Paramount production skyrockets on M&A activityParamount energy saw its Q1 production top 553.2 MMcfe/d in Q1, up a whopping 470% YOY thanks to its merger with Trilogy Energy and the acquisition of production from Apache Corp., both in 2017. Liquids volumes were 33,689 Bbl/d, up 343% YOY. Results would have been even stronger if not for weather-related third-party outages that impacted production by 3.6 MMcfe/d. Paramount acquired 234 MMcfe/d of production through the $487 million Apache acquisition and 132 MMcfe/d through the $996.5...
Jun 01, 2018
Paramount & Trilogy sell Valhalla ahead of $997MM combo - 1 Year AgoEarly May 2017 saw Paramount Resources and Trilogy Energy separately sell assets in the Valhalla area of Grand Prairie, Alberta ahead of their $996.5 million merger that was announced two months later. The separate deals, with a combined value of $200 million, were announced on May 1. The $150 million Paramount sale was of Valhalla properties encompassing 74 net sections (94 gross), including 47 net sections (63 gross) of Montney rights and 42 net sections (57 gross) of Doig rights. The...
May 22, 2018
Trilogy combo and Apache buy impact Paramount’s Q1A merger with Trilogy Energy and
the acquisition of sizeable production
from Apache Corp. impacted
Paramount Resources’ Q1 results.
Paramount acquired 234 MMcfe/d of
production through the $487 million
Apache acquisition and 132 MMcfe/d
through the $996.5 million merger with
Trilogy. Paramount reported an $81
million net loss, reversing from 1Q17’s
$21 million in profits. The effects of
4x higher depletion and depreciation
YOY meant the company had $164
million in charges compared with...
May 22, 2018
Paramount records $81MM loss as production climbsGrowing pains from the dual 2017 events of a merger with Trilogy Energy and the acquisition of sizeable production from Apache Corp. impacted independent E&P Paramount Resources’ Q1 as the company reported an $81 million net loss, reversing from 1Q17’s $21 million in profits. The effects of 4x higher depletion and depreciation YOY meant the company had $164 million in charges compared with $41 million a year agoParamount acquired 234 MMcfe/d of production through the $487 million Apache...
May 18, 2018
Domestic firms boost output after major buys in 2017Driven by the landmark Cenovus Energy and Canadian Natural Resources Ltd. acquisitions 1Q17’s $41.4 billion in deals was the highest in any quarter since at least 2008 and exceeded the annual totals for each year from 2013-2016. The impact of these major acquisitions by Canadian upstream companies in 2017 was particularly apparent in year-end and Q4 reports submitted over the last several weeks. We expect dealmaking to be slower in the short-term as companies digest these major acquisitions,...
Mar 20, 2018
$41.6 billion in total 2017 deals marks three-year zenithA modest recovery in global oil prices in 2017 supported an uptick of Canadian upstream M&A for the year, with a total disclosed deal value of C$41.58 billion (US$32.30 billion) as of this writing—significantly up from C$21.36 billion (US$16.57 billion) in 2016 even as the number of deals fell slightly from 149 to 141. Even more noteworthy is the fact that the total deal value this year also surpassed the pre-downturn C$31.5 billion ($24.5 billion) in 2014, as well...
Dec 21, 2017
Tourmaline pays $1.4B for Deep Basin, Montney from ShellThe largest upstream deal in October 2016 was Tourmaline Oil’s C$1.36 billion
(US$1.0 billion) acquisition of Alberta Deep Basin and Montney assets from Shell.
The largest deal in an otherwise modest month for M&A—which posted six deals and
a total deal value of US$1.1 billion—turned out in retrospect to be a sign of things to
come in the Canadian oil patch.
Following Shell’s lead, several multinationals would either scale
down or entirely exit their Canadian positions during the...
Nov 06, 2017
Q3 deal value rises 54% due to Trilogy & Cenovus dealsFour deals struck by two companies
largely accounted for the US$1.4 billion
sequential increase in Q3 upstream deals
to US$3.04 billion. Trilogy
Energy’s $996.5 million
(US$766.9 million) merger with
Paramount Resources and its $459.5
million (US$353.6 million) acquisition of
Apache Corp.’s Canadian business made
up nearly 40% of total Q3 deals, according
to the PLS Global M&A Database.
Adding another billion-and-a-half to
the total were two of Cenovus Energy’s
four planned asset sale...
Oct 11, 2017
Analyst Takes - September 13, 2017Husky Energy (HSE; $14.61-August 11; Equal Weight; PT-$16.00)
We view this transaction favorably and think that it could be slightly accretive
to the company's near-term earnings. More importantly, we think the company's
concurrent decision to postpone the FID of its C$800 million Lloydminster
asphalt refinery expansion post-2020 is a good trade-off, as we had
been concerned about the expansion's economics…The purchase of
the Superior refinery will not add any new asphalt supply or...
Sep 13, 2017
Paramount Resources announces new directorsParamount Resources and Trilogy
Energy Corp. each said their respective
shareholders had given approval to the
previously announced merger of the
two companies. In addition, Paramount
Energy announced the addition of
three new directors: Wilfred Gobert,
Robert MacDonald and Keith MacLeod,
conditional on the completion of the
merger, tentatively scheduled for
September 12. Under the merger, Trilogy
shareholders will receive one Paramount
share for every 3.75 Trilogy shares...
Sep 13, 2017
Paramount earnings reach $45.3MM, reversing YOY lossParamount Resources reported Q2 net income of $45.3 million, reversing a year-ago loss of $30.6 million. Revenue for Q2 was up nearly 147% YOY to $43.7 million. Cash flows from operations were $27.5 million for Q2, up 183% YOY. The company’s capital expenditures were $113.4 million in Q2, up from $46.9 million YOY. Most of Paramount’s capex was allotted to the Karr-Gold Creek development program. It reported that all 27 wells from the 2016/17 Karr-Gold Creek Montney development program...
Aug 21, 2017
Paramount boosts credit facility to $300MM amid acquisitionsParamount Resources expanded its revolving credit facility to $300 million from $100 million and extended the maturity to April 2018, giving it the capital and time to develop additional acreage it acquired after two major acquisitions.The acquisition of Apache Corp.’s Canadian operations and the $996 million merger with Trilogy Energy Corp. doubles the company’s acreage position, triples its reserves and quadruples its production, transforming it from a junior to a mid-cap...
Jul 27, 2017
Paramount, Trilogy, Apache take July deals to ~$2.0BTotal disclosed deal values of upstream M&A increased from US$808 million (C$1.0 billion) in June to US$1.5 billion (C$1.9 billion), with Paramount Resources’ $766.9 million merger with Trilogy Energy (PG. 1) and $353.6 million acquisition of Apache’s Canadian business (PG. 1) making up the bulk of this value. The deals take Paramount from a junior to mid-cap producer with a diversified production base in the Montney and a large drilling inventory in the Duvernay. For Apache, the sale marks the...
Jul 18, 2017
Paramount will buy Apache Canada, merge with TrilogyParamount Resources Ltd. announced July 6 that it had agreed to buy Apache Canada Ltd., the Canadian subsidiary of US oil and gas producer Apache Corp., for US$459.5 million. Paramount said it would fund the deal with cash on hand and assume no debt. In addition, Paramount announced it would acquire Trilogy Energy Corp. in an all-stock transaction.Paramount already owns 15% of Trilogy and said the purchase of the rest of Trilogy is contingent mainly upon the closing of the Apache...
Jul 06, 2017
People Briefs - July 12, 2017African Energy appointed Garrett Soden as President and CEO. He will also be on the board. He replaces James Phillips, who retired. Mr. Soden has worked with the Lundin Group for the last decade and is currently non-executive director of Etrion Corp., Gulf Keystone Petroleum Ltd., Panoro Energy and Petropavlovsk PLC. Previously, he was chairman and CEO of RusForest AB, CFO of Etrion and PetroFalcon Corp. and a non-executive director of PA Resources.David Vetters has joined Annapolis...
Jul 13, 2017