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July 20, 2020
$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 $2.5
$0.1 --
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 3Q20
61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 95% 74% 78% 67% 45% --
Nu
mb
er
of
Tra
nsacti
on
s
Tra
nsacti
on
Valu
e (
$b
n)
Asset Corporate Number of Transactions
% Oil% Oil% Oil
$64.3
IndicatorCurrent
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $40.75 $1.13 2.9%
Prompt Gas Price ($/mmbtu) $1.72 ($0.06) (3.1%)
Wkly Trans. Value ($mm) $92 $72 349%
Wkly Trans. Count 3 2 200%
US Rig Count 253 (5) (1.9%)
US Oil Prod'n (mmbbl/d) 11.0 -- --
US Gas Prod'n (bcf/d)(1) 112.3 -- --
US Oil Storage (mmbbl) 531.7 (7.5) (1.4%)
US Gas Storage (tcf) 3.2 0.0 1.4%
Templar Energy secured a $91 million bid from Presidio
Petroleum, overtaking the previously announced $65 million
stalking horse bid from Tapstone Energy
BMO Capital Markets has launched a new digital resource to
help clients navigate the impact of the pandemic, with new
insights on the reopening published every two weeks – read
more here
Debt
Markets
9 issuers priced 10 tranches for approximately $5.9 billion in proceeds last week
U.S. high yield funds reported an inflow of $834 million
ETFs reported an inflow of $384 million, while mutual funds reported an inflow of $450 million
High yield index yield was 6.13%; high yield energy index yield was 9.89%
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 Apr 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) outperformed last week 4.6% vs. SPX(2) 1.0%
The U.S. equity indexes mostly finished up last week. Consumer discretionary, consumer staples,
industrials, materials, healthcare, and financials finished up. Real estate and tech finished down
Equity
Markets
Oil ended last week up. Crude price continued to rally and reached a four-month high. President Trump
indicated that he would not add additional sanctions against Chinese officials for now in move to diffuse
tensions with Beijing. The EIA reported that crude stockpiles contracted more than expected. In addition,
OPEC+ countries agreed to make oil cuts through December, tapering from 9.7 mmbbl/d to 7.7 mmbbl/d
beginning in August. The near-term contract closed up $1.13, or 2.9%, at $40.75
Gas ended last week down. Natural gas futures were volatile last week. There was some bullish news
from higher than expected temperatures and more E&P bankruptcies that could reduce supply. However,
growing concern over a lack of demand from the second wave of the coronavirus outweighed these. The
near-term contract closed down $0.06, or 3.1%, at $1.72
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 July 10 to July 16, 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 $500 million of 4.20% senior notes due
2049. BMO Capital Markets acted as a Joint
Bookrunner on this transaction
All references to last week in the comments below are through Thursday
Better international/demand data and promise for strict quota adherence by Russia
Demand signals continue to trend positively, with China’s total oil demand is nearly back to the pre-COVID levels of 13.4MM. U.S. real-time
mobility data indicated that driving activity has also recovered much of the April losses. Markets were also affected by greater than expected
Lower 48 shut-ins announced during earnings season. Jet-fuel market remains extremely weak thought travel started to tick higher off historic
lows.
Fighting in Libya intensified
The EIA announced a smaller-than-expected natural gas storage build. EQT confirmed that they had shut-in a large percentage of production
due to pricing, with management noting that sales were being deferred to take advantage of an expected significant improvement in price in the
coming months. LNG cancellations continued. Temperatures across the southern states expected to increase.
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2
July 20, 2020
Ann'd
Date Buyer Seller Area Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
10-Jul-20 Presidio Petroleum Templar Energy LLC Mid-Continent 273,400 net acres in Anadarko Basin $91 $1.78 $5,056 $333
08-Jul-20 Undisclosed Buyer Harvest Oil & Gas Corp Marcellus/Utica 713,401 net acres in Appalachia $21 $1.23 $4,201 $29
26-Jun-20 MP III Echo LLC Echo Energy Partners Mid-Continent 19,989 net acres in Anadarko Basin $33 n.a. $4,198 $1,649
22-Jun-20 Talos Energy Castex Energy Gulf of Mexico Gulf of Mexico assets $65 $3.69 $10,156 n.a.
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
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)
10%
Bakken3%
Appalachia9%
Mid-Con9%
Eagle Ford5%
Ark-La-Tex4%
Gulf of Mexico8%
Other31%
LTM By Region
y = 21.482e-0.059x
R² = 0.2514
--
$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 $13.37 $0.89
10x $11.87 $0.79
15x $8.82 $0.59
20x $6.56 $0.44
Oil44%
Gas56%
LTM By Commodity
Public Company
47%
PE / PE-Backed
12%
Private12%
Other29%
LTM By Buyer Type
$16.2 $27.8
$17.9 $6.4 $2.7
$7.5
$14.9
$11.4
$63.0
$0.9
$23.7
$42.7
$29.3
$69.4
$3.5
2016 2017 2018 2019 2020
577 945 625 117 66
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
July 20, 2020
7/16/2020
Appalachia 5
Ark-La-Tex 2
Bakken --
Eagle Ford 4
Mid-Con --
Other 2
Permian --
Rockies 1
14
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
4 Deals
Permian
0 Deals
Other
2 Deals
Rockies
1 Deal
Bakken
0 Deals
Ark-La-Tex
2 Deals
BMO Deals (Status)
Siltstone Appalachia (In Market) – See page 6
Oil Prices Get Boost from Trump China Move
OPEC Sees Oil Demand Soaring in 2021 But Still
Below 2019
OPEC+ Preps for Next Challenge - How and When to
Restore Oil Output
OPEC+ Confident It Can Raise Oil Production Without
Lowering Prices
Trump Admin Overhauling Environmental Reviews
Energy Companies Cancel Atlantic Coast Pipeline
Dakota Access Pipeline Can Keep Running Amid
Legal Fight: U.S. Court
Biden Plots Energy Path
Offshore Wind Investment Jumps over 300%
Templar Energy Files Notice of Designation of
Successful Bidder
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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Historically oil price down cycles have led to increased M&A activity
Late 1990s consolidation followed a similar oil price development dynamic:
Several years of weak oil prices from 1991-95 followed by a brief upturn and then a final
downturn before corporates had truly recovered
End of down cycle investor capitulation where many were challenging the very basis of the
industry, similar to ESG today
In our view, the current dynamic has considerable parallels and we expect share-based
consolidation to increase dramatically
Market Insight: Will Current Dislocation Lead to Similar Consolidation as
Late 1990s?
Sources: Wood Mackenzie, online sources
1. Brent prices shown on an annualized basis.
DEAL VALUE OVER TIME (US$ BN) VS. BRENT PRICE (US$/BBL)(1)
-- -- 0 0 2 1 2 4
166
41
79
56
25
12
28
97
63
51
39
91
79
32
77
29
49
100
30 33
56
77
--
20
40
60
80
100
120
--
20
40
60
80
100
120
140
160
180
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Bre
nt
Pri
ce (
US
$ /
bb
l)
An
nu
al
Deal
Valu
e (
US
$ b
n)
Deal Value (US$ bn) Brent Price
Notable large corporate
transactions greater than $7 bn
KEY
= 1 notable transaction
= 2 notable transactions
5
July 20, 2020
Historical Prices as of 16-Jul-20 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.22 $0.22 $0.16 $0.17
Propane $0.48 $0.48 $0.43 $0.51
Butane $0.49 $0.49 $0.67 $0.50
Iso-butane $0.58 $0.59 $0.84 $0.74
Pentane+ $0.64 $0.71 $1.20 $1.18
25%
35%
45%
55%
65%
Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20
% o
f W
TI
NGL as % of WTI
$1
$2
$3
$4
$5
Jul-19 Jan-20 Jul-20 Jan-21 Jul-21
($/m
mb
tu)
$10
$20
$30
$40
$50
$60
$70
Jul-19 Jan-20 Jul-20 Jan-21 Jul-21
($/b
bl)
NYMEX Gas Futures as of 16-Jul-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.41 $2.41 $2.27 $2.47
2020 $2.10 $2.12 $2.23 $2.53
2021 $2.61 $2.61 $2.43 $2.57
2022 $2.46 $2.45 $2.44 $2.59
2023 $2.42 $2.41 $2.48 $2.66
2024 $2.43 $2.43 $2.52 $2.75
Historical Prices as of 09-Jul-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.22$0.20$0.16$0.14Propane$0.48$0.47$0.46$0.47Butane$0.49$0.46$0.71$0.47Iso-butane$0.59$0.54$0.81$0.62Pentane+$0.71$0.60$1.20$1.13
NYMEX WTI Futures as of 16-Jul-20 Close ($/bbl) NYMEX Gas Futures as of 16-Jul-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $41.57 $40.63 $57.06 $56.67
2020 $41.08 $40.01 $57.24 $55.67
2021 $42.20 $41.43 $53.62 $53.30
2022 $43.26 $42.82 $51.82 $52.40
2023 $44.32 $44.10 $51.27 $52.38
2024 $45.38 $45.30 $51.41 $52.68
NYMEX WTI Futures as of 09-Jul-20 Close ($/bbl)NYMEX Gas Futures as of 09-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$40.63$41.20$57.79$57.132020$40.01$40.89$58.00$56.372021$41.43$41.61$54.07$54.562022$42.82$42.47$52.10$53.992023$44.10$43.48$51.46$54.162024$45.30$44.52$51.61$54.60
NYMEX Gas Futures as of 09-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.41$2.42$2.33$2.562020$2.12$2.09$2.29$2.592021$2.61$2.63$2.43$2.582022$2.45$2.45$2.43$2.612023$2.41$2.40$2.47$2.682024$2.43$2.42$2.51$2.77 NYMEX Gas Futures as of 09-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.41$2.42$2.33$2.562020$2.12$2.09$2.29$2.592021$2.61$2.63$2.43$2.582022$2.45$2.45$2.43$2.612023$2.41$2.40$2.47$2.682024$2.43$2.42$2.51$2.77
Historical Prices as of 09-Jul-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.22$0.20$0.16$0.14Propane$0.48$0.47$0.46$0.47Butane$0.49$0.46$0.71$0.47Iso-butane$0.59$0.54$0.81$0.62Pentane+$0.71$0.60$1.20$1.13
NYMEX WTI Futures as of 09-Jul-20 Close ($/bbl)NYMEX Gas Futures as of 09-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$40.63$41.20$57.79$57.132020$40.01$40.89$58.00$56.372021$41.43$41.61$54.07$54.562022$42.82$42.47$52.10$53.992023$44.10$43.48$51.46$54.162024$45.30$44.52$51.61$54.60
NGL PRICING(2)
HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)
Commodity Prices
Source: BMO Commodity Products Group, Bloomberg, FactSet
1. Future prices are calendar year average unless stated otherwise.
2. Assumes typical Gulf Coast barrel composition.
WTI OIL (HISTORICAL / FORECAST)
Links:
http://www.nasdaq.com/markets/crude-oil.aspx
http://www.bloomberg.com/quote/CL1:COM
http://www.nasdaq.com/markets/natural-gas.aspx
http://www.bloomberg.com/quote/NG1:COM
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
Link to Detailed
Futures Data
Link to Detailed
Historical Graph
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July 20, 2020
Clearbrook
Midland
Cushing
St. James
(LLS)
East Coast
U.S. (Brent)
Midland Sweet-
Sour Spread
EMS
AECO
Northern
California
Sumas
Southern
California
El Paso - SJ
Waha
HSC
Henry Hub
Panhandle
CIG Chicago
Dominion
Transco
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 16-JUL-20
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 16-JUL-20
Legend
Price
Diff.
$1.26
($0.46)
Legend
Price
Diff.
$1.55
($0.17)
$1.53
($0.19)
$1.50
($0.22)
$42.27
$1.52
$1.53
($0.19)
$1.64
($0.08)
$1.90
$0.18
$1.67
($0.05)
$43.37
$2.62
($0.03)
$40.75
$40.93
$0.18
$1.44
($0.28)
$1.71
($0.01)
Source: BMO Commodity Products Group, Bloomberg
Note: Prices and differentials are for prompt month futures except for Clearbrook which is based on spot prices.
$36.75
($4.00)
$1.72
$1.44
($0.28)
$40.00
($0.75)
MAPS IN
MASTER VIEW
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$2.45
$0.73
7
July 20, 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 124 (1) 125 Oil Differential $0.20 ($0.25) $0.45
Permitting Activity 51 (50) 101 Gas Differential ($0.28) $0.02 ($0.30)
-$4.80
-$3.20
-$1.60
$0.00
$1.60
2015 2016 2017 2018 2019 2020
-$18.00
-$12.00
-$6.00
$0.00
$6.00
$ /
mm
btu
$ /
bb
l
Midland Waha
784 753596
851744
803967
843706
544
296
493
208
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-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 Gas4,778
16,855
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-MAR-20)
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July 20, 2020
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
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 13 1 12 Oil Differential $1.00 ($0.30) $1.30
Permitting Activity 1 (8) 9 Gas Differential ($0.01) ($0.01) $0.00
-$0.30
-$0.20
-$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
2015 2016 2017 2018 2019 2020
-$6.00
-$4.00
-$2.00
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
MEH HSC
173201 192
221 204 204
302
170180
7843 28 10
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-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
1,396
7,355
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-MAR-20)
[TBU]
[TBU]
[TBU]
9
July 20, 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 $1.60 ($0.25) $1.85
Permitting Activity 4 (1) 5 Gas Differential -- -- --
-$10.00
-$5.00
$0.00
$5.00
$10.00
2015 2016 2017 2018 2019 2020
-$10.00
-$5.00
$0.00
$5.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
108
197218
96
168
83 8289 90
42 35 4314
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-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
69
12,726
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-MAR-20)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
10
July 20, 2020
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
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 33 (2) 35 Oil Differential $2.62 ($0.11) $2.73
Permitting Activity 19 (2) 21 Gas Differential ($0.44) ($0.04) ($0.40)
-$3.00
-$2.00
-$1.00
$0.00
$1.00
$2.00
$3.00
2015 2016 2017 2018 2019 2020
-$15.00
-$10.00
-$5.00
$0.00
$5.00
$10.00
$15.00
$ /
mm
btu
$ /
bb
l
Brent Dominion
347302 295
258232
188157
226253
186
92131
61
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-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
153
33,528
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
08-Jul-20 Undisclosed Buyer Harvest Oil & Gas Corp 713,401 net acres in Appalachia $21 $0.21 $700 $29
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
Mean $240 $0.41 $1,758 $434
Median $125 $0.34 $2,008 $71
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
--$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
3Q
20
0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0 0 0 0 0 0 1 0
$ /
acre
# Deals
$497
--$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
3Q
20
0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1 1 0 2 1 1 3 1
$ /
mcfe
/d
# Deals
$4,521
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]
11
July 20, 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 -- 10 Oil Differential ($0.75) $1.10 ($1.85)
Permitting Activity 11 (6) 17 Gas Differential ($0.18) $0.12 ($0.31)
-$1.00
-$0.50
$0.00
$0.50
2015 2016 2017 2018 2019 2020
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
154138
110
157
8380
7867 76 67 61
83
43
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-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 1,387
3,121
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-MAR-20)
[TBU]
[TBU]
[TBU]
12
July 20, 2020
13,000
13,500
14,000
14,500
15,000
15,500
16,000
500
600
700
800
900
1,000
1,100
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19
mm
cf/
d
mb
bl/
d
Oil Gas914
13,528
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
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 6 -- 6 Oil Differential ($0.75) $1.10 ($1.85)
Permitting Activity 15 (8) 23 Gas Differential ($0.18) $0.12 ($0.31)
-$1.00
-$0.50
$0.00
$0.50
2015 2016 2017 2018 2019 2020
-$20.00
-$10.00
$0.00
$10.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
286
434
327297
168213
268199
286
210 225197
38
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20
H V+D
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-MAR-20)
[TBU]
[TBU]
[TBU]
13
July 20, 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 10 (1) 11 Oil Differential -- -- --
Permitting Activity 24 (12) 36 Gas Differential ($0.18) $0.02 ($0.20)
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
2015 2016 2017 2018 2019 2020
-$1.00
-$0.75
-$0.50
-$0.25
$0.00
$0.25
$ /
mm
btu
$ /
bb
l
Cushing Panhandle
356330 348 345 347
296 283261
202
73 81105
67
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-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 Gas677
12,733
--
$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
3Q
20
1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 1 0 0 0 0 0 0 0
$ /
acre
# Deals
$4,284
--
$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
3Q
20
1 4 1 3 1 6 3 1 4 2 4 5 2 2 5 4 2 0 4 2 0 2 1
$ /
bo
e/d
# Deals
$17,593
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(2)
10-Jul-20 Presidio Petroleum Templar Energy LLC 273,400 net acres in Anadarko Basin $91 $1.78 $5,056 $333
26-Jun-20 MP III Echo LLC Echo Energy Partners 19,989 net acres in Anadarko Basin $33 n.a. $4,198 $1,649
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
Mean $103 $1.86 $5,851 $907
Median $100 $1.78 $5,186 $824
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
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)
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GROSS PRODUCTION (THROUGH 31-MAR-20)
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14
July 20, 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 12 -- 12 Oil Differential $1.60 ($0.25) $1.85
Permitting Activity 7 1 6 Gas Differential -- -- --
-$10.00
-$5.00
$0.00
$5.00
$10.00
2015 2016 2017 2018 2019 2020
-$10.00
-$5.00
$0.00
$5.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
3027
21 2123
16
22 2220
1115
10
16
Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20
--
$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
2Q
20
0 0 1 0 0 0 2 1 0 0 0 1 2 1 0 1 1 2 0 2 0 1
$ /
bo
e
# Deals
$14.65
--
$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
2Q
20
0 0 1 1 0 0 2 0 0 0 0 1 2 2 2 1 1 3 0 2 0 1
$ /
bo
e/d
# Deals
$29,229
Ann'd
Date Buyer Seller Asset Description Value(2)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)(3)
22-Jun-20 Talos Energy Castex Energy Gulf of Mexico assets $65 $3.69 $10,156 n.a.
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.
Mean $378 $6.49 $24,590 n.a.
Median $200 $4.29 $10,156 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
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-MAR-20)
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(4) TRANSACTION PROVED RESERVE MULTIPLES(4)
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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
1,926
2,887
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15
July 20, 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 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 Mineral & Royalty Conference (virtual)
Aug 11-27 Summer NAPE (virtual)
Aug 17-19 Enercom Oil & Gas Conference (virtual)
Aug 18-19 DUG Midcontinent (virtual)
September 2020 Sep 8-10 DUG Permian Basin & Eagle Ford (San Antonio)
Sep 15 Houston Producers Forum Luncheon
Sep 18 ADAM-Houston Monthly Luncheon
October 2020 Oct 13-14 DUG Haynesville (Shreveport)
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 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)
16
July 20, 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
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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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the solicitation of an offer to buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.
BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securities discussed herein, related securities or in options, futures or
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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.
124
(1)
10
--
6
(2)
27
--4
--
12
--
--
--9
--
32
(1)
13
1
4
(1)
1
--
--
--1
--
Michelle Tankimovich
Analyst
This
Week Change
Last
Week
Last
Year
Total Rigs 253 (5) 258 954
Oil 180 (1) 181 779
Gas 71 (4) 75 174
Miscellaneous 2 -- 2 1
Directional 23 4 19 69
Horizontal 215 (5) 220 829
Vertical 15 (4) 19 56
Basin
Permian 124 (1) 125 440
SCOOP/STACK/Merge 9 -- 9 78
Granite Wash -- -- -- 9
Eagle Ford 13 1 12 82
Haynesville 32 (1) 33 58
Marcellus 27 -- 27 58
Utica 6 (2) 8 17
Williston 10 -- 10 55
DJ-Niobrara 4 -- 4 27
Green River 1 -- 1 15
Powder River -- -- -- 21
Piceance 1 -- 1 6
Gulf Coast Onshore 4 (1) 5 21
GOM 12 -- 12 25
Alaska 3 -- 3 10
Other 7 (1) 8 32
Mid-Con 1 (1) 2 13
Rockies -- -- -- 2
Western 5 -- 5 17
Eastern 1 -- 1 --
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