1

May 28, 2019

$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

$61.1

--

50

100

150

200

250

300

350

400

450

500

--

$10

$20

$30

$40

$50

$60

$70

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 99%

Nu

mb

er

of

Tra

ns

acti

on

s

Tra

ns

acti

on

Valu

e (

$b

n)

Asset Corporate Number of Transactions

% Oil

IndicatorCurrent

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $57.91 ($4.96) (7.9%)

Prompt Gas Price ($/mmbtu) $2.58 ($0.06) (2.3%)

Wkly Trans. Value ($mm) $45 ($921) (95%)

Wkly Trans. Count 2 (1) (33%)

US Rig Count 983 (4) (0.4%)

US Oil Prod'n (mmbbl/d) 12.2 0.1 0.8%

US Gas Prod'n (bcf/d)(1) 108.6 -- --

US Oil Storage (mmbbl) 476.8 4.7 1.0%

US Gas Storage (tcf) 1.8 0.1 6.0%

Debt

Markets

12 issuers priced 14 tranches for $6.1 billion in proceeds

U.S. high yield funds reported an inflow of $4 million

ETFs reported an inflow of $286 million, while mutual funds reported an outflow of $282 million

High yield index yield was 6.42%; high yield energy index yield was 8.24%

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 February 2019.

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 (10.4)% vs. SPX(2) (1.9)%

The major U.S. equity indexes finished mixed last week. Health care and real estate finished higher.

Consumer discretionary, consumer staples, financials, industrials, materials, and tech finished lower

Equity

Markets

Oil ended last week down sharply. OPEC signaled that it will keep production restrictions in place at least

through the rest of 2019. OPEC+ cuts were at 150% of compliance in April according to delegates. Tight

restrictions against Huawei along with no advances in the trade dispute with China affected the equity

market. WCS continued to widen as production curbs rolled off. The near-term contract closed down

$4.96, or 7.9%, at $57.91

Natural gas ended last week down. The West Virginia production decline was determined to be a one day

event. The market was affected by a combination of technicals, the NE production outage, and longer

term June forecasts showing mild weather in Texas. Potential LNG shut-ins also affected the market. The

near-term contract closed down $0.06, or 2.3%, at $2.58

Commodities

Week in Review

In Commodities, ECM and DCM, let’s go to journalism standards, even

though that’s not how we get the text from those groups. Main change is

that any number below 10 is spelled out (one instead of 1). This does not

apply to statistical analyses, percentages, or money, of course.

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

For the primary Commodities bullet points on oil and gas

prices, please start with “The near-term contract opened the

week at $___” and end that same bullet point with “The

near-term contract closed the week at $____, down(up)

$___, or ___%.” You don’t have to use exactly those words

as long as the opening and closing prices are included . For

example, you could write, “Opening the week at $45.21, the

near-term oil contract declined steadily based on …” – you

know, think like a journalist, be creative.

Covering the Week of May 17 to May 23, 2019

The October issue of BMO Calgary’s A&D (Canadian)

Market Monitor went live last week – read more here

[TBU]

[TBU]

[TBU]

[TBU]

[TBU] [TBU]

This is the final issue for 2018. The Market Monitor will

return on Monday, January 7th. Happy Holidays from the

BMO Capital Markets team!

Red Wolf Natural Resources, LLC announced it acquired

56,000 net acres and associated production in the SCOOP,

STACK, and Merge plays in the Anadarko Basin

Riviera Resources signed a definitive agreement to sell its

Michigan assets for $44.5 million

Brigham Minerals announced that it acquired 2,700 net royalty

acres primarily located in the Delaware Basin and SCOOP for

$41.3 million

BCE-Mach LLC, a partnership between Bayou City Energy

and Mach Resources, acquired Mississippi Lime assets in

Kansas

Rattler Midstream, a subsidiary of Diamondback Energy,

announced the pricing of its IPO of 38,000,000 common units

for total gross proceeds of $665 million

All references to last week in the comments below are through Thursday

2

May 28, 2019

Public Company

41%

PE / PE-Backed

22%

Private13%

Other24%

LTM By Buyer Type

y = 34.422e-0.072x

R² = 0.3583

--

$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 $19.32 $1.29

10x $16.72 $1.11

15x $11.65 $0.78

20x $8.12 $0.54

Permian29%

Rockies (ex. Bakken)

10%

Bakken5%

Appalachia4%

Mid-Con16%

Eagle Ford6%

Ark-La-Tex5%

Gulf of Mexico3%

Other20%

LTM By Region

Oil68%

Gas32%

LTM By Commodity

Ann'd

Date Buyer Seller Area Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)

23-May-19 Undisclosed Buyer Riviera Resources Inc Other 1,400 net wells in Michigan $45 $1.38 n.a. n.a.

13-May-19 Equinor Shell Gulf of Mexico 22.45% WI in Caesar-Tonga Field $965 n.a. $60,313 n.a.

07-May-19 Sabinal; Undisclosed Diamondback Energy Permian CBP, NW Shelf, & Midland Basin $322 n.a. $49,538 $2,927

02-May-19 Undisclosed Buyer California Resources Corp California 50% WI in assets in San Joaquin Basin $203 n.a. $88,000 n.a.

29-Apr-19 Undisclosed Buyer Riviera Resources Inc Mid-Continent Non-op Hugoton Basin $31 n.a. n.a. n.a.

23-Apr-19 Murphy LLOG Bluewater LLC Gulf of Mexico Mississippi Canyon & Green Canyon $1,375 $20.83 $36,184 n.a.

22-Apr-19 Northern Oil and Gas Flywheel Energy LLC Bakken 18,000 net acres in Williston Basin $310 n.a. $47,014 $17,238

08-Apr-19 Sequitur Energy Resources Callon Permian 9,850 net acres in Reagan & Upton, TX $260 n.a. $65,000 $26,396

02-Apr-19 Dorchester Minerals, L.P. H. Huffman & Co. Multi-Region Mineral & royalty assets across the U.S. $44 n.a. $139,419 nmf

31-Mar-19 Red Wolf Apache Mid-Continent 56k net acres in SCOOP/STACK/Merge $245 n.a. $18,421 $4,375

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

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. 65 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.

Asset descriptions are all hard-coded and need to be

adjusted if new deals are added

(2) (2) (2)

Confirm number of transactions weekly --->

[TBU]

[TBU]

[TBU]

YTD Deal Activity ($bn)(4)

$10.8 $21.6

$13.4 $5.3

$4.4

$8.8

$10.2

$57.6

$15.2

$30.4

$23.7

$62.8

2016 2017 2018 2019

365 665 528 88

Asset Corporate

Deal Count

3

May 28, 2019

5/23/2019

Appalachia 2

Ark-La-Tex 8

Bakken 4

Eagle Ford 6

Mid-Con 8

Other 13

Permian 18

Rockies 4

63

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

Industry Headlines

Appalachia

2 Deals

Mid-Con

8 Deals

Eagle Ford

6 Deals

Permian

18 Deals

Other

13 Deals

Rockies

4 Deals

(Click headline to link to the full article)

M&A&D Headlines

Bakken

4 Deals

Ark-La-Tex

8 Deals

BMO Deals (Status)

Enerplus Elm Coulee (In Market) – See page 6

OPEC Signals Intention to Keep Limits on Oil Supply

All Year

Russia Open to Relaxing OPEC+ Cuts as Saudis

Urge Restraint

U.S. House of Representatives Passes Energy and

Water Development Appropriations, API Responds

Venezuelan Crude Production Falls to Lowest Level in

16 Years

Drilling Down: Saltwater Disposal Well Boom in the

Permian Basin

Greenpeace Blocks Entry to BP’s London HQ –

Demands End to Oil Exploration

Rattler Midstream LP, a Subsidiary of Diamondback

Energy, Inc., Prices Upsized Initial Public Offering of

Common Units

Red Wolf Natural Resources, LLC Acquires Assets in

Oklahoma’s SCOOP, STACK, and Merge Resources

Plays

Riviera Resources Announces Sale of Michigan

Properties for $44.5 Million

Brigham Minerals, Inc. Reports First Quarter 2019

Results (includes A&D announcement)

Mach Resources Announces Acquisition in

Partnership with Bayou City Energy

South Texas Oil Producer 1776 Energy Up for Sale

[TBU]

Talos Energy Announces Full Year 2019 Operating

and Financial Guidance (includes A&D

announcement)

BMO Deals (Status)

Juno Permian (In Market) – See page 4

Rio Glasscock County (In Market) – See page 5

[TBU]

[TBU] [TBU]

OPEC Gambles with Success of Production Cuts as

$80 Oil Looms

Saudis See No Need For Immediate Action on Oil

Market

Oil Leaps to 6-Month High as U.S. Vows to Strangle

Iran Exports

Rebounding Haynesville Shale Breaks 2011

Production Record

U.S. Gulf Coast Crude Oil Imports Hit Lowest in Three

Decades

Colorado Begins Rewriting Oil and Gas Rules With

Focus on Safety

Apache Corporation Announces Temporary Deferral

of Alpine High Natural Gas Production in Response to

Recent Pricing at Waha Hub

4

May 28, 2019

Historical Prices as of 23-May-19 Close ($/gal)

NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago

Ethane $0.22 $0.23 $0.33 $0.27

Propane $0.52 $0.61 $0.74 $0.94

Butane $0.49 $0.57 $0.78 $0.97

Iso-butane $0.60 $0.65 $0.90 $1.56

Pentane+ $1.15 $1.30 $1.06 $1.65

25%

35%

45%

55%

65%

Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19

% o

f W

TI

NGL as % of WTI

$1

$2

$3

$4

$5

Apr-18 Oct-18 Apr-19 Oct-19 Apr-20

($/m

mb

tu)

NYMEX Gas Futures as of 23-May-19 Close ($/mmbtu)

Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago

12 Mo. Strip $2.70 $2.77 $3.27 $2.96

2019 $2.66 $2.73 $3.16 $2.80

2020 $2.70 $2.75 $2.66 $2.72

2021 $2.66 $2.66 $2.62 $2.70

2022 $2.81 $2.81 $2.77 $2.85

2023 $2.81 $2.81 $2.77 $2.85

NYMEX WTI Futures as of 23-May-19 Close ($/bbl) NYMEX Gas Futures as of 23-May-19 Close ($/mmbtu)

Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago

12 Mo. Strip $57.27 $62.46 $51.14 $69.06

2019 $57.86 $63.01 $51.14 $66.62

2020 $55.94 $60.35 $51.82 $61.85

2021 $53.57 $56.60 $51.84 $58.43

2022 $52.27 $54.38 $51.89 $56.09

2023 $51.85 $53.39 $52.20 $54.49

$20

$30

$40

$50

$60

$70

$80

Apr-18 Oct-18 Apr-19 Oct-19 Apr-20

($/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

Link to Detailed

Historical Graph

Link to Detailed

Futures Data

Link to Detailed

Historical Graph

[TBU]

[TBU]

[TBU]

5

May 28, 2019

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 23-MAY-19

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 23-MAY-19

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

TBU

[TBU]

[TBU]

$57.91

($0.77) $64.16

$6.25

$2.11

($0.47)

$1.81

($0.77)

$2.58

$2.31

($0.27)

$58.23

$0.32

$67.76

$9.85

$55.91

($2.00)

$48.73

($9.18)

$2.28

($0.30)

$2.57

($0.01)

$0.16

($2.42)

$1.82

($0.76)$1.58

($1.00)$2.03

($0.55)

$0.71

($1.87)$1.80

($0.78)

$3.18

$0.60

6

May 28, 2019

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 451 (3) 454 Oil Differential ($1.15) $2.10 ($3.25)

Permitting Activity 194 (150) 344 Gas Differential ($2.47) ($0.23) ($2.24)

0%

10%

20%

30%

40%

50%

--

100

200

300

400

500

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

H V+D % of Total Rigs

-$4.80

-$3.20

-$1.60

$0.00

$1.60

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

-$18.00

-$12.00

-$6.00

$0.00

$6.00

$ /

mm

btu

$ /

bb

l

Midland Waha

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

mm

cf/

d

mb

bl/

d

Oil Gas

3,920

12,8871,294

1,0911,1481,223

993

1,212

1,010868

1,247

1,0701,207

1,063891

May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19

H V+D

--$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

1 2 8 8 6 6 12 13 15 7 3 2 7 2 5 4 1 2

$ /

acre

# Deals

$25,753

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

07-May-19 Sabinal; Undisclosed Diamondback Energy CBP, NW Shelf, & Midland Basin $322 n.a. $49,538 $2,927

08-Apr-19 Sequitur Energy Resources Callon 9,850 net acres in Reagan & Upton, TX $260 n.a. $65,000 $26,396

27-Mar-19 Undisclosed Buyer Rosehill Resources ~880 net acres in Lea Co., NM $22 n.a. n.a. $25,000

26-Feb-19 Ring Energy Inc Wishbone Energy Partners 37,206 net Central Basin Platform acres $300 $8.75 $50,000 $8,063

19-Feb-19 Undisclosed Buyer Noble Energy Non-core acreage in the Delaware Basin $63 n.a. n.a. n.a.

Mean $193 $8.75 $54,846 $15,597

Median $260 $8.75 $50,000 $16,532

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

1 2 6 9 5 7 11 9 9 6 1 0 7 2 5 4 1 2

$ /

bo

e/d

# Deals

$117,551

GROSS PRODUCTION

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-17. 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, and $40,000/boepd in 2018 & 2019.

[TBU]

[TBU]

[TBU] [TBU]

[TBU] [TBU]

[TBU]

7

May 28, 2019

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 90 1 89 Oil Differential $7.30 ($0.95) $8.25

Permitting Activity 65 (50) 115 Gas Differential $0.01 ($0.04) $0.04

0%

5%

10%

15%

20%

--

100

200

300

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

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

-$6.00

-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

MEH HSC

474439

379

455

329402

346313

396353

475

354285

May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19

H V+D

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

10,000

10,500

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

mm

cf/

d

mb

bl/

d

Oil Gas

1,586

8,497

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

19-Nov-18 Lonestar Resources Inc Sabine Oil & Gas Corp 2,706 net acres in Eagle Ford $39 $2.98 $48,375 $14,302

20-Sep-18 WildHorse Undisclosed Seller 20,305 net Eagle Ford/Austin Chalk acres $35 n.a. n.a. $1,743

07-Sep-18 Undisclosed Buyer Viking Minerals LLC 1,191 net royalty acres in Eagle Ford $28 n.a. n.a. nmf

31-Jul-18 EP Energy Corp Undisclosed Seller Additional working interests in Eagle Ford $31 n.a. n.a. n.a.

26-Jul-18 BP BHP Billiton Permian, Eagle Ford, and Haynesville $10,500 n.a. n.a. n.a.

Mean $2,127 $2.98 $48,375 $8,022

Median $35 $2.98 $48,375 $8,022

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

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

1 1 3 1 2 2 2 4 4 3 1 2 7 2 0 3 0 0

$ /

bo

e/d

# Deals

$70,217

--$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

0 1 2 1 2 2 0 4 2 3 1 2 4 2 1 3 0 0

$ /

acre

# Deals

$6,130

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-17. 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, and $40,000/boepd in 2018 & 2019.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

GROSS PRODUCTION

8

May 28, 2019

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 58 (2) 60 Oil Differential $10.00 $1.25 $8.75

Permitting Activity 16 (25) 41 Gas Differential -- -- --

0%

5%

10%

15%

20%

--

20

40

60

80

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

H V+D % of Total Rigs

--

$2.00

$4.00

$6.00

$8.00

$10.00

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

169154 163 168 177

179

111 105

171

112 116 116

86

May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19

H V+D

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

80

90

100

110

120

130

140

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

mm

cf/

d

mb

bl/

d

Oil Gas

95

10,789

--

$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

0 0 3 1 1 2 1 3 0 1 2 0 1 1 1 1 0 0

$ /

acre

# Deals

$3,349

--$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

0 0 5 1 1 3 2 3 0 2 2 0 1 1 2 1 0 0

$ /

mcfe

/d

# Deals

$5,209

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)

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.

05-Sep-18 Equinor Texegy LLC 60,000 net acres in Austin Chalk $75 n.a. n.a. $1,250

06-Aug-18 Mission Creek Resources Bonanza Creek Energy Inc 11,132 net acres in the Cotton Valley $117 $1.69 $6,500 $10,510

Mean $210 $1.23 $4,487 $7,488

Median $100 $1.23 $4,487 $6,957

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

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-17. 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, and 2019.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

GROSS PRODUCTION

9

May 28, 2019

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 81 1 80 Oil Differential $10.05 $0.30 $9.75

Permitting Activity 46 (16) 62 Gas Differential ($0.43) $0.02 ($0.45)

0%

5%

10%

15%

20%

--

50

100

150

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

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

-$15.00

-$10.00

-$5.00

$0.00

$5.00

$10.00

$15.00

$ /

mm

btu

$ /

bb

l

Brent Dominion

328 299 269

493

373 370305

258

397

277

387427

247

May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19

H V+D

12,000

17,000

22,000

27,000

32,000

50

70

90

110

130

150

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

mm

cf/

d

mb

bl/

d

Oil Gas

122

30,760

--$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

0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1 1 0

$ /

mcfe

/d

# Deals

$4,758

--$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

0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0 0 0

$ /

acre

# Deals

$2,083

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)

27-Mar-19 Diversified Gas & Oil HG Energy II LLC Huckleberry assets in Appalachia $400 n.a. $3,227 n.a.

15-Oct-18 Undisclosed Buyer Range Resources Corp Overriding royalty interests in Appalachia $300 n.a. $17,649 nmf

27-Aug-18 PennEnergy Resources Rex Energy Corp 141,026 net acres in PA and OH $601 $0.58 $2,781 $4,258

26-Jul-18 Encino Acquisition Partners Chesapeake 938,000 net acres in the Utica $1,900 $0.66 $2,960 $2,026

29-Jun-18 Ascent Resources LLC Utica Minerals; Undisclosed 35,400 acres in the Utica $700 n.a. $15,217 $19,774

Mean $780 $0.62 $8,367 $8,686

Median $601 $0.62 $3,227 $4,258

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

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-17. 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, and 2019.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

GROSS PRODUCTION

10

May 28, 2019

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 57 1 56 Oil Differential ($2.00) ($0.75) ($1.25)

Permitting Activity 9 (27) 36 Gas Differential ($0.78) ($0.07) ($0.71)

0%

5%

10%

15%

20%

--

50

100

150

200

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

H V+D % of Total Rigs

-$1.00

-$0.50

$0.00

$0.50

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

138 126

171 164

127

201

12896

133114

144 138

93

May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19

H V+D

1,100

1,300

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

800

900

1,000

1,100

1,200

1,300

1,400

1,500

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

mm

cf/

d

mb

bl/

d

Oil Gas

1,428

2,720

--

$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

0 1 1 4 0 2 3 3 0 1 3 3 0 6 3 0 0 1

$ /

bo

e/d

# Deals

$43,737

--

$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

0 0 1 2 0 0 2 3 1 0 3 2 0 5 2 0 0 1

$ /

acre

# Deals

$2,702

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

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-17. 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, and $40,000/boepd in 2018 & 2019.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

GROSS PRODUCTION

11

May 28, 2019

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 71 (4) 75 Oil Differential ($2.00) ($0.75) ($1.25)

Permitting Activity 10 (37) 47 Gas Differential ($0.78) ($0.07) ($0.71)

0%

5%

10%

15%

20%

--

50

100

150

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

H V+D % of Total Rigs

-$1.00

-$0.50

$0.00

$0.50

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

456551

666

523 510

681824 807

347 394475

320

96

May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19

H V+D

11,500

12,000

12,500

13,000

13,500

14,000

400

500

600

700

800

900

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

mm

cf/

d

mb

bl/

d

Oil Gas

872

13,077

--

$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

0 0 3 3 0 1 1 0 1 0 1 5 2 0 2 1 0 0

$ /

acre

# Deals

$4,655

--$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

2 0 4 4 1 6 2 0 1 6 3 9 3 1 3 1 1 0

$ /

bo

e/d

# Deals

$37,548

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

14-Feb-19 Undisclosed Buyer Harvest Oil & Gas Corp San Juan Basin assets $43 $1.57 $10,835 n.a.

31-Jan-19 Undisclosed Buyer Extraction Oil & Gas 5,000 net acres in Powder River $22 n.a. n.a. $4,480

01-Oct-18 DJR Energy LLC Encana 182,000 net acres in San Juan Basin $480 n.a. $88,889 $2,637

28-Aug-18 Vermilion Energy Inc Massif Oil & Gas LLC 55,000 acres in Powder River Basin $150 n.a. $56,604 $2,727

28-Aug-18 Rebellion Energy II LLC Liberty Resources II LLC 19,000 net acres in Powder River Basin $100 n.a. n.a. $5,263

Mean $159 $1.57 $52,109 $3,777

Median $100 $1.57 $56,604 $3,604

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

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-17. 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, and $40,000/boepd in 2018 & 2019.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

GROSS PRODUCTION

12

May 28, 2019

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

29-Apr-19 Undisclosed Buyer Riviera Resources Inc Non-op Hugoton Basin $31 n.a. n.a. n.a.

31-Mar-19 Red Wolf Apache 56k net acres in SCOOP/STACK/Merge $245 n.a. $18,421 $4,375

19-Feb-19 Mid-Con Energy Partners Scout Energy Partners Caddo, Grady, and Osage cos., OK $28 n.a. $20,960 n.a.

31-Dec-18 Unit Corp Undisclosed Seller ~8,700 net acres in Western OK $30 $11.38 n.a. $3,402

11-Dec-18 Undisclosed Buyer Riviera Resources Inc 37,000 net acres in the Arkoma Basin $68 n.a. $17,000 $1,838

Mean $80 $11.38 $18,794 $3,205

Median $31 $11.38 $18,421 $3,402

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

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 106 (1) 107 Oil Differential -- -- --

Permitting Activity 23 (43) 66 Gas Differential ($0.73) ($0.02) ($0.71)

0%

5%

10%

15%

20%

--

100

200

300

400

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

H V+D % of Total Rigs

-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25

$ /

mm

btu

$ /

bb

l

Cushing Panhandle

355

439381

429391

338 335306

340294

355302

163

May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19

H V+D

--

$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

1 4 1 3 1 6 3 1 4 2 4 5 2 2 5 4 2 0

$ /

bo

e/d

# Deals

$43,516

--

$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

1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 1 0 0

$ /

acre

# Deals

$5,760

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

400

450

500

550

600

650

700

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

mm

cf/

d

mb

bl/

d

Oil Gas

574

7,918

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-17. 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, and $40,000/boepd in 2018 & 2019.

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

GROSS PRODUCTION

13

May 28, 2019

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 22 -- 22 Oil Differential $10.00 $1.25 $8.75

Permitting Activity 5 (1) 6 Gas Differential -- -- --

0%

5%

10%

15%

20%

--

10

20

30

40

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Deep Water Shelf % of Total Rigs

--

$2.00

$4.00

$6.00

$8.00

$10.00

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

3329 29

32 3339

32 30 32 33

26 29

21

May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-192,000

2,500

3,000

3,500

4,000

4,500

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

mm

cf/

d

mb

bl/

d

Oil Gas

1,921

2,915

Ann'd

Date Buyer Seller Asset Description Value(2)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(3)

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.

16-Jan-19 Talos Energy Inc Samson Energy Co LLC Non-op Gulf of Mexico working interest $30 $13.45 $17,939 n.a.

10-Oct-18 Murphy Petrobras Gulf of Mexico joint venture $900 $15.00 $21,951 n.a.

04-Sep-18 Talos Energy Inc Whistler Energy II LLC Leases in Green Canyon federal waters $91 n.a. $60,667 n.a.

Mean $672 $16.43 $39,411 n.a.

Median $900 $15.00 $36,184 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

--

$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

0 0 1 1 0 0 2 0 0 0 0 1 2 2 2 1 1 2

$ /

bo

e/d

# Deals

$34,283

--

$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

0 0 1 0 0 0 2 1 0 0 0 1 2 1 0 1 1 1

$ /

bo

e

# Deals

$18.49

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-17. Calculated as the weighted average of each quarter’s transactions.

GROSS PRODUCTION

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

TRANSACTION PRODUCTION MULTIPLES(4) TRANSACTION PROVED RESERVE MULTIPLES(4)

14

May 28, 2019

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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.

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July 2019 Jul 10 Houston Producers Forum Luncheon

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Jul 19 ADAM-Houston Monthly Luncheon

April 2019 Apr 22-23 Mineral & Royalty Conference

June 2019 Jun 5-6 Midstream Texas Conference & Exhibition

Jun 18 Houston Producers Forum Luncheon

Jun 18-20 DUG East (Pittsburgh)

Jun 19-20 IADC World Drilling Conference & Exhibition

Jun 21 ADAM-Houston Monthly Luncheon

Jun 24-26 IPAA Midyear Meeting

Jun 25 176th OPEC Meeting

August 2019 Aug 16 ADAM-Houston Monthly Luncheon

Aug 20 IPAA Oil & Gas Overview Course

Aug 20 Houston Producers Forum Luncheon

Aug 21-22 Summer NAPE

September 2019 Sep 17 Houston Producers Forum Luncheon

Sep 20 ADAM-Houston Monthly Luncheon

Sep 24-26 DUG Eagle Ford (San Antonio)

Sep 30-Oct 2 SPE Annual Technical Conference and Exhibition

October 2019 Oct 9 IPAA Leaders in Industry Luncheon

Oct 15 Houston Producers Forum Luncheon

Oct 18 ADAM-Houston Monthly Luncheon

Oct 22-23 A&D Strategies and Opportunities Conference

2020

Jun 16-18 DUG East (Pittsburgh)

Jul 22-24 SPE Unconventional Resources Technology

Aug 11-14 Enercom Oil & Gas Conference

Sep 8-10 DUG Eagle Ford (San Antonio)

Oct 27-28 A&D Strategies and Opportunities Conference

Nov 2-4 Executive Oil Conference & Exhibition

November 2019 Nov 4-6 Executive Oil Conference & Exhibition

Nov 15 ADAM-Houston Monthly Luncheon

Nov 19 IPAA Oil & Gas for Newcomers

Nov 19 Houston Producers Forum Luncheon

Nov 19-21 DUG Midcontinent (Oklahoma City)

December 2019 Dec 11 IPAA Leaders in Industry Luncheon

Dec 17 Houston Producers Forum Luncheon

Dec 20 ADAM-Houston Monthly Luncheon

January 2019 Jan 15 Houston Producers Forum Luncheon

Jan 25 ADAM-Houston Monthly Luncheon

Jan 24 IPAA Private Capital Conference

May 2019

May 21 Houston Producers Forum Luncheon

May 22 SPE Business Development Group Meeting

March 2019 Mar 26-28 International Petroleum Technology Conference

January 2020 Jan 23 IPAA Private Capital Conference

Jan 17 ADAM-Houston Monthly Luncheon

Jan 21 Houston Producers Forum Luncheon

February 2020 Feb 3-7 NAPE Summit Week

Feb 19 Houston Producers Forum Luncheon

Feb 18-19 DUG Rockies (Denver)

March 2020 Mar 2 Energy Capital Conference

Mar 4 Women in Energy Luncheon

Mar 3-5 IADC/SPE International Drilling Conference

Mar 9-13 Houston CERA Week

Mar 17 Houston Producers Forum Luncheon

Mar 20 ADAM-Houston Monthly Luncheon

April 2020 Apr 6-8 DUG Permian (Fort Worth)

Apr 17 ADAM-Houston Monthly Luncheon

Apr 20-22 OGIS New York

Apr 21 Houston Producers Forum Luncheon

May 2020 May 15 ADAM-Houston Monthly Luncheon

May 19 Houston Producers Forum Luncheon

May 19-20 DUG Haynesville (Shreveport)

15

May 28, 2019

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.

BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Harris Bank N.A. (member FDIC), Bank of Montreal

Ireland p.l.c, and Bank of Montreal (China) Co. Ltd and the institutional broker dealer businesses of BMO Capital Markets Corp. (Member FINRA and SIPC) in the U.S., BMO Nesbitt

Burns Inc. (Member Investment Industry Regulatory Organization of Canada and Member Canadian Investor Protection Fund) in Canada and Asia and BMO Capital Markets Limited

(authorised and regulated by the Financial Conduct Authority) in Europe and Australia. “Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Inc., used under license. “BMO

Capital Markets” is a trademark of Bank of Montreal, used under license. "BMO (M-Bar roundel symbol)" is a registered trademark of Bank of Montreal, used under license. ® Registered

trademark of Bank of Montreal in the United States, Canada and elsewhere. ™ Trademark of Bank of Montreal in the United States and Canada.

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

complete. However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained

herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its

affiliates that is not reflected in this report. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual client

objectives, should not be construed as advice designed to meet the particular investment needs of any investor. This material is for information purposes only and is not an offer to sell or

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

other derivative instruments based thereon. BMO Capital Markets may act as financial advisor and/or underwriter for the issuers mentioned herein and may receive remuneration for

same. The reader should assume that BMO Capital Markets or its affiliates may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or

sell securities of issuers discussed herein.

All values in this document are in US$ unless otherwise specified.

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

jason.martinez@bmo.com

Howard Barnwell

MD & Transactions Mgr.

713-546-9767

howard.barnwell@bmo.com

Rob Priske

MD & Transactions Mgr.

713-546-9727

rob.priske@bmo.com

Dan Schockling

Director & Head of Commercial

713-518-1223

dan.schockling@bmo.com

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.

451

(3)

57

1

19

(1)

62

229

(1)

22

--

10

--81

1

58

(2)

90

1

22

--

4

--

19

(1)17

(2)

[TBU]

This

Week Change

Last

Week

Last

Year

Total Rigs 983 (4) 987 1,059

Oil 797 (5) 802 859

Gas 186 1 185 198

Miscellaneous -- -- -- 2

Directional 69 (4) 73 67

Horizontal 863 (3) 866 926

Vertical 51 3 48 66

Basin

Permian 451 (3) 454 478

SCOOP/STACK/Merge 81 1 80 110

Granite Wash 10 -- 10 23

Eagle Ford 90 1 89 95

Haynesville 58 (2) 60 63

Marcellus 62 2 60 56

Utica 19 (1) 20 24

Williston 57 1 56 57

DJ-Niobrara 29 (1) 30 25

Green River 17 (2) 19 17

Powder River 19 (1) 20 14

Piceance 4 -- 4 7

Gulf Coast Onshore 22 -- 22 18

GOM 22 -- 22 18

Alaska 7 -- 7 9

Other 35 1 34 45

Mid-Con 15 (2) 17 24

Rockies 2 -- 2 3

Western 18 3 15 17

Eastern -- -- -- 1

Chelsea Neville

Transactions Coordinator