1

July 15, 2019

IndicatorCurrent

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $60.20 $2.86 5.0%

Prompt Gas Price ($/mmbtu) $2.42 $0.13 5.7%

Wkly Trans. Value ($mm) $165 $165 nmf

Wkly Trans. Count 3 1 50%

US Rig Count 958 (5) (0.5%)

US Oil Prod'n (mmbbl/d) 12.3 0.1 0.8%

US Gas Prod'n (bcf/d)(1) 109.9 -- --

US Oil Storage (mmbbl) 459.0 (9.5) (2.0%)

US Gas Storage (tcf) 2.5 0.1 3.4%

$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

$64.2

$0.2 --

50

100

150

200

250

300

350

400

450

500

--

$10

$20

$30

$40

$50

$60

$70

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

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

Nu

mb

er

of

Tra

ns

acti

on

s

Tra

ns

acti

on

Valu

e (

$b

n)

Asset Corporate Number of Transactions

% Oil

Debt

Markets

Eight issuers priced eight tranches for $3.375 billion in proceeds

U.S. high yield funds reported an inflow of $619 million

ETFs reported an inflow of $427 million, while mutual funds reported an inflow of $129 million

High yield index yield was 6.07%; high yield energy index yield was 8.32%

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 April 2019.

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

Key Industry Indicators

Quarterly Deal Activity

S&P E&P(2) outperformed last week 1.2% vs. SPX(2) 0.1%

The major U.S. equity indexes finished mixed last week. Consumer discretionary, financials, and tech

finished higher. Consumer staples, health care, industrials, materials, and real estate finished lower

Equity

Markets

Oil ended last week up. The EIA reported a 9.5 million barrel decline in overall U.S. crude oil inventories,

with a 310,000 barrel decline in Cushing. Tropical storm Barry cut Gulf Coast oil production by ~53%

according to Bloomberg. The near-term contract closed up $2.86, or 5.0%, at $60.20

Natural gas ended last week up. The EIA released a build of 81 bcf, in line with line market expectations.

Tropical storm Barry worried traders with the potential to slow LNG exports. The near-term contract

closed up $0.13, or 5.7%, at $2.42

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 5 to July 11, 2019

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

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

BMO Capital Markets team!

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

Monitor went live last week – read more here

Encana Corporation announced that its wholly owned

subsidiary, Newfield Exploration Mid-Continent Inc., signed an

agreement to sell its assets in Oklahoma’s Arkoma Basin for

$165 million

The Rice Team gained control of the EQT Board of Directors

after winning seven seats on the twelve member Board; the

Board elected John McCartney Chairman of the Board and

appointed Toby Rice President and CEO

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

Persistent tensions in Iran continued alongside the OPEC decision to extend output cuts

through Q1 2020. Gibraltar's government said that it is extending the detention of the Iranian

supertanker seized after obtaining an order from the British territory's Supreme Court. A

former senior Iranian commander then threatened to seize a British ship in retaliation for the

capture of an Iranian oil tanker. BP idled a tanker off the coast of Saudi Arabia that was

scheduled to pick up crude in Iraq due to these threats of retaliation. Sanctions continued to

take their toll on Iran, with output there now at its lowest since 1986. Iran also breached

enrichment limits.

Weather forecasts continued to shift warmer in the Midwest and Northeast. The potential

formation of Tropical Storm Barry in the Gulf of Mexico was monitored as it might impact

GOM supply and LNG facilities

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2

July 15, 2019

Permian25%

Rockies (ex. Bakken)

10%

Bakken5%

Appalachia4%

Mid-Con18%

Eagle Ford5%

Ark-La-Tex6%

Gulf of Mexico5%

Other22%

LTM By Region

Public Company

43%

PE / PE-Backed

20%

Private9%

Other28%

LTM By Buyer Type

R / P

Sales Value /

Proved Reserves

(15:1)

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

8x $19.36 $1.29

10x $16.76 $1.12

15x $11.68 $0.78

20x $8.14 $0.54

y = 34.658e-0.072x

R² = 0.3583

--

$10

$20

$30

$40

$50

$60

-- 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x

Sa

les

Pri

ce

/ P

rove

d R

es

erv

es

($

/bo

e @

15

:1)

R / P

Oil65%

Gas35%

LTM By Commodity

Ann'd

Date Buyer Seller Area Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

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

27-Jun-19 Oil Search Armstrong Oil & Gas Inc Alaska Additional interests in Alaska $450 n.a. n.a. n.a.

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

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

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

23-May-19 Riverside Energy Riviera Resources Inc Other 1,400 net wells in Michigan $45 $1.38 n.a. n.a.

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

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

02-May-19 Undisclosed Buyer California Resources Corp California 50% WI in assets in San Joaquin Basin $203 n.a. $88,000 n.a.

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

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

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

The 10 Most Recent Asset Transactions Over $20 Million

A&D Valuation Trends(3)

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

1. Represents total enterprise value. 2. Calculated as percentage of total LTM transaction count (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 --->

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YTD Deal Activity ($bn)(4)

$15.5 $27.7

$17.8 $6.3

$7.2

$14.9

$11.4

$59.8

$22.7

$42.7

$29.2

$66.0

2016 2017 2018 2019

553 923 623 109

Asset Corporate

Deal Count

3

July 15, 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

1 Deals

Mid-Con

6 Deals

Eagle Ford

9 Deals

Permian

16 Deals

Other

12 Deals

Rockies

5 Deals

(Click headline to link to the full article)

M&A&D Headlines

Bakken

5 Deals

Ark-La-Tex

5 Deals

BMO Deals (Status)

Enerplus Elm Coulee (In Market) – See page 6

U.S. Surpasses 12 Million Barrels a Day, EIA Reports

Tropical Storm Races Toward Louisiana, Curbing Oil

Output

Russian Output Falls to Three-year Low as Oil Rivals

Clash

Oil Tankers Dodge Top Mideast Refueling Hub After

Ship Attacks

EQT Announces Certified Results of 2019 Annual

Meeting of Shareholders

Encana Signs Agreement to Sell its Arkoma Basin

Natural Gas Assets

Talos Energy Announces Full Year 2019 Operating

and Financial Guidance (includes A&D

announcement)

BMO Deals (Status)

Juno Permian (In Market) – See page 4

Rio Glasscock County (In Market) – See page 5

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7/10/2019

Appalachia 1

Ark-La-Tex 5

Bakken 5

Eagle Ford 9

Mid-Con 6

Other 12

Permian 16

Rockies 5

59

4

July 15, 2019

Historical Prices as of 11-Jul-19 Close ($/gal)

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

Ethane $0.16 $0.13 $0.30 $0.38

Propane $0.50 $0.47 $0.69 $0.94

Butane $0.50 $0.43 $0.72 $1.01

Iso-butane $0.72 $0.57 $0.80 $1.21

Pentane+ $1.18 $1.11 $1.07 $1.49

25%

35%

45%

55%

65%

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

% o

f W

TI

NGL as % of WTI

$1

$2

$3

$4

$5

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

($/m

mb

tu)

NYMEX Gas Futures as of 11-Jul-19 Close ($/mmbtu)

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

12 Mo. Strip $2.56 $2.44 $2.90 $2.83

2019 $2.50 $2.36 $2.88 $2.78

2020 $2.60 $2.50 $2.75 $2.69

2021 $2.60 $2.55 $2.67 $2.61

2022 $2.76 $2.72 $2.85 $2.74

2023 $2.76 $2.72 $2.85 $2.74

NYMEX WTI Futures as of 11-Jul-19 Close ($/bbl) NYMEX Gas Futures as of 11-Jul-19 Close ($/mmbtu)

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

12 Mo. Strip $59.34 $56.82 $53.28 $64.85

2019 $60.15 $57.37 $53.19 $63.13

2020 $58.07 $55.92 $54.13 $59.82

2021 $55.59 $54.07 $53.87 $57.36

2022 $54.45 $53.41 $53.95 $55.50

2023 $54.20 $53.51 $54.21 $54.29

$20

$30

$40

$50

$60

$70

$80

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

($/b

bl)

NGL PRICING(2)

HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)

Commodity Prices

Source: BMO Commodity Products Group, Bloomberg, FactSet

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

2. Assumes typical Gulf Coast barrel composition.

WTI OIL (HISTORICAL / FORECAST)

Links:

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

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

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

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

Link to Detailed

Futures Data

Link to Detailed

Historical Graph

Link to Detailed

Futures Data

Link to Detailed

Historical Graph

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Historical Prices as of 27-Jun-19 Close ($/gal)

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

Ethane $0.17 $0.17 $0.29 $0.35

Propane $0.49 $0.46 $0.65 $0.90

Butane $0.46 $0.44 $0.67 $0.99

Iso-butane $0.62 $0.56 $0.75 $1.30

Pentane+ $1.13 $1.12 $0.89 $1.53

NYMEX Gas Futures as of 27-Jun-19 Close ($/mmbtu)

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

12 Mo. Strip $2.48 $2.35 $3.06 $2.95

2019 $2.39 $2.24 $3.06 $2.83

2020 $2.55 $2.49 $2.71 $2.69

2021 $2.60 $2.60 $2.61 $2.64

2022 $2.77 $2.77 $2.78 $2.78

2023 $2.77 $2.77 $2.78 $2.78

NYMEX WTI Futures as of 27-Jun-19 Close ($/bbl) NYMEX Gas Futures as of 27-Jun-19 Close ($/mmbtu)

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

12 Mo. Strip $58.39 $56.40 $46.30 $67.48

2019 $59.29 $56.92 $46.19 $65.57

2020 $57.10 $55.34 $48.12 $61.72

2021 $54.88 $53.81 $49.41 $59.12

2022 $54.16 $53.38 $50.49 $57.23

2023 $54.22 $53.67 $51.43 $55.85

5

July 15, 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 11-JUL-19

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 11-JUL-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]

$60.20

($0.97) $65.30

$5.10

$2.08

($0.34)

$1.93

($0.49)

$2.42

$2.25

($0.17)

$60.42

$0.22

$66.52

$6.32

$60.30

$0.10

$54.00

($6.20)

$2.15

($0.27)

$2.38

($0.04)

$0.70

($1.72)

$1.76

($0.66)$2.02

($0.40)$2.70

$0.28

$0.90

($1.52)$2.38

($0.04)

$2.88

$0.46

6

July 15, 2019

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

Rig Count 437 (6) 443 Oil Differential ($0.60) ($0.10) ($0.50)

Permitting Activity 104 (70) 174 Gas Differential ($1.73) $0.01 ($1.74)

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

--$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

--

$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 0

$ /

bo

e/d

# Deals

$117,551

-$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

909

221

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

3,895

13,350

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

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

27-Mar-19 Undisclosed Buyer Rosehill Resources ~880 net acres in Lea Co., NM $22 n.a. n.a. $25,000

26-Feb-19 Ring Energy Inc Wishbone Energy Partners 37,206 net Central Basin Platform acres $300 $8.75 $50,000 $8,063

Mean $210 $8.75 $54,846 $15,597

Median $260 $8.75 $50,000 $16,532

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

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

GROSS PRODUCTION

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

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

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS

Permian Snapshot

RIG COUNT

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

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

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

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

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

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[TBU]

7

July 15, 2019

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

Rig Count 82 (5) 87 Oil Differential $4.50 $0.10 $4.40

Permitting Activity 24 3 21 Gas Differential ($0.04) $0.01 ($0.05)

0%

5%

10%

15%

20%

--

100

200

300

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

H V+D % of Total Rigs

--$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 0

$ /

bo

e/d

# Deals

$70,217

-$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

222

36

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

H V+D

6,000

7,000

8,000

9,000

10,000

11,000

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 Gas

1,515

8,289

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

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

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

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

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

26-Jul-18 BP BHP Billiton Permian, Eagle Ford, and Haynesville $10,500 n.a. n.a. n.a.

Mean $2,127 $2.98 $48,375 $8,022

Median $35 $2.98 $48,375 $8,022

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

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

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

8

July 15, 2019

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

Rig Count 58 1 57 Oil Differential $5.00 $0.30 $4.70

Permitting Activity 9 (9) 18 Gas Differential -- -- --

0%

5%

10%

15%

20%

--

20

40

60

80

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

H V+D % of Total Rigs

--

$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 0

$ /

acre

# Deals

$3,320

--$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 0

$ /

mcfe

/d

# Deals

$4,998

--

$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

79

22

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

80

90

100

110

120

130

140

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

87

11,226

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

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

19-Nov-18 Aethon III QEP Resources Inc 49,700 net acres in Haynesville $735 $0.77 $2,475 $14,789

05-Sep-18 Viking Energy Group Multiple Sellers Texas and Louisiana assets $100 n.a. n.a. n.a.

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

06-Aug-18 Mission Creek Resources Bonanza Creek Energy Inc 11,132 net acres in the Cotton Valley $117 $1.69 $6,500 $10,510

Mean $210 $1.23 $4,487 $7,488

Median $100 $1.23 $4,487 $6,957

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

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

Ark-La-Tex Snapshot

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS RIG COUNT

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

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

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

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

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

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

GROSS PRODUCTION

9

July 15, 2019

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

Rig Count 77 -- 77 Oil Differential $6.61 $0.13 $6.48

Permitting Activity 11 (70) 81 Gas Differential ($0.19) $0.29 ($0.48)

0%

5%

10%

15%

20%

--

50

100

150

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

H V+D % of Total Rigs

--$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

--$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 0

$ /

mcfe

/d

# Deals

$4,758

-$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

255

80

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

H V+D

14,000

19,000

24,000

29,000

34,000

50

70

90

110

130

150

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

30,284

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

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

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

27-Aug-18 PennEnergy Resources Rex Energy Corp 141,026 net acres in PA and OH $601 $0.58 $2,781 $4,258

26-Jul-18 Encino Acquisition Partners Chesapeake 938,000 net acres in the Utica $1,900 $0.66 $2,960 $2,026

29-Jun-18 Ascent Resources LLC Utica Minerals; Undisclosed 35,400 acres in the Utica $700 n.a. $15,217 $19,774

Mean $780 $0.62 $8,367 $8,686

Median $601 $0.62 $3,227 $4,258

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

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

Appalachia Snapshot

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS RIG COUNT

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

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

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

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

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

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

GROSS PRODUCTION

10

July 15, 2019

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

Rig Count 55 -- 55 Oil Differential $0.10 $0.10 --

Permitting Activity 20 (20) 40 Gas Differential ($0.49) $0.03 ($0.53)

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

--

$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

-$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

43

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

1,385

2,884

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

11

July 15, 2019

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

Rig Count 71 2 69 Oil Differential $0.10 $0.10 --

Permitting Activity 14 (41) 55 Gas Differential ($0.49) $0.03 ($0.53)

0%

5%

10%

15%

20%

--

50

100

150

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

H V+D % of Total Rigs

--

$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

-$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

164 14057

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

H V+D

11,500

12,000

12,500

13,000

13,500

14,000

400

500

600

700

800

900

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

mm

cf/

d

mb

bl/

d

Oil Gas

765

12,587

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

12

July 15, 2019

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

Rig Count 103 2 101 Oil Differential -- -- --

Permitting Activity 48 (14) 62 Gas Differential ($0.66) $0.02 ($0.67)

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

--

$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

-$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

298348

101

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

H V+D

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

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

19-Feb-19 Mid-Con Energy Partners Scout Energy Partners Caddo, Grady, and Osage cos., OK $28 n.a. $20,960 n.a.

Mean $105 n.a. $17,413 $2,777

Median $55 n.a. $18,421 $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

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

400

450

500

550

600

650

700

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

mm

cf/

d

mb

bl/

d

Oil Gas 520

7,487

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

13

July 15, 2019

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

Rig Count 26 2 24 Oil Differential $5.00 $0.30 $4.70

Permitting Activity 12 8 4 Gas Differential -- -- --

0%

5%

10%

15%

20%

--

10

20

30

40

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

Deep Water Shelf % of Total Rigs

--

$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

--

$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

16

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 Gas

1,864

2,961

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)

14

July 15, 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.

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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 16 ADAM-Houston Monthly Luncheon

Aug 20 IPAA Oil & Gas Overview Course

Aug 20 Houston Producers Forum Luncheon

Aug 21-22 Summer NAPE

September 2019 Sep 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

15

July 15, 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.

437

(6)

55

--

18

--

59

--27

1

26

2

9

--79

1

58

1

82

(5)

24

1

6

1

21

215

(2)

[TBU]

This

Week Change

Last

Week

Last

Year

Total Rigs 958 (5) 963 1,054

Oil 784 (4) 788 863

Gas 172 (2) 174 189

Miscellaneous 2 1 1 2

Directional 70 4 66 68

Horizontal 831 (8) 839 930

Vertical 57 (1) 58 56

Basin

Permian 437 (6) 443 477

SCOOP/STACK/Merge 79 1 78 113

Granite Wash 9 -- 9 23

Eagle Ford 82 (5) 87 98

Haynesville 58 1 57 59

Marcellus 59 -- 59 53

Utica 18 -- 18 23

Williston 55 -- 55 57

DJ-Niobrara 27 1 26 25

Green River 15 (2) 17 17

Powder River 21 2 19 14

Piceance 6 1 5 8

Gulf Coast Onshore 24 1 23 19

GOM 26 2 24 19

Alaska 8 (1) 9 6

Other 34 -- 34 43

Mid-Con 15 1 14 21

Rockies 2 -- 2 3

Western 17 (1) 18 17

Eastern -- -- -- 2

Chelsea Neville

Transactions Coordinator