1
August 10, 2020
IndicatorCurrent
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $41.95 $2.03 5.1%
Prompt Gas Price ($/mmbtu) $2.17 $0.34 18.4%
Wkly Trans. Value ($mm) $356 $330 nmf
Wkly Trans. Count 4 1 33%
US Rig Count 247 (4) (1.6%)
US Oil Prod'n (mmbbl/d) 11.1 -- --
US Gas Prod'n (bcf/d)(1) 106.5 (5.9) (5.3%)
US Oil Storage (mmbbl) 518.6 (7.4) (1.4%)
US Gas Storage (tcf) 3.3 0.0 1.0%
$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 $2.5
$13.5
--
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% 40%
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
Range Resources Corporation announced the sale of its
Terryville assets to Castleton Resources LLC for up to $335
million (see page 4 for more detail) BMO served as
exclusive financial advisor to Range on this transaction
The August issue of BMO Calgary’s A&D (Canadian) Market
Monitor went live last week – read here
Debt
Markets
22 issuers priced 28 tranches for approximately $19.9 billion in proceeds last week
U.S. high yield funds reported an inflow of $4.4 billion
ETFs reported an inflow of $2.83 billion, while mutual funds reported an inflow of $2.55 million
High yield index yield was 5.35%; high yield energy index yield was 8.86%
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 May 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 3.4% vs. SPX(2) 2.4%
The U.S. equity indexes mostly finished up last week. Consumer discretionary, consumer staples,
financials, healthcare, industrials, materials, and tech finished up. Real estate finished down
Equity
Markets
Oil ended last week up. Crude futures rallied earlier last week following the massive explosion in Beirut,
Lebanon. According to the EIA, U.S. crude inventories decreased again, falling by 7.4 million barrels. The
near-term contract closed up $2.03, or 5.1%, at $41.95
Gas ended last week up. Natural gas futures continued to be quite volatile, rising over 15% last Monday.
Hotter summer weather forecasts and increased LNG exports have led to expectation of higher demand.
The near-term contract closed up $0.34, or 18.4%, at $2.17
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 31 to August 6, 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 $500 million of 4.20% senior notes due
2049. BMO Capital Markets acted as a Joint
Bookrunner on this transaction
All references to last week in the comments below are through Thursday
Better international/demand data and promise for strict quota adherence by Russia
Demand signals continue to trend positively, with China’s total oil demand is nearly back to the pre-COVID levels of 13.4MM. U.S. real-time
mobility data indicated that driving activity has also recovered much of the April losses. Markets were also affected by greater than expected
Lower 48 shut-ins announced during earnings season. Jet-fuel market remains extremely weak thought travel started to tick higher off historic
lows.
Fighting in Libya intensified
The EIA announced a smaller-than-expected natural gas storage build. EQT confirmed that they had shut-in a large percentage of production
due to pricing, with management noting that sales were being deferred to take advantage of an expected significant improvement in price in the
coming months. LNG cancellations continued. Temperatures across the southern states expected to increase.
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August 10, 2020
Ann'd
Date Buyer Seller Area Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
03-Aug-20 Castleton Resources Range Resources Ark-La-Tex North Louisiana Terryville assets $335 $2.32 $12,563 $3,190
28-Jul-20 Undisclosed Buyer Riviera Operating LLC Ark-La-Tex 8,100 net acres in North Louisiana $27 $3.30 $9,925 $3,272
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.
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
Permian20%
Rockies (ex. Bakken)
12%
Bakken3%
Appalachia8%
Mid-Con10%
Eagle Ford5%
Ark-La-Tex7%
Gulf of Mexico8%
Other27%
LTM By Region
y = 21.6e-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 $13.44 $0.90
10x $11.94 $0.80
15x $8.87 $0.59
20x $6.60 $0.44
Oil43%
Gas57%
LTM By Commodity
Public Company
45%
PE / PE-Backed
11% Private14%
Other30%
LTM By Buyer Type
$18.3 $30.8 $32.5
$10.6 $3.0
$7.6
$14.9 $12.6
$63.0
$13.9
$25.9
$45.8 $45.2
$73.5
$16.9
2016 2017 2018 2019 2020
674 1,046 675 136 77
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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August 10, 2020
7/30/2020
Appalachia 5
Ark-La-Tex 1
Bakken --
Eagle Ford 4
Mid-Con --
Other 2
Permian --
Rockies 1
13
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
1 Deals
BMO Deals (Status)
Siltstone Appalachia (In Market) – See page 6
Oil Jumps as Lebanon Explosion Sparks Fears Over
Instability
U.S. Crude Oil Prices Surge on Continued Inventory
Draws
U.S. Natgas Rise to Highest Since Dec on Rising LNG
Exports, Hot Weather
BP CEO Says Dividend Cut ‘Deeply Rooted in
Strategy’ as Energy Giant Ramps Up Renewable
Investment
Range Announces Second Quarter 2020 Financial
Results & North Louisiana Asset Sale
Castleton Resources LLC Announces Agreement to
Acquire the Terryville Upstream Assets in Northern
Louisiana from Range Resources
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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August 10, 2020
Purchase Price (US$ mm)
Total Consideration $335
Metrics
Net Acreage 105,000
Net Production (mmcfe/d) 160
Proved Reserves (bcfe) 886
Multiples
TEV / Net Acre ($/acre) $3,190
TEV / Production ($/mcfe/d) $2,094
TEV / Proved Reserves ($/mcfe) $0.38
Purchase Price (US$ 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 August 3, 2020, Range Resources Corporation
(“Range”) announced the sale of its Terryville assets
to Castleton Resources LLC (“Castleton”) for up to
$335 million
Range will receive $245 million in cash at closing and
up to $90 million in contingent payments based on
future commodity prices
Tokyo Gas America Ltd. will increase its ownership in
Castleton from 46% to 70% when the acquisition
closes
Transaction is expected to close in August 2020
BMO served as exclusive financial advisor to
Range on this transaction
TRANSACTION SUMMARY
Source: Company disclosure, Enverus
ASSET OVERVIEW
~105,000 net acres in the North Louisiana core of the
liquids rich, Terryville Cotton Valley play
Current net production of ~160 mmcfe/d
200+ Lower Cotton Valley horizontal wells
Nearly 100% operated
866 bcfe proved reserves as of year end 2019
BMO Deal of the Week:
Range Resources Announces Sale to Castleton Resources for up to $335 Million
ASSET MAP ACQUISITION METRICS
OBSERVATIONS
HighPeak Assets
Adjusted based on production multiple of
$2,000/mcfe/d.
TRANSACTION OBSERVATIONS
This divestiture marks a complete exit from the basin
and transitions Range into an Appalachian Basin pure
play
Range intends to use $28.5 million of the sale
proceeds to reduce a portion of its retained midstream
commitments
Noble Acreage
Range Acreage
5
August 10, 2020
--
200
400
600
800
1,000
1,200
40%
50%
60%
70%
80%
90%
100%
Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20
To
tal
Rig
Co
un
t
% o
f T
ota
l R
igs
Permian Appalachia Rockies Eagle Ford Midcontinent
Haynesville Williston GOM Other Total Rig Count
U.S. rig count has fallen sharply year over year (~74%) as commodity prices have declined
Rockies and Mid-Con have seen the largest decline, both down 93% from 2019’s peak rig count
Gas-weighted basins like Appalachia and Haynesville have been more resilient, down 63% and 54%, respectively, from
2019’s peak rig count
Market Insight: US Rig Activity Over Time
Source: Baker Hughes
Note: Rig count as of 7-Aug-20.
BASIN PERCENTAGE OF TOTAL U.S. RIGS SINCE 2018
Cash scarcity and absolute valuation issues lead to fewer all-cash transactions in periods of market
dislocation
63%
54%
75%
88%
82%
93% 93%
54%
--
50
100
150
200
Appalachia Haynesville Permian Eagle Ford Bakken Mid-Con Rockies GOM
# o
f R
igs
2019 Peak Rig Count Current Rig Count % Reduction in Rigs
ALL-CASH DEALS(1)
U.S. RIG COUNT REDUCTION SINCE 2019 PEAK
Gas Weighted Oil Weighted
63%
54%
74%
87%
84%
93% 93%
300
350
400
450
500
Appalachia Haynesville Permian Eagle Ford Bakken Mid-Con Rockies
2019 Peak Rig Count Current Rig Count % Decline
6
August 10, 2020
Historical Prices as of 06-Aug-20 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.23 $0.21 $0.13 $0.15
Propane $0.50 $0.48 $0.38 $0.41
Butane $0.49 $0.47 $0.57 $0.43
Iso-butane $0.63 $0.60 $0.64 $0.66
Pentane+ $0.82 $0.72 $1.07 $1.01
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
$5
Aug-19 Feb-20 Aug-20 Feb-21 Aug-21
($/m
mb
tu)
NYMEX Gas Futures as of 06-Aug-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $2.71 $2.56 $2.15 $2.32
2020 $2.53 $2.28 $2.08 $2.40
2021 $2.78 $2.70 $2.33 $2.50
2022 $2.55 $2.53 $2.39 $2.57
2023 $2.47 $2.48 $2.44 $2.66
2024 $2.53 $2.51 $2.45 $2.73
NYMEX WTI Futures as of 06-Aug-20 Close ($/bbl) NYMEX Gas Futures as of 06-Aug-20 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $43.47 $41.43 $51.46 $52.78
2020 $42.40 $40.42 $51.49 $52.31
2021 $44.29 $42.25 $51.03 $51.05
2022 $45.54 $43.70 $50.87 $51.05
2023 $46.43 $44.78 $51.09 $51.77
2024 $47.16 $45.73 $51.57 $52.57
$10
$20
$30
$40
$50
$60
$70
Aug-19 Feb-20 Aug-20 Feb-21 Aug-21
($/b
bl)
NYMEX Gas Futures as of 23-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.42$2.41$2.16$2.452020$2.14$2.10$2.12$2.522021$2.61$2.61$2.38$2.562022$2.47$2.46$2.41$2.602023$2.45$2.42$2.46$2.672024$2.48$2.43$2.50$2.75 NYMEX Gas Futures as of 23-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$2.42$2.41$2.16$2.452020$2.14$2.10$2.12$2.522021$2.61$2.61$2.38$2.562022$2.47$2.46$2.41$2.602023$2.45$2.42$2.46$2.672024$2.48$2.43$2.50$2.75
NYMEX WTI Futures as of 23-Jul-20 Close ($/bbl)NYMEX Gas Futures as of 23-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$41.86$41.57$54.35$56.062020$41.29$41.08$54.67$55.472021$42.37$42.20$51.79$53.402022$43.54$43.26$50.35$52.542023$44.63$44.32$50.07$52.552024$45.61$45.38$50.35$53.00 NYMEX WTI Futures as of 23-Jul-20 Close ($/bbl)NYMEX Gas Futures as of 23-Jul-20 Close ($/mmbtu)Period(1)CurrentLast Wk.6 Mo. Ago1 Yr. Ago12 Mo. Strip$41.86$41.57$54.35$56.062020$41.29$41.08$54.67$55.472021$42.37$42.20$51.79$53.402022$43.54$43.26$50.35$52.542023$44.63$44.32$50.07$52.552024$45.61$45.38$50.35$53.00
Historical Prices as of 23-Jul-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.22$0.22$0.14$0.16Propane$0.52$0.48$0.40$0.50Butane$0.53$0.49$0.80$0.47Iso-butane$0.59$0.58$0.91$0.67Pentane+$0.70$0.64$1.17$1.04 Historical Prices as of 23-Jul-20 Close ($/gal)NGLsCurrentLast Wk.6 Mo. Ago1 Yr. AgoEthane$0.22$0.22$0.14$0.16Propane$0.52$0.48$0.40$0.50Butane$0.53$0.49$0.80$0.47Iso-butane$0.59$0.58$0.91$0.67Pentane+$0.70$0.64$1.17$1.04
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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August 10, 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
$42.06
$0.11
$45.09
$3.14
$1.69
($0.48)
$2.15
($0.02)
$38.50
($3.45)
$1.92
($0.25)
$41.95
($0.06)
$2.03
($0.14)
$1.92
($0.25)
$1.79
($0.38)
$43.06
$1.11
$1.73
($0.44)
$1.70
($0.47)
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 6-AUG-20
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 6-AUG-20
$1.36
($0.81)
$2.17
$41.40
($0.55)
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.
MAPS IN
MASTER VIEW
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[TBU]
[TBU]
$2.74
$0.57
$1.77
($0.40)
$1.32
($0.85)
8
August 10, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 122 (2) 124 Oil Differential $0.05 -- $0.05
Permitting Activity 37 (23) 60 Gas Differential ($0.74) ($0.22) ($0.53)
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
-$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
753596
851744803
967843
706
544
296
493415
28
Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-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 Gas4,802
16,919
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)
[TBU]
[TBU]
[TBU] [TBU]
[TBU] [TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
9
August 10, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 12 (1) 13 Oil Differential $0.80 ($0.15) $0.95
Permitting Activity 17 13 4 Gas Differential ($0.02) ($0.01) ($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
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
201 192221 204 204
302
170 180
7843 28 27 12
Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-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
1,397
7,371
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 $30,000/boepd in 2020.
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-MAR-20)
[TBU]
[TBU]
[TBU]
10
August 10, 2020
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)
03-Aug-20 Castleton Resources Range Resources North Louisiana Terryville assets $335 $0.39 $2,094 $3,190
28-Jul-20 Undisclosed Buyer Riviera Operating LLC 8,100 net acres in North Louisiana $27 $0.55 $1,654 $3,272
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
Mean $205 $0.37 $1,967 $3,890
Median $34 $0.39 $1,874 $3,272
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
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 -- 32 Oil Differential $1.65 $0.10 $1.55
Permitting Activity 7 (5) 12 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
197219
92
167
8383 89
94
44 35 43 344
Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20
H V+D
--
$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
0 0 3 1 1 2 1 3 0 1 2 0 1 1 1 1 0 1 1 0 0 0 1
$ /
acre
# Deals
$2,746
--$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 0 5 1 1 3 2 3 0 2 2 0 1 1 2 1 0 1 1 1 0 0 2
$ /
mcfe
/d
# Deals
$3,597
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
72
12,738
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]
[TBU]
11
August 10, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 31 -- 31 Oil Differential $3.14 $0.12 $3.02
Permitting Activity 30 (4) 34 Gas Differential ($0.85) ($0.27) ($0.58)
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
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
302 295260 254
207180
247289
200
97141
189
9
Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-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
155
33,549
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]
12
August 10, 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 11 -- 11 Oil Differential ($0.55) $0.20 ($0.75)
Permitting Activity 13 (16) 29 Gas Differential ($0.36) ($0.10) ($0.26)
-$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
135110
157
83 8074 67 76 66 65
92105
9
Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-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 1,412
3,156
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]
13
August 10, 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 6 -- 6 Oil Differential ($0.55) $0.20 ($0.75)
Permitting Activity 20 (15) 35 Gas Differential ($0.36) ($0.10) ($0.26)
-$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
434
327297
168213
268
199
286210 225
197
113
20
Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20
H V+D
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
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]
14
August 10, 2020
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 11 -- 11 Oil Differential -- -- --
Permitting Activity 24 2 22 Gas Differential ($0.43) ($0.22) ($0.22)
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
-$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
330 348 346 347296
284 261
203
74 82109
132
19
Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-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 Gas702
13,138
--
$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)
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
GROSS PRODUCTION (THROUGH 31-MAR-20)
[TBU]
[TBU]
[TBU]
15
August 10, 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 $1.65 $0.10 $1.55
Permitting Activity 5 (4) 9 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
26
2220
22
16
22 2320
11
15
10
20
5
Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-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)
[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
1,937
2,893
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
[TBU]
16
August 10, 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
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Apr 20 Houston Producers Forum Luncheon
Apr 27-30 SPE Western Regional Meeting
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August 2020 Aug 10 Mineral & Royalty Conference (virtual)
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Oct 16 ADAM-Houston Monthly Luncheon
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Dec 3 IPAA Texas Hold'Em Tournament
Dec 15 Houston Producers Forum Luncheon
January 2021 Jan 13 IPAA Leaders in Industry Luncheon
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Jan 18-22 API E&P Winter Standards Meeting
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Jan 21 IPAA Private Capital Conference
February 2021 Feb DUG Energy ESG Conference
Feb 2-4 SPE Hydraulic Fracturing Technology Conference
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Feb 10 IPAA Leaders in Industry Luncheon
Feb 16 Houston Producers Forum Luncheon
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Feb 21-24 Energy in Data Conference
March 2021 Mar 1-3 SPE Reservoir Simulation Conference
Mar 10 IPAA Leaders in Industry Luncheon
Mar 16 Houston Producers Forum Luncheon
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May 2021 May 3-6 Offshore Technology Conference
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
August 10, 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
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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
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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.
122
(2)
11
--
6
--
25
--4
--
12
--
1
--8
--
32
--
12
(1)
1
(1)
1
--
--
--1
--
Michelle Tankimovich
Analyst
This
Week Change
Last
Week
Last
Year
Total Rigs 247 (4) 251 934
Oil 176 (4) 180 764
Gas 69 -- 69 169
Miscellaneous 2 -- 2 1
Directional 24 2 22 65
Horizontal 211 (5) 216 817
Vertical 12 (1) 13 52
Basin
Permian 122 (2) 124 444
SCOOP/STACK/Merge 8 -- 8 72
Granite Wash 1 -- 1 8
Eagle Ford 12 (1) 13 81
Haynesville 32 -- 32 57
Marcellus 25 -- 25 57
Utica 6 -- 6 15
Williston 11 -- 11 47
DJ-Niobrara 4 -- 4 29
Green River 1 -- 1 17
Powder River -- -- -- 23
Piceance 1 -- 1 6
Gulf Coast Onshore 1 (1) 2 16
GOM 12 -- 12 23
Alaska 3 -- 3 8
Other 8 -- 8 31
Mid-Con 2 -- 2 11
Rockies -- -- -- 2
Western 5 -- 5 18
Eastern 1 -- 1 --
[TBU]
[TBU]