OFS - Covia enters bankruptcy with rival Hi-Crush likely to follow - July 2020Covia filed for Chapter 11 bankruptcy reorganization on June 29, the latest of several dark days for the depressed proppant sector. Hi-Crush Inc., an early mover into mining West Texas for frac sand, expects to enter bankruptcy after defaulting on its asset-based loan facility. Another frac sand provider, Vista Proppants and Logistics, entered Chapter 11 in early June (PG.9). Covia, which is based in Independence, Ohio, said it has reached a prepackaged deal that will reduce debt and...
Jul 01, 2020
CM - WPX completes 2028 notes offering & extends tender offer - June 2020WPX Energy Inc. closed a public offering of $500 million of 5.875% senior unsecured notes due 2028 at 100. The company wrapped up the sale June 17 and plans to use proceeds to buy back up to $500 million outstanding of three series of notes due 2022 through 2024. The company launched tender offers on June 3 to repurchase around 45% of the aggregate principal amounts outstanding of the three notes. It extended the early tender deadline to June 30 and doubled the cap on its third-priority...
Jun 26, 2020
A&D - Pure Acquisition & HighPeak form Midland E&P for $845MM - May 2020After a $1.6 billion deal fell apart April 24, industry veteran Jack Hightower’s specialpurpose acquisition company Pure Acquisition Corp. went back to the drawing board and executed an $845 million transaction on May 4 to combine with HighPeak Energy Partners. HighPeak, also led by Hightower, is a private E&P company active in the northern Midland Basin. The blank-check company will be renamed HighPeak Energy Inc. and trade on the Nasdaq as HPK. The previous deal, which was canceled in the...
May 22, 2020
CM - Northern expects ‘significant’ cash flow even at $30/bbl WTI - April 2020Northern Oil & Gas, Inc. deferred dispensing formal guidance for the year but said that it expects to spend about $200 million this year if oil prices stay below $40/bbl for the majority of 2020. The new budget represents over a 55% cut from the $421 million spent in 2019. The company said that 2020 free cash flow is projected to be “significant,” even assuming $30/bbl for WTI. “This capital plan, and the likely production range associated with it, would likely deliver even higher...
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
PS - People & Companies - January 6, 2020Baytex Energy announced that Mark Bly has been appointed chairman. Bly joined the board in 2017 and last March was appointed lead independent director and chair of the human resources and compensation committee. Bly is an independent businessman with over 35 years of experience in the oil and gas industry, primarily with BP. Chaparral Energy announced that its board has appointed Charles “Chuck” Duginski as president and CEO. Duginski succeeds K. Earl Reynolds in those roles as...
Jan 06, 2020
A&D - Upstream M&A sees uptick as 2019 finish line approaches - December 2019After Permian consolidation went silent following Parsley Energy’s $2.3 billion acquisition of Jagged Peak Energy in October, WPX Energy topped that Dec. 16 with a $2.5 billion deal to acquire EnCapbacked Felix Energy (PG.1). The deal further shifts WPX’s portfolio from the Bakken to the Permian, adding 58,500 net acres with 1,500 in the eastern Delaware basin with anticipated 2Q20 net production of 60,000 boe/d (70% oil). Another recent Permian deal made headlines in the Midland Basin....
Dec 19, 2019
CM - Analyst Notes - October 25, 2019Callon Petroleum Co. (NYSE: CPE; $3.82-Oct. 21; Hold; PT-$7) With the quarter essentially out of the way, we’re looking forward to additional commentary on 2020 during the upcoming conference call. Given the preliminary 2020 outlook had a FCF breakeven of ~$50/bbl and the company expects $300MM of FCF through 2021 at $55/bbl, we’ll be looking to see how plans may potentially change with our price deck of ~$51/bbl for 2020 and ~$50/bbl in 2021+, particularly how management plans to...
Oct 25, 2019
CM - People & Companies - October 4, 2019Alta Mesa Holdings GP, LLC announced that interim CEO James T. Hackett resigned from that role on Sept. 10 but will continue as executive chairman of Alta Mesa Resources, Inc. The GP is the general partner for Alta Mesa Holdings, LP and filed for bankruptcy together with Alta Mesa Resources. Basic Energy Services, Inc. announced that president, CEO and director TM Roe Patterson is transitioning away from the company but will stay through the appointment of his successor. Also,...
Oct 04, 2019
CM - Upstream Briefs - June 26, 2020Northern Oil & Gas Inc. will ask its shareholders to vote sometime in Q3 to reverse split its NYSE-traded common shares. It is considering ratios ranging from 1:6 to 1:10. A change in authorized shares will accompany the reverse split. Northern’s 430 million shares outstanding have been trading mainly in the $0.60- $1.00 range in Q2. Texas Pacific Land Trust is moving forward with plans to reorganize into a Delaware corporation and has filed an initial draft registration statement...
Jun 26, 2020
OFS - A&D Briefs - February 25, 2020The Fort McKay First Nation Band, through its Fort McKay Group of Companies LP, has acquired a majority stake in Birch Mountain Enterprises for an undisclosed price, effective March 1. Birch Mountain is headquartered in Alberta and is a leader in fluid handling services in northern Alberta. It provides water hauling, vacuum trucks, waste disposal, steam and pressure trucks, wastewater treatment and flatbed hauling services. The company primarily serves Fort McMurray’s oil sands contractors...
Feb 25, 2020
OFS - News Briefs - February 4, 2020Doris Inc. won a contract from BHP for engineering services for subsea umbilicals, risers, flowlines and the export pipeline for the Trion project off Mexico. Trion is located in the Perdido belt in 2,570 meters of water. BHP is targeting a 2022 final investment decision on the project, with first oil coming in 2025 or 2026. Financial terms were not disclosed. Evolution Well Services executed a 24-month agreement to provide dedicated electric hydraulic fracturing services for a leading...
Feb 04, 2020
CS - News Briefs - January 29, 2020The trustee of bankrupt OAN Resources Ltd. engaged Sayer Energy Advisors to assist it with the sale for cash of its assets, which target the Keg River oil play in the Panny area of northern Alberta. Recent net production is 38 bo/d of light oil from the Keg River formation. As of Jan. 4, the company had net deemed asset value of $1.9 million with a liability management rating of 3.65. Offers are being accepted until Feb. 13. OAN filed for bankruptcy Oct. 16, when Hardie & Kelly Inc. was...
Jan 29, 2020
CS - News Briefs - October 23, 2019Alvopetro Energy Ltd. entered into a US$15 million, three-year credit agreement with Cordiant Capital payable at 9.5% p.a. The company can draw up to US$13 million of the facility, with the rest accessible upon the first sale from its Caburé gas development in Brazil. Alvopetro will grant to Cordiant 8,057,868 warrants exercisable for one common share at US$0.60 through Sept. 20, 2022. Funds drawn will be repaid at maturity or after the first anniversary at the company’s option....
Oct 23, 2019
A&D - News Briefs - October 10, 2019Privately held Royale Energy is selling non-operated Permian assets to Midland-based Vanco Oil & Gas Corp. for $1.98 million. Vanco picks up 1,525 net acres (4,726 gross) that hold Rowena field in Runnels County, Texas (473 net acres), Arledge field in Nolan County (292 net acres) and Yucca Butte field in Pecos County (760 net acres). The purchase price is subject to adjustment by agreement between Vanco and JVA Operating Co., which operates the properties. Royale’s primary operations...
Oct 10, 2019