Inflow and Inflow Plus General purpose pressure and industrial ...
Prompt Oil Price ($/bbl) $37.41 $3.70 11.0% Let’s follow these ...€¦ · 08-06-2020 · U.S....
16
1 June 8, 2020 Indicator Current Value Week's Change % Change Direction Prompt Oil Price ($/bbl) $37.41 $3.70 11.0% Prompt Gas Price ($/mmbtu) $1.82 ($0.01) (0.3%) Wkly Trans. Value ($mm) $155 $154 nmf Wkly Trans. Count 3 2 200% US Rig Count 284 (17) (5.6%) US Oil Prod'n (mmbbl/d) 11.2 (0.2) (1.8%) US Gas Prod'n (bcf/d) (1) 114.9 (0.4) (0.3%) US Oil Storage (mmbbl) 532.3 (2.1) (0.4%) US Gas Storage (tcf) 2.7 0.1 3.9% $2.2 $8.0 $9.9 $10.7 $4.9 $15.8 $21.2 $21.9 $24.1 $17.0 $9.1 $9.2 $20.8 $8.2 $31.6 $19.5 $1.7 $17.0 $9.0 $0.9 $2.0 -- 50 100 150 200 250 300 350 400 450 500 -- $5 $10 $15 $20 $25 $30 $35 $40 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 95% 74% 78% 67% 47% Number of Transactions Transaction Value ($bn) Asset Corporate Number of Transactions % Oil % Oil % Oil $64.3 Black Stone Minerals announced it entered into two separate transactions to sell mineral and royalty assets to Pegasus Resources for $100 million and an undisclosed buyer for $55 million The June issue of BMO Calgary’s A&D (Canadian) Market Monitor went live last week – read here With developments around COVID-19 in constant flux, BMO Capital Markets has set up a dedicated page to provide clients with the latest news and information, from the market response to developments in the fight against the virus and its spread – read more here Debt Markets 17 issuers priced 20 tranches for approximately $15.5 billion in proceeds last week U.S. high yield funds reported an inflow of ~$6 billion ETFs reported an inflow of $2.7 billion, while mutual funds reported an inflow of $3.1 billion High yield index yield was 6.30%; high yield energy index yield was 10.50% Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, EIA, PLS Note: Current quarter’s data is through the week covered by this issue. 1. EIA U.S. natural gas gross withdrawals and production reported monthly as of Mar 2020. 2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index. Key Industry Indicators Quarterly Deal Activity S&P E&P (2) outperformed last week 10.3% vs. SPX (2) 2.2% The U.S. equity indexes mostly finished up last week. Real estate, industrials, consumer discretionary, consumer staples, tech, materials, and financials finished up. Healthcare finished down Equity Markets Oil ended last week up. Analysts expected high future oil forecasts due to increased anticipation that OPEC+ will agree to extend their current levels for an additional two months and market anticipation that the reopening of economies around the world will increase demand. In addition, markets anticipated this increased demand will cause the oil market to be in balance by late summer. The near-term contract closed up $3.70, or 11.0%, at $37.41 Gas ended last week down. Natural gas futures saw gains earlier last week due to higher spot prices, added heat in the weather models, and higher feed gas volumes being delivered to U.S. LNG terminals. In addition, traders believed gains may been caused by supply risks due to Tropical Storm Cristobal’s anticipated arrival into the Gulf Coast. The near-term contract closed down $0.01, or 0.3%, at $1.82 Commodities Week in Review Covering the Week of May 29 to June 4, 2020 All references to last week in the comments below are through Thursday
Transcript of Prompt Oil Price ($/bbl) $37.41 $3.70 11.0% Let’s follow these ...€¦ · 08-06-2020 · U.S....
1
June 8, 2020
IndicatorCurrent
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $37.41 $3.70 11.0%
Prompt Gas Price ($/mmbtu) $1.82 ($0.01) (0.3%)
Wkly Trans. Value ($mm) $155 $154 nmf
Wkly Trans. Count 3 2 200%
US Rig Count 284 (17) (5.6%)
US Oil Prod'n (mmbbl/d) 11.2 (0.2) (1.8%)
US Gas Prod'n (bcf/d)(1) 114.9 (0.4) (0.3%)
US Oil Storage (mmbbl) 532.3 (2.1) (0.4%)
US Gas Storage (tcf) 2.7 0.1 3.9%
$2.2
$8.0
$9.9 $10.7
$4.9
$15.8
$21.2 $21.9 $24.1
$17.0
$9.1 $9.2
$20.8
$8.2
$31.6
$19.5
$1.7
$17.0
$9.0
$0.9 $2.0
--
50
100
150
200
250
300
350
400
450
500
--
$5
$10
$15
$20
$25
$30
$35
$40
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 95% 74% 78% 67% 47%
Nu
mb
er
of
Tra
nsacti
on
s
Tra
nsacti
on
Va
lue (
$b
n)
Asset Corporate Number of Transactions
% Oil% Oil% Oil
$64.3
Black Stone Minerals announced it entered into two separate
transactions to sell mineral and royalty assets to Pegasus
Resources for $100 million and an undisclosed buyer for $55
million
The June issue of BMO Calgary’s A&D (Canadian) Market
Monitor went live last week – read here
With developments around COVID-19 in constant flux, BMO
Capital Markets has set up a dedicated page to provide
clients with the latest news and information, from the market
response to developments in the fight against the virus and
its spread – read more here
Debt
Markets
17 issuers priced 20 tranches for approximately $15.5 billion in proceeds last week
U.S. high yield funds reported an inflow of ~$6 billion
ETFs reported an inflow of $2.7 billion, while mutual funds reported an inflow of $3.1 billion
High yield index yield was 6.30%; high yield energy index yield was 10.50%
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, EIA, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. EIA U.S. natural gas gross withdrawals and production reported monthly as of Mar 2020.
2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index.
Key Industry Indicators
Quarterly Deal Activity
S&P E&P(2) outperformed last week 10.3% vs. SPX(2) 2.2%
The U.S. equity indexes mostly finished up last week. Real estate, industrials, consumer discretionary,
consumer staples, tech, materials, and financials finished up. Healthcare finished down
Equity
Markets
Oil ended last week up. Analysts expected high future oil forecasts due to increased anticipation that
OPEC+ will agree to extend their current levels for an additional two months and market anticipation that
the reopening of economies around the world will increase demand. In addition, markets anticipated this
increased demand will cause the oil market to be in balance by late summer. The near-term contract
closed up $3.70, or 11.0%, at $37.41
Gas ended last week down. Natural gas futures saw gains earlier last week due to higher spot prices,
added heat in the weather models, and higher feed gas volumes being delivered to U.S. LNG terminals.
In addition, traders believed gains may been caused by supply risks due to Tropical Storm Cristobal’s
anticipated arrival into the Gulf Coast. The near-term contract closed down $0.01, or 0.3%, at $1.82
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 May 29 to June 4, 2020
This is the final issue for 2018. The Market Monitor will
return on Monday, January 7th. Happy Holidays from the
BMO Capital Markets team!
BMO is marketing PayRock Energy’s divestiture of South
Texas Eagle Ford assets (see page [x])
The October issue of BMO Calgary’s A&D (Canadian) Market
Monitor went live last week – read more here
One E&P deal priced last week
WPX Energy (b1/BB-) priced $600 million of x% Senior
Notes due 2027
One E&P issuer priced last week
Noble Energy priced $500 million of 3.25% senior notes
due 2029 and $500 million of 4.20% senior notes due
2049. BMO Capital Markets acted as a Joint
Bookrunner on this transaction
All references to last week in the comments below are through Thursday
Better international/demand data and promise for strict quota adherence by Russia
Demand signals continue to trend positively, with China’s total oil demand is nearly back to the pre-COVID levels of 13.4MM. U.S. real-time
mobility data indicated that driving activity has also recovered much of the April losses. Markets were also affected by greater than expected
Lower 48 shut-ins announced during earnings season. Jet-fuel market remains extremely weak thought travel started to tick higher off historic
lows.
Fighting in Libya intensified
The EIA announced a smaller-than-expected natural gas storage build. EQT confirmed that they had shut-in a large percentage of production
due to pricing, with management noting that sales were being deferred to take advantage of an expected significant improvement in price in the
coming months. LNG cancellations continued. Temperatures across the southern states expected to increase.
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June 8, 2020
Ann'd
Date Buyer Seller Area Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
04-Jun-20 Undisclosed Buyer Black Stone Minerals Permian Midland Basin mineral and royalty assets $55 n.a. n.a. nmf
04-Jun-20 Pegasus Resources LLC Black Stone Minerals Permian Permian Basin mineral and royalty assets $100 n.a. n.a. nmf
11-May-20 Diversified Gas & Oil EQT Marcellus/Utica Appalachia Basin asset in PA and WV $125 $2.60 $13,889 n.a.
11-May-20 Morning Star Oil Co Southland Royalty Co Other Rockies 205,000 net acres in San Juan Basin $53 n.a. $3,635 $260
04-May-20 National Fuel Gas Shell Marcellus/Utica 450,000 net acres in Appalachia $541 $4.57 $12,983 $1,202
14-Apr-20 Undisclosed Buyer Ring Energy Permian 19,998 net acres in Delaware Basin $32 $3.15 $34,615 $1,575
08-Apr-20 Diversified Gas & Oil Carbon Energy Corp (USA) Marcellus/Utica 1,553,754 net acres in Appalachia $110 $1.51 $11,111 $71
03-Apr-20 BCE-Mach III LLC Alta Mesa Resources Mid-Continent 130,000 net acres in STACK $160 $2.22 $5,317 $1,227
31-Mar-20 Brigham Minerals LLC Undisclosed Sellers Multi-Region 1,625 net royalty acres in multiple basins $25 n.a. n.a. nmf
31-Mar-20 Viper Energy Partners Undisclosed Sellers Permian 410 net royalty acres in Permian Basin $63 n.a. n.a. nmf
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
Permian22%
Rockies (ex. Bakken)
9%
Bakken3%
Appalachia7%
Mid-Con12%
Eagle Ford6%
Ark-La-Tex5%
Gulf of Mexico7%
Other29%
LTM By Region
y = 22.526e-0.061x
R² = 0.2785
--
$10
$20
$30
$40
$50
$60
-- 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x
Sa
les
Pri
ce
/ P
rove
d R
es
erv
es
($
/bo
e @
15
:1)
R / P
R / P
Sales Value /
Proved Reserves
(15:1)
(ratio) ($ / boe) ($ / mcfe)
8x $13.78 $0.92
10x $12.19 $0.81
15x $8.97 $0.60
20x $6.60 $0.44
Oil48%
Gas52%
LTM By Commodity
Public Company
45%
PE / PE-Backed
16%
Private11%
Other28%
LTM By Buyer Type
$10.8 $22.3
$14.5 $5.3 $2.1
$4.4
$8.8
$11.1
$57.6
$0.9
$15.3
$31.1 $25.6
$62.8
$2.9
2016 2017 2018 2019 2020
402 736 554 90 53
Asset Corporate
Deal Count
The 10 Most Recent Asset Transactions Over $20 Million
A&D Valuation Trends(3)
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, PLS
1. Represents total enterprise value. 2. Calculated as percentage of total LTM transaction count (number of transactions, not dollar value).
3. 68 transactions from January 2015 to 2019 with transaction value >$20mm. Adjusted for changes in price outlooks. Recalculated boe reserves are on a 15:1
(gas:oil) basis. Acreage transactions excluded by using deals with PDP of >= 40% of total proved.
4. Year-to-date data is through this week’s date for each respective year.
(2) (2) (2)
Confirm number of transactions weekly --->
Deal Activity – YTD ($bn)(4)
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June 8, 2020
6/4/2020
Appalachia 5
Ark-La-Tex 1
Bakken 1
Eagle Ford 4
Mid-Con --
Other 2
Permian 1
Rockies 1
15
Select Significant Deals on the Market
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Source of Select Significant Deals on the Market: BMO Transaction Database
Source of Headlines: Press releases
Industry Headlines
(Click headline to link to the full article)
M&A&D Headlines
Appalachia
4 Deals
Mid-Con
0 Deals
Eagle Ford
4 Deals
Permian
1 Deal
Other
2 Deals
Rockies
1 Deal
Bakken
1 Deal
Ark-La-Tex
1 Deal
BMO Deals (Status)
Siltstone Appalachia (In Market) – See page 6
Analysts Increase Oil Price Forecast
After Oil's Best Month Ever, These Are the Key
Themes to Watch
Putin and Trump Discuss OPEC+ Deal
China Leads the Global Oil Demand Recovery
Trump Administration Shelves More Oil and Gas
Lease Sales
U.S. and Australia Sign SPR Lease Agreement
Trump Rule Limits States from Blocking Pipeline
Projects
U.S. Renewables Energy Consumption Surpasses
Coal for the First Time in Over 130 Years
Black Stone Minerals Announces Asset Sale Totaling
$155 Million
Talos Energy Announces Full Year 2019 Operating
and Financial Guidance (includes A&D
announcement)
+ the EQT mineral/JV Deal
+ Antero ORRI deal
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https://www.cnbc.com/2020/05/31/crude-oil-rally-where-the-commodity-and-energy-stocks-head-next.html
4
June 8, 2020
Market Insight: Assessing the Impact on M&A Activity Levels During Crises
from 1998 to Present
Source: FactSet
Note: The CBOE Volatility Index (VIX) is used as a proxy for equity volatility; ‘low volatility’ defined as periods with VIX levels below 20 and ‘high volatility’ defined as periods
with VIX levels above 20.
1. Aggregate North American transaction volumes and values over $50mm by quarter from 1998 to present.
2. Financial buyers as a percentage of total transactions. 3. Public sellers as a percentage of total corporate transactions; asset sales are excluded.
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DEAL VOLUME BY QUARTER(1)
--
150
300
450
600
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Dot Com
Bubble
Global
Financial
Crisis
9/11
Attack COVID-19
OPEC+
M&A activity has typically
rebounded within 2 to 4
quarters post crisis
299
251
Low Volatility High Volatility
DEALS PER QUARTER(1)
AVERAGE DEAL VALUE
(US$MM)
$916 $802
Low Volatility High Volatility
Fewer deals get done…
14%
11%
Low Volatility High Volatility
…and deals that do get done
are smaller
FINANCIAL BUYERS(1)(2) PUBLIC SELLERS(1)(3)
37%
46%
Low Volatility High Volatility
Financial buyers retrench due
to constrained access to
leverage
More public companies
become targets in part due to
observable distressed
valuation benchmarks vs.
private companies
Sharp decline in aggregate M&A deal volume and value during periods of high volatility is typically
followed by robust recovery when volatility subsides
5
June 8, 2020
Historical Prices as of 04-Jun-20 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.24 $0.24 $0.18 $0.21
Propane $0.51 $0.46 $0.53 $0.44
Butane $0.54 $0.47 $0.69 $0.40
Iso-butane $0.57 $0.49 $0.79 $0.52
Pentane+ $0.49 $0.49 $1.22 $1.02
NYMEX Gas Futures as of 04-Jun-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.43 $2.43 $2.33 $2.57
2020 $2.16 $2.16 $2.33 $2.63
2021 $2.64 $2.65 $2.44 $2.64
2022 $2.47 $2.49 $2.46 $2.63
2023 $2.42 $2.44 $2.51 $2.70
2024 $2.40 $2.43 $2.57 $2.81
NYMEX WTI Futures as of 04-Jun-20 Close ($/bbl) NYMEX Gas Futures as of 04-Jun-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $38.74 $35.58 $54.68 $53.23
2020 $38.08 $34.62 $54.68 $52.60
2021 $39.95 $37.31 $52.11 $51.48
2022 $41.92 $40.07 $51.14 $51.15
2023 $43.90 $42.59 $50.97 $51.39
2024 $45.91 $44.85 $51.21 $51.79
$10
$20
$30
$40
$50
$60
$70
Jun-19 Dec-19 Jun-20 Dec-20 Jun-21
($/b
bl)
$1
$2
$3
$4
$5
Jun-19 Dec-19 Jun-20 Dec-20 Jun-21
($/m
mb
tu)
25%
35%
45%
55%
65%
Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20
% o
f W
TI
NGL as % of WTI
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
Historical Prices as of 28-May-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.24$0.23$0.19$0.24Propane$0.46$0.48$0.55$0.56Butane$0.47$0.50$0.71$0.54Iso-butane$0.49$0.51$0.82$0.63Pentane+$0.49$0.58$1.32$1.19
NYMEX Gas Futures as of 28-May-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.43$2.36$2.40$2.692020$2.16$2.11$2.40$2.692021$2.65$2.64$2.47$2.672022$2.49$2.49$2.48$2.662023$2.44$2.41$2.53$2.732024$2.43$2.39$2.58$2.84
NYMEX WTI Futures as of 28-May-20 Close ($/bbl)NYMEX Gas Futures as of 28-May-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$35.58$35.68$56.51$58.722020$34.62$34.89$56.51$57.672021$37.31$37.03$53.40$55.322022$40.07$39.15$51.98$54.002023$42.59$41.26$51.50$53.492024$44.85$43.33$51.51$53.58
Historical Prices as of 28-May-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.24$0.23$0.19$0.24Propane$0.46$0.48$0.55$0.56Butane$0.47$0.50$0.71$0.54Iso-butane$0.49$0.51$0.82$0.63Pentane+$0.49$0.58$1.32$1.19
NYMEX Gas Futures as of 28-May-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.43$2.36$2.40$2.692020$2.16$2.11$2.40$2.692021$2.65$2.64$2.47$2.672022$2.49$2.49$2.48$2.662023$2.44$2.41$2.53$2.732024$2.43$2.39$2.58$2.84
NYMEX WTI Futures as of 28-May-20 Close ($/bbl)NYMEX Gas Futures as of 28-May-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$35.58$35.68$56.51$58.722020$34.62$34.89$56.51$57.672021$37.31$37.03$53.40$55.322022$40.07$39.15$51.98$54.002023$42.59$41.26$51.50$53.492024$44.85$43.33$51.51$53.58
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Clearbrook
Midland
Cushing
St. James
(LLS)
East Coast
U.S. (Brent)
Midland Sweet-
Sour Spread
EMS
AECO
Northern
California
Sumas
Southern
California
El Paso - SJ
Waha
HSC
Henry Hub
Panhandle
CIG Chicago
Dominion
Transco
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 4-JUN-20
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 4-JUN-20
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
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$1.82
$1.40
($0.42)
$34.41
($3.00)
$1.56
($0.26)
$1.61
($0.21)
$38.80
$1.39
$1.75
($0.07)
$2.02
$0.20
$1.62
($0.20)
$1.78
($0.04)
$2.55
$0.73
$39.99
$2.58
$37.41
($0.57)
$37.38
($0.03)
$1.62
($0.20)
$1.82
--
$1.47
($0.35)
$1.56
($0.26)
$35.26
($2.15)
7
June 8, 2020
0%
10%
20%
30%
40%
50%
60%
--
100
200
300
400
500
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 141 (7) 148 Oil Differential ($0.10) ($0.75) $0.65
Permitting Activity 64 9 55 Gas Differential ($0.25) $0.08 ($0.33)
900784 753
596
851 744803
966843
706
544
295
44
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
-$4.80
-$3.20
-$1.60
$0.00
$1.60
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$18.00
-$12.00
-$6.00
$0.00
$6.00
$ /
mm
btu
$ /
bb
l
Midland Waha
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
04-Jun-20 Undisclosed Buyer Black Stone Minerals Midland Basin mineral and royalty assets $55 n.a. n.a. nmf
04-Jun-20 Pegasus Resources LLC Black Stone Minerals Multi-Permian mineral and royalty assets $100 n.a. n.a. nmf
14-Apr-20 Undisclosed Buyer Ring Energy 19,998 net acres in Delaware Basin $32 $3.15 $34,615 $1,575
31-Mar-20 Viper Energy Partners Undisclosed Sellers 410 net royalty acres in Permian Basin $63 n.a. n.a. nmf
14-Feb-20 Undisclosed Buyer Lilis Energy Inc 1,185 net acres in Delaware Basin $25 n.a. n.a. $21,013
Mean $55 $3.15 $34,615 $11,294
Median $55 $3.15 $34,615 $11,294
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
4,000
8,000
12,000
16,000
20,000
1,000
2,000
3,000
4,000
5,000
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas4,666
16,505
--
$20,000
$40,000
$60,000
$80,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
1 2 8 8 6 6 121315 7 2 2 7 2 5 4 1 2 0 3 0 2
$ /
acre
# Deals
$23,957
--
$50,000
$100,000
$150,000
$200,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
1 2 6 9 5 7 11 9 9 6 1 0 7 2 5 4 1 2 4 3 0 1
$ /
bo
e/d
# Deals
$86,402
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS
Permian Snapshot
RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU] [TBU]
[TBU] [TBU]
[TBU]
[TBU]
8
June 8, 2020
0%
5%
10%
15%
20%
--
100
200
300
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 17 (8) 25 Oil Differential $1.10 ($0.65) $1.75
Permitting Activity 5 (1) 6 Gas Differential $0.01 $0.04 ($0.03)
222
173201 192
221 204 204
302
170 180
7843
5
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
-$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 Jan-20
-$6.00
-$4.00
-$2.00
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
MEH HSC
6,000
6,500
7,000
7,500
8,000
1,000
1,200
1,400
1,600
1,800
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
1,411
7,383
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
21-Feb-20 Magnolia Oil & Gas Corp Undisclosed Seller Non-op Eagle Ford assets $71 n.a. $39,176 n.a.
12-Nov-19 Kimbell Royalty Partners Buckhorn Resources 400 net royalty acres in Eagle Ford $32 n.a. $117,752 nmf
07-Nov-19 Repsol Equinor 100% ownership in former Eagle Ford JV $325 n.a. $9,559 $7,476
06-Nov-19 Marathon Rocky Creek & Delago 18,000 net acres in Eagle Ford $185 n.a. $26,429 $10,278
17-Jul-19 Undisclosed Buyer Sundance Energy 6,100 net acres in Dimmit County $30 n.a. $28,069 $4,836
Mean $129 n.a. $44,197 $7,530
Median $71 n.a. $28,069 $7,476
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--$10,000$20,000$30,000$40,000$50,000$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 1 2 1 2 2 0 4 2 3 1 2 4 2 1 3 0 0 0 0 0
$ /
acre
# Deals
$8,045
--
$50,000
$100,000
$150,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
1 1 3 1 2 2 2 4 4 3 1 2 7 2 0 3 0 0 1 3 1
$ /
bo
e/d
# Deals
$64,626
Eagle Ford Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
9
June 8, 2020
0%
5%
10%
15%
20%
--
20
40
60
80
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 31 (1) 32 Oil Differential $1.30 ($0.45) $1.75
Permitting Activity 11 6 5 Gas Differential -- -- --
-$10.00
-$5.00
$0.00
$5.00
$10.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$10.00
-$5.00
$0.00
$5.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
93112
200219
100
166
81 81 77 6839 32
8
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
5,000
6,500
8,000
9,500
11,000
12,500
14,000
60
70
80
90
100
110
120
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
75
12,743
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
20-Dec-19 Undisclosed Buyer Riviera Operating LLC 75,873 net acres in East Texas $34 $0.17 $1,213 $448
29-Jul-19 Osaka Gas Sabine Oil & Gas Corp 175,000 net acres in East TX $610 n.a. $2,905 $9,136
19-Dec-18 Comstock Shelby Shale LLC 6,023 net acres in Haynesville $21 n.a. n.a. $3,404
19-Nov-18 Aethon III QEP Resources Inc 49,700 net acres in Haynesville $735 $0.77 $2,475 $14,789
05-Sep-18 Viking Energy Group Multiple Sellers Texas and Louisiana assets $100 n.a. n.a. n.a.
Mean $300 $0.47 $2,198 $6,944
Median $100 $0.47 $2,475 $6,270
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 3 1 1 2 1 3 0 1 2 0 1 1 1 1 0 1 1 0 0
$ /
acre
# Deals
$3,180
--$2,000$4,000$6,000$8,000
$10,000$12,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 5 1 1 3 2 3 0 2 2 0 1 1 2 1 0 1 1 1 0
$ /
mcfe
/d
# Deals
$3,983
Ark-La-Tex Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, 2019, and 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
10
June 8, 2020
0%
5%
10%
15%
20%
--
50
100
150
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 37 -- 37 Oil Differential $2.58 $1.00 $1.58
Permitting Activity 2 (11) 13 Gas Differential ($0.42) $0.04 ($0.47)
-$3.00
-$2.00
-$1.00
$0.00
$1.00
$2.00
$3.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$15.00
-$10.00
-$5.00
$0.00
$5.00
$10.00
$15.00
$ /
mm
btu
$ /
bb
l
Brent Dominion
335 348302 295
258232
188157
226253
176
92
0
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
15,000
20,000
25,000
30,000
35,000
80
100
120
140
160
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
149
33,464
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
11-May-20 Diversified Gas & Oil EQT Appalachia Basin asset in PA and WV $125 $0.43 $2,315 n.a.
04-May-20 National Fuel Gas Shell 450,000 net acres in Appalachia $541 $0.76 $2,164 $1,202
08-Apr-20 Diversified Gas & Oil Carbon Energy Corp (USA) 1,553,754 net acres in Appalachia $110 $0.25 $1,852 $71
24-Jan-20 KeyBank EdgeMarc Energy Holdings 32,217 net acres in Pennsylvania $70 $0.09 $801 $2,163
19-Dec-19 Undisclosed Buyer Gulfport Energy Corp Non-op Utica assets $29 n.a. n.a. n.a.
Mean $175 $0.38 $1,783 $1,145
Median $110 $0.34 $2,008 $1,202
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--$5,000
$10,000$15,000$20,000$25,000$30,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1 1 0 2 1 1 3
$ /
mcfe
/d
# Deals
$4,722
--$2,000$4,000$6,000$8,000
$10,000$12,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0 0 0 0 0 0 1
$ /
acre
# Deals
$497
Appalachia Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, 2019, and 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-DEC-19)
[TBU]
[TBU]
[TBU]
11
June 8, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 12 -- 12 Oil Differential ($2.15) ($0.90) ($1.25)
Permitting Activity 4 (6) 10 Gas Differential ($0.19) $0.10 ($0.29)
0%
5%
10%
15%
20%
--
50
100
150
200
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
144 154138
110
157
8380 78
67 76 67 61
1
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
1,500
1,800
2,100
2,400
2,700
3,000
3,300
3,600
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas 1,432
3,081
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
22-Apr-19 Northern Oil and Gas Flywheel Energy LLC 18,000 net acres in Williston Basin $310 n.a. $47,014 $17,238
31-Jul-18 Northern Oil and Gas W Energy Partners 10,600 net acres in Williston Basin $288 n.a. $42,708 $27,196
18-Jul-18 Northern Oil and Gas Pivotal Petroleum Partners LP Producing assets in Williston Basin $152 n.a. $37,032 n.a.
12-Jul-18 PetroShale Inc Slawson Exploration Co 1,981 net acres in Williston Basin $55 $6.04 $100,000 $27,764
06-Jul-18 Energy Resources 12 LP Bruin E&P Partners LLC 2.8% non-operated WI in Bakken assets $83 n.a. n.a. n.a.
Mean $178 $6.04 $56,688 $24,066
Median $152 $6.04 $44,861 $27,196
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$20,000
$40,000
$60,000
$80,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 1 1 4 0 2 3 3 0 1 3 3 0 6 3 0 0 1 0 0 0
$ /
bo
e/d
# Deals
$45,752
--
$5,000
$10,000
$15,000
$20,000
$25,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 1 2 0 0 2 3 1 0 3 2 0 5 2 0 0 1 0 0 0
$ /
acre
# Deals
$1,751
Bakken Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
[TBU]
[TBU]
12
June 8, 2020
0%
5%
10%
15%
20%
--
50
100
150
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 7 (1) 8 Oil Differential ($2.15) ($0.90) ($1.25)
Permitting Activity 54 28 26 Gas Differential ($0.19) $0.10 ($0.29)
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
11-May-20 Morning Star Oil Co Southland Royalty Co 205,000 net acres in San Juan Basin $53 n.a. $3,635 $260
31-Jan-20 Undisclosed Buyer ConocoPhillips 98,000 net acres in DJ Basin $380 $27.14 $34,545 $3,878
09-Dec-19 YTEF Drilling Capital LLC Bayswater E&P LLC DJ Basin JV $125 n.a. n.a. n.a.
03-Sep-19 Undisclosed Buyer Crescent Point 224,000 net undeveloped acres in Uinta $525 n.a. $32,051 $2,344
14-Feb-19 Undisclosed Buyer Harvest Oil & Gas Corp San Juan Basin assets $43 $1.57 $10,835 n.a.
Mean $225 $14.36 $20,267 $2,160
Median $125 $14.36 $21,443 $2,344
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
--$20,000$40,000$60,000$80,000
$100,000$120,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
2 0 4 4 1 6 2 0 1 6 3 9 3 1 3 1 1 0 2 0 1 1
$ /
bo
e/d
# Deals
$33,614
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
0 0 3 3 0 1 1 0 1 0 1 5 2 0 2 1 0 0 0 0 1 0
$ /
acre
# Deals
$2,069
306 286
434
327297
168 213268
199
286
210 225
10
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
13,000
13,500
14,000
14,500
15,000
15,500
500
600
700
800
900
1,000
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas962
13,944
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS
Rockies (excl. Bakken) Snapshot
RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
[TBU]
[TBU]
13
June 8, 2020
0%
5%
10%
15%
20%
--
100
200
300
400
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 14 (1) 15 Oil Differential -- -- --
Permitting Activity 11 (3) 14 Gas Differential ($0.22) $0.03 ($0.25)
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
$ /
mm
btu
$ /
bb
l
Cushing Panhandle
374 354327 348 344 347
296286 257
193
73 79
7
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
12,000
13,200
14,400
15,600
16,800
18,000
600
650
700
750
800
850
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas778
13,949
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
03-Apr-20 BCE-Mach III LLC Alta Mesa Resources 130,000 net acres in STACK $160 $2.22 $5,317 $1,227
10-Dec-19 Dow Devon Energy STACK Basin JV $100 n.a. n.a. n.a.
27-Sep-19 Contango White Star Petroleum LLC 314,800 net acres in Mid-Con $133 $1.57 $8,833 $421
12-Sep-19 Contango Will Energy Corporation TX Panhandle, W. Anadarko, and N.LA $23 n.a. $16,429 $144
28-Aug-19 Scout Energy Partners Riviera Resources Inc Hugoton Basin assets $295 $2.30 $17,020 $295
Mean $142 $2.03 $11,900 $522
Median $133 $2.22 $12,631 $358
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$50,000
$100,000
$150,000
$200,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
1 4 1 3 1 6 3 1 4 2 4 5 2 2 5 4 2 0 4 2 0 1
$ /
bo
e/d
# Deals
$18,742
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 1 0 0 0 0 0
$ /
acre
# Deals
$4,284
Mid-Continent Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-DEC-19)
[TBU]
[TBU]
[TBU]
14
June 8, 2020
0%
5%
10%
15%
20%
--
10
20
30
40
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
Deep Water Shelf % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 13 1 12 Oil Differential $1.30 ($0.45) $1.75
Permitting Activity 4 (7) 11 Gas Differential -- -- --
-$10.00
-$5.00
$0.00
$5.00
$10.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$10.00
-$5.00
$0.00
$5.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
2730
28
21 22 21
16
22 22 21
11
23
3
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
Ann'd
Date Buyer Seller Asset Description Value(2)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(3)
12-Dec-19 W&T Offshore ConocoPhillips Deepwater GOM assets $20 $4.88 $8,696 n.a.
10-Dec-19 Talos Energy Multiple GOM assets and exploration prospects $640 $14.71 $33,684 n.a.
27-Jun-19 W&T Offshore ExxonMobil Mobile Bay assets $200 $2.70 $10,101 n.a.
13-May-19 Equinor Shell 22.45% WI in Caesar-Tonga Field $965 n.a. $60,313 n.a.
23-Apr-19 Murphy LLOG Bluewater LLC Mississippi Canyon & Green Canyon $1,375 $20.83 $36,184 n.a.
Mean $640 $10.78 $29,796 n.a.
Median $640 $9.79 $33,684 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
--
$10
$20
$30
$40
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 1 0 0 0 2 1 0 0 0 1 2 1 0 1 1 2 0 2 0
$ /
bo
e
# Deals
$15.86
--
$15,000
$30,000
$45,000
$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 1 1 0 0 2 0 0 0 0 1 2 2 2 1 1 3 0 2 0
$ /
bo
e/d
# Deals
$30,696
Gulf of Mexico Snapshot
PERMITTING ACTIVITY BY MONTH(1)
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Permits include directional and unidentified drilling permits. 2. Represents total enterprise value. Excludes transactions with deal value <$20 million.
3. $/acre multiple not adjusted for value associated with production.
4. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
GROSS PRODUCTION (THROUGH 31-JAN-20)
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(4) TRANSACTION PROVED RESERVE MULTIPLES(4)
[TBU]
2,000
2,500
3,000
3,500
4,000
4,500
1,200
1,400
1,600
1,800
2,000
2,200
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
1,968
2,898
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
15
June 8, 2020
Upcoming Industry Events
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Click event to open
2021
November 2020 Nov 3-4 Executive Oil Conference & Exhibition (Midland)
Nov 11 IPAA Leaders in Industry Luncheon
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Oct 14 IPAA Leaders in Industry Luncheon
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Oct 16 ADAM-Houston Monthly Luncheon
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Dec 3 IPAA Texas Hold'Em Tournament
Dec 9 IPAA Leaders in Industry Luncheon
Dec 15 Houston Producers Forum Luncheon
January 2021 Jan 13 IPAA Leaders in Industry Luncheon
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Jan 18-22 API E&P Winter Standards Meeting
Jan 19 Houston Producers Forum Luncheon
February 2021 Feb 8-12 NAPE Summit
Feb 10 IPAA Leaders in Industry Luncheon
Feb 16 Houston Producers Forum Luncheon
Feb 19 ADAM-Houston Monthly Luncheon
March 2021 Mar 10 IPAA Leaders in Industry Luncheon
Mar 16 Houston Producers Forum Luncheon
Mar 19 ADAM-Houston Monthly Luncheon
Mar 25-26 DUG Bakken and Rockies (Denver)
May 2021 May 12 IPAA Leaders in Industry Luncheon
May 18 Houston Producers Forum Luncheon
May 21 ADAM-Houston Monthly Luncheon
May 26-27 DUG Haynesville (Shreveport)
16
June 8, 2020
SCOOP/STACK/Merge
DJ-Niobrara
Eagle Ford
Haynesville
Granite Wash
GOM
Permian
Marcellus
Utica
Williston
Gulf Coast Onshore
Piceance
Powder River Green River
Legend
Current
Change
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Source of rig count stats: Baker Hughes
Rig Count Summary MAPS IN
MASTER VIEW
Contacts
Disclaimer
Jason Martinez
MD & Head of U.S. A&D
713-546-9771
Howard Barnwell
MD & Transactions Mgr.
713-546-9767
Rob Priske
MD & Transactions Mgr.
713-546-9727
Dan Schockling
MD & Head of Commercial
713-518-1223
Michael Hackett
Vice President
Marian Yu
Associate
Aaron Moeller
Associate
BMO uses updated basin outlines, and the resulting rig counts, to more accurately represent current basin knowledge. The data below reflect these changes
and is different than those shown by Baker Hughes. The totals are the same.
141
(7)
12
--
9
--
28
--5
--
13
1
2
(1)8
1
31
(1)
17
(8)
3
--
1
--
1
(1)--
--
Michelle Tankimovich
Analyst
This
Week Change
Last
Week
Last
Year
Total Rigs 284 (17) 301 975
Oil 206 (16) 222 789
Gas 76 (1) 77 186
Miscellaneous 2 -- 2 --
Directional 24 1 23 74
Horizontal 253 (18) 271 855
Vertical 7 -- 7 46
Basin
Permian 141 (7) 148 446
SCOOP/STACK/Merge 8 1 7 77
Granite Wash 2 (1) 3 12
Eagle Ford 17 (8) 25 89
Haynesville 31 (1) 32 61
Marcellus 28 -- 28 58
Utica 9 -- 9 18
Williston 12 -- 12 56
DJ-Niobrara 5 -- 5 28
Green River -- -- -- 17
Powder River 1 (1) 2 19
Piceance 1 -- 1 5
Gulf Coast Onshore 3 -- 3 24
GOM 13 1 12 23
Alaska 3 -- 3 6
Other 10 (1) 11 36
Mid-Con 4 (1) 5 16
Rockies -- -- -- 2
Western 5 -- 5 18
Eastern 1 -- 1 --
[TBU]
[TBU]
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