prompt oil price ($/bbl) $41.07 $0.32 0.8% let’s …...2020/07/27 · ark-la-tex 4% gulf of...

1

July 27, 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

$13.1

--

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% 41%

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) $41.07 $0.32 0.8%

Prompt Gas Price ($/mmbtu) $1.79 $0.06 3.6%

Wkly Trans. Value ($mm) $13,000 $12,908 nmf

Wkly Trans. Count 3 -- --

US Rig Count 251 (2) (0.8%)

US Oil Prod'n (mmbbl/d) 11.1 0.1 0.9%

US Gas Prod'n (bcf/d)(1) 112.3 -- --

US Oil Storage (mmbbl) 536.6 4.9 0.9%

US Gas Storage (tcf) 3.2 0.0 1.2%

Chevron announced it acquired Noble Energy for $13 billion

in stock and assumed debt (see page 4 for more detail)

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 9 tranches for approximately $4.9 billion in proceeds last week

U.S. high yield funds reported an inflow of $3.9 billion

ETFs reported an inflow of $2.4 billion, while mutual funds reported an inflow of $1.5 billion

High yield index yield was 5.61%; high yield energy index yield was 9.50%

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 5.0% vs. SPX(2) 0.3%

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 futures remained mostly unchanged last week despite coronavirus cases

increasing in many countries, as announcements about a potential COVID-19 vaccine gained traction

and ongoing discussions over a European Union fund to revive economies hit by the pandemic curbed

any substantial losses. According to the EIA, U.S. crude inventories increased by 4.9 million barrels from

the previous week. At 536.6 million barrels, U.S. crude inventories are 19% above the 5-year average for

this time of year. The near-term contract closed up $0.32, or 0.8%, at $41.07

Gas ended last week up. Natural gas futures increased slightly last week as hotter than normal weather

swept across most of the country. This despite natural gas storage’s continued build with 33 Bcf injected.

The near-term contract closed up $0.06, or 3.6%, at $1.79

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 17 to July 23, 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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https://capitalmarkets.bmo.com/en/search/?keywords=Road to Recovery

http://click.bmocapitalmarkets.bmo.com/?qs=06431ffcb9e46ff9ceb552c71599979cce1497589a985c6f6db2bcdad857fec824bec1ef9245eef7759c94d656a26e446b38de2e8b6d3a20

2

July 27, 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

Permian21%

Rockies (ex. Bakken)

10%

Bakken3%

Appalachia8%

Mid-Con9%

Eagle Ford4%

Ark-La-Tex4%

Gulf of Mexico8%

Other33%

LTM By Region

y = 21.51e-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 $13.38 $0.89

10x $11.89 $0.79

15x $8.84 $0.59

20x $6.57 $0.44

Oil45%

Gas55%

LTM By Commodity

Public Company

48%

PE / PE-Backed

12%Private13%

Other27%

LTM By Buyer Type

$16.3 $27.8

$18.2 $7.4 $2.7

$7.5

$14.9

$11.4

$63.0

$13.9

$23.8

$42.7

$29.6

$70.3

$16.5

2016 2017 2018 2019 2020

596 968 635 122 69

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 27, 2020

7/23/2020

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

Texas Regulators Ask Washington to Act Against

Saudi Oil Dumping in U.S.

The Lessons Oilfield Service Companies Are Applying

from Downturns Past to Succeed Today

World Bank: Global Gas Flaring at Its Highest Since

2009

EIA: U.S. Crude Inventories Up 4.9 MMbbl

California, New York, Other States Sue U.S. Over

Trump Clean-Water Rollback

Chevron Announces Agreement to Acquire Noble

Energy

Talos Energy Announces Full Year 2019 Operating

and Financial Guidance (includes A&D

announcement)

+ the EQT mineral/JV Deal

+ Antero ORRI deal

[TBU]

https://oilprice.com/Energy/Crude-Oil/Texas-Calls-For-Action-From-Washington-To-Prevent-Saudis-From-Flooding-US-Oil.html

https://oilprice.com/Energy/Crude-Oil/Texas-Calls-For-Action-From-Washington-To-Prevent-Saudis-From-Flooding-US-Oil.html

https://www.worldoil.com/news/2020/7/22/the-lessons-oilfield-service-companies-are-applying-from-downturns-past-to-succeed-today

https://www.worldoil.com/news/2020/7/22/the-lessons-oilfield-service-companies-are-applying-from-downturns-past-to-succeed-today

https://www.worldoil.com/news/2020/7/21/world-bank-global-gas-flaring-at-its-highest-since-2009

https://www.worldoil.com/news/2020/7/21/world-bank-global-gas-flaring-at-its-highest-since-2009

https://www.ogj.com/general-interest/article/14180140/eia-us-crude-inventories-up-49-million-bbl

https://www.ogj.com/general-interest/article/14180140/eia-us-crude-inventories-up-49-million-bbl

https://www.reuters.com/article/us-usa-environment-water/california-new-york-other-states-sue-us-over-trump-clean-water-rollback-idUSKCN24M2LZ




https://www.businesswire.com/news/home/20200720005222/en/Chevron-Announces-Agreement-Acquire-Noble-Energy

https://www.businesswire.com/news/home/20200720005222/en/Chevron-Announces-Agreement-Acquire-Noble-Energy

https://www.prnewswire.com/news-releases/dominion-energy-agrees-to-sell-gas-transmission-storage-assets-to-berkshire-hathaway-energy-strategic-repositioning-toward-pure-play-state-regulated-sustainability-focused-utility-operations-301088176.html

https://www.prnewswire.com/news-releases/talos-energy-announces-full-year-2019-operating-and-financial-guidance-300779250.html



4

July 27, 2020

Purchase Price (US$ mm)

Total Consideration $13,000

Implied Upstream Value(1) $11,514

Metrics

Net Acreage 463,000

Q1 2020 Net Production (mboe/d) 390

Proved Reserves (mmboe) 2,050

LTM EBITDAX ($mm) $2,585

Multiples

TEV / Net Acre ($/acre) $24,868

TEV / Production ($/boe/d) $29,522

TEV / Proved Reserves ($/boe) $5.62

TEV / EBITDAX 4.5x

DJ Basin

Permian

Basin Eagle Ford

West Africa

Eastern

Mediterranean

Purchase Price (US$ mm)

Total Consideration $525

Metrics

Net Undeveloped Acres(1) 224,000

2020E Net Production (boe/d)(2) 16,380

PDP Reserves (mmboe)(2) 24

2P Reserves (mmboe)(2) 101

Cash Flow ($mm) $109

Multiples

TEV / Net Undeveloped Acres ($/acre) $2,344

TEV / Adj. Net Undeveloped Acres ($/acre)(3) $540

TEV / 2020E Net Production ($/boe/d) $32,051

TEV / PDP Reserves ($/boe) $21.73

TEV / 2P Reserves ($/boe) $5.21

TEV / Cash Flow $4.8

Increases Parsley’s corporate flexibility and

operational scale with the integration of Jagged Peak’s

$90 million investment in water infrastructure

Facilitates margin expansion and enhances free cash

flow by producing G&A savings of ~$25 million in the

first year and $40-50 million of annual savings

thereafter, translating to a NPV of $250-300 million

On June 20, 2020, Chevron Corporation (NYSE: CVX)

(“Chevron”) announced that it has entered into a

definitive agreement with Noble Energy, Inc.

(NASDAQ: NBL) (“Noble”) to acquire Noble in an all-

stock transaction valued at $5 billion, or $10.38 per

share. The total enterprise value, including debt, of the

transaction is $13 billion

Based on Chevron’s closing price on July 17,

2020, Noble shareholders will receive 0.1191

shares of Chevron for each Noble share

TRANSACTION SUMMARY

Source: Company disclosure, Enverus

1. $1.486 billion attributed to Noble's ~62.6% stake in Noble Midstream Partners (NASDAQ: NBLX) based on NBLX's enterprise value as of 17-Jul-2020.

TRANSACTION OVERVIEW

Operates primarily in the U.S. onshore, Eastern

Mediterranean, and West Africa

U.S. includes DJ Basin, Permian Basin, and Eagle

Ford assets as well as certain exploration acreage

– DJ Basin covers 336,000 net acres

– Permian Basin covers 92,000 net acres

– Eagle Ford covers 35,000 net acres

Eastern Mediterranean holds 39.6% operated WI

in Leviathan, 25% operated WI in Tamar, and 2

exploration blocks in Cyprus

2.05 billion boe of 1P Reserves as of 31-Dec-2019

20% oil and condensate, 14% NGLs, 66% gas

73% PD

48% United States, 46% Israel, 6% Equatorial

Guinea

390 mboe/d of total sales volume during Q1 2020

35% oil and condensate, 18% NGLs, 47% gas

69% United States, 17% Israel, 14% Equatorial

Guinea

Holds 62.6% limited partner interest and the entire

non-economic general partner interest in Noble

Midstream Partners (NASDAQ: NBLX)

Interesting Deal of the Week:

Chevron Announces Agreement to Acquire Noble Energy for $13 Billion

ASSET MAP ACQUISITION METRICS

OBSERVATIONS

HighPeak Assets

Adjusted based on production multiple of

$2,000/mcfe/d.

TRANSACTION OBSERVATIONS

This transaction will add 18% to Chevron’s 2019YE

proved oil and gas reserves for less than $5/boe and

almost 7 billion barrels of risked resource for less than

$1.50/boe

Noble’s assets will enhance Chevron’s portfolio in the

U.S. with a new position in the DJ Basin and

complementary acreage in the Permian and

internationally in Israel and West Africa

This transaction is expected to achieve cost synergies

of $300 million before-tax, within a year of closing

Noble Acreage

5

July 27, 2020

Market Insight: Assessing the Impact on M&A Activity Levels During Crises

from 1998 through Q1 2020

Source: FactSet

Note: The CBOE Volatility Index (VIX) is used as a proxy for equity volatility; ‘low volatility’ defined as periods with VIX levels below 20 and ‘high volatility’ defined as periods

with VIX levels above 20.

1. Aggregate North American transaction volumes and values over $50mm by quarter from 1998 through Q1 2020.

2. Financial buyers as a percentage of total transactions. 3. Public sellers as a percentage of total corporate transactions; asset sales are excluded.

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DEAL VOLUME BY QUARTER(1)

--

150

300

450

600

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Dot Com

Bubble

Global

Financial

Crisis

9/11

Attack COVID-19

OPEC+

M&A activity has typically

rebounded within 2 to 4

quarters post crisis

299

251

Low Volatility High Volatility

DEALS PER QUARTER(1)

AVERAGE DEAL VALUE

(US$MM)

$916 $802


Fewer deals get done…

14%

11%


…and deals that do get done

are smaller

FINANCIAL BUYERS(1)(2) PUBLIC SELLERS(1)(3)

37%

46%


Financial buyers retrench due

to constrained access to

leverage

More public companies

become targets in part due to

observable distressed

valuation benchmarks vs.

private companies

Sharp decline in aggregate M&A deal volume and value during periods of high volatility is typically

followed by robust recovery when volatility subsides

6

July 27, 2020

NYMEX Gas Futures as of 23-Jul-20 Close ($/mmbtu)

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

12 Mo. Strip $2.42 $2.41 $2.16 $2.45

2020 $2.14 $2.10 $2.12 $2.52

2021 $2.61 $2.61 $2.38 $2.56

2022 $2.47 $2.46 $2.41 $2.60

2023 $2.45 $2.42 $2.46 $2.67

2024 $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

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

12 Mo. Strip $41.86 $41.57 $54.35 $56.06

2020 $41.29 $41.08 $54.67 $55.47

2021 $42.37 $42.20 $51.79 $53.40

2022 $43.54 $43.26 $50.35 $52.54

2023 $44.63 $44.32 $50.07 $52.55

2024 $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

Historical Prices as of 23-Jul-20 Close ($/gal)

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

Ethane $0.22 $0.22 $0.14 $0.16

Propane $0.52 $0.48 $0.40 $0.50

Butane $0.53 $0.49 $0.80 $0.47

Iso-butane $0.59 $0.58 $0.91 $0.67

Pentane+ $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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http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html

http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html



http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html

http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html



7

July 27, 2020

AECO

Northern

California

Sumas

Southern

California

El Paso - SJ

Waha

HSC

Henry Hub

Panhandle

CIG Chicago

Dominion

Transco

$1.26

($0.53)

Clearbrook

Midland

Cushing

St. James

(LLS)

East Coast

U.S. (Brent)

Midland Sweet-

Sour Spread

EMS

NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 23-JUL-20

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 23-JUL-20

Legend

Price

Diff.

$1.64

($0.15)

Legend

Price

Diff.

$1.57

($0.22)

$1.61

($0.18)

$42.20

$1.13

$1.61

($0.18)

$1.70

($0.09)

$1.91

$0.12

($0.23)

$41.07

$1.73

($0.06)

$41.20

$0.13

$43.31

$2.24

$1.47

($0.32)

$1.78

($0.01)

$37.82

($3.25)

Source: BMO Commodity Products Group, Bloomberg

Note: Prices and differentials are for prompt month futures except for Clearbrook which is based on spot prices.

$1.79

$1.46

($0.33)

$40.22

($0.85)

MAPS IN

MASTER VIEW

[TBU]

[TBU]

[TBU]

$2.51

$0.72

8

July 27, 2020

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

Rig Count 126 2 124 Oil Differential $0.15 ($0.05) $0.20

Permitting Activity 64 (19) 83 Gas Differential ($0.31) ($0.03) ($0.28)

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

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

784 753596

851744

803967

843706

544

296

494

306

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)

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



--

$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


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]

[TBU]

9

July 27, 2020

0%

5%

10%

15%

20%

--

100

200

300




Rig Count 13 -- 13 Oil Differential $0.70 ($0.30) $1.00

Permitting Activity 5 4 1 Gas Differential ($0.01) -- ($0.01)

-$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

6,000

6,500

7,000

7,500

8,000

1,000

1,200

1,400

1,600

1,800


mm

cf/

d

mb

bl/

d

Oil Gas

1,397

7,371

173201 192

221 204 204

302

170180

7843 28 15


H V+D

Ann'd


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



--$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



DIFFERENTIALS RIG COUNT







[TBU]

[TBU]

[TBU]


[TBU]

[TBU]

[TBU]

10

July 27, 2020

0%

5%

10%

15%

20%

--

20

40

60

80




Rig Count 32 -- 32 Oil Differential $1.90 $0.30 $1.60

Permitting Activity 2 (5) 7 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

5,000

6,500

8,000

9,500

11,000

12,500

14,000

60

70

80

90

100

110

120


mm

cf/

d

mb

bl/

d

Oil Gas

72

12,738

108

197218

92

168

83 8289 93

43 35 4319


H V+D

Ann'd


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



--

$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








4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, 2019, and 2020.



[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

11

July 27, 2020

0%

5%

10%

15%

20%

--

50

100

150




Rig Count 31 (2) 33 Oil Differential $2.29 ($0.33) $2.62


-$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

15,000

20,000

25,000

30,000

35,000

80

100

120

140

160


mm

cf/

d

mb

bl/

d

Oil Gas

155

33,549347302 295

258232

188157

226253

186

92131

108


H V+D

Ann'd


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



--$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








4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, 2019, and 2020.


[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

GROSS PRODUCTION (THROUGH 31-DEC-19)

[TBU]

[TBU]

[TBU]

12

July 27, 2020

0%

5%

10%

15%

20%

--

50

100

150

200




Rig Count 10 -- 10 Oil Differential ($0.85) ($0.10) ($0.75)

Permitting Activity 14 3 11 Gas Differential ($0.18) -- ($0.18)

-$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

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


mm

cf/

d

mb

bl/

d

Oil Gas 1,409

3,151

154138

110

157

8380

7867 76 67 61

83

57


H V+D

Ann'd


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



--

$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










[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]


[TBU]

[TBU]

[TBU]

13

July 27, 2020

0%

5%

10%

15%

20%

--

50

100

150




Rig Count 6 -- 6 Oil Differential ($0.85) ($0.10) ($0.75)

Permitting Activity 6 (17) 23 Gas Differential ($0.18) -- ($0.18)

-$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

13,000

13,500

14,000

14,500

15,000

15,500

16,000

500

600

700

800

900

1,000

1,100


mm

cf/

d

mb

bl/

d

Oil Gas914

13,529

286

434

327297

168213

268199

286

210 225197

59


H V+D

Ann'd


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



--$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



DIFFERENTIALS

Rockies (excl. Bakken) Snapshot

RIG COUNT







[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]


[TBU]

[TBU]

[TBU]

14

July 27, 2020

0%

5%

10%

15%

20%

--

100

200

300

400




Rig Count 10 -- 10 Oil Differential -- -- --


-$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

12,000

13,200

14,400

15,600

16,800

18,000

600

650

700

750

800

850


mm

cf/

d

mb

bl/

d

Oil Gas702

13,138

356330 348 345 347

296 284261

203

73 82106 94


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

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


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



Mid-Continent Snapshot










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15

July 27, 2020

0%

5%

10%

15%

20%

--

10

20

30

40


Deep Water Shelf % of Total Rigs


Rig Count 12 -- 12 Oil Differential $1.90 $0.30 $1.60

Permitting Activity 8 1 7 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

3026

2220

22

16

22 2320

1115

10

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


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.



Gulf of Mexico Snapshot

PERMITTING ACTIVITY BY MONTH(1)




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.




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


mm

cf/

d

mb

bl/

d

Oil Gas

1,937

2,893

[TBU]

[TBU]

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[TBU]

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[TBU]

[TBU]

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16

July 27, 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 19-20 Mineral & Royalty Conference

Apr 19-21 DUG Permian (Fort Worth)

Apr 20 Houston Producers Forum Luncheon

Apr 27-30 SPE Western Regional Meeting

Apr 29 SPE Permian Basin Summit

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)

Aug 20 SPE Emerging Engineers Symposium

Aug 29-Sep 2 SPE Improved Oil Recovery Conference

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 11-14 SPE Technical Conference and Exhibition

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

Jan 21 IPAA Private Capital Conference

February 2021 Feb DUG Energy ESG Conference

Feb 2-4 SPE Hydraulic Fracturing Technology 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

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

Mar 19 ADAM-Houston Monthly Luncheon

Mar 25-26 DUG Bakken and Rockies (Denver)

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)

https://www.hartenergyconferences.com/executive-oil-conference





http://www.houstonproducersforum.org/Luncheons.aspx




http://adamhouston.org/events





https://www.ipaa.org/events/




https://adamhouston.org/events/






https://mineralconference.com/





https://www.hartenergyconferences.com/future-events-updated






https://houstonproducersforum.org/luncheons.aspx





https://www.spegcs.org/events/4548/

http://sjv.spe.org/western-regional-meeting-2020/welcome?_ga=2.262917957.836908155.1595606309-975021672.1595606309












http://napeexpo.com/summer/





https://www.theoilandgasconference.com/







https://www.hartenergyconferences.com/dug-midcontinent









http://www.speior.org/





https://www.hartenergyconferences.com/dug-eagle-ford














https://www.atce.org/?_ga=2.91940691.836908155.1595606309-975021672.1595606309





https://www.hartenergyconferences.com/dug-haynesville







https://10times.com/offshore-communications-exhibition















https://www.hartenergyconferences.com/ad-strategies-and-opportunities





https://www.hartenergyconferences.com/dug-east





https://www.ipaa.org/events/texas-holdem-tournament-2020/

















https://www.api.org/products-and-services/events/calendar?page=2&pageSize=10









https://www.ipaa.org/events/private-capital-conference-2021/



https://www.hartenergyconferences.com/energy-esg




https://www.spe-events.org/hydraulicfracturing/Homepage





http://napeexpo.com/summit




















https://energyindata.org/





https://www.spe.org/events/en/2021/conference/21rsc/reservoir-simulation-conference


























http://2021.otcnet.org/


























17

July 27, 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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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

[email protected]

Howard Barnwell

MD & Transactions Mgr.

713-546-9767

[email protected]

Rob Priske

MD & Transactions Mgr.

713-546-9727

[email protected]

Dan Schockling

MD & Head of Commercial

713-518-1223

[email protected]

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.

126

2

10

--

6

--

25

(2)4

--

12

--

1

18

(1)

32

--

13

--

2

(2)

1

--

--

--1

--

Michelle Tankimovich

Analyst

This

Week Change

Last

Week

Last

Year

Total Rigs 251 (2) 253 946

Oil 181 1 180 776

Gas 68 (3) 71 169

Miscellaneous 2 -- 2 1

Directional 22 (1) 23 67

Horizontal 215 -- 215 823

Vertical 14 (1) 15 56

Basin

Permian 126 2 124 443

SCOOP/STACK/Merge 8 (1) 9 76

Granite Wash 1 1 -- 8

Eagle Ford 13 -- 13 81

Haynesville 32 -- 32 58

Marcellus 25 (2) 27 57

Utica 6 -- 6 15

Williston 10 -- 10 47

DJ-Niobrara 4 -- 4 29

Green River 1 -- 1 17

Powder River -- -- -- 23

Piceance 1 -- 1 6

Gulf Coast Onshore 2 (2) 4 19

GOM 12 -- 12 23

Alaska 3 -- 3 9

Other 7 -- 7 35

Mid-Con 1 -- 1 15

Rockies -- -- -- 2

Western 5 -- 5 18

Eastern 1 -- 1 --

[TBU]

[TBU]

prompt oil price ($/bbl) $41.07 $0.32 0.8% let’s …...2020/07/27 · ark-la-tex 4% gulf of...

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