US Oil Prod'n (mmbbl/d) 9.3 0.0 0.2% Asset Corporate ... Page Document Library/ADLibrary... ·...

1

April 24, 2017

Oil staged a decline last week despite DOE inventories showing an overall decline right in line with

expectations (reduction of 1 million barrels). Exports from Iran appear to have picked up in April, with the

first half of the month showing an increase of 158 mbo/d. The near-term contract closed the week down

$3.56, or 6.7%, at $49.62

Natural gas declined last week as weather remains mild and lacks any last ditch cold run. On the

supply/demand front, Mexico exports have tumbled over the past few days due to maintenance on the

NET Mexico pipeline (2.1 bcf/d capacity) and work at the Agua Dulce compressor station. The near-term

contract closed the week down $0.13, or 3.9%, at $3.10

Debt

Markets

Energy Week in Review

S&P E&P(2) underperformed last week (3.3%) vs. SPX(2) 0.9%

U.S. Markets closed higher this week as investors continue to digest earnings reports, comments around

pending tax reform, and the latest poll data for this weekend’s first round of French presidential elections.

As of Friday, 94 companies of the S&P 500 have reported quarterly results, 72% of which have topped

revenue estimates and 83% of which have beat earnings expectations

15 issuers priced 17 issues to raise $6.4 billion last week

Year-to-date volume stands at $150.0 billion, compared to $84.3 billion in year-to-date 2016

Retail cash outflows from U.S. high yield mutual funds totaled $362.2 million last week, compared to the

prior week’s outflow of $347.5 million. This brings year-to-date outflows for 2017 to $4.3 billion, compared

to $9.4 billion of inflows in year-to-date 2016

No E&P HY issues priced last week

California Resources Corporation announced that it

formed a joint venture with Macquarie Infrastructure &

Real Assets to develop assets in California for up to

$300 million

Ring Energy announced that it entered into an

agreement to acquire 33,000 net acres in the Central

Basin Platform for $16.6 million

TPG Pace Energy Holdings Corp, a special purpose

acquisition company, filed for an IPO of up to

$600 million

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

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 January 2017.

2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index, ADTV = Average Daily Trading Volume.

Key Industry Indicators

Quarterly Deal Activity

Equity

Markets

Commodities

$27.0 $28.5

$30.8

$2.2

$8.1 $10.1 $10.0

$4.5

$16.9 $20.7 $20.4 $21.9

$3.4

--

50

100

150

200

250

300

--

$5

$10

$15

$20

$25

$30

$35

$40

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

52% 77% 21% 61% 82% 76% 79% 52% 56% 57% 71% 96% 12%

Nu

mb

er

of

Tra

ns

acti

on

s

Tra

ns

acti

on

Valu

e (

$b

n)

Asset Corporate Number of Transactions

% Oil

Indicator

Current

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $49.62 ($3.56) (6.7%)

Prompt Gas Price ($/mmbtu) $3.10 ($0.13) (3.9%)

Wkly Trans. Value ($mm) $319 ($2,681) (89%)

Wkly Trans. Count 5 3 150%

US Rig Count 857 10 1.2%

US Oil Prod'n (mmbbl/d) 9.3 0.0 0.2%

US Gas Prod'n (bcf/d)(1) 88.1 -- --

US Oil Storage (mmbbl) 532.3 (1.0) (0.2%)

US Gas Storage (tcf) 2.1 0.1 2.6%

Covering the Week of April 15 – April 21, 2017

Week in Review

In Commodities, ECM and DCM, let’s go to journalism

standards, even though that’s not how we get the text from

those groups. Main change is that any number below 10 is

spelled out (one instead of 1). This does not apply to

statistical analyses, percentages, or money, of course.

Let’s follow these guidelines when sorting articles:

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

• Next: Domestic M&A

• Then: US companies doing international deals (like

Noble’s Tamar)

• Then: Others (Cabot’s Lackawanna)

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

To paste the arrows with colors,

• FactSet

• Settings

• Presentation Linking and Formatting

• Import

• Colors

• Change Color font…

For the primary Commodities bullet points on oil and gas

prices, please start with “The near-term contract opened the

week at $___” and end that same bullet point with “The

near-term contract closed the week at $____, down(up)

$___, or ___%.” You don’t have to use exactly those words

as long as the opening and closing prices are included . For

example, you could write, “Opening the week at $45.21, the

near-term oil contract declined steadily based on …” – you

know, think like a journalist, be creative.

2

April 24, 2017

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

1. Represents total enterprise value.

2. Calculated as percentage of total LTM transaction count.

3. 100 transactions from April 2013 to 2017YTD with transaction value >$20mm. Adjusted for changes in price outlooks. Recalculated boe reserves are on a 15:1

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

Permian35%

Gulf of Mexico 1%

Bakken6%

Appalachia11%

Mid-Con12%

Eagle Ford10%

Ark-La-Tex4%

Rockies (ex Bakken)

8%

Other14%

LTM By Region

Oil68%

Gas32%

LTM By Commodity

Public Company

49%PE / PE-Backed

19%

Private9%

MLP0%

Other23%

LTM By Buyer Type

Ann'd

Date Buyer Seller Area Asset Description Value(1)

Proved

Multiple

Prod.

Multiple

Net

Acres

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

19-Apr-17 Macquarie Infrastructure Co LLCCalifornia Resources Corp California JV to develop San Joaquin basin assets $300 n.a. n.a. n.a.

13-Apr-17 Hilcorp Energy Co ConocoPhillips Other Rockies 1.3 million net acres in San Juan Basin $2,700 $4.50 $21,774 $2,077

10-Apr-17 Venado Oil & Gas EXCO Eagle Ford 50,860 net acres in South TX Eagle Ford $300 $11.61 $73,171 $5,899

04-Apr-17 Unit Corp Undisclosed Mid-Continent 8,335 net acres in Anadarko Basin $57 $17.73 $41,514 $6,809

03-Apr-17 Carbon Natural Gas Co Undisclosed Marcellus / Utica Appalachia Basin acreage in TN $20 n.a. $33,333 n.a.

28-Mar-17 Chesapeake Range Resources Corp Mid-Continent 19,300 net acres in STACK $26 n.a. n.a. $1,347

24-Mar-17 Oxy Vanguard Natural Resources Permian 3,048 net acres in Midland Basin $78 n.a. $385,862 $25,699

22-Mar-17 Gastar Exploration Inc Undisclosed Mid-Continent Working interest in STACK $51 n.a. $155,758 $9,065

21-Mar-17 Marathon Black Mountain; Undisclosed Permian 21,000 net acres in Delaware Basin $700 n.a. $1,750,000 $33,333

15-Mar-17 Undisclosed Buyer Pioneer Permian 20,500 net acres in Midland Basin $266 n.a. $177,333 $12,976

Blue = BMO Capital provided transaction advisory services

Green = BMO Capital provided acquisition financing or related services

R / PSales Value /

Proved Reserves (15:1)

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

8x $19.60 $1.31

10x $17.23 $1.15

15x $12.49 $0.83

20x $9.05 $0.60

y = 34.352e-0.064x

R² = 0.2426

--

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

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

Sa

les

Pri

ce /

Pro

ve

d

Re

serv

es (

$/b

oe

@ 1

5:1

)

R / P

Asset descriptions are all hard-coded and need to be

adjusted if new deals are added

(2) (2) (2)

3

April 24, 2017

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: IHS, 1Derrick

Energy Headlines

Industry Headlines

California Resources Corporation and Macquarie

Announce Joint Venture to Invest up to $300 Million in

Oil & Gas Properties

Ring Energy Acquires Over 33,000 Acres in Central

Basin Platform

Energy SPAC TPG Pace Energy Holdings Files for a

$600 Million IPO

Bakken

2 Deals Appalachia

7 Deals

Mid-Con

14 Deals

Eagle Ford

6 Deals

Permian

20 Deals

Other

12 Deals

Ark-La-Tex

5 Deals

Rockies

9 Deals

4/21/2017

Appalachia 7

Ark-La-Tex 5

Bakken 2

Eagle Ford 6

Mid-Con 14

Other 12

Permian 20

Rockies 9

75

BMO Deals (Status)

EXCO Eagle Ford (Announced)

Barnett (Post Bid)

East Texas Haynesville (Post Bid)

North Louisiana Haynesville (Post Bid)

Rockies Gas (Coming Soon)

(Click headline to link to the full article)

Lighter Stuff

A&D Headlines

E&P Headlines Saudi Exports Fall as Production Cuts Take Hold

1Q Oil, Gas M&A Deals Hit Record $73 Billion

Oil and Gas Numbers Boom; ‘A New Cycle of

Expansion,’ Expert Says

EPA Moves to Block Obama’s Methane Rule for Oil

and Gas Wells

L48 Onshore Cost Inflation Could Be Massive

Challenge For Operators

Big Oil’s Rejection of Silicon Valley is Finally Coming

to an End

Pipeline CEO Kelcy Warren Approved for Texas Parks

& Wildlife Seat

TBU – Friday post close

http://www.businesswire.com/news/home/20170419005444/en/California-Resources-Corporation-Macquarie-Announce-Joint-Venture




http://www.ogfj.com/articles/2017/04/ring-energy-acquires-over-33-000-acres-in-central-basin-platform.html

http://www.ogfj.com/articles/2017/04/ring-energy-acquires-over-33-000-acres-in-central-basin-platform.html

http://www.nasdaq.com/article/energy-spac-tpg-pace-energy-holdings-files-for-a-600-million-ipo-cm774934

http://www.nasdaq.com/article/energy-spac-tpg-pace-energy-holdings-files-for-a-600-million-ipo-cm774934

http://fuelfix.com/blog/2017/04/18/saudi-exports-fall-to-2105-low-as-production-cuts-take-hold/

http://www.rigzone.com/news/oil_gas/a/149795/q1_oil_gas_ma_deals_hit_record_73_billion

http://fuelfix.com/blog/2017/04/19/oil-and-gas-numbers-boom-a-new-cycle-of-expansion-expert-says/















http://fuelfix.com/blog/2017/04/19/epa-moves-to-block-obamas-methane-rule-for-oil-and-gas-wells/











http://www.ogfj.com/articles/2017/04/l48-onshore-cost-inflation-could-be-massive-challenge-for-operators.html



https://www.bloomberg.com/news/articles/2017-04-18/big-oil-s-rejection-of-silicon-valley-is-finally-coming-to-end

https://www.bloomberg.com/news/articles/2017-04-18/big-oil-s-rejection-of-silicon-valley-is-finally-coming-to-end

http://fuelfix.com/blog/2017/04/20/pipeline-ceo-kelcy-warren-approved-for-texas-parks-wildlife-seat/





4

April 24, 2017

--

$1

$2

$3

$4

Mar-16 Sep-16 Mar-17 Sep-17 Mar-18

($/m

mb

tu)

$20

$30

$40

$50

$60

$70

$80

Mar-16 Sep-16 Mar-17 Sep-17 Mar-18

($/b

bl)

NGL PRICING(2)

HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)

Commodity Prices

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

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

2. Assumes typical Gulf Coast barrel composition.

WTI OIL (HISTORICAL / FORECAST)

NYMEX WTI Futures as of 21-Apr-17 Close ($/bbl) NYMEX Gas Futures as of 21-Apr-17 Close ($/mmbtu)

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

12 Mo. Strip $50.86 $54.36 $52.43 $42.46

2017 $50.48 $54.16 $53.02 $46.66

2018 $51.38 $54.52 $54.74 $48.00

2019 $51.31 $53.88 $55.64 $49.07

2020 $51.64 $53.86 $56.39 $50.14

2021 $52.35 $54.36 $57.10 $51.03

NYMEX Gas Futures as of 21-Apr-17 Close ($/mmbtu)

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

12 Mo. Strip $3.32 $3.41 $3.37 $2.68

2017 $3.29 $3.40 $3.40 $2.92

2018 $3.11 $3.11 $3.11 $2.96

2019 $2.91 $2.87 $2.95 $2.99

2020 $2.91 $2.87 $2.94 $3.08

2021 $2.94 $2.89 $3.03 $3.21

Historical Prices as of 21-Apr-17 Close ($/gal)

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

Ethane $0.24 $0.25 $0.24 $0.20

Propane $0.64 $0.69 $0.59 $0.46

Butane $0.71 $0.78 $0.78 $0.54

Iso-butane $0.79 $0.83 $0.93 $0.58

Pentane+ $1.10 $1.16 $1.13 $0.93

20%

30%

40%

50%

60%

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

% o

f W

TI

NGL as % of WTI

Links:

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

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

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

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

Link to Detailed

Futures Data

Link to Detailed

Historical Graph

Link to Detailed

Futures Data

Link to Detailed

Historical Graph














http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html

http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html



http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html

http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html



5

April 24, 2017

$3.10

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 21-APR-17

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 21-APR-17

Clearbrook

Midland

Cushing

St. James

(LLS)

East Coast

U.S. (Brent)

Midland Sweet-

Sour Spread

EMS Legend

Price

Diff.

Legend

Price

Diff.

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

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

$49.62

$51.19

$1.57

$48.63

($0.99)

$47.39

($2.23)$49.12

($0.50)

$51.96

$2.34

($0.06)

$3.28

$0.18

$2.36

($0.74)

$2.96

($0.14)

MAPS IN

MASTER VIEW

$2.03

($1.07)

$2.67

($0.43)

$2.93

($0.17)

$3.06

($0.04)

$2.63

($0.47)

$2.58

($0.52)$2.65

($0.45)

$2.70

($0.40)

$2.79

($0.31)

6

April 24, 2017

--$20$40$60$80

$100$120

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$28.07

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

24-Mar-17 Oxy Vanguard Natural Resources 3,048 net acres in Midland Basin $78 n.a. $385,862 $25,699

21-Mar-17 Marathon Black Mountain; Undisclosed 21,000 net acres in Delaware Basin $700 n.a. $1,750,000 $33,333

15-Mar-17 Undisclosed Buyer Pioneer 20,500 net acres in Midland Basin $266 n.a. $177,333 $12,976

09-Mar-17 Marathon BC Operating; Undisclosed 70,000 net acres in Delaware Basin $1,100 n.a. $220,000 $15,714

03-Mar-17 Resolute Energy Undisclosed 4,592 net acres in Delaware Basin $160 n.a. $200,000 $34,843

Mean $461 n.a. $546,639 $24,513

Median $266 n.a. $220,000 $25,699



GROSS PRODUCTION

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

TRANSACTION PROVED RESERVE MULTIPLES(2) TRANSACTION PRODUCTION MULTIPLES(2)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS

Permian Snapshot

RIG COUNT

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


1. Represents total enterprise value. Excludes transactions with deal value <$20 million.

2. Red line denotes average since 1-Jan-15. Calculated as the weighted average of each quarter’s transactions.

3. $/acre multiple not adjusted for value associated with production.

--

100

200

300

400

Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17

H V+D

-$0.50

-$0.30

-$0.10

$0.10

Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17

-$4.00

-$2.00

$0.00

$2.00

$ /

mm

btu

$ /

bb

l

Midland Waha

--

$100,000

$200,000

$300,000

$400,000

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3 7 9 6 1 3 8 8 5 9 11 14 14 0

$ /

bo

e/d

# Deals

$180,862

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

Rig Count 340 1 339 Oil Differential ($0.45) $1.00 ($1.45)

Permitting Activity 224 55 169 Gas Differential ($0.40) -- ($0.40)

655 582670

542 592 606732

553

783 725837

1151

591

Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17

V+D H

4,000

5,000

6,000

7,000

8,000

1,000

1,500

2,000

Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16

mm

cf/

d

mb

bl/

d

Oil Gas2,125

7,365





7

April 24, 2017

-$0.30

-$0.10

$0.10

$0.30

$0.50


-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$ /

mm

btu

$ /

bb

l

LLS HSC

--

$10

$20

$30

$40

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$13.55

--

$50,000

$100,000

$150,000

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$57,225

6,000

8,000

10,000

12,000

1,000

1,500

2,000

2,500


mm

cf/

d

mb

bl/

d

Oil Gas

1,384

8,238


Rig Count 78 3 75 Oil Differential $2.15 -- $2.15

Permitting Activity 132 25 107 Gas Differential ($0.01) $0.03 ($0.04)

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

10-Apr-17 Venado Oil & Gas EXCO 50,860 net acres in South TX Eagle Ford $300 $11.61 $73,171 $5,899

31-Jan-17 EV Energy Partners Undisclosed East Texas Eagle Ford $59 $9.17 $58,700 n.a.

24-Jan-17 Hawkwood Energy LLC Halcon Resources Corp 80,500 net acres in East TX Eagle Ford $500 $22.94 $83,333 $6,211

12-Jan-17 Sanchez; Blackstone Anadarko 155,000 net acres in Eagle Ford $2,275 $7.58 $33,955 $14,677

03-Jan-17 Venado Oil & Gas SM Energy 37,500 net non-operated acres $800 $12.31 $29,347 $21,333

Mean $787 $12.72 $55,701 $12,030

Median $500 $11.61 $58,700 $10,444



300245

203238

323253

301267

424 415 403470

349


V+D H

--

50

100

150

200

250


H V+D

Eagle Ford Snapshot

GROSS PRODUCTION



DIFFERENTIALS RIG COUNT









TBU – Friday post close TBU – Friday post close

TBU – Friday post close TBU – Friday post close




8

April 24, 2017


Rig Count 38 -- 38 Oil Differential $2.15 -- $2.15

Permitting Activity 19 10 9 Gas Differential -- -- --

$0.0

$2.0

$4.0

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

mcfe

# Deals

$1.67

--

$5,000

$10,000

$15,000

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

mcfe

/d

# Deals

$6,369

5,000

7,000

9,000

50

100

150

200


mm

cf/

d

mb

bl/

d

Oil Gas

104

6,975

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

20-Dec-16 Covey Park Energy LLC Chesapeake 41,500 net acres in Haynesville $465 n.a. $9,300 $11,205

05-Dec-16 Indigo Minerals LLC Chesapeake 78,000 net acres in De Soto & Sabine $450 n.a. $15,000 $5,769

30-Sep-16 Castleton Commodities Int'l Anadarko 104,600 net acres in the Haynesville $1,000 n.a. $4,219 $9,560

26-Jul-16 Chesapeake Freeport-McMoRan 72,000 net acres and 1,450 wells $87 n.a. n.a. $1,208

06-Jun-16 Undisclosed Devon Energy Panola Co., TX $525 $1.01 $3,977 n.a.

Mean $505 $1.01 $8,124 $6,936

Median $465 $1.01 $6,760 $7,665



--

$2.00

$4.00

$6.00

$8.00

$10.00


--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

89 79 88105

133 127

102 94101

137

99

154

45


V+D H

--

20

40

60


H V+D

Ark-La-Tex Snapshot

GROSS PRODUCTION


















9

April 24, 2017

-$2.00

-$1.00

$0.00

$1.00

$2.00


-$15.00

-$10.00

-$5.00

$0.00

$5.00

$10.00

$15.00

$ /

mm

btu

$ /

bb

l

Brent Dominion

12,000

14,000

16,000

18,000

20,000

22,000

24,000

--

50

100

150


mm

cf/

d

mb

bl/

d

Oil Gas

61

18,092

--

$10

$20

$30

$40

$50

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

0 0 3 1 0 0 0 0 3 1 1 0 0 0

$ /

mcfe

# Deals

$8.95

--

$10,000

$20,000

$30,000

$40,000

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

mcfe

/d

# Deals

$7,694


Rig Count 69 1 68 Oil Differential $2.68 ($0.03) $2.71

Permitting Activity 39 15 24 Gas Differential ($0.46) $0.07 ($0.53)

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

03-Apr-17 Carbon Natural Gas Co Undisclosed Appalachia Basin acreage in TN $20 n.a. $5,556 n.a.

08-Feb-17 EQT Corporation Stone Energy 85,400 net acres in WV Marcellus $527 n.a. $6,588 $6,171

02-Feb-17 EQT Corporation Undisclosed 14,000 net acres in WV Marcellus $130 n.a. n.a. $9,286

17-Jan-17 Banpu Public Co Ltd Chief Oil & Gas LLC Non-op wells in PA Marcellus $63 n.a. n.a. n.a.

04-Jan-17 Antero Resources Corp Rex Energy Corp 4,100 net acres in Ohio Utica $30 n.a. $3,333 $7,317

Mean $154 n.a. $5,159 $7,591

Median $63 n.a. $5,556 $7,317



308

236

311280 282

259285

319 295

203

380431

186


V+D H

--

50

100

150


H V+D

Appalachia Snapshot

GROSS PRODUCTION
















10

April 24, 2017

1,000

1,250

1,500

1,750

2,000

600

800

1,000

1,200

1,400


mm

cf/

d

mb

bl/

d

Oil Gas

1,063

1,853

-$0.80

-$0.60

-$0.40

-$0.20

$0.00

$0.20


-$8.00

-$6.00

-$4.00

-$2.00

$0.00

$2.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

--

50

100

150

200


H V+D

--

$50,000

$100,000

$150,000

$200,000

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$43,639

--

$10

$20

$30

$40

$50

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$17.80


Rig Count 44 1 43 Oil Differential ($0.50) ($1.25) $0.75

Permitting Activity 7 (2) 9 Gas Differential ($0.42) ($0.01) ($0.41)

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

10-Mar-17 Energy 11 LP Kaiser-Francis Oil Company Purchase of additional WI in ND $53 n.a. n.a. n.a.

12-Dec-16 Undisclosed Enerplus 5,800 net acres in ND $292 n.a. $73,000 $50,345

22-Nov-16 Salt Creek Oil and Gas LLC Undisclosed 1,795 net acres in Williston Basin $38 n.a. $69,273 $21,226

17-Oct-16 Oasis Petroleum Inc SM Energy 55,000 net acres in North Dakota $785 $15.64 $63,306 $14,273

27-Sep-16 New Emerald Energy LLC Emerald Oil Inc 86,000 net acres in ND and MT $127 n.a. $22,244 $1,471

Mean $259 $15.64 $56,956 $21,829

Median $127 $15.64 $66,290 $17,749



77

49

7383

102

6777 75

31

79

45

96

36


V+D H

Bakken Snapshot

GROSS PRODUCTION
















11

April 24, 2017

--

$5

$10

$15

$20

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$6.00

# Deals

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

13-Apr-17 Hilcorp Energy Co ConocoPhillips 1.3 million net acres in San Juan Basin $2,700 $4.50 $21,774 $2,077

12-Jan-17 Undisclosed Synergy Resources Corp 10,000 net acres in DJ Basin $71 n.a. $101,429 $7,100

04-Jan-17 Elk Petroleum Ltd Freeport-McMoRan Inc Non-op acreage in Wind River Basin $20 $1.55 $5,882 n.a.

12-Dec-16 Extraction Oil & Gas Undisclosed 16,800 net acres in DJ Basin $177 n.a. n.a. $10,536

04-Nov-16 Ute Energy III Exploration Western Uinta Basin acreage $52 n.a. n.a. n.a.

Mean $604 $3.02 $43,028 $6,571

Median $71 $3.02 $21,774 $7,100



GROSS PRODUCTION




DIFFERENTIALS

Rockies (excl. Bakken) Snapshot

RIG COUNT






--

50

100

150


H V+D

-$0.80

-$0.60

-$0.40

-$0.20

$0.00

$0.20


-$8.00

-$6.00

-$4.00

-$2.00

$0.00

$2.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

--

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$39,846


Rig Count 59 2 57 Oil Differential ($0.50) ($1.25) $0.75


791969

833 867 832 843 833736

568702

942 873 807


V+D H

10,000

11,000

12,000

13,000

14,000

15,000

--

200

400

600

800

1,000


mm

cf/

d

mb

bl/

d

Oil Gas

573

12,942





TBU – States to include


12

April 24, 2017

--

5,000

10,000

15,000

--

200

400

600

800


mm

cf/

d

mb

bl/

d

Oil Gas

548

9,630

-$0.50

-$0.30

-$0.10

$0.10


-$0.40

-$0.20

$0.00

$0.20

$ /

mm

btu

$ /

bb

l

Cushing Panhandle

--$5

$10$15$20$25$30

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$11.60

--

$50,000

$100,000

$150,000

$200,000

$250,000

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$78,269


Rig Count 81 -- 81 Oil Differential -- -- --


Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

04-Apr-17 Unit Corp Undisclosed 8,335 net acres in Anadarko Basin $57 $17.73 $41,514 $6,809

28-Mar-17 Chesapeake Range Resources Corp 19,300 net acres in STACK $26 n.a. n.a. $1,347

22-Mar-17 Gastar Exploration Inc Undisclosed Working interest in STACK $51 n.a. $155,758 $9,065

20-Jan-17 SandRidge Energy IOG Capital; Red Mountain 13,100 net acres in SCOOP/STACK $48 n.a. $68,571 $3,664

13-Dec-16 Gulfport Energy Corp Vitruvian Exploration II LLC 46,400 net surface acres in SCOOP $1,850 $9.69 $60,656 $39,871

Mean $406 $13.71 $81,625 $12,151

Median $51 $13.71 $64,614 $6,809



160198

230263 268

225 241 244294 273

316346

190


V+D H

--

50

100

150

200


H V+D

Mid-Continent Snapshot

GROSS PRODUCTION















13

April 24, 2017


Rig Count 20 (1) 21 Oil Differential $2.15 -- $2.15

Permitting Activity -- -- 0 Gas Differential -- -- --

--

$5

$10

$15

$20

$25

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$9.06

# Deals

--

$20,000

$40,000

$60,000

$80,000

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$19,234

2,000

3,000

4,000

5,000

1,000

1,500

2,000


mm

cf/

d

mb

bl/

d

Oil Gas

1,721

3,390

--

$2.00

$4.00

$6.00

$8.00

$10.00


--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

22 22

17 16

6

1614

19 1820 19

17

0


--

20

40

60

80


H V+D

Gulf of Mexico Snapshot

GROSS PRODUCTION






1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. Red line denotes average since 1-Jan-15. Calculated

as the weighted average of each quarter’s transactions. 3. $/acre multiple not adjusted for value associated with production. 4. Permits include

directional and unidentified drilling permits.




(4)

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

12-Sep-16 Anadarko Freeport-McMoRan Inc Deepwater GOM assets $2,000 $15.88 $25,000 n.a.

29-Aug-16 EnVen Energy Ventures Shell Brutus and Glider fields $425 n.a. $17,000 n.a.

09-Nov-15 EnVen Energy Ventures Marathon Petronius and Neptune fields $205 n.a. $20,500 n.a.

01-Jul-15 Undisclosed Energy XXI East Bay field $21 $2.23 $10,244 n.a.

Mean $663 $9.06 $18,186 n.a.

Median $315 $9.06 $18,750 n.a.







14

April 24, 2017

Energy Headlines

1/13/2017

Appalachia 4

Ark-La-Tex 4

Bakken 3

Eagle Ford 8

Mid-Con 18

Other 4

Permian 33

Rockies 6

Lighter Stuff

E&P Headlines

Upcoming Industry Events

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Mar 18 ADAM-Houston Monthly Luncheon

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Jun 14 IPAA/TIPRO Leaders in Industry Luncheon

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https://ceraweek.com/





http://www.spe.org/events/en/2018/conference/18dc/homepage.html






http://adamhouston.org/events








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http://www.iadc.org/event/2017-iadc-annual-general-meeting/

































http://www.spe.org/events/en/2018/conference/18hftc/homepage.html





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15

April 24, 2017

This

Week Change

Last

Week

Last

Year

Total Rigs 857 10 847 431

Oil 688 5 683 343

Gas 167 5 162 88

Miscellaneous 2 -- 2 --

Directional 60 (4) 64 48

Horizontal 718 12 706 332

Vertical 79 2 77 51

Basin

Arkoma 10 -- 10 3

Barnett 6 1 5 5

Cana 51 (1) 52 29

DJ-Niobrara 25 1 24 15

Eagle Ford 78 3 75 40

Fayetteville 1 -- 1 --

Granite Wash 10 1 9 4

GOM 20 (1) 21 25

Haynesville 37 -- 37 12

Marcellus 46 1 45 28

Mississippian 8 -- 8 4

Permian 340 1 339 136

Utica 23 -- 23 11

Williston 44 1 43 26

Other 158 3 155 93

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Geoff Roberts

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713-518-1268

[email protected]

Howard Barnwell

Director & Transactions Mgr.

713-546-9767

[email protected]

TRANSACTIONS NEWSLETTER

Contacts

Disclaimer

Source of rig count stats: Baker Hughes

Rig Count Summary

MAPS IN

MASTER VIEW

Rob Priske


713-546-9727

[email protected]

Legend

Current

Change

Arkoma

Barnett

Cana

DJ-Niobrara

Eagle Ford

Haynesville

Fayetteville

Granite Wash

GOM

Permian

Marcellus

Mississippian

Utica

Williston

10

--

6

1

51

(1)

25

1

78

3

1

--

10

1

20

(1)

37

--

46

1

8

--

340

1

23

--

44

1

Chelsea Neville

Transactions Coordinator

713-546-9703

[email protected]

Rob Priske


713-546-9727

[email protected]

Geoff Roberts

MD & Head of U.S. A&D

713-518-1268

[email protected]

Marshall Soper

Analyst

713-546-9706

[email protected]

Aaron Moeller

Analyst

713-518-1262

[email protected]

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