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June 22, 2020
IndicatorCurrent
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $38.84 $2.50 6.9%
Prompt Gas Price ($/mmbtu) $1.64 ($0.18) (9.7%)
Wkly Trans. Value ($mm) $402 $401 nmf
Wkly Trans. Count 1 -- --
US Rig Count 266 (13) (4.7%)
US Oil Prod'n (mmbbl/d) 10.5 (0.6) (5.4%)
US Gas Prod'n (bcf/d)(1) 114.9 -- --
US Oil Storage (mmbbl) 539.3 1.2 0.2%
US Gas Storage (tcf) 2.9 0.1 3.0%
$2.2
$8.0
$9.9 $10.7
$4.9
$15.8
$21.2 $21.9 $24.1
$17.0
$9.1 $9.2
$20.8
$8.2
$31.6
$19.5
$1.7
$17.0
$9.0
$0.9 $2.4
--
50
100
150
200
250
300
350
400
450
500
--
$5
$10
$15
$20
$25
$30
$35
$40
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 95% 74% 78% 67% 47%
Nu
mb
er
of
Tra
ns
ac
tio
ns
Tra
ns
ac
tio
n V
alu
e (
$b
n)
Asset Corporate Number of Transactions
% Oil% Oil% Oil
$64.3
Antero Resources announced it sold an overriding royalty
interest in Appalachia for $402 million to Sixth Street
Partners
With developments around COVID-19 in constant flux, BMO
Capital Markets has set up a dedicated page to provide
clients with the latest news and information, from the market
response to developments in the fight against the virus and
its spread – read more here
Debt
Markets
25 issuers priced 29 tranches for approximately $18.3 billion in proceeds last week
One energy deal priced last week
Comstock Resources priced $500 million of 9.75% senior notes due 2026. BMO Capital Markets
acted as Joint Lead Bookrunner on this transaction
U.S. high yield funds reported an inflow of $1.2 billion
ETFs reported an inflow of $696 million, while mutual funds reported an inflow of $543 million
High yield index yield was 6.44%; high yield energy index yield was 10.46%
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, EIA, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. EIA U.S. natural gas gross withdrawals and production reported monthly as of Mar 2020.
2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index.
Key Industry Indicators
Quarterly Deal Activity
S&P E&P(2) underperformed last week (0.8)% vs. SPX(2) 2.4%
The U.S. equity indexes all finished up last week. Real estate, industrials, consumer discretionary,
consumer staples, tech, materials, healthcare, and financials finished up
Equity
Markets
Oil ended last week up. According to OPEC, its 2020 forecasts remain mostly unchanged from its May
outlook, observing a historic reduction in oil demand due to the enormous impact of COVID-19 but
improving fundamentals in the coming months. According to the analysis, OPEC members will pump
approximately 28 mmbbl/d in the third quarter and approximately 31 mmbbl/d in the fourth quarter without
creating a supply surplus. The near-term contract closed up $2.50, or 6.9%, at $38.84
Gas ended last week down. This was due to the increase in storage and cooler weather forecasts. Earlier
last week, natural gas futures were on the rise helping the July contract end a three-day trading loss. The
gains were due to forecasts of an increasing heat outlook and a lower inventory build report, offsetting an
enduring uncertainty about LNG demand. The near-term contract closed down $0.18, or 9.7%, at $1.64
Commodities
Week in Review
Let’s follow these guidelines when sorting articles:
• First priority: Domestic A&D, ranked by size
• Next: Domestic M&A
• Then: US companies doing international deals (like
Noble’s Tamar)
• Then: Others (Cabot’s Lackawanna)
• Then: Prices, rig count, completions, etc.
To paste the arrows with colors,
• FactSet
• Settings
• Presentation Linking and Formatting
• Import
• Colors
• Change Color Font Covering the Week of June 12 to June 18, 2020
This is the final issue for 2018. The Market Monitor will
return on Monday, January 7th. Happy Holidays from the
BMO Capital Markets team!
BMO is marketing PayRock Energy’s divestiture of South
Texas Eagle Ford assets (see page [x])
The October issue of BMO Calgary’s A&D (Canadian) Market
Monitor went live last week – read more here
One E&P deal priced last week
WPX Energy (b1/BB-) priced $600 million of x% Senior
Notes due 2027
One E&P issuer priced last week
Noble Energy priced $500 million of 3.25% senior notes
due 2029 and $500 million of 4.20% senior notes due
2049. BMO Capital Markets acted as a Joint
Bookrunner on this transaction
All references to last week in the comments below are through Thursday
Better international/demand data and promise for strict quota adherence by Russia
Demand signals continue to trend positively, with China’s total oil demand is nearly back to the pre-COVID levels of 13.4MM. U.S. real-time
mobility data indicated that driving activity has also recovered much of the April losses. Markets were also affected by greater than expected
Lower 48 shut-ins announced during earnings season. Jet-fuel market remains extremely weak thought travel started to tick higher off historic
lows.
Fighting in Libya intensified
The EIA announced a smaller-than-expected natural gas storage build. EQT confirmed that they had shut-in a large percentage of production
due to pricing, with management noting that sales were being deferred to take advantage of an expected significant improvement in price in the
coming months. LNG cancellations continued. Temperatures across the southern states expected to increase.
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2
June 22, 2020
Ann'd
Date Buyer Seller Area Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
15-Jun-20 Sixth Street Partners Antero Resources Marcellus/Utica Overriding royalty interests in Appalachia $402 n.a. n.a. nmf
04-Jun-20 Undisclosed Buyer Black Stone Minerals Permian Midland Basin mineral and royalty assets $55 n.a. n.a. nmf
04-Jun-20 Pegasus Resources LLC Black Stone Minerals Permian Permian Basin mineral and royalty assets $100 n.a. n.a. nmf
11-May-20 Diversified Gas & Oil EQT Marcellus/Utica Appalachia Basin asset in PA and WV $125 $2.60 $13,889 n.a.
11-May-20 Morning Star Oil Co Southland Royalty Co Other Rockies 205,000 net acres in San Juan Basin $53 n.a. $3,635 $260
04-May-20 National Fuel Gas Shell Marcellus/Utica 450,000 net acres in Appalachia $541 $4.57 $12,983 $1,202
14-Apr-20 Undisclosed Buyer Ring Energy Permian 19,998 net acres in Delaware Basin $32 $3.15 $34,615 $1,575
08-Apr-20 Diversified Gas & Oil Carbon Energy Corp (USA) Marcellus/Utica 1,553,754 net acres in Appalachia $110 $1.51 $11,111 $71
03-Apr-20 BCE-Mach III LLC Alta Mesa Resources Mid-Continent 130,000 net acres in STACK $160 $2.22 $5,317 $1,227
31-Mar-20 Brigham Minerals LLC Undisclosed Sellers Multi-Region 1,625 net royalty acres in multiple basins $25 n.a. n.a. nmf
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
Permian22%
Rockies (ex. Bakken)
9%
Bakken4%
Appalachia8%
Mid-Con11%
Eagle Ford6%
Ark-La-Tex4%
Gulf of Mexico7%
Other29%
LTM By Region
y = 22.548e-0.061x
R² = 0.2785
--
$10
$20
$30
$40
$50
$60
-- 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x
Sa
les
Pri
ce
/ P
rove
d R
es
erv
es
($
/bo
e @
15
:1)
R / P
R / P
Sales Value /
Proved Reserves
(15:1)
(ratio) ($ / boe) ($ / mcfe)
8x $13.80 $0.92
10x $12.20 $0.81
15x $8.98 $0.60
20x $6.60 $0.44
Oil48%Gas
52%
LTM By Commodity
Public Company
45%
PE / PE-Backed
16%
Private11%
Other28%
LTM By Buyer Type
$13.3 $23.4
$15.2 $5.3 $2.5
$4.4
$8.8
$11.4
$59.8
$0.9
$17.8
$32.2 $26.6
$65.1
$3.3
2016 2017 2018 2019 2020
453 783 577 98 55
Asset Corporate
Deal Count
The 10 Most Recent Asset Transactions Over $20 Million
A&D Valuation Trends(3)
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, PLS
1. Represents total enterprise value. 2. Calculated as percentage of total LTM transaction count (number of transactions, not dollar value).
3. 68 transactions from January 2015 to 2019 with transaction value >$20mm. Adjusted for changes in price outlooks. Recalculated boe reserves are on a 15:1
(gas:oil) basis. Acreage transactions excluded by using deals with PDP of >= 40% of total proved.
4. Year-to-date data is through this week’s date for each respective year.
(2) (2) (2)
Confirm number of transactions weekly --->
Deal Activity – YTD ($bn)(4)
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3
June 22, 2020
6/18/2020
Appalachia 5
Ark-La-Tex 1
Bakken 1
Eagle Ford 3
Mid-Con --
Other 1
Permian --
Rockies 1
12
Select Significant Deals on the Market
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Source of Select Significant Deals on the Market: BMO Transaction Database
Source of Headlines: Press releases
Industry Headlines
(Click headline to link to the full article)
M&A&D Headlines
Appalachia
5 Deals
Mid-Con
0 Deals
Eagle Ford
3 Deals
Permian
0 Deals
Other
1 Deal
Rockies
1 Deal
Bakken
1 Deal
Ark-La-Tex
1 Deal
BMO Deals (Status)
Siltstone Appalachia (In Market) – See page 6
Tighter Oil Supplies Plus U.S. Stimulus Efforts Send
Oil on the Rise
UAE Says Oil Prices Will Soon Be Back to Normal
IEA Raises 2020 Oil Demand Forecast
OPEC+ May Be Able to Ramp Up Oil Production in
2021
After a Record April, U.S. Imports of Saudi Oil Near
35-Year Low in June
Supreme Court Upholds Permit for $8 Billion Pipeline
Under Appalachian Trail
Senate Passes Major Lands Conservation Bill
Antero Resources Closes $402 Million Overriding
Royalty Transaction
Talos Energy Announces Full Year 2019 Operating
and Financial Guidance (includes A&D
announcement)
+ the EQT mineral/JV Deal
+ Antero ORRI deal
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June 22, 2020
Purchase Price (US$ mm)
Total Consideration $525
Metrics
Net Undeveloped Acres(1) 224,000
2020E Net Production (boe/d)(2) 16,380
PDP Reserves (mmboe)(2) 24
2P Reserves (mmboe)(2) 101
Cash Flow ($mm) $109
Multiples
TEV / Net Undeveloped Acres ($/acre) $2,344
TEV / Adj. Net Undeveloped Acres ($/acre)(3) $540
TEV / 2020E Net Production ($/boe/d) $32,051
TEV / PDP Reserves ($/boe) $21.73
TEV / 2P Reserves ($/boe) $5.21
TEV / Cash Flow $4.8
Increases Parsley’s corporate flexibility and
operational scale with the integration of Jagged Peak’s
$90 million investment in water infrastructure
Facilitates margin expansion and enhances free cash
flow by producing G&A savings of ~$25 million in the
first year and $40-50 million of annual savings
thereafter, translating to a NPV of $250-300 million
On June 15, 2020, Antero Resources Corporation
(“Antero”) and Sixth Street Partners, LLC (“Sixth
Street”) announced the closing of an overriding royalty
interest ("ORRI") transaction for $402 million
Comprised of $300 million in cash and $102
million in contingent payments
The two contingent payments of $51 million each
are based on cumulative net production to the
ORRI through September 30, 2020 and March 31,
2021
If Sixth Street achieves a 13% IRR and 1.5x cash on
cash return, 85% of the ORRI will revert back to
Antero
Effective date of April 1, 2020
TRANSACTION SUMMARY
Source: Company disclosure
ORRI OVERVIEW
ORRI applied to proved developed assets
1.25% ORRI on all of Antero’s working interests in
operated proved developed assets in WV and OH,
subject to certain excluded wells
There is an additional 2% ORRI on these assets
that will be re-conveyed to Antero if production
targets are achieved through March 31, 2023
ORRI applied to undeveloped assets
3.75% ORRI on all of Antero’s working interests in
operated undeveloped assets in WV and OH
Applies to wells completed after April 1, 2020 and
prior to the later of (a) turning 2.2 mm lateral feet
to sales and (b) earlier of (i) April 1, 2023 and (ii)
turning 3.82 mm lateral feet to sales
Interesting Deal of the Week:
Antero Resources Announces $402 Million Overriding Royalty Transaction
ANTERO ACREAGE POSITION
OBSERVATIONS
HighPeak Assets
Adjusted based on production multiple of
$2,000/mcfe/d.
TRANSACTION OBSERVATIONS
This transaction addresses over half of Antero’s stated
$650 to $900 million asset sale goal for 2020
Antero will use the proceeds of the transaction to
repay revolver borrowings
5
June 22, 2020
Market Insight: Assessing the Impact on M&A Activity Levels During Crises
from 1998 to Present
Source: FactSet
Note: The CBOE Volatility Index (VIX) is used as a proxy for equity volatility; ‘low volatility’ defined as periods with VIX levels below 20 and ‘high volatility’ defined as periods
with VIX levels above 20.
1. Aggregate North American transaction volumes and values over $50mm by quarter from 1998 to present.
2. Financial buyers as a percentage of total transactions. 3. Public sellers as a percentage of total corporate transactions; asset sales are excluded.
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DEAL VOLUME BY QUARTER(1)
--
150
300
450
600
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Dot Com
Bubble
Global
Financial
Crisis
9/11
Attack COVID-19
OPEC+
M&A activity has typically
rebounded within 2 to 4
quarters post crisis
299
251
Low Volatility High Volatility
DEALS PER QUARTER(1)
AVERAGE DEAL VALUE
(US$MM)
$916 $802
Low Volatility High Volatility
Fewer deals get done…
14%
11%
Low Volatility High Volatility
…and deals that do get done
are smaller
FINANCIAL BUYERS(1)(2) PUBLIC SELLERS(1)(3)
37%
46%
Low Volatility High Volatility
Financial buyers retrench due
to constrained access to
leverage
More public companies
become targets in part due to
observable distressed
valuation benchmarks vs.
private companies
Sharp decline in aggregate M&A deal volume and value during periods of high volatility is typically
followed by robust recovery when volatility subsides
6
June 22, 2020
NYMEX WTI Futures as of 18-Jun-20 Close ($/bbl) NYMEX Gas Futures as of 18-Jun-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $39.66 $37.49 $58.77 $53.72
2020 $39.27 $36.89 $58.77 $53.16
2021 $40.37 $38.64 $54.29 $52.29
2022 $41.53 $40.57 $52.03 $52.33
2023 $42.71 $42.30 $51.20 $52.90
2024 $43.92 $43.90 $51.15 $53.58
NYMEX Gas Futures as of 18-Jun-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.36 $2.46 $2.32 $2.49
2020 $2.03 $2.17 $2.32 $2.59
2021 $2.65 $2.68 $2.45 $2.62
2022 $2.46 $2.47 $2.45 $2.62
2023 $2.39 $2.41 $2.48 $2.69
2024 $2.40 $2.40 $2.53 $2.79
Historical Prices as of 18-Jun-20 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.23 $0.22 $0.17 $0.17
Propane $0.51 $0.49 $0.51 $0.43
Butane $0.51 $0.52 $0.72 $0.40
Iso-butane $0.57 $0.56 $0.76 $0.51
Pentane+ $0.42 $0.37 $1.26 $1.04
25%
35%
45%
55%
65%
Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20
% o
f W
TI
NGL as % of WTI
$1
$2
$3
$4
$5
Jun-19 Dec-19 Jun-20 Dec-20 Jun-21
($/m
mb
tu)
$10
$20
$30
$40
$50
$60
$70
Jun-19 Dec-19 Jun-20 Dec-20 Jun-21
($/b
bl)
NGL PRICING(2)
HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)
Commodity Prices
Source: BMO Commodity Products Group, Bloomberg, FactSet
1. Future prices are calendar year average unless stated otherwise.
2. Assumes typical Gulf Coast barrel composition.
WTI OIL (HISTORICAL / FORECAST)
Links:
http://www.nasdaq.com/markets/crude-oil.aspx
http://www.bloomberg.com/quote/CL1:COM
http://www.nasdaq.com/markets/natural-gas.aspx
http://www.bloomberg.com/quote/NG1:COM
Link to Detailed
Futures Data
Historical Prices as of 11-Jun-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.22$0.24$0.17$0.17Propane$0.49$0.51$0.51$0.43Butane$0.52$0.54$0.68$0.39Iso-butane$0.56$0.57$0.75$0.50Pentane+$0.37$0.49$1.27$1.04
NYMEX Gas Futures as of 11-Jun-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.46$2.43$2.29$2.552020$2.17$2.16$2.29$2.622021$2.68$2.64$2.46$2.632022$2.47$2.47$2.46$2.632023$2.41$2.42$2.49$2.712024$2.40$2.40$2.54$2.80
NYMEX WTI Futures as of 11-Jun-20 Close ($/bbl)NYMEX Gas Futures as of 11-Jun-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$37.49$38.74$57.45$53.522020$36.89$38.08$57.45$53.162021$38.64$39.95$53.78$52.342022$40.57$41.92$51.93$52.282023$42.30$43.90$51.23$52.712024$43.90$45.91$51.17$53.28
Historical Prices as of 11-Jun-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.22$0.24$0.17$0.17Propane$0.49$0.51$0.51$0.43Butane$0.52$0.54$0.68$0.39Iso-butane$0.56$0.57$0.75$0.50Pentane+$0.37$0.49$1.27$1.04
NYMEX Gas Futures as of 11-Jun-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.46$2.43$2.29$2.552020$2.17$2.16$2.29$2.622021$2.68$2.64$2.46$2.632022$2.47$2.47$2.46$2.632023$2.41$2.42$2.49$2.712024$2.40$2.40$2.54$2.80
NYMEX WTI Futures as of 11-Jun-20 Close ($/bbl)NYMEX Gas Futures as of 11-Jun-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$37.49$38.74$57.45$53.522020$36.89$38.08$57.45$53.162021$38.64$39.95$53.78$52.342022$40.57$41.92$51.93$52.282023$42.30$43.90$51.23$52.712024$43.90$45.91$51.17$53.28
Link to Detailed
Historical Graph
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
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June 22, 2020
Clearbrook
Midland
Cushing
St. James
(LLS)
East Coast
U.S. (Brent)
Midland Sweet-
Sour Spread
EMS
AECO
Northern
California
Sumas
Southern
California
El Paso - SJ
Waha
HSC
Henry Hub
Panhandle
CIG Chicago
Dominion
Transco
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 18-JUN-20
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 18-JUN-20
Legend
Price
Diff.
Legend
Price
Diff.
Source: BMO Commodity Products Group, Bloomberg
Note: Prices and differentials are for prompt month futures except for Clearbrook which is based on spot prices.
$1.41
($0.23)$1.47
($0.17)
MAPS IN
MASTER VIEW
$1.27
($0.37)
$36.16
($2.68)
$1.40
($0.24)
$1.45
($0.19)
$40.18
$1.34
$1.50
($0.14)
$1.83
$0.19
$1.59
($0.05)
$2.49
$0.85
$28.55
($10.29)
$38.84
($0.49)
$38.93
$0.09
$1.64
--
$1.36
($0.28)
$1.34
($0.30)
$1.64
$36.59
($2.25)
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June 22, 2020
0%
10%
20%
30%
40%
50%
60%
--
100
200
300
400
500
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 132 (5) 137 Oil Differential $0.20 $0.40 ($0.20)
Permitting Activity 78 (28) 106 Gas Differential ($0.29) $0.08 ($0.37)
-$4.80
-$3.20
-$1.60
$0.00
$1.60
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$18.00
-$12.00
-$6.00
$0.00
$6.00
$ /
mm
btu
$ /
bb
l
Midland Waha
900784 753
596
851 744803
967843
706
544
295 270
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
4,000
8,000
12,000
16,000
20,000
1,000
2,000
3,000
4,000
5,000
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas4,694
16,585
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
04-Jun-20 Undisclosed Buyer Black Stone Minerals Midland Basin mineral and royalty assets $55 n.a. n.a. nmf
04-Jun-20 Pegasus Resources LLC Black Stone Minerals Multi-Permian mineral and royalty assets $100 n.a. n.a. nmf
14-Apr-20 Undisclosed Buyer Ring Energy 19,998 net acres in Delaware Basin $32 $3.15 $34,615 $1,575
31-Mar-20 Viper Energy Partners Undisclosed Sellers 410 net royalty acres in Permian Basin $63 n.a. n.a. nmf
14-Feb-20 Undisclosed Buyer Lilis Energy Inc 1,185 net acres in Delaware Basin $25 n.a. n.a. $21,013
Mean $55 $3.15 $34,615 $11,294
Median $55 $3.15 $34,615 $11,294
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$20,000
$40,000
$60,000
$80,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
1 2 8 8 6 6 121315 7 2 2 7 2 5 4 1 2 0 3 0 2
$ /
acre
# Deals
$23,957
--
$50,000
$100,000
$150,000
$200,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
1 2 6 9 5 7 11 9 9 6 1 0 7 2 5 4 1 2 4 3 0 1
$ /
bo
e/d
# Deals
$86,402
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS
Permian Snapshot
RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU] [TBU]
[TBU] [TBU]
[TBU]
[TBU]
9
June 22, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 15 (2) 17 Oil Differential $1.05 $0.15 $0.90
Permitting Activity 2 (2) 4 Gas Differential $0.00 ($0.00) $0.01
0%
5%
10%
15%
20%
--
100
200
300
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
-$0.30
-$0.20
-$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$6.00
-$4.00
-$2.00
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
MEH HSC
222
173201 192
221 204 204
302
170 180
7843
13
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
6,000
6,500
7,000
7,500
8,000
1,000
1,200
1,400
1,600
1,800
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
1,405
7,384
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
21-Feb-20 Magnolia Oil & Gas Corp Undisclosed Seller Non-op Eagle Ford assets $71 n.a. $39,176 n.a.
12-Nov-19 Kimbell Royalty Partners Buckhorn Resources 400 net royalty acres in Eagle Ford $32 n.a. $117,752 nmf
07-Nov-19 Repsol Equinor 100% ownership in former Eagle Ford JV $325 n.a. $9,559 $7,476
06-Nov-19 Marathon Rocky Creek & Delago 18,000 net acres in Eagle Ford $185 n.a. $26,429 $10,278
17-Jul-19 Undisclosed Buyer Sundance Energy 6,100 net acres in Dimmit County $30 n.a. $28,069 $4,836
Mean $129 n.a. $44,197 $7,530
Median $71 n.a. $28,069 $7,476
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--$10,000$20,000$30,000$40,000$50,000$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 1 2 1 2 2 0 4 2 3 1 2 4 2 1 3 0 0 0 0 0
$ /
acre
# Deals
$8,045
--
$50,000
$100,000
$150,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
1 1 3 1 2 2 2 4 4 3 1 2 7 2 0 3 0 0 1 3 1
$ /
bo
e/d
# Deals
$64,626
Eagle Ford Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
10
June 22, 2020
0%
5%
10%
15%
20%
--
20
40
60
80
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 32 (1) 33 Oil Differential $1.30 $0.10 $1.20
Permitting Activity 5 1 4 Gas Differential -- -- --
-$10.00
-$5.00
$0.00
$5.00
$10.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$10.00
-$5.00
$0.00
$5.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
90110
200218
100
169
81 81 82 6939 34
20
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
5,000
6,500
8,000
9,500
11,000
12,500
14,000
60
70
80
90
100
110
120
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
76
12,806
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
20-Dec-19 Undisclosed Buyer Riviera Operating LLC 75,873 net acres in East Texas $34 $0.17 $1,213 $448
29-Jul-19 Osaka Gas Sabine Oil & Gas Corp 175,000 net acres in East TX $610 n.a. $2,905 $9,136
19-Dec-18 Comstock Shelby Shale LLC 6,023 net acres in Haynesville $21 n.a. n.a. $3,404
19-Nov-18 Aethon III QEP Resources Inc 49,700 net acres in Haynesville $735 $0.77 $2,475 $14,789
05-Sep-18 Viking Energy Group Multiple Sellers Texas and Louisiana assets $100 n.a. n.a. n.a.
Mean $300 $0.47 $2,198 $6,944
Median $100 $0.47 $2,475 $6,270
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 3 1 1 2 1 3 0 1 2 0 1 1 1 1 0 1 1 0 0
$ /
acre
# Deals
$3,180
--$2,000$4,000$6,000$8,000
$10,000$12,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 5 1 1 3 2 3 0 2 2 0 1 1 2 1 0 1 1 1 0
$ /
mcfe
/d
# Deals
$3,983
Ark-La-Tex Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, 2019, and 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
11
June 22, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 36 (1) 37 Oil Differential $2.67 $0.46 $2.21
Permitting Activity 15 (29) 44 Gas Differential ($0.33) $0.09 ($0.41)
0%
5%
10%
15%
20%
--
50
100
150
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
-$3.00
-$2.00
-$1.00
$0.00
$1.00
$2.00
$3.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$15.00
-$10.00
-$5.00
$0.00
$5.00
$10.00
$15.00
$ /
mm
btu
$ /
bb
l
Brent Dominion
--$5,000
$10,000$15,000$20,000$25,000$30,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1 1 0 2 1 1 3
$ /
mcfe
/d
# Deals
$4,722
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
15-Jun-20 Sixth Street Partners Antero Resources Overriding royalty interests in Appalachia $402 n.a. n.a. nmf
11-May-20 Diversified Gas & Oil EQT Appalachia Basin asset in PA and WV $125 $0.43 $2,315 n.a.
04-May-20 National Fuel Gas Shell 450,000 net acres in Appalachia $541 $0.76 $2,164 $1,202
08-Apr-20 Diversified Gas & Oil Carbon Energy Corp (USA) 1,553,754 net acres in Appalachia $110 $0.25 $1,852 $71
24-Jan-20 KeyBank EdgeMarc Energy Holdings 32,217 net acres in Pennsylvania $70 $0.09 $801 $2,163
Mean $250 $0.38 $1,783 $1,145
Median $125 $0.34 $2,008 $1,202
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
335 347302 295
258232
188158
226253
186
92 77
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
15,000
20,000
25,000
30,000
35,000
80
100
120
140
160
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
149
33,464
--$2,000$4,000$6,000$8,000
$10,000$12,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0 0 0 0 0 0 1
$ /
acre
# Deals
$497
Appalachia Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, 2019, and 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-DEC-19)
[TBU]
[TBU]
[TBU]
12
June 22, 2020
0%
5%
10%
15%
20%
--
50
100
150
200
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 10 (1) 11 Oil Differential ($2.25) ($0.05) ($2.20)
Permitting Activity 13 (5) 18 Gas Differential ($0.19) $0.03 ($0.21)
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
144 154138
110
157
8380 78
67 76 67 6139
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
1,500
1,800
2,100
2,400
2,700
3,000
3,300
3,600
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas 1,448
3,099
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
22-Apr-19 Northern Oil and Gas Flywheel Energy LLC 18,000 net acres in Williston Basin $310 n.a. $47,014 $17,238
31-Jul-18 Northern Oil and Gas W Energy Partners 10,600 net acres in Williston Basin $288 n.a. $42,708 $27,196
18-Jul-18 Northern Oil and Gas Pivotal Petroleum Partners LP Producing assets in Williston Basin $152 n.a. $37,032 n.a.
12-Jul-18 PetroShale Inc Slawson Exploration Co 1,981 net acres in Williston Basin $55 $6.04 $100,000 $27,764
06-Jul-18 Energy Resources 12 LP Bruin E&P Partners LLC 2.8% non-operated WI in Bakken assets $83 n.a. n.a. n.a.
Mean $178 $6.04 $56,688 $24,066
Median $152 $6.04 $44,861 $27,196
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$20,000
$40,000
$60,000
$80,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 1 1 4 0 2 3 3 0 1 3 3 0 6 3 0 0 1 0 0 0
$ /
bo
e/d
# Deals
$45,752
--
$5,000
$10,000
$15,000
$20,000
$25,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 1 2 0 0 2 3 1 0 3 2 0 5 2 0 0 1 0 0 0
$ /
acre
# Deals
$1,751
Bakken Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
[TBU]
[TBU]
13
June 22, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 7 -- 7 Oil Differential ($2.25) ($0.05) ($2.20)
Permitting Activity 16 (57) 73 Gas Differential ($0.19) $0.03 ($0.21)
0%
5%
10%
15%
20%
--
50
100
150
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
-$1.00
-$0.50
$0.00
$0.50
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
306 286
434
327297
168 213268
199
286
210 225
100
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
13,000
13,500
14,000
14,500
15,000
15,500
500
600
700
800
900
1,000
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas962
13,950
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
11-May-20 Morning Star Oil Co Southland Royalty Co 205,000 net acres in San Juan Basin $53 n.a. $3,635 $260
31-Jan-20 Undisclosed Buyer ConocoPhillips 98,000 net acres in DJ Basin $380 $27.14 $34,545 $3,878
09-Dec-19 YTEF Drilling Capital LLC Bayswater E&P LLC DJ Basin JV $125 n.a. n.a. n.a.
03-Sep-19 Undisclosed Buyer Crescent Point 224,000 net undeveloped acres in Uinta $525 n.a. $32,051 $2,344
14-Feb-19 Undisclosed Buyer Harvest Oil & Gas Corp San Juan Basin assets $43 $1.57 $10,835 n.a.
Mean $225 $14.36 $20,267 $2,160
Median $125 $14.36 $21,443 $2,344
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--$20,000$40,000$60,000$80,000
$100,000$120,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
2 0 4 4 1 6 2 0 1 6 3 9 3 1 3 1 1 0 2 0 1 1
$ /
bo
e/d
# Deals
$33,614
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
0 0 3 3 0 1 1 0 1 0 1 5 2 0 2 1 0 0 0 0 1 0
$ /
acre
# Deals
$2,069
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS
Rockies (excl. Bakken) Snapshot
RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
[TBU]
[TBU]
14
June 22, 2020
0%
5%
10%
15%
20%
--
100
200
300
400
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
H V+D % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 11 (1) 12 Oil Differential -- -- --
Permitting Activity 18 1 17 Gas Differential ($0.21) $0.05 ($0.26)
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
$ /
mm
btu
$ /
bb
l
Cushing Panhandle
375 354327 348 344 347
296283 258
198
73 81 62
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
H V+D
12,000
13,200
14,400
15,600
16,800
18,000
600
650
700
750
800
850
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas723
13,806
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
03-Apr-20 BCE-Mach III LLC Alta Mesa Resources 130,000 net acres in STACK $160 $2.22 $5,317 $1,227
10-Dec-19 Dow Devon Energy STACK Basin JV $100 n.a. n.a. n.a.
27-Sep-19 Contango White Star Petroleum LLC 314,800 net acres in Mid-Con $133 $1.57 $8,833 $421
12-Sep-19 Contango Will Energy Corporation TX Panhandle, W. Anadarko, and N.LA $23 n.a. $16,429 $144
28-Aug-19 Scout Energy Partners Riviera Resources Inc Hugoton Basin assets $295 $2.30 $17,020 $295
Mean $142 $2.03 $11,900 $522
Median $133 $2.22 $12,631 $358
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$50,000
$100,000
$150,000
$200,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
1 4 1 3 1 6 3 1 4 2 4 5 2 2 5 4 2 0 4 2 0 1
$ /
bo
e/d
# Deals
$18,742
--
$5,000
$10,000
$15,000
$20,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 1 0 0 0 0 0
$ /
acre
# Deals
$4,284
Mid-Continent Snapshot
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, $40,000/boepd in 2018 & 2019, and $30,000/boepd in 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-JAN-20)
[TBU]
[TBU]
[TBU]
15
June 22, 2020
0%
5%
10%
15%
20%
--
10
20
30
40
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
Deep Water Shelf % of Total Rigs
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 11 (2) 13 Oil Differential $1.30 $0.10 $1.20
Permitting Activity 8 3 5 Gas Differential -- -- --
-$10.00
-$5.00
$0.00
$5.00
$10.00
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
-$10.00
-$5.00
$0.00
$5.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
2730
27
21 2123
16
22 22 21
1115 15
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
Ann'd
Date Buyer Seller Asset Description Value(2)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(3)
12-Dec-19 W&T Offshore ConocoPhillips Deepwater GOM assets $20 $4.88 $8,696 n.a.
10-Dec-19 Talos Energy Multiple GOM assets and exploration prospects $640 $14.71 $33,684 n.a.
27-Jun-19 W&T Offshore ExxonMobil Mobile Bay assets $200 $2.70 $10,101 n.a.
13-May-19 Equinor Shell 22.45% WI in Caesar-Tonga Field $965 n.a. $60,313 n.a.
23-Apr-19 Murphy LLOG Bluewater LLC Mississippi Canyon & Green Canyon $1,375 $20.83 $36,184 n.a.
Mean $640 $10.78 $29,796 n.a.
Median $640 $9.79 $33,684 n.a.
Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services
Purple = BMO provided both transaction advisory services and acquisition financing or related services
--
$10
$20
$30
$40
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 1 0 0 0 2 1 0 0 0 1 2 1 0 1 1 2 0 2 0
$ /
bo
e
# Deals
$15.86
--
$15,000
$30,000
$45,000
$60,000
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
0 0 1 1 0 0 2 0 0 0 0 1 2 2 2 1 1 3 0 2 0
$ /
bo
e/d
# Deals
$30,696
Gulf of Mexico Snapshot
PERMITTING ACTIVITY BY MONTH(1)
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS
Note: Current quarter’s data is through the week covered by this issue.
1. Permits include directional and unidentified drilling permits. 2. Represents total enterprise value. Excludes transactions with deal value <$20 million.
3. $/acre multiple not adjusted for value associated with production.
4. Red line denotes average since 01-Jan-18. Calculated as the weighted average of each quarter’s transactions.
GROSS PRODUCTION (THROUGH 31-JAN-20)
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(4) TRANSACTION PROVED RESERVE MULTIPLES(4)
[TBU]
2,000
2,500
3,000
3,500
4,000
4,500
1,200
1,400
1,600
1,800
2,000
2,200
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas
1,979
2,909
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
16
June 22, 2020
Upcoming Industry Events
Disclaimer: The foregoing links are for convenience only and relate to materials that were not prepared or reviewed by BMO Capital Markets. BMO Capital Markets takes
no responsibility for and makes no representations with respect to the contents thereof. These materials may be inconsistent with the views of BMO Capital Markets.
Click event to open
2021
November 2020 Nov 3-4 Executive Oil Conference & Exhibition (Midland)
Nov 11 IPAA Leaders in Industry Luncheon
Nov 17 Houston Producers Forum Luncheon
Nov 20 ADAM-Houston Monthly Luncheon
April 2021 Apr 14 IPAA Leaders in Industry Luncheon
Apr 16 ADAM-Houston Monthly Luncheon
Apr 19-21 DUG Permian (Fort Worth)
Apr 20 Houston Producers Forum Luncheon
July 2020 Jul 20-22 SPE Unconventional Resources Tech. (virtual)
August 2020 Aug 10-11 Mineral & Royalty Conference
Aug 11-27 Summer NAPE (virtual)
Aug 17-19 Enercom Oil & Gas Conference
Aug 18 Houston Producers Forum Luncheon
Aug 21 ADAM-Houston Monthly Luncheon
September 2020 Sep 9 IPAA Leaders in Industry Luncheon
Sep 8-10 DUG Permian Basin & Eagle Ford (San Antonio)
Sep 15 Houston Producers Forum Luncheon
Sep 18 ADAM-Houston Monthly Luncheon
Sep 22-24 DUG Midcontinent (Oklahoma City)
October 2020 Oct 12-15 API Storage Tank Conference & EXPO
Oct 13-14 DUG Haynesville (Shreveport)
Oct 14 IPAA Leaders in Industry Luncheon
Oct 14-15 OilComm Conference & Exposition
Oct 16 ADAM-Houston Monthly Luncheon
Oct 20 Houston Producers Forum Luncheon
Oct 27-28 A&D Strategies and Opportunities Conference
December 2020 Dec 1-3 DUG East (Pittsburgh)
Dec 3 IPAA Texas Hold'Em Tournament
Dec 9 IPAA Leaders in Industry Luncheon
Dec 15 Houston Producers Forum Luncheon
January 2021 Jan 13 IPAA Leaders in Industry Luncheon
Jan 15 ADAM-Houston Monthly Luncheon
Jan 18-22 API E&P Winter Standards Meeting
Jan 19 Houston Producers Forum Luncheon
February 2021 Feb DUG Energy ESG Conference
Feb 8-12 NAPE Summit
Feb 10 IPAA Leaders in Industry Luncheon
Feb 16 Houston Producers Forum Luncheon
Feb 19 ADAM-Houston Monthly Luncheon
March 2021 Mar 10 IPAA Leaders in Industry Luncheon
Mar 16 Houston Producers Forum Luncheon
Mar 19 ADAM-Houston Monthly Luncheon
Mar 25-26 DUG Bakken and Rockies (Denver)
May 2021 May 12 IPAA Leaders in Industry Luncheon
May 18 Houston Producers Forum Luncheon
May 21 ADAM-Houston Monthly Luncheon
May 26-27 DUG Haynesville (Shreveport)
17
June 22, 2020
SCOOP/STACK/Merge
DJ-Niobrara
Eagle Ford
Haynesville
Granite Wash
GOM
Permian
Marcellus
Utica
Williston
Gulf Coast Onshore
Piceance
Powder River Green River
Legend
Current
Change
This material is prepared by the BMO Capital Markets’ Investment and Corporate Banking Department, for distribution to BMO Capital Markets’ clientele. It is not a product of
BMO Capital Markets’ Research Department. The views of the Investment and Corporate Banking Department may differ from those of the Research Department. No part of this
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Bank of Montreal or its subsidiaries (“BMO Financial Group”) has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets.
The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital
Markets endeavors to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and
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Source of rig count stats: Baker Hughes
Rig Count Summary MAPS IN
MASTER VIEW
Contacts
Disclaimer
Jason Martinez
MD & Head of U.S. A&D
713-546-9771
Howard Barnwell
MD & Transactions Mgr.
713-546-9767
Rob Priske
MD & Transactions Mgr.
713-546-9727
Dan Schockling
MD & Head of Commercial
713-518-1223
Michael Hackett
Vice President
Marian Yu
Associate
Aaron Moeller
Associate
BMO uses updated basin outlines, and the resulting rig counts, to more accurately represent current basin knowledge. The data below reflect these changes
and is different than those shown by Baker Hughes. The totals are the same.
132
(5)
10
(1)
9
--
27
(1)5
--
11
(2)
--
--8
--
32
(1)
15
(2)
3
--
1
--
1
----
--
Michelle Tankimovich
Analyst
This
Week Change
Last
Week
Last
Year
Total Rigs 266 (13) 279 967
Oil 189 (10) 199 789
Gas 75 (3) 78 177
Miscellaneous 2 -- 2 1
Directional 18 (4) 22 68
Horizontal 234 (12) 246 846
Vertical 14 3 11 53
Basin
Permian 132 (5) 137 439
SCOOP/STACK/Merge 8 -- 8 78
Granite Wash -- -- -- 10
Eagle Ford 15 (2) 17 90
Haynesville 32 (1) 33 60
Marcellus 27 (1) 28 58
Utica 9 -- 9 18
Williston 10 (1) 11 56
DJ-Niobrara 5 -- 5 28
Green River -- -- -- 16
Powder River 1 -- 1 19
Piceance 1 -- 1 5
Gulf Coast Onshore 3 -- 3 23
GOM 11 (2) 13 24
Alaska 3 -- 3 9
Other 9 (1) 10 34
Mid-Con 3 (1) 4 14
Rockies -- -- -- 2
Western 5 -- 5 18
Eastern 1 -- 1 --
[TBU]
[TBU]
