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
CM - People & Companies - November 15, 20193Bear Energy, LLC named Craig Harris CEO to succeed founder Bob Clark, who will remain as chairman of the board. Harris is former EVP and COO of Enable Midstream Partners, and has held various managerial roles at Columbia Pipeline Group, Ni Source, and El Paso Corp. Antero Resources Corp. elected Vicky Sutil and Tom Tyree as Class III and Class I directors, respectively. Sutil was VP of commercial analysis for a California Resources Corp. marketing unit and also worked with Occidental...
Nov 15, 2019
PS - Encana’s HQ move to US underscores STACK & Permian growth - November 2019EnCana is making some moves, literally and figuratively, to redefine itself. After 17 years in the Great White North, where at one point it was the largest Canadian gas producer, the company is changing its domicile to the US. The move will provide the company with greater access to capital. With the HQ shift will come a name change to Ovintiv Inc. “We are also using this opportunity to rebrand to better reflect who we are today and further break down perceptions that we believe are...
Nov 11, 2019
MCS - Encana’s HQ move to US underscores STACK execution - November 6, 2019EnCana Corp. is making some moves, literally and figuratively, to redefine itself. After 17 years in the Great White North, where at one point the company was the largest Canadian natural gas producer, Encana is changing its domicile to the US. The move will provide it with greater access to capital. With the HQ shift will come a name change to Ovintiv Inc. The acquisition of Newfield Exploration for $7.7 billion, which closed in February, made the Anadarko Basin a core investment area...
Nov 06, 2019
A&D - Analyst Notes - August 30, 2019PDC Energy (PDCE; $26.65-Aug. 27; Buy; PT-$75) Zero premium merger gets rave initial reviews … Finally an E&P deal that gets the stamp of approval from Wall Street. We’re encouraged to see investors look past the fact that the deal is not accretive on an EV/EBITDA basis and instead focus on the accretiveness on FCF, ROCE, and NAV. Our capital efficiency report shows SRCI has the superior recycle ratio of the two companies, which, in our opinion, deserves a superior multiple....
Aug 30, 2019
CM - Legacy Reserves’ RSA will reduce debt by over $900MM - June 2019Legacy Reserves Inc. confirmed a
global restructuring support agreement with
its reserve based revolving credit facility
lenders, and groups holding the
company’s second lien term
loan and notes. The RSA will be
executed while the company restructures
under Chapter 11 of the US Bankruptcy
Codes and is expected to extinguish more
than $900 million of debt. Legacy will file
the RSA within 30 days following its June
18 petition to enter bankruptcy protection.
In addition to relieving over...
Jun 21, 2019
CM - Analyst Notes - June 21, 2019Diamondback Energy Corp. (NYSE: FANG; $101.58-June 17; Overweight)
We continue to reiterate FANG as a name to own in both a defensive and an
offensive environment. The company noted that in a draconian scenario its maintenance
mode (14 – 15 rigs or ~$1 Bn D&C program) can easily cover the dividend. We recently
tested FANG in maintenance mode and saw ~$700mm of FCF after dividends and a
~4.5% FCF yield at a leverage profile of sub-1x in 2020 at ~$45/bbl. Absent a steady
period of...
Jun 21, 2019
CM - Legacy says Baines Creek’s director slate no good - April 2019Legacy Reserves Inc. told its shareholders on April 9 that a slate of director nominees
put forth by 23.5% shareholder Baines Creek Partners was not valid because the Austinbased investment firm had not become a shareholder of record prior to giving such notice.
According to the company’s bylaws, the deadline for stockholders to nominate candidates
for election to the board at the company's 2019 annual meeting was April 1.
Baines launched an activist campaign against Legacy in February....
Apr 18, 2019
CM - People & Companies - March 07, 2019Directors who have announced
they do not intend to stand for re-election
at their company’s next annual meeting
of shareholders: Mark C. McKinley
from Anadarko Petroleum, George
D. Lawrence from Apache, Martin S.
Craighead, vice chairman, from Baker
Hughes, a GE company, Charles
L. Fabrikant from Diamond Offshore
Drilling, Inc., B.Z. (Bill) Parker from
Laredo Petroleum, Inc., Gary L. Warren
from Newpark Resources, Inc. Berry Petroleum Corp. elected
Donald L. Paul to its board of...
Mar 07, 2019
PS - People & Companies - February 28, 2019Chaparral Energy Inc appointed Scott
Pittman as CFO and EVP, effective March 16.
Pittman is succeeding Joseph O. Evans, who
elected to retire following 14 years of service
as CFO. Most recently, Pittman served as
the CFO of Ursa Resources and Aethon
Energy Management. He has also served
as VP of finance at Cobalt International
Energy and as VP of commercial and
investment banking at J.P. Morgan
Securities Inc. for nine years. Contango Oil & Gas Company
announced that Thomas H....
Feb 28, 2019
Cox completes $1.1B acquisition of Energy XXI Gulf CoastAn affiliate of privately held Gulf of Mexico operator Cox Oil completed its $1.1 billion acquisition of Energy XXI Gulf Coast Inc. The deal, announced on June 18, followed EGC’s lengthy search for options to shed legacy asset retirement obligations. In addition to the $322 million cash consideration, Cox assumed EGC’s net liabilities of $684.3 million, including future P&A costs of $673.5 million. Cox picked up EGC’s interests across 155 blocks, 55 producing fields and 577...
Oct 31, 2018
Legacy restructures to C-Corp., exchanges $130MM in notesLegacy Reserves, Inc. closed transactions with debtholders that exchanged $109 million principal amount of its 6.625% senior notes due 2021 issued in its former life as a partnership into the same amount of identical new notes in its new structure as a C-Corp., and about $21 million principal amount outstanding of 8% senior notes due 2020 into the same amount of 8% convertible notes maturing in 2023 and about 105,000 aggregate common shares.The company said that the note conversions...
Oct 04, 2018
Comstock gets $700MM in credit & Jerry JonesComstock Resources Inc. completed a comprehensive refinancing plan including a cash tender offer for all of its senior notes outstanding and redemption of any untendered notes, as well as the signing of a new credit facility on Aug. 14. Concurrently, the 99-year old firm took in $620 million in Bakken Shale properties from Dallas Cowboys owner and businessman Jerry Jones for 88,571,429 common shares, based on $7.00 a share.The company said that money raised from a previous sale of $850...
Aug 23, 2018
Cox consolidates GOM position in $1 billion Energy XXI buyFollowing a lengthy search for options to shed legacy asset retirement obligations, Energy XXI Gulf Coast Inc. agreed to a buyout offer valued at more than $1 billion from an affiliate of privately held Gulf of Mexico operator Cox Oil. Under a definitive agreement signed June 18, Cox will pay $9.10 per fully diluted share of EGC, a 21% premium to the Houston company’s prior-day closing price. In addition to the cash consideration totaling $322 million, Cox will assume EGC’s net liabilities of...
Jun 27, 2018
What The Analysts Are Saying About A&D - May 02, 2018Cenovus Energy Inc. (TSX: CVE; $12.28 – April 20; Overweight; PT: $17.00)We estimate oil sands pre-tax income (ex. special items) of C$273 million, compared to the 4Q17 level of C$486 million and the 1Q17 level of C$160 million. We estimate oil sands production of 356 mb/d, compared to 155 mb/d in 4Q17 and 184 mb/d in 1Q17. We estimate Deep Basin pretax income (ex. Special items) of C$3 million, compared to the 4Q17 loss of C$19 million. We estimate Deep Basin production of 123 mboe/d,...
May 02, 2018