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Week of April 23, 2012Volume 2, No. 19

Halcon buys GeoResources

Plus Select Key Slides from IPAA OGIS New York Meeting


Halcon Presentation 


April 25, 2012

Full Presentation


GeoResources Presentation


March 28, 2012

Full Presentation


This past Wednesday, Halcon Resources announced a deal to buy GeoResources by offering GEOI shareholders a 23% premium consisting of $37.97 per share ($20 per share) and stock (1.932 HK shares) in a total transaction value of ~ $1billion.  As a vote of confidence, the market also sent Halcon's shares upwards.  A classic win/win.  Above is the Deal Presentation by Halcon and the last public presentation by GeoResources, both found in the PLS docFinder database.

This deal involves two well-known and respected industry executives with best-in-class track records for creating value over many cycles in the industry.  It is a classic example of the importance of "Management" when evaluating an oil and gas public stock investment.  Shareholders investing with these two veterans have fared very well!

Halcon is led by Floyd C. Wilson, whose track record includes founder of PetroHawk (sold to BHP for $15.1 billion in 2011), Chairman of 3Tex Energy (merged with Plains E&P in 2003) and founder of Hugoton Energy (IPO in 1994  and merged with Chesapeake in 1998).

GeoResources is led by Frank Lodzinski, well known and respected for his shareholder value creation. His record includes merging Southern Bay LLC into GeoResources in 2007 (now sold to Halcon for $1 billion). Earlier Mr. Lodizinski built  Southern Bay (merged into GeoResources in 2007), AROC (monetized in 2004), Texoil (sold in 2001) and Hampton Resources (sold 1996). 

Bonus: Featured IPAA's OGIS New York Presentations

One of the industry's top conferences, IPAA's OGIS New York, was held last week.  PLS staff were in attendance and our docFinder database team monitored company presentations.  As soon as the presentations hit the meeting and the public, docFinder clients had the data!  

Shown below are select presentations from the conference with a plethora of information on plays, economics, wells, plans and strategies.  Below are full presentations from Energen Resources,  Pioneer Natural Resources, Devon Energy and Range Resources.

    Did you know?

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    featured.slides from docFinder

    Slide Slide Slide Slide

    Energen : OGIS NYC


    April 16, 2012

    Pioneer: OGIS NYC


    April 17, 2012

    Devon: OGIS NYC


    April 16, 2012


    Range: OGIS NYC


    April 16, 2012

    Energen, a "Top 20 Independent Producer", had 343 MMboe and >900 MMboe of 1P and 3P reserves, respectively, as of year-end 2011. The company is primarily focused on the Permian basin, constituting 85% of its ~$855MM 2013 capex budget. Specifically, Energen is targeting the Wolfberry in the Midland Basin, and the Bone Spring, Wolfcamp, Avalon & Wolfbone in the Delaware Basin.


    Pioneer has been impressive to observe the last few years, becoming a clear leader in the Spraberry & Wolfcamp Permian plays as well as the Eagle Ford. The firm boasts being the 3rd largest driller in the U.S. and has 2012 capex and production targets of $2.4B and 

    148 - 153 MBoed, respectively. In addition, Pioneer has running room with exposure to >5 BBoe of resource potential and 30,000 drilling locations.

    Recently, Devon discussed their intentions to stay aggressive in developing high-return projects while preserving financial strength and flexibility. Underlying the strategy is their economic assumptions on commodity pricing, which sees 2014 pricing of HH gas rising to $4.00 WTI oil at $100 in. Devon plans to grow capex to $7.8B by 2016 and is pursuing additional JV transactions.

    Having been around since 1975, Range knows the ebbs and flows of the E&P industry well. 2012 is an   "inflection point" for Range as a result of a multi-year strategy of building and high grading its inventory.

    Range notes that the capital efficiency and attractive returns of its asset base, mostly Marcellus, will enable 2012 organic growth of 30%-35%, versus its history of ~10% or less. Range also boasts a strong balance sheet.

    Full Presentation

    Full Presentation

    Full Presentation

    Full Presentation

    featured.transactions from PLS global M&A database

    4/25/12Halcon acquires GeoResources for cash and stock$987 MM
    4/19/12Toyota Tsusho buys 32.5% royalty interest in CBM from Encana : Canada$608 MM
    4/18/12Magnum Hunter acquires Bakken assets from Baytex$311 MM
    4/16/12Fairborne Energy divests Greater Sinclair assets : Canada$80 MM

    Source: PLS M&A Database