PS - People & Companies - May 23, 2019Brigham Minerals, which went
public last month, elected Harold D.
Carter, John A. Holland, W. Howard
Keenan, Jr. and Richard Stoneburner to
its board of directors. The Colorado Petroleum Council
appointed Lynn Granger as executive
director. Granger previously worked
at Colorado Concern and Colorado
Department of Revenue. EQT Corp.’s board nominated three
new independent director candidates:
Janet L. Carrig, former SVP, legal, general
counsel and corporate secretary...
May 23, 2019
PS - People & Companies - December 20, 2018Bakken Resources appointed Paul
J. Korus to its board as a Class II director,
effective Dec 7, 2018. Korus will also
serve on the board’s Audit Committee.BP appointed current deputy
secretary Jens Bertelsen
as company secretary,
succeeding David Jackson
who will retire at 2018 end. Mathews is
currently the Group Company Secretary
of HSBC Holdings plc and was previously
the Group Company Secretary of Rio
Tinto and, prior to that, of BG Group plc. Chevron elected...
Dec 20, 2018
A&D - Analyst Notes- December 12, 2018Murphy Oil Corp. (NYSE: MUR; $31.75-Nov. 7; Market Perform)Tracking to (slightly) positive FCF for the first time since 2011. Having been bumped up by 6% three months ago, the capital program is unchanged at $1.18 billion. The budget remains cautious, only slightly higher than what we would consider maintenance-level spending. Bearing in mind the upsized GoM asset base, we project an increase to $1.6 billion in 2019. 2018 free cash flow is in positive territory for the first time since...
Dec 12, 2018
Diamondback completes $9.2B acquisition of EnergenDiamondback Energy completed its $9.2 billion all-stock acquisition of Energen Corp. on Nov. 29, a day after shareholders of both companies approved the deal. The transaction, which added Energen’s large position across the Midland and Delaware basins, is the largest in Diamondback’s history and comes after its $1.25 billion acquisition of northern Midland Basin-focused Ajax Resources and a $312.5 million Midland bolt-on buy from ExL Petroleum and EnergyQuest II, both of which closed on Oct....
Dec 12, 2018
Diamondback expanded in Delaware in $2.4B Brigham buyAs has been the case in 2H18, Diamondback Energy also made headlines in 2H16 with its $2.4 billion acquisition of Brigham Resources announced on Dec. 14, adding 76,319 net acres in Reeves and Pecos counties, Texas, and boosting its Delaware Basin position by 400%. That deal was preceded in September by the $560 million acquisition of Luxe Energy, which established its initial position in the Delaware with 19,180 net acres in Reeves and Ward counties. The acreage acquired from...
Dec 12, 2018
Diamondback expands Midland position in $313MM buyDiamondback Energy is continuing to expand its Permian footprint through the $312.5 million acquisition of leasehold in the northern Midland Basin from Quantum Energy Partners-backed companies Exl Petroleum and EnergyQuest II. The acquisition follows Diamondback’s $9.2 billion acquisition of Energen Resources Corp. and $1.2 billion Ajax Resources buy in August, and makes the company the most active consolidator in the Permian in 2H18, spending over $10.7 billion across the three deals. For ExL,...
Nov 21, 2018
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
Diamondback completes $750 million add-on to 2024 notesDiamondback Energy, Inc. placed $750 million aggregate principal amount of 4.75% senior notes due 2024 to qualified investors in an add-on sale brokered by Merrill Lynch and Goldman Sachs. The Rule 144A/Regulation S sale closed Sept. 25, upsized from an initially contemplated $500 million. The new notes were issued under an existing Oct. 28, 2016, indenture from which Diamondback previously sold an aggregate of $500 million principal amount, all of which were exchanged for substantially...
Oct 04, 2018
A&D Analyst Notes - August 29, 2018Diamondback Energy (FANG; $124.71—Aug. 22; Outperform; PT—$187)After missing out on the RSPP acquisition earlier this year, we saw Diamondback
Energy (FANG) as the most likely consolidator amongst the independent E&P
group, given its desire to increase scale and propensity for consolidation (EGN
marks the third corporate acquisition within the last two years). Despite
its recent acquisition of Ajax Resources, it was clear that FANG was
still on the hunt for a bigger deal. Ultimately,...
Aug 29, 2018
Diamondback creates Permian titan in $9.5B Energen buyIn the most palpable sign yet that the Q2 Permian M&A logjam has been broken, Diamondback Energy is acquiring Energen Corp. in an all-stock transaction valued at $9.2 billion, including assumed net debt of $830 million. The deal, which adds Energen’s large position across the Midland and Delaware basins, is the largest in Diamondback’s history and comes right on the heels of its $1.25 billion acquisition of northern Midland Basin-focused Ajax Resources (PG. 7).Diamondback emerges as the...
Aug 29, 2018
Q2 reporting winds down, capex guidance trends upSeveral earnings reports disclosed capex increases for the remainder of the year across a wide variety of reporting companies, including Concho Resources (PG 15) owing to its recent acquisition of RSP Permian, California Resources Corp (PG 11) because of stronger-than-expected cash flow, Parsley Energy (PG 14) as it experiences shorter cycle times and higher working interests, and Noble Energy (PG 14) on factors that include service cost inflation, which was mentioned as an increasing condition...
Aug 23, 2018
Energen holders get 19% premium in $9.2B D’back buyoutDiamondback Energy Inc. and Energen Corp. signed a definitive agreement for an all-stock takeover of Energen in a deal worth $9.2 billion that includes the assumption of $831 million of debt. Energen shareholders will receive 0.6442 of a Diamondback common share for each of their common shares. The share payout is based on Diamondback’s Nasdaq closing price of $131.87 on Aug. 13, implying a value of $84.95 per Energen share, a 19% premium over its NYSE Aug. 13 close. Energen holders will end up...
Aug 23, 2018
Analyst Takes - May 11, 2018Anadarko Petroleum Corp. (NYSE: APC- $66.52- May 1; Market Perform)
Neutral 1Q production beat on oil and full year total and oil volumes up 1%/2%
at midpoint, while APC disclosed takeaway agreements in the Delaware on Cactus
and Midland pipelines that cover 50%/100% of projected 2018/2019 oil volumes.
Some noise with guidance which is now more backhalf weighted, though
plan largely intact. Share buyback program accelerated and on
track to be completed this quarter, and priority remains...
May 11, 2018
Analyst Takes - April 19, 2018Abraxas Petroleum (NASDAQ CM: AXAS, $2.79 – Apr. 17; Buy, PT: $4.90)
Management appears confident in the company's ability to meet or beat 2018 guidance as Delaware basin wells are generally outperforming type curves. Additional data, including parent/child relationships, will likely be required before type curves are revised. While costs are creeping higher in the basin, the company has not had issues securing services. Management expects to use some Permian Basin sand this year to...
Apr 19, 2018
Who’s Hot/Who’s Not - October 11, 2017Upgrades: Diamond Offshore Drilling (DO/$15.14/$10.06/$22.65/$2.08B) from Sell to
Neutral by FBR Capital. Dril-Quip (DRQ/$43.70/$35.85/$69.40/$1.65B) from Hold to Buy
by FBR Capital.
Initiate: Dominion Midstream Partners (DM/$32.20/$23.20/$34.85/$3.19B) at Buy
by Guggenheim.
Deutsche Bank: Basic Energy Services (BAS/$18.78/$14.03/$44.81/$489.57M) at Hold. Baker Hughes (BHGE/$34.97/$32.43/$40.82/$15.34B) at Hold. C&J Energy...
Oct 11, 2017