A&D - Analyst Notes - February 27, 2020Centennial Resource Development (CDEV; $2.67-Feb. 24; Neutral) The company guided to dropping the rig and closing the water sale at the end of the first quarter. This points to a negative sloping trajectory entering 2021 in terms of oil volumes (likely mid-single digits e/e based on a rough cut), while costs move higher. Midpoint LOE is $0.90/boe higher than 4Q:19 actuals but given the aforementioned dynamic of water sale closing/the rig drop at the same time, the higher end is likely...
Feb 27, 2020
Upstream M&A gallops in Q3, with Permian leading chargeAs we predicted in our Q2 report, US upstream M&A activity in 3Q18 surged 250% over Q2 and surpassed all quarterly records going back to 4Q12. When markets closed Sept. 30, the final deal tally was $32 billion for the quarter, up from $9.1 billion in Q2 and 76% above the $18.3 billion quarterly average dating back to 2009. The increased clip in dealmaking is expected to continue over the next 6-12 months, noted Drillinginfo Senior Director Brian Lidsky. “We expect US M&A activity to continue at...
Oct 10, 2018
Bankrupt Rex to sell itself to PennEnergy for $601MMNearly five months after filing for bankruptcy on May 18, Appalachian pure-play Rex Energy Corp. struck a deal to sell itself to Pittsburgh, Pennsylvania-based PennEnergy Resources for $600.5 million. The sale comes after Rex decided on Aug. 24 to cancel an auction of its assets, which was postponed four times from late June to early August, and ultimately accept PennEnergy’s bid. Rex’s assets hold total proved reserves of 1.03 Tcfe and are located mostly in Butler County, Pa., with...
Aug 29, 2018
Permian leads dealmaking as Q3 mid-point approachesThere has been $11.9 billion in M&A across 20 deals since Aug. 8, bringing the quarter-to-date total to $28.1 billion across 75 transactions and the YTD total to $59.3 billion and 322 deals. Most notable this news cycle has been the return of the Permian, which is once again leading U.S. upstream dealmaking after a pair of Diamondback Energy deals that came on the heels of BP’s acquisition of BHP’s U.S. onshore portfolio earlier in the quarter (PG. 1). In addition to Diamondback’s ~$10 billion...
Aug 29, 2018
M&A activity stifled in Q2, but primed to rebound in H2U.S. upstream deal activity fell to its slowest quarter in more than two years with deal values totaling just $8.7 billion in Q2, according to the Global M&A Database. The Q2 total was down 60% from Q1’s $22.0 billion in deals and 49% from the quarterly average of $17.1 billion that the markets had seen since the beginning of 2014. The most recent quarter with a lower deal value was 1Q16 at $6.4 billion.The slow deal activity in Q2 continued a downward trend seen in 3Q17 ($12.4 billion)...
Jul 18, 2018
Rex Energy hires TPH to shop Appalachian packageAppalachian pure-play Rex Energy Corp. filed for Chapter 11 bankruptcy on May 18 and concurrently retained Tudor, Pickering, Holt & Co. to shop assets in Pennsylvania and Ohio with net production of 221 MMcfe/d (55% gas) on 163,800 net acres (112, 000 gross surface acres, 99% HBP) in the liquids-rich portions of the Pennsylvania Marcellus, Upper Devonian and Ohio Utica shale. The highly contiguous operated areas (average 73% WI, 85% NRI) are comprised of a deep inventory of 838...
Jun 06, 2018
Rex Energy files Chapter 11, has over $1.05B total liabilitiesAppalachian E&P Rex Energy Corp., through its R.E. Gas Development LLC sub, entered bankruptcy court on May 18 to file for Chapter 11 protection with a restructuring support agreement signed by 100% of its first lien lenders and about 72% of its second lien noteholders. After running through four forbearance agreements with creditors to extend the time to repay debt, the company’s CEO Tom Stabley said Rex had made progress but now the business required a “more fulsome debt restructuring to...
Jun 01, 2018
Exxon growth plan seeks to double earnings to $31B by 2025Exxon Mobil Corp. unveiled an aggressive growth plan on March 7 that it says will nearly double earnings and cash flow from operations by 2025. The world’s largest publicly traded oil company said it will undertake its “strongest investment opportunities in two decades to drive results and improve returns” with low cost-of-supply tight oil, refinery expansions, LNG and deepwater projects.Exxon will spend $24 billion on capital projects this year, $28 billion next year and an average of...
Mar 16, 2018
People & Companies - February 09, 2018American Midstream Partners
announced that its general partner
appointed Christopher B. Dial as SVP
and general counsel effective Jan. 22.
He is former general counsel of Susser
Holding II and was associate general
counsel of Susser Holdings Corp.
and Sunoco. J. Richard Iler was appointed CFO of
Cardinal Energy Group effective Jan.
19. Iler held various CFO roles in technology
companies previously. The company also
announced the resignation of John Jordan
from its board and said that it...
Feb 09, 2018
EQT buying Rice Energy in $8.2B cash, stock and debt dealEQT Corp. and Rice Energy Inc. entered into a definitive agreement under which EQT will buy Rice for $6.7 billion in cash, stock and the assumption of about $1.5 billion in debt. Rice shareholders are set to receive $5.30 in cash and 0.37 shares of EQT common for each of their common shares, per terms of the agreement, amounting to a total of $27.05 a share for each Rice share. The acquisition price represents a premium for Rice shareholders of 37% over the NYSE closing price of the common...
Jun 23, 2017
Rex Energy will launch reverse stock splitRex Energy Corp. will launch a one-for-10 reverse stock split of its common stock as a way to keep its listing on Nasdaq, the company said May 5. The reverse split, effective after market close on May 12, will reduce the company’s common shares outstanding to about 9.9 million. Rex said it would also reduce net debt-to-EBITDAX by up to 65% by YE18 through production growth and cash...
May 10, 2017
IPOs the big focus this cycle, especially SPACs & OFSIn addition to the blank check SPAC IPOs—Silver Run II (PG. 1) and Kayne Anderson Acquisition Corp. (PG. 3)—and the oilfield services market that have demonstrated vibrancy so far this year—ProPetro Holding (PG. 15), NCS Multistage (PG. 15), Solaris (PG. 16) and Keane Group (PG.15), which went public in January—many analysts see 2017 giving us an exciting choice of new companies in which to invest. The elusive Hess Midstream IPO (PG. 1), on the back burner for two-and-a-half years, may...
Mar 29, 2017
Benefit Street buys into CRC’s San Joaquin Basin propertiesCalifornia Resources Corp. announced a JV with Benefit Street Partners to support development of both conventional and unconventional resources at some of its producing fields primarily in the San Joaquin Basin. CRC will continue to operate the properties, with Benefit Street earning a net profit interest in each JV well drilled by paying 100% of capex. Benefit Street will contribute up to $250 million over a two-year period in $50 million tranches, the first of which is expected by...
Mar 03, 2017
MI - Developments & Trends Briefs - April 17, 2020KNOT Offshore Partners said the pandemic has changed a few ways it runs its business but that it has not experienced any material changes in its operations since filing its Form 20-F a month ago. Except for the Q1 scheduled drydocking of the Raquel Knutsen, which is already back on charter, KNOT has no other drydocking planned for any of its 16 shuttle tankers this year. REX American Resources Corp. has idled both of its ethanol plants because of market conditions and lower ethanol...
Apr 17, 2020
IS - News Briefs - July 01, 2019Neptune Energy plans to drill
two exploration wells on the Norwegian
Continental Shelf later the year, local
media reported: Sigrun East in the Gudrun
area and Echino South in the Fram area. It
also plans four additional wells after YE19:
Grind in 1Q20, Dugong in mid-2020 and
Hamlet and Eirik in 2021. The company
has contracted the West Phoenix and
Deepsea Yantai to drill the wells. UK-based private equity firm
Petroleum Equity is seeking buyers
for Alpha Petroleum Resources, its
North...
Jul 01, 2019