CM - Analyst Notes - June 26, 2020Antero Resources Corp. (NYSE: AR; $3.77-June 19; Hold; PT-$4) Announced a $402MM headline value ($300MM upfront, ~$102MM contingency payments over next 12mo) transaction for a weighted average ~1.0-1.5% ORRI across AR’s asset base (1.25% ORRI in existing producing wells, 3.75% ORRI in existing acreage in wells completed over next three years; after a 13% IRR and 1.5x cash-on-cash return to buyer, AR will have an 85% reversionary interest); headline valuation ~in-line with TPHe...
Jun 26, 2020
A&D - Black Stone makes $155MM trimming Permian minerals - June 2020Black Stone Minerals, the largest pure-play oil and gas mineral and royalty owner in the US, struck two deals to sell mineral and royalty properties in the Permian Basin for a total of $155 million. The move continues both the company’s debt-reduction efforts in response to lower commodity prices and its shift in focus to its large natural gas holdings primarily in the East Texas Haynesville. Black Stone estimates that the production associated with the divested properties is 1,800 boe/d, or 4%...
Jun 12, 2020
CM - Apache gives up NYSE, will be exclusive with Nasdaq - June 2020Though its common shares have been listed on Nasdaq since 2004, Apache Corp. announced that it is making its equity’s relationship with the market exclusive. The company, which is in the process of delisting and unwinding from the NYSE and the Chicago Stock Exchange, said its common stock will trade only on Nasdaq beginning June 9. Apache determined that the cost savings from such actions are in the best interest of the company and its stockholders, according to a May 27 SEC filing. It has...
Jun 05, 2020
CM - We’re up to Chapter 11 in the Unfortunate Tales of 2020 - June 2020If you like to read about bankruptcies, have we got an issue for you! Ultra Petroleum (PG.1) went into a Houston bankruptcy court for the second time since 2016 to cut its $2 billion debt load, most of which was incurred as exit financing from its last bankruptcy. Unit Corp. (PG.7) visited the same courtroom with a prepackaged plan to eliminate $650 million of debt. A pair of Eagle Ford producers— Gavilan Resources and Freedom Oil & Gas—also filed for Chapter 11 protection in mid-May, but...
Jun 05, 2020
PS - US E&Ps execute significant Q2 oil curtailments - June 2020The coronavirus pandemic has resulted in unprecedented demand destruction for oil markets. The International Energy Agency projects that global demand will fall by a record 9.3 MMbo/d in 2020. In the middle of the lockdown, April demand was down 29 MMbo/d YOY. In response to greatly oversupplied oil markets, OPEC+ agreed in mid-April to cut 9.7 MMbo/d in May and June. The IEA estimated that global output would fall 12 MMbo/d in May. Outside of the OPEC+ cuts, major and independent US producers...
Jun 03, 2020
A&D - Exxon adds stake in Petronas’ Suriname-Guyana Basin block - May 2020ExxonMobil is farming into 50% WI in Block 52 off Suriname in a deal with Petronas, which will retain operatorship and the remaining 50%. The Malaysian NOC plans to spud the Slonea-1 exploration well by the end of September and acquire new 3D seismic data to evaluate the block’s upside potential. The well is expected to take two to three months to drill. Located in the prospective Suriname Guyana Basin, Block 52 covers 4,749 sq km in water depths ranging 50-1,100 meters. It is located...
May 22, 2020
PS - Apache testing zone others abandoned in early 2010s - April 2020In Rosebud County, Montana, Apache Corp. subsidiary Alta Vista Oil completed the Golden Monkey #1H well in Q4. The well was drilled with a 9,993-ft lateral that was fracked with 9.2 MMlb of proppant (922 lb/ ft) and produced an initial 24-hour rate of 801 boe/d (97% oil) from the Heath shale. In the last year and a half, the company has completed three wells in Rosebud County, all targeting the Heath. Results were not available for the other two wells. It’s interesting to see a large...
Apr 22, 2020
MI - People & Companies - April 17, 2020Adams Resources & Energy, Inc. named Greg L. Mills president of its GulfMark Energy, Inc. subsidiary, replacing Adams CEO and president Kevin J. Roycraft, who had held the GulfMark position on an interim basis. Altus Midstream Co. elected CEO and president Clay Bretches to the additional role of chairman of the board, replacing W. Mark Meyer, who also resigned as a director. The company elected Stephen Noe to fill the vacant director seat. Antero Midstream Corp. elected...
Apr 17, 2020
IS - Apache finds 79 meters of net pay in second well off Suriname - April 2020Apache Corp. has made its second discovery off Suriname on Block 58, which is adjacent to ExxonMobil’s 8 Bboe Stabroek block in Guyanese waters. The Sapakara West-1 well was drilled 20 km southeast of January’s Maka Central-1 discovery in 1,000 meters of water and reached a depth of 6,300 meters. It encountered 79 meters of net oil and gas condensate pay in Upper Cretaceous-aged Campanian and Santonian intervals. In the shallower Campanian interval, the well encountered 13 meters of net...
Apr 15, 2020
BS - Major E&P testing Montana zone others abandoned in early 2010s - April 14, 2020In Rosebud County, Montana, Apache Corp. subsidiary Alta Vista Oil completed the Golden Monkey #1H well in Q4. The well was drilled with a 9,993-ft lateral that was fracked with 9.2 MMlb of proppant (922 lb/ft) and produced an initial 24-hour rate of 801 boe/d (97% oil) from the Heath shale. In the last year and a half, the company has completed three wells in Rosebud County, all targeting the Heath. Results were not available for the other two wells. It’s interesting to see a large...
Apr 14, 2020
CM - Apache’s new credit rating expected to have ‘no impact’ - April 2020Apache Corp. announced March 27 that Standard & Poor’s downgraded its credit rating to BB+ from BBB. The company said it will post about $650 million of letters of credit related to retiring assets in the UK North Sea and that it does not expect the rating to impact its financial position, liquidity or business strategy. BB+ is the highest tier outside of the investment grade window. The letters of credit will come from Apache’s $2.0 billion committed sublimit specifically for...
Apr 03, 2020
CM - People & Companies - April 3, 2020Amazing Energy Oil and Gas Co. named Benjamin Jacobson III CFO effective Feb. 13, succeeding Marty Dobbins, who resigned. Prior to joining Amazing Energy, Jacobson co-founded ICP, LLC, which invests in E&P companies. Apache Corp. appointed Clay Bretches EVP, Operations, a promotion from SVP Operations. He will also continue to serve as CEO and a director of Apache subsidiary Altus Midstream Co., which he has done for over a year. Basic Energy Services, Inc. has reconfigured its...
Apr 03, 2020
IS - Latin America Briefs - May 8, 2020Apache Corp. spudded its third exploration well, Kwasikwasi, on Block 58 off Suriname in mid-April. The previous two wells, Maka Central and Sapakara West, both resulted in significant oil discoveries. Kwasikwasi is located 10 km northwest of Sapakara West. After Apache (50% WI) finishes the fourth exploration well, partner Total (50%) will take over operatorship of the license. The partners have identified seven play types and over 50 prospects on the block. \Colombia’s Ecopetrol...
May 08, 2020
PS - News Briefs - April 22, 2020Apache Corp. made additional cuts to its 2020 capital budget on March 27. The company has reduced total capex by $1.3 billion, or 54%, compared to 2019, and plans to save $340 million each year by reducing its annual dividend to $0.025/ share from $0.25/share. On March 30, Apache doubled its targeted G&A and LOE cost reductions to more than $300 million; $225 million of the identified savings, which include the impact of severance and reorganization costs, will be achieved in 2020....
Apr 22, 2020
IS - Latin America Briefs - April 15, 2020Bahamas Petroleum is pushing back its planned Perseverance-1 exploration well off the Bahamas because of the coronavirus pandemic. The company originally planned to spud the well in May or June and is now planning to begin drilling no sooner than October. It is also in discussions with several contractors to secure a suitable drilling rig, as availability is likely to be higher and dayrates may be lower. Long lead items, which were being readied for delivery to the drillship, have been moved to...
Apr 15, 2020