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
PS - Repsol prioritizing value over volume in the Marcellus - January 2020Given its bearish view on the natural gas outlook, Repsol says it is reducing its capex in Canada and the Marcellus. CEO Josu Jon Imaz San Miguel said in late October that the strategy in the Marcellus will prioritize “value over volume.” The company is maintaining flexibility in light of prices and has the option to dynamically shift capex. Currently, Eagle Ford liquids assets are seeing capex while the Marcellus is on the back burner because of gas prices. During 2019, the Marcellus was a...
Jan 27, 2020
IS - Repsol weighs the sale of Malaysian upstream portfolio - January 2020Repsol is reportedly considering a potential sale of its upstream assets in Malaysia, sources told Bloomberg. Repsol’s strategic review is still in the early stage and it could choose to retain the assets, the Jan. 10 report said. Repsol’s assets in Malaysia consist of five production and development blocks and one exploration block covering a total of 3,126 sq km. The company holds an operated 60% WI in Kinabalu field off Sabah in the Malaysian Basin with partner Petronas owning the...
Jan 21, 2020
ES - Repsol prioritizing value over volume in the Marcellus - January 7, 2020Given its bearish view on the natural gas outlook, Repsol says it is reducing its capex in Canada and the Marcellus. CEO Josu Jon Imaz San Miguel said in late October that the strategy in the Marcellus will prioritize “value over volume.” The company is maintaining flexibility in light of prices and has the option to dynamically shift capex. Currently, Eagle Ford liquids assets are seeing capex while the Marcellus is on the back burner because of gas prices. During 2019, the Marcellus was a...
Jan 07, 2020
A&D - Repsol closes $325MM buyout of Equinor’s Eagle Ford JV stake - December 2019Spanish energy company Repsol took full control of its Eagle Ford JV assets, completing the $325 million acquisition of Norwegian producer Equinor’s operated 63% WI in the nearly decade-old South Texas partnership on Dec. 6. The purchase amounted to 69,000 net acres and 34,000 boe/d (~60% liquids), boosting Repsol’s holdings to 110,000 net acres across Karnes, DeWitt, Live Oak, McMullen, and La Salle counties with output of 54,000 boe/d, which it now owns with 100% WI. It has an effective date...
Dec 19, 2019
A&D - Repsol buys out Equinor’s Eagle Ford JV stake for $325MM - November 2019Spanish energy company Repsol is taking full ownership of its Eagle Ford JV assets, buying out Norwegian producer Equinor’s operated 63% WI in the nearly decade-old South Texas partnership for $325 million. The acquisition amounts to 69,000 net acres and 34,000 boe/d (~60% liquids), boosting Repsol’s holdings to 110,000 net acres across Karnes, DeWitt, Live Oak, McMullen, and La Salle counties with output of 54,000 boe/d, which it will own with 100% WI. It has an effective date of Oct. 1....
Nov 21, 2019
A&D - Upstream M&A gets a shot in the arm midway through Q4
- November 2019A lackluster upstream deal market received a boost in the last few weeks with several notable transactions making headlines. After heeding the concerns of some of its major shareholders, Callon Petroleum revised its offer to acquire Carrizo Oil & Gas (PG.1). The most vehement opponent of the original deal, Paulson & Co., decided to drop its opposition, noting that the revised offer provides “substantial benefits to shareholders.” In terms of asset-level transactions, Laredo...
Nov 21, 2019
IS - Serenity well in UK North Sea proves a success for i3 Energy - November 2019UK-based i3 Energy’s Serenity well encountered oil on Block 13/23c in the UK North Sea, 6 km north of the company’s Liberator field. The well was drilled downdip from Repsol Sinopec Resources UK Ltd.’s Tain field on the adjacent Block 13/23b. It encountered oil-bearing Captain and Coracle sands from 4,740 ft to 5,252 ft, and the oil-water contact was estimated to be at 5,270 ft. The net oil interval in the Captain sands was 10 ft with 30% porosity, which is thicker than in the Tain...
Nov 05, 2019
CM - Exxon could realize over $8B in proceeds from asset sales - October 2019Exxon Mobil Corp., which wants to raise $15 billion through asset sales by YE21, signed a deal to sell its non-operated upstream assets in Norway to Vår Energi AS for $4.5 billion, effectively exiting Norway after almost a century-long presence there. The transaction, which includes minority stakes in over 20 producing fields operated by either Equinor or Royal Dutch Shell, will close during the quarter. “Our objective is to have the strongest, most competitive upstream portfolio in the...
Oct 04, 2019
A&D - Recent upstream dealmaking led by Uinta and Permian - September 2019The US upstream sector, like the oil industry worldwide, continues to await the fallout of drone strikes on key oil facilities in Saudi Arabia on Sept. 14. With the Saudis forced to cut oil production in half following the attacks, US producers are keeping a close eye on supply and undoubtedly assessing their own plans against this global backdrop. Even before the attacks in Saudi Arabia, upstream M&A was in a bit of a holding pattern back here at home, with two notable exceptions in the...
Sep 19, 2019
IS - Repsol’s €750MM eight-year issue books 6x in orders - August 2019Spanish oil company Repsol floated €750 million principal amount of 0.25% senior notes due 2027 at 99.684. The eight-year issue was 6x oversubscribed as book orders swelled to more than €4.8 billion; a nice welcome back for the company, which returned to the global debt market for the first time since May 2017. The bond will trade on the Luxembourg market. The coupon is the lowest paid by Repsol and for a European issuer with a BBB rating. Initial thoughts on pricing came out at 70...
Aug 13, 2019
IS -Petrobras launches $3B in bond buybacks with TAG cash - July 2019Sitting on fresh cash from the sale of most of its gas transport business Transportadora
Associada de Gas SA, Petrobras will use up to $3 billion of its $8.7 billion in new cash
to buy back some debt. The Brazilian NOC will repurchase issues denominated in euro,
sterling and US dollars, a banker
in the deal told LatinFinance.
The company is
repurchasing the debt in two stages: First, it is buying back four series of eurobonds and three
series of dollar bonds, with an aggregate value of...
Jul 23, 2019
A&D - BCE-Mach acquires Mississippi Lime assets in Kansas - June 2019Oklahoma City-based BCE-Mach struck a deal to acquire producing Mississippi
Lime assets in Barber and Harper counties, Kansas, from an undisclosed seller. The
company currently operates two rigs in the asset area. With the addition of these
properties, it will own 260,000 net acres, operate 835 wells and hold an interest
in 1,561 wells operated by third
parties across 22 counties in
Oklahoma and Kansas.
BCE-Mach was formed in early 2018 as a partnership between private equity firm
Bayou...
Jun 05, 2019
A&D - News Briefs - February 6, 2020Peregrine Energy Partners is acquiring producing and non-producing oil and gas royalties in Orange and Los Angeles counties, California. Production comes from 170 wells in the Brea-Olinda oil field, a legacy field that has been in production since the early 1900s and is operated by California’s Bridge Energy. Peregrine managing director Josh Prier said the properties fit within the company’s strategy to acquire assets with shallow declines and legacy reserves. The company expects Brea-Olinda to...
Feb 06, 2020
IS - News Briefs - September 3, 2019UK-based Cuadrilla Resources again suspended hydraulic fracturing operations at its flagship Preston New Road site in Lancashire onshore the UK after confirming a 2.9-magnitude seismic event on Aug. 26. The company had previously announced it was resuming operations Aug. 15 after securing permits to frac up to 45 stages on its second horizontal well on the site. The company said it has verified that well integrity was unaffected. DNO will decide by year’s end whether or not to reopen...
Sep 03, 2019