docFinder alert PLS PLS
Week of September 24, 2012Volume 2, No. 32

Who's Next? Bakken Consolidating

Majors Moving In --Plethora of Pure Players



$2.0 billion bolt-on


September 20, 2012


Full Presentation



QEP Resources

$1.4 billion bolt-on


September 6, 2012


Full Presentation


This  docFinder Alert highlights M&A activity in the Bakken and identifies select Bakken-focused public companies below.  Above are presentations from two Bakken deals announced in recent weeks -  Denbury sold its Bakken position for $2.0 billion to ExxonMobil  and QEP Resources paid $1.4 billion for a largely contiguous Tier 1 position from a consortium of companies including Unit Corp., Helis Oil & Gas, Black Hills E&P and Sundance Energy . Back in December, PLS issued another docFinder Alert (Vol.1 #13) -- The Bakken :A super play keeps getting bigger.  

Given the size of the play and the capital requirements to go to full scale development, the Bakken clearly is on the radar of the majors and NOC's.  We would not be surprised to see new major oil companies enter the play through an acquisition. We also expect additional acquisitions by large players already in the play.  Outside of ExxonMobil, large companies that have already bought their way into the Bakken include StatoilOccidental and Hess.  


With that as backdrop, shown below are four of the larger, well-regarded and publicly-traded Bakken focused companies  -- Whiting, Continental Resources, Kodiak and Oasis Petroleum -- which may well be attractive acquisition candidates.  This is not intended to be an exhaustive list.


You can use PLS' proprietary databases -- docFinder and M&A database -- to quickly perform additional Bakken research including valuation benchmarks, play economics, infrastructure build-out, competitive positions, individual corporate strategies, growth rates and more.  These databases will save you countless hours and get to the facts.


For reference, this table (from PLS's M&A database) presents the >$1 billion Bakken transactions that have occured to date:

Date Buyer Seller Deal Value ($MM)
September 2012 ExxonMobil Denbury $2,000
August 2012 QEP Helis, Unit et al $1,380
October 2011 Statoil Brigham $4,700
December 2010 Occidental Anschutz $1,400
November 2010 Hess Tracker $1,050
May 2008 XTO Headington $1,850



More HOT slides and data below. 

The markets are swirling with rumors of who will be buying and who may be takeover targets in the Bakken. Shown below are recent presentations from four Bakken-focused companies:Whiting Petroleum, Continental Resources, Kodiak Oil & Gas and Oasis Petroleum.

    Did you know?

    Oil company execs, investors and bankers know full well the value of "competitive reconnaissance." PLS' new docFinder database is a valuable DATA source to help you stay current on industry and company developments.  DocFinder lets you quickly view and compare type curves, oil price differentials, drilling costs, operating costs, CAPEX plans past, present and future, and other critical data.  


    Start your free trial to docFinder today!

    featured.slides from docFinder

    Slide Slide Slide Slide

    Whiting Oil

    712,304 net acres


    September 4, 2012


    Continental Resources

    945,248 net acres


    August 10, 2012


    Kodiak Oil & Gas

    Going to 27,000 boepd


    September 6, 2012


    Oasis Petroleum

    Bakken leverage


    September 5, 2012


    Whiting Petroleum (NYSE: WLL) has a market cap of ~$5.5 billion and an EV of ~ $6.9 billion.  In Q2 2012, WLL produced 80,700 boepd (86% oil).  Of this,  56,900 boepd (70%) is focused in the Rockies. The slide above shows WLL to be the largest Bakken-Three Forks producer over a TTM average (as of July 2012 and converted at a 30:1 gas to oil ratio).  As of June 30, 2012, WLL has 1.1 MM gross acres and 712,304 net acres in the play.


    Continental Resources (NYSE: CLR) has a market cap of ~$13.4 billion and an EV or ~$15.6 billion.  CLR is is the leading oil producer in the Williston basin. As a company, CLR passed the 100,000 boepd mark in June and has total proved reserves of 610 MMboe (65% oil at June 30, 2012).  In the Bakken area, CLR has 19 rigs running (15 in ND and 4 in MT).  Net acreage totals 945,248 (694,294 in ND and 251,954 in MT).

    Kodiak Oil and  Gas (NYSE: KOG) has a market cap of ~$2.4 billion and an EV of ~$3.2 billion.  Above slide shows KOG's Bakken position East of the Nesson. This slide shows KOG's position West of the Nesson. In the Williston, KOG averaged 13,000 boepd in Q2 and at June 30 has proved reserves of 70.1 MMboe (86% liquids).  KOG owns ~155,000 net acres and is running 8 rigs plus 2 rigs as a non-op.

    Oasis Petroleum (NYSE: OAS) has a market cap of ~$2.6 billion and an EV of ~$3.2 billion. OAS claims leading leverage to the Bakken where it holds over 320,000 net acres in the trend.  In Q2, OAS produced 20,400 boepd (up 158% YOY).  Proved reserves as of December 31 are 78.7 MMboe (46% developed).  Inventory includes 3,182 gross locations -- 11 years at 120 wells per year. OAS upped 2012 Capex 20% to $1.1 billion.

    Full Presentation

    Full Presentation

    Full Presentation

    Full Presentation

    featured.transactions from PLS global M&A database

    09/24/12Atlas Resources buys Mississippian Lime assets from Equal Energy$40 MM
    09/20/12ExxonMobil buys Denbury's Bakken assets$2,000 MM
    09/18/12W&T Offshore buys Newfield's remaining GOM assets$228 MM
    09/17/12EPL buys shallow GOM assets from Hilcorp$550 MM

    Source:PLS M&A Database