is through the week covered by this issue.

1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.

3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.

4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.

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

GROSS PRODUCTION

11

August 5, 2019

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

Rig Count 47 -- 47 Oil Differential $2.25 $1.75 $0.50

Permitting Activity 16 (18) 34 Gas Differential ($0.58) ($0.10) ($0.48)

0%

5%

10%

15%

20%

--

50

100

150

200

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

H V+D % of Total Rigs

-$1.00

-$0.50

$0.00

$0.50

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

-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

171 164

127

201

128

96

133114

144 138 145 144 148

Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19

H V+D

1,100

1,300

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

800

900

1,000

1,100

1,200

1,300

1,400

1,500

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

mm

cf/

d

mb

bl/

d

Oil Gas

1,413

2,884

--

$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

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

$ /

acre

# Deals

$2,702

--

$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

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

$ /

bo

e/d

# Deals

$43,737

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

22-Apr-19 Northern Oil and Gas Flywheel Energy LLC 18,000 net acres in Williston Basin $310 n.a. $47,014 $17,238

31-Jul-18 Northern Oil and Gas W Energy Partners 10,600 net acres in Williston Basin $288 n.a. $42,708 $27,196

18-Jul-18 Northern Oil and Gas Pivotal Petroleum Partners LP Producing assets in Williston Basin $152 n.a. $37,032 n.a.

12-Jul-18 PetroShale Inc Slawson Exploration Co 1,981 net acres in Williston Basin $55 $6.04 $100,000 $27,764

06-Jul-18 Energy Resources 12 LP Bruin E&P Partners LLC 2.8% non-operated WI in Bakken assets $83 n.a. n.a. n.a.

Mean $178 $6.04 $56,688 $24,066

Median $152 $6.04 $44,861 $27,196

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

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

Bakken Snapshot

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS RIG COUNT

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

Note: Current quarter’s data is through the week covered by this issue.

1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.

3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.

4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.

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

GROSS PRODUCTION

12

August 5, 2019

0%

5%

10%

15%

20%

--

50

100

150

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

H V+D % of Total Rigs

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

Rig Count 77 -- 77 Oil Differential $2.25 $1.75 $0.50

Permitting Activity 55 (1) 56 Gas Differential ($0.58) ($0.10) ($0.48)

-$1.00

-$0.50

$0.00

$0.50

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

-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

683

526 512

689

829 812

352402

494

328

164259 266

Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19

H V+D

12,500

13,000

13,500

14,000

14,500

15,000

15,500

500

600

700

800

900

1,000

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

mm

cf/

d

mb

bl/

d

Oil Gas

873

13,639

--

$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

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

$ /

acre

# Deals

$4,655

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

$100,000$120,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

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

$ /

bo

e/d

# Deals

$37,548

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

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

31-Jan-19 Undisclosed Buyer Extraction Oil & Gas 5,000 net acres in Powder River $22 n.a. n.a. $4,480

01-Oct-18 DJR Energy LLC Encana 182,000 net acres in San Juan Basin $480 n.a. $88,889 $2,637

28-Aug-18 Vermilion Energy Inc Massif Oil & Gas LLC 55,000 acres in Powder River Basin $150 n.a. $56,604 $2,727

28-Aug-18 Rebellion Energy II LLC Liberty Resources II LLC 19,000 net acres in Powder River Basin $100 n.a. n.a. $5,263

Mean $159 $1.57 $52,109 $3,777

Median $100 $1.57 $56,604 $3,604

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

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

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS

Rockies (excl. Bakken) Snapshot

RIG COUNT

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

Note: Current quarter’s data is through the week covered by this issue.

1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.

3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.

4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.

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

GROSS PRODUCTION

13

August 5, 2019

0%

5%

10%

15%

20%

--

100

200

300

400

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

H V+D % of Total Rigs

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

Rig Count 95 (4) 99 Oil Differential -- -- --

Permitting Activity 48 (33) 81 Gas Differential ($0.66) $0.05 ($0.70)

-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25

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

-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25

$ /

mm

btu

$ /

bb

l

Cushing Panhandle

465497

449405 382 355

403

339

435389

298350 329

Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19

H V+D

8,000

10,000

12,000

14,000

16,000

18,000

550

600

650

700

750

800

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

mm

cf/

d

mb

bl/

d

Oil Gas

598

11,593

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

31-Jul-19 Continental Resources Inc Undisclosed Seller SCOOP assets $80 n.a. n.a. n.a.

08-Jul-19 NextEra Energy Inc Encana 140,000 net acres in Arkoma Basin $165 n.a. $12,857 $1,179

12-Jun-19 Glendale Energy; TPG Undisclosed Seller Non-op interests in STACK $55 n.a. n.a. n.a.

29-Apr-19 Undisclosed Buyer Riviera Resources Inc Non-op Hugoton Basin $31 n.a. n.a. n.a.

31-Mar-19 Red Wolf Apache 56k net acres in SCOOP/STACK/Merge $245 n.a. $18,421 $4,375

Mean $115 n.a. $15,639 $2,777

Median $80 n.a. $15,639 $2,777

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

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

$ /

acre

# Deals

$5,760

--

$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

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

$ /

bo

e/d

# Deals

$42,527

Mid-Continent Snapshot

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS RIG COUNT

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

Note: Current quarter’s data is through the week covered by this issue.

1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.

3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.

4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.

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

GROSS PRODUCTION

14

August 5, 2019

0%

5%

10%

15%

20%

--

10

20

30

40

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

Deep Water Shelf % of Total Rigs

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

Rig Count 22 (1) 23 Oil Differential $4.75 ($1.50) $6.25

Permitting Activity 18 6 12 Gas Differential -- -- --

--

$2.00

$4.00

$6.00

$8.00

$10.00

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

--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

2932 33

39

32 30 32 33

2629

26 27

41

Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-192,000

2,500

3,000

3,500

4,000

4,500

1,000

1,200

1,400

1,600

1,800

2,000

2,200

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

mm

cf/

d

mb

bl/

d

Oil Gas1,909

3,093

--

$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

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

$ /

bo

e

# Deals

$16.39

--

$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

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

$ /

bo

e/d

# Deals

$32,727

Ann'd

Date Buyer Seller Asset Description Value(2)

Proved

Multiple

Prod.

Multiple Net Acres

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

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.

23-Apr-19 Murphy LLOG Bluewater LLC Mississippi Canyon & Green Canyon $1,375 $20.83 $36,184 n.a.

16-Jan-19 Talos Energy Inc Samson Energy Co LLC Non-op Gulf of Mexico working interest $30 $13.45 $17,939 n.a.

10-Oct-18 Murphy Petrobras Gulf of Mexico joint venture $900 $15.00 $21,951 n.a.

Mean $694 $13.00 $29,298 n.a.

Median $900 $14.23 $21,951 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-17. Calculated as the weighted average of each quarter’s transactions.

GROSS PRODUCTION

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

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

15

August 5, 2019

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

April 2019 Apr 22-23 Mineral & Royalty Conference

June 2019 Jun 24-26 IPAA Midyear Meeting

August 2019 Aug 14 IPAA Leaders in Industry Luncheon

Aug 20 IPAA Oil & Gas Overview Course

Aug 20 Houston Producers Forum Luncheon

Aug 21-22 Summer NAPE

Aug 23 ADAM-Houston Monthly Luncheon

September 2019 Sep 11 IPAA Leaders in Industry Luncheon

Sep 17 Houston Producers Forum Luncheon

Sep 20 ADAM-Houston Monthly Luncheon

Sep 24-26 DUG Eagle Ford (San Antonio)

Sep 30-Oct 2 SPE Annual Technical Conference and Exhibition

October 2019 Oct 9 IPAA Leaders in Industry Luncheon

Oct 15 Houston Producers Forum Luncheon

Oct 18 ADAM-Houston Monthly Luncheon

Oct 22-23 A&D Strategies and Opportunities Conference

2020

Jul 22-24 SPE Unconventional Resources Technology

Aug 11-14 Enercom Oil & Gas Conference

Sep 8-10 DUG Eagle Ford (San Antonio)

Oct 27-28 A&D Strategies and Opportunities Conference

Nov 2-4 Executive Oil Conference & Exhibition

November 2019 Nov 4-6 Executive Oil Conference & Exhibition

Nov 13 IPAA Leaders in Industry Luncheon

Nov 15 ADAM-Houston Monthly Luncheon

Nov 19 IPAA Oil & Gas for Newcomers

Nov 19 Houston Producers Forum Luncheon

Nov 19-21 DUG Midcontinent (Oklahoma City)

Nov 20-21 11th Annual North America Assembly & Dinner

December 2019 Dec 5 177th OPEC Meeting

Dec 11 IPAA Leaders in Industry Luncheon

Dec 17 Houston Producers Forum Luncheon

Dec 20 ADAM-Houston Monthly Luncheon

January 2019 Jan 15 Houston Producers Forum Luncheon

Jan 25 ADAM-Houston Monthly Luncheon

Jan 24 IPAA Private Capital Conference

May 2019

May 21 Houston Producers Forum Luncheon

May 22 SPE Business Development Group Meeting

March 2019 Mar 26-28 International Petroleum Technology Conference

January 2020 Jan 23 IPAA Private Capital Conference

Jan 17 ADAM-Houston Monthly Luncheon

Jan 21 Houston Producers Forum Luncheon

February 2020 Feb 3-7 NAPE Summit Week

Feb 19 Houston Producers Forum Luncheon

Feb 18-19 DUG Rockies (Denver)

March 2020 Mar 2 Energy Capital Conference

Mar 4 Women in Energy Luncheon

Mar 3-5 IADC/SPE International Drilling Conference

Mar 9-13 Houston CERA Week

Mar 17 Houston Producers Forum Luncheon

Mar 20 ADAM-Houston Monthly Luncheon

April 2020 Apr 6-8 DUG Permian (Fort Worth)

Apr 17 ADAM-Houston Monthly Luncheon

Apr 20-22 OGIS New York

Apr 21 Houston Producers Forum Luncheon

May 2020 May 15 ADAM-Houston Monthly Luncheon

May 19 Houston Producers Forum Luncheon

May 19-20 DUG Haynesville (Shreveport)

June 2020 Jun 16 Houston Producers Forum Luncheon

Jun 16-18 DUG East (Pittsburgh)

Jun 19 ADAM-Houston Monthly Luncheon

16

August 5, 2019

SCOOP/STACK/Merge

DJ-Niobrara

Eagle Ford

Haynesville

Granite Wash

GOM

Permian

Marcellus

Utica

Williston

Gulf Coast Onshore

Piceance

Powder River Green River

Legend

Current

Change

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

BMO Capital Markets’ Research Department. The views of the Investment and Corporate Banking Department may differ from those of the Research Department.

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

Ireland p.l.c., and Bank of Montreal (China) Co. Ltd and the institutional broker dealer businesses of BMO Capital Markets Corp. (Member FINRA and SIPC) in the U.S., BMO Nesbitt

Burns Inc. (Member Investment Industry Regulatory Organization of Canada and Member Canadian Investor Protection Fund) in Canada and Asia, Bank of Montreal Ireland p.l.c.

(authorised and regulated by the Central bank of Ireland) in Europe and BMO Capital Markets Limited (authorized 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.

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

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

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

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

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

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

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

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

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

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

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

sell securities of issuers discussed herein.

All values in this document are in US$ unless otherwise specified.

Source of rig count stats: Baker Hughes

Rig Count Summary MAPS IN

MASTER VIEW

Contacts

Disclaimer

Jason Martinez

MD & Head of U.S. A&D

713-546-9771

jason.martinez@bmo.com

Howard Barnwell

MD & Transactions Mgr.

713-546-9767

howard.barnwell@bmo.com

Rob Priske

MD & Transactions Mgr.

713-546-9727

rob.priske@bmo.com

Dan Schockling

Director & Head of Commercial

713-518-1223

dan.schockling@bmo.com

Michael Hackett

Vice President

Marian Yu

Associate

Aaron Moeller

Associate

BMO uses updated basin outlines, and the resulting rig counts, to more accurately represent current basin knowledge. The data below reflect these changes

and is different than those shown by Baker Hughes. The totals are the same.

442

(1)

47

--

15

--

57

--29

--

22

(1)

5

(3)75

(1)

58

--

81

--

18

(1)

6

--

23

--17

--

[TBU] This

Week Change

Last

Week

Last

Year

Total Rigs 942 (4) 946 1,044

Oil 770 (6) 776 859

Gas 171 2 169 183

Miscellaneous 1 -- 1 2

Directional 67 -- 67 64

Horizontal 819 (4) 823 912

Vertical 56 -- 56 68

Basin

Permian 442 (1) 443 480

SCOOP/STACK/Merge 75 (1) 76 106

Granite Wash 5 (3) 8 25

Eagle Ford 81 -- 81 97

Haynesville 58 -- 58 55

Marcellus 57 -- 57 53

Utica 15 -- 15 23

Williston 47 -- 47 56

DJ-Niobrara 29 -- 29 26

Green River 17 -- 17 18

Powder River 23 -- 23 16

Piceance 6 -- 6 7

Gulf Coast Onshore 18 (1) 19 21

GOM 22 (1) 23 16

Alaska 12 3 9 5

Other 35 -- 35 40

Mid-Con 15 -- 15 20

Rockies 2 -- 2 2

Western 18 -- 18 16

Eastern -- -- -- 2

Chelsea Neville

Transactions Coordinator