Prompt Oil Price ($/bbl) $52.24 $1.64 3.2% Indicator … Page Document Library/ADLibrary... · Carbon Natural Gas entered into an agreement to acquire ... $150 million drilling joint

1

April 10, 2017

Oil ended up last week as overall crude stocks were reported down 1.83 million barrels. In addition, oil staged a rally in

the latter part of the week as refinery demand, coupled with supply curtailments in Canada, added a bullish outlook in

WTI. The near-term contract closed the week up $1.64, or 3.2%, at $52.24, the highest close since March 7th.

Natural gas ended up last week due to the coincidence of several minor events. First, Cheneire Train 3 was approved

thus increasing LNG export potential. Second, there was a dip in Northeast dry gas production. Finally, there was an

uptick of 1.5 bcf of power burn. The near-term contract closed the week up $0.07, or 2.2%, at $3.26

Debt

Markets

Energy Week in Review

S&P E&P(2) underperformed last week (0.6%) vs. SPX(2) (0.3%)

On Friday, the March employment report reflected 98,000 nonfarm payrolls versus expectations of 175,000 new jobs

on the month. The weaker-than-expected result is being attributed to poor weather in March and marks the lowest

reading since May of last year

16 issuers priced 18 issues to raise $8.2 billion last week

Year-to-date volume stands at $130.2 billion, compared to $66.0 billion in year-to-date 2016

Retail cash inflows to U.S. high yield mutual funds totaled $2.4 billion last week, compared to the prior week’s outflow

of $249 million. This brings year-to-date outflows for 2017 to $3.6 billion

One High Yield E&P deal priced last week

Ultra Petroleum (Corporate: B1/B+/BB-, Issue: B2/BB-/BB) priced a $1.2 billion Senior Notes offering. The

6.875% (5NC2) Senior Notes due 2022 priced at par while the longer-dated offering of 7.125% (8NC3) Senior

Notes due 2025 priced at 98.5 to yield 7.375%. Additionally, the committed financing package included a $400

million RBL facility. The first-lien RBL Term Loan was upsized following strong market demand by $200 million,

with proceeds shifted from the longer-dated Senior Notes. BMO acted as Joint Bookrunner on both the Senior

Notes and Term Loan transactions and as Administrative Agent on the Reserve Based Lending Facility

Unit Company announced that it acquired 8,300 net acres

in the Anadarko Basin from an undisclosed seller for

$57 million

Carbon Natural Gas entered into an agreement to acquire

Appalachia Basin assets from an undisclosed seller for

$20 million

Ares Management announced that its newly created

subsidiary, Development Capital Resources, entered into a

$300 million drilling partnership with Endeavor Energy

Resources to develop Wolfcamp wells in the Midland Basin

Development Capital Resources concurrently announced a

$150 million drilling joint venture with a non-Permian

operator

Bayou City Energy announced that it raised $310 million

and held the final closing for its second fund

Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, EIA

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 November 2016.

2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index, ADTV = Average Daily Trading Volume.

Key Industry Indicators

Quarterly Deal Activity

Equity

Markets

Commodities

$27.0 $28.5

$30.8

$2.2

$8.1 $10.1 $10.0

$4.5

$16.9 $20.7 $20.4 $21.9

$0.1 --

50

100

150

200

250

300

--

$5

$10

$15

$20

$25

$30

$35

$40

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

52% 77% 21% 61% 82% 76% 79% 52% 56% 57% 71% 96% 74%

Nu

mb

er

of

Tra

nsacti

on

s

Tra

nsacti

on

Valu

e (

$b

n)

Asset Corporate Number of Transactions

% Oil

Indicator

Current

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $52.24 $1.64 3.2%

Prompt Gas Price ($/mmbtu) $3.26 $0.07 2.2%

Wkly Trans. Value ($mm) $77 $48 166%

Wkly Trans. Count 6 -- --

US Rig Count 839 15 1.8%

US Oil Prod'n (mmbbl/d) 9.2 0.1 0.6%

US Gas Prod'n (bcf/d)(1) 88.1 (0.6) (0.7%)

US Oil Storage (mmbbl) 535.5 1.6 0.3%

US Gas Storage (tcf) 2.1 0.0 0.1%

Covering the Week of April 1 – April 7, 2017

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.

TBU – Friday post close

2

April 10, 2017

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

1. Represents total enterprise value.

2. Calculated as percentage of total LTM transaction count.

3. 100 transactions from April 2013 to 2017YTD 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.

Permian35%

Gulf of Mexico 1%

Bakken7%

Appalachia11%

Mid-Con12%

Eagle Ford9%

Ark-La-Tex3%

Rockies (ex Bakken)

8%

Other15%

LTM By Region

Oil69%

Gas31%

LTM By Commodity

Public Company

48%PE / PE-Backed

18%

Private11%

MLP1%

Other22%

LTM By Buyer Type

Ann'd

Date Buyer Seller Area Asset Description Value(1)

Proved

Multiple

Prod.

Multiple

Net

Acres

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

04-Apr-17 Unit Corp Undisclosed Mid-Continent 8,335 net acres in Anadarko Basin $57 $17.73 $41,514 $6,809

03-Apr-17 Carbon Natural Gas Co Undisclosed Marcellus / Utica Appalachia Basin acreage in TN $20 n.a. $33,333 n.a.

28-Mar-17 Chesapeake Range Resources Corp Mid-Continent 19,300 net acres in STACK $26 n.a. n.a. $1,347

24-Mar-17 Oxy Vanguard Natural Resources Permian 3,048 net acres in Midland Basin $78 n.a. $385,862 $25,699

22-Mar-17 Gastar Exploration Inc Undisclosed Mid-Continent Working interest in STACK $51 n.a. $155,758 $9,065

21-Mar-17 Marathon Black Mountain; Undisclosed Permian 21,000 net acres in Delaware Basin $700 n.a. $1,750,000 $33,333

15-Mar-17 Undisclosed Buyer Pioneer Permian 20,500 net acres in Midland Basin $266 n.a. $177,333 $12,976

13-Mar-17 Franco Nevada Corp Undisclosed Permian Royalty interest in Midland Basin $110 n.a. n.a. $121,145

10-Mar-17 Energy 11 LP Kaiser-Francis Oil Company Bakken Working interest in ND $53 n.a. n.a. n.a.

09-Mar-17 Marathon BC Operating; Undisclosed Permian 70,000 net acres in Delaware Basin $1,100 n.a. $220,000 $15,714

Blue = BMO Capital provided transaction advisory services

Green = BMO Capital provided acquisition financing or related services

R / PSales Value /

Proved Reserves (15:1)

(ratio) ($ / boe) ($ / mcfe)

8x $20.23 $1.35

10x $17.78 $1.19

15x $12.89 $0.86

20x $9.34 $0.62

y = 33.860e-0.064x

R² = 0.2426

--

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

-- 5.0x 10.0x 15.0x 20.0x 25.0x

Sa

les

Pri

ce /

Pro

ve

d

Re

serv

es (

$/b

oe

@ 1

5:1

)

R / P

Asset descriptions are all hard-coded and need to be

adjusted if new deals are added

(2) (2) (2)

3

April 10, 2017

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: IHS, 1Derrick

Energy Headlines

Industry Headlines

Unit Corporation Announces Agreements to Acquire

Oil & Gas Assets in Its Hoxbar Core Area in Western

Oklahoma

Ares Management Announces Formation of

Development Capital Resources

Bayou City Raises Approximately $1.0 Billion in Two

Years for E&P Investments; Closes Second Fund at

$310 Million Hard Cap

Carbon Natural Gas Company Announces Acquisition

of Natural Gas Producing Properties, Midstream

Assets, and Related Financing

Bakken

3 Deals Appalachia

7 Deals

Mid-Con

12 Deals

Eagle Ford

7 Deals

Permian

28 Deals

Other

11 Deals

Ark-La-Tex

6 Deals

Rockies

9 Deals

4/7/2017

Appalachia 7

Ark-La-Tex 6

Bakken 3

Eagle Ford 7

Mid-Con 12

Other 11

Permian 28

Rockies 9

83

BMO Deals (Status)

Barnett (Post Bid)

EXCO Eagle Ford (Post Bid)

East Texas Haynesville (Post Bid)

North Louisiana Haynesville (Post Bid)

Rockies Gas (Coming Soon)

(Click headline to link to the full article)

Lighter Stuff

A&D Headlines

E&P Headlines Oil Hits One-Month High: Markets Account for North Sea

Outage, OPEC Compliance

Saudi Arabia vs. Russia: The Next Oil Price War

Flood of U.S. Oil to Asia Comforts Tanker Market Trashed

by OPEC

Traders Bet Their Oil Storage Assets that OPEC Cuts Will

Work

Canadian Oil Disruption Sends Ripples from Alberta to

Louisiana

Trump’s Coal Plan Unlikely to Stop Ohio’s Natural Gas

Boom

WildHorse Borrowing Base Rises to $450 Million


http://www.businesswire.com/news/home/20170404005426/en/Unit-Corporation-Announces-Agreements-Acquire-Oil-Gas






http://finance.yahoo.com/news/ares-management-announces-formation-development-103000097.html

http://finance.yahoo.com/news/ares-management-announces-formation-development-103000097.html

http://www.prnewswire.com/news-releases/bayou-city-raises-approximately-10-billion-in-two-years-for-ep-investments-closes-second-fund-at-310-million-hard-cap-300433126.html



http://www.businesswire.com/news/home/20170404006291/en/Carbon-Natural-Gas-Company-Announces-Formation-Carbon






http://www.oilandgas360.com/oil-hits-one-month-high-markets-account-buzzard-outage-opec-compliance/?ct=t(Closing_Bell_Campaign_2016)




http://oilprice.com/Energy/Energy-General/Saudi-Arabia-Vs-Russia-The-Next-Oil-Price-War.html

https://www.bloomberg.com/news/articles/2017-04-06/flood-of-u-s-oil-to-asia-comforts-tanker-market-trashed-by-opec

https://www.bloomberg.com/news/articles/2017-04-06/flood-of-u-s-oil-to-asia-comforts-tanker-market-trashed-by-opec

http://www.reuters.com/article/us-oil-trade-stockpiles-idUSKBN1780I9




https://www.bloomberg.com/news/articles/2017-04-05/canadian-oil-prices-soar-as-upgrader-work-restricts-production





http://www.oilandgas360.com/trumps-coal-plan-unlikely-to-stop-ohios-natural-gas-boom/?ct=t(Closing_Bell_Campaign_2016)

http://www.oilandgas360.com/trumps-coal-plan-unlikely-to-stop-ohios-natural-gas-boom/?ct=t(Closing_Bell_Campaign_2016)

http://www.oilandgas360.com/wildhorse-borrowing-base-rises-450-million/?ct=t(Closing_Bell_Campaign_2016)

4

April 10, 2017

$20

$30

$40

$50

$60

$70

$80

Mar-16 Sep-16 Mar-17 Sep-17 Mar-18

($/b

bl)

--

$1

$2

$3

$4

Mar-16 Sep-16 Mar-17 Sep-17 Mar-18

($/m

mb

tu)

NGL PRICING(2)

HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)

Commodity Prices

Source: BMO Transaction Database, Baker Hughes, 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)

NYMEX WTI Futures as of 07-Apr-17 Close ($/bbl) NYMEX Gas Futures as of 07-Apr-17 Close ($/mmbtu)

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

12 Mo. Strip $53.26 $51.75 $52.72 $38.13

2017 $53.10 $51.58 $53.32 $42.60

2018 $53.32 $51.90 $54.96 $44.57

2019 $52.72 $51.37 $55.96 $46.17

2020 $52.65 $51.39 $56.93 $47.52

2021 $53.18 $51.98 $57.88 $48.58

NYMEX Gas Futures as of 07-Apr-17 Close ($/mmbtu)

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

12 Mo. Strip $3.42 $3.33 $3.20 $2.53

2017 $3.41 $3.32 $3.22 $2.80

2018 $3.07 $3.03 $2.99 $2.88

2019 $2.84 $2.83 $2.86 $2.94

2020 $2.83 $2.82 $2.87 $3.06

2021 $2.85 $2.83 $2.96 $3.20

Historical Prices as of 07-Apr-17 Close ($/gal)

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

Ethane $0.25 $0.24 $0.24 $0.18

Propane $0.65 $0.61 $0.57 $0.43

Butane $0.70 $0.66 $0.74 $0.50

Iso-butane $0.78 $0.75 $0.82 $0.54

Pentane+ $1.14 $1.16 $1.14 $0.86

20%

30%

40%

50%

60%

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17

% o

f W

TI

NGL as % of WTI

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














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



5

April 10, 2017

$3.26

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 7-APR-17

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 7-APR-17

Clearbrook

Midland

Cushing

St. James

(LLS)

East Coast

U.S. (Brent)

Midland Sweet-

Sour Spread

EMS Legend

Price

Diff.

Legend

Price

Diff.

Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg

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

$52.24

$54.16

$1.92

$50.85

($1.39)

$50.38

($1.86)$52.74

$0.50

$55.24

$3.00

($0.01)

$3.32

$0.06

$2.48

($0.78)

$3.11

($0.15)

MAPS IN

MASTER VIEW

$2.11

($1.15)

$2.82

($0.44)

$3.11

($0.15)

$3.22

($0.04)

$2.79

($0.47)

$2.85

($0.41)$2.80

($0.46)

$2.87

($0.39)

$2.92

($0.34)

6

April 10, 2017

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

24-Mar-17 Oxy Vanguard Natural Resources 3,048 net acres in Midland Basin $78 n.a. $385,862 $25,699

21-Mar-17 Marathon Black Mountain; Undisclosed 21,000 net acres in Delaware Basin $700 n.a. $1,750,000 $33,333

15-Mar-17 Undisclosed Buyer Pioneer 20,500 net acres in Midland Basin $266 n.a. $177,333 $12,976

09-Mar-17 Marathon BC Operating; Undisclosed 70,000 net acres in Delaware Basin $1,100 n.a. $220,000 $15,714

03-Mar-17 Resolute Energy Undisclosed 4,592 net acrews in Delaware Basin $160 n.a. $200,000 $34,843

Mean $461 n.a. $546,639 $24,513

Median $266 n.a. $220,000 $25,699



--$20$40$60$80

$100$120

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$28.07

GROSS PRODUCTION

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

TRANSACTION PROVED RESERVE MULTIPLES(2) TRANSACTION PRODUCTION MULTIPLES(2)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS

Permian Snapshot

RIG COUNT

Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info


1. Represents total enterprise value. Excludes transactions with deal value <$20 million.

2. Red line denotes average since 1-Jan-15. Calculated as the weighted average of each quarter’s transactions.

3. $/acre multiple not adjusted for value associated with production.

--

100

200

300

400

Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17

H V+D

-$0.50

-$0.30

-$0.10

$0.10

Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17

-$4.00

-$2.00

$0.00

$2.00

$ /

mm

btu

$ /

bb

l

Midland Waha

--

$100,000

$200,000

$300,000

$400,000

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

7 9 6 1 3 8 8 5 9 11 14 14 0

$ /

bo

e/d

# Deals

$180,862

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

Rig Count 331 12 319 Oil Differential ($1.15) ($0.05) ($1.10)

Permitting Activity 179 (97) 276 Gas Differential ($0.40) $0.10 ($0.50)

654 582670

542 590 606732

553

783 725862

1212

179

Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17

V+D H

4,000

5,000

6,000

7,000

8,000

1,000

1,500

2,000

Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16

mm

cf/

d

mb

bl/

d

Oil Gas2,116

7,540




7

April 10, 2017

--$20,000$40,000$60,000$80,000

$100,000$120,000

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$56,501

--

$5

$10

$15

$20

$25

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$13.68

--

50

100

150

200

250


H V+D


Rig Count 72 (1) 73 Oil Differential $2.30 $0.40 $1.90


Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

31-Jan-17 EV Energy Partners Undisclosed East Texas Eagle Ford $59 $9.17 $58,700 n.a.

24-Jan-17 Hawkwood Energy LLC Halcon Resources Corp 80,500 net acres in E. TX Eagle Ford $500 $22.94 $83,333 $6,211

12-Jan-17 Sanchez; Blackstone Anadarko 155,000 net acres in Eagle Ford $2,275 $7.58 $33,955 $14,677

03-Jan-17 Venado Oil & Gas SM Energy 37,500 net non-operated acres $800 $12.31 $29,347 $21,333

22-Nov-16 Shun Cheong Holdings Stonegate Production Frio, Dimmit, & La Salle Co. $278 n.a. $42,121 $10,863

Mean $782 $13.00 $49,491 $13,271

Median $500 $10.74 $42,121 $12,770



-$0.30

-$0.10

$0.10

$0.30

$0.50


-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$ /

mm

btu

$ /

bb

l

LLS HSC

300245

203 238323

253301 267

424 413 405

526

114


V+D H

6,000

8,000

10,000

12,000

1,000

1,500

2,000

2,500


mm

cf/

d

mb

bl/

d

Oil Gas

1,378

8,200

Eagle Ford Snapshot

GROSS PRODUCTION



DIFFERENTIALS RIG COUNT









TBU – Friday post close TBU – Friday post close

TBU – Friday post close TBU – Friday post close



8

April 10, 2017

--

$5,000

$10,000

$15,000

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

mcfe

/d

# Deals

$6,369

$0.0

$2.0

$4.0

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

mcfe

# Deals

$1.67

--

20

40

60


H V+D


Rig Count 39 -- 39 Oil Differential $2.30 $0.40 $1.90

Permitting Activity 14 (31) 45 Gas Differential -- -- --

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

20-Dec-16 Covey Park Energy LLC Chesapeake 41,500 net acres in Haynesville $465 n.a. $9,300 $11,205

05-Dec-16 Indigo Minerals LLC Chesapeake 78,000 net acres in De Soto & Sabine $450 n.a. $15,000 $5,769

30-Sep-16 Castleton Commodities Int'l Anadarko 104,600 net acres in the Haynesville $1,000 n.a. $4,219 $9,560

26-Jul-16 Chesapeake Freeport-McMoRan 72,000 net acres and 1,450 wells $87 n.a. n.a. $1,208

06-Jun-16 Undisclosed Devon Energy Panola Co., TX $525 $1.01 $3,977 n.a.

Mean $505 $1.01 $8,124 $6,936

Median $465 $1.01 $6,760 $7,665



--

$2.00

$4.00

$6.00

$8.00

$10.00


--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

8979

88105

133 127

102 94101

137

97

140

14


V+D H

5,000

7,000

9,000

50

100

150

200


mm

cf/

d

mb

bl/

d

Oil Gas

103

6,960

Ark-La-Tex Snapshot

GROSS PRODUCTION


















9

April 10, 2017

--

$10

$20

$30

$40

$50

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

0 3 1 0 0 0 0 3 1 1 0 0 0

$ /

mcfe

# Deals

$8.95

--$5,000

$10,000$15,000$20,000$25,000$30,000

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

mcfe

/d

# Deals

$7,694

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres


03-Apr-17 Carbon Natural Gas Co Undisclosed Appalachia Basin acreage in TN $20 n.a. $5,556 n.a.

08-Feb-17 EQT Corporation Stone Energy 85,400 net acres in WV Marcellus $527 n.a. $6,588 $6,171

02-Feb-17 EQT Corporation Undisclosed 14,000 net acres in WV Marcellus $130 n.a. n.a. $9,286

17-Jan-17 Banpu Public Co Ltd Chief Oil & Gas LLC Non-op wells in PA Marcellus $63 n.a. n.a. n.a.

04-Jan-17 Antero Resources Corp Rex Energy Corp 4,100 net acres in Ohio Utica $30 n.a. $3,333 $7,317

Mean $154 n.a. $5,159 $7,591

Median $63 n.a. $5,556 $7,317



--

50

100

150


H V+D


Rig Count 67 1 66 Oil Differential $3.00 $0.77 $2.23


-$2.00

-$1.00

$0.00

$1.00

$2.00


-$15.00

-$10.00

-$5.00

$0.00

$5.00

$10.00

$15.00

$ /

mm

btu

$ /

bb

l

Brent Dominion

308

236

311280 282

259285

319 295

213

382 390

79


V+D H

12,000

14,000

16,000

18,000

20,000

22,000

24,000

--

50

100

150


mm

cf/

d

mb

bl/

d

Oil Gas

61

18,092

Appalachia Snapshot

GROSS PRODUCTION
















10

April 10, 2017

--

$50,000

$100,000

$150,000

$200,000

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$43,639

--

$10

$20

$30

$40

$50

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$17.80

--

50

100

150

200


H V+D


Rig Count 42 -- 42 Oil Differential $0.50 ($0.35) $0.85


Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

10-Mar-17 Energy 11 LP Kaiser-Francis Oil Company Purchase of additional WI in ND $53 n.a. n.a. n.a.

12-Dec-16 Undisclosed Enerplus 5,800 net acres in ND $292 n.a. $73,000 $50,345

22-Nov-16 Salt Creek Oil and Gas LLC Undisclosed 1,795 net acres in Williston Basin $38 n.a. $69,273 $21,226

17-Oct-16 Oasis Petroleum Inc SM Energy 55,000 net acres in North Dakota $785 $15.64 $63,306 $14,273

27-Sep-16 New Emerald Energy LLC Emerald Oil Inc 86,000 net acres in ND and MT $127 n.a. $22,244 $1,471

Mean $259 $15.64 $56,956 $21,829

Median $127 $15.64 $66,290 $17,749



-$0.80

-$0.60

-$0.40

-$0.20

$0.00

$0.20


-$8.00

-$6.00

-$4.00

-$2.00

$0.00

$2.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

77

49

7283

102

6677 75

31

79

45

96

11


V+D H

1,000

1,250

1,500

1,750

2,000

600

800

1,000

1,200

1,400


mm

cf/

d

mb

bl/

d

Oil Gas

1,088

1,829

Bakken Snapshot

GROSS PRODUCTION
















11

April 10, 2017

--

$5

$10

$15

$20

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$6.18

# Deals

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres


12-Jan-17 Undisclosed Synergy Resources Corp 10,000 net acres in DJ Basin $71 n.a. $16,905 $7,100

04-Jan-17 Elk Petroleum Ltd Freeport-McMoRan Inc Non-op acreage in Wind River Basin $20 $0.26 $980 n.a.

12-Dec-16 Extraction Oil & Gas Undisclosed 16,800 net acres in DJ Basin $177 n.a. n.a. $10,536

04-Nov-16 Ute Energy III Exploration Western Uinta Basin acreage $52 n.a. n.a. n.a.

06-Sep-16 Red Willow Production Co Samson Resources 61,400 net acres in San Juan Basin $116 n.a. n.a. $1,881

Mean $87 $0.26 $8,943 $6,506

Median $71 $0.26 $8,943 $7,100



GROSS PRODUCTION




DIFFERENTIALS

Rockies (excl. Bakken) Snapshot

RIG COUNT





--

50

100

150


H V+D

-$0.80

-$0.60

-$0.40

-$0.20

$0.00

$0.20


-$8.00

-$6.00

-$4.00

-$2.00

$0.00

$2.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

--

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$40,797


Rig Count 57 2 55 Oil Differential $0.50 ($0.35) $0.85


791969

833 867 832 843 833736

568701

942 874

156


V+D H

10,000

11,000

12,000

13,000

14,000

15,000

--

200

400

600

800

1,000


mm

cf/

d

mb

bl/

d

Oil Gas

573

12,967





TBU – States to include


12

April 10, 2017

--

$50,000

$100,000

$150,000

$200,000

$250,000

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$78,269

--

$5

$10

$15

$20

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$11.60

--

50

100

150

200


H V+D


Rig Count 80 1 79 Oil Differential -- -- --


Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

04-Apr-17 Unit Corp Undisclosed 8,335 net acres in Anadarko Basin $57 $17.73 $41,514 $6,809

28-Mar-17 Chesapeake Range Resources Corp 19,300 net acres in STACK $26 n.a. n.a. $1,347

22-Mar-17 Gastar Exploration Inc Undisclosed Working interest in STACK $51 n.a. $155,758 $9,065

20-Jan-17 SandRidge Energy IOG Capital; Red Mountain 13,100 net acres in SCOOP/STACK $48 n.a. $68,571 $3,664

13-Dec-16 Gulfport Energy Corp Vitruvian Exploration II LLC 46,400 net surface acres in SCOOP $1,850 $9.69 $60,656 $39,871

Mean $406 $13.71 $81,625 $12,151

Median $51 $13.71 $64,614 $6,809



-$0.50

-$0.30

-$0.10

$0.10


-$0.40

-$0.20

$0.00

$0.20

$ /

mm

btu

$ /

bb

l

Cushing Panhandle

160198

230263 268

225 239 243291 273

314348

50


V+D H

--

5,000

10,000

15,000

--

200

400

600

800


mm

cf/

d

mb

bl/

d

Oil Gas

547

9,511

Mid-Continent Snapshot

GROSS PRODUCTION















13

April 10, 2017

--

$5,000

$10,000

$15,000

$20,000

$25,000

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e/d

# Deals

$19,234

--

$5

$10

$15

$20

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

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

$ /

bo

e

# Deals

$9.06

# Deals

--

20

40

60

80


H V+D


Rig Count 22 -- 22 Oil Differential $2.30 $0.40 $1.90

Permitting Activity -- -- 0 Gas Differential -- -- --

--

$2.00

$4.00

$6.00

$8.00

$10.00


--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

22 22

17 16

6

1614

19 1820 19

17

0


2,000

3,000

4,000

5,000

1,000

1,500

2,000


mm

cf/

d

mb

bl/

d

Oil Gas

1,660

3,319

Gulf of Mexico Snapshot

GROSS PRODUCTION






1. Permits include directional and unidentified drilling permits. 2. Represents total enterprise value. Excludes transactions with deal value <$20

million. 3. Red line denotes average since 1-Jan-15. Calculated as the weighted average of each quarter’s transactions. 4. $/acre multiple not

adjusted for value associated with production.




(1)

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

12-Sep-16 Anadarko Freeport-McMoRan Inc Deepwater GOM assets $2,000 $15.88 $25,000 n.a.

29-Aug-16 EnVen Energy Ventures Shell Brutus and Glider fields $425 n.a. $17,000 n.a.

09-Nov-15 EnVen Energy Ventures Marathon Petronius and Neptune fields $205 n.a. $20,500 n.a.

01-Jul-15 Undisclosed Energy XXI East Bay field $21 $2.23 $10,244 n.a.

Mean $663 $9.06 $18,186 n.a.

Median $315 $9.06 $18,750 n.a.







14

April 10, 2017

Energy Headlines

1/13/2017

Appalachia 4

Ark-La-Tex 4

Bakken 3

Eagle Ford 8

Mid-Con 18

Other 4

Permian 33

Rockies 6

Lighter Stuff

E&P Headlines

Upcoming Industry Events April 2017

July 2017

August 2017

May 2017

June 2017

September 2017

October 2017

January 2018

February 2018

November 2017

December 2017

March 2018

Apr 2 AAPG 2017 Annual Convention

Apr 3-4 IPAA OGIS New York

Apr 3-5 DUG Permian Basin

Apr 3-5 SPE Intl Conference on Oilfield Chemistry

Apr 5 SPEE-Houston Luncheon

Apr 10-11 Platts North American Crude Oil Summit

Apr 18 Houston Producers Forum Luncheon

Apr 12 IPAA/TIPRO Leaders in Industry Luncheon

Apr 17-18 Hart’s Energy Capital Conference

Apr 21 ADAM-Houston Monthly Luncheon

May 1-4 Offshore Technology Conference

May 3 SPEE-Houston Luncheon

May 8-10 Argus US Natural Gas Markets

May 8-10 SPE Reservoir Characterization and Stimulation

May 16 Houston Producers Forum Luncheon

May 18 IADC Drilling Onshore Conference

May 10 IPAA/TIPRO Leaders in Industry Luncheon

May 19 ADAM-Houston Monthly Luncheon

May 23-24 Hart’s Midstream Texas Conference

Jun 8-9 IADC International Tax Seminar

Jun 10-13 SPEE Annual Conference

Jun 14 IPAA/TIPRO Leaders in Industry Luncheon

Jun 16 ADAM-Houston Monthly Luncheon

Jun 20 Houston Producers Forum Luncheon

Jun 20-22 DUG East

Jun 25 2017 AAPG Rocky Mountain Annual Meeting

Jun 27-29 Cyber Security for Oil & Gas

Jun 28-29 IADC World Drilling 2017 Conference

Jul 12 IPAA/TIPRO Leaders in Industry Luncheon

Jul 24-26 SPE/AAPG/SEG Unconventional Resources

Aug 9 IPAA/TIPRO Leaders in Industry Luncheon

Aug 13-17 Enercom Oil & Gas Conference

Aug 15 Houston Producers Forum Luncheon

Aug 16-17 NAPE Summer

Aug 18 ADAM-Houston Monthly Luncheon

Aug 22-23 IADC Asset Integrity & Reliability Conference

Aug 22-24 COGA Rocky Mountain Energy Summit

Aug 29-30 IADC Well Control Conference

Aug 29-31 DUG Eagle Ford

Sep 6 SPEE-Houston Luncheon

Sep 6-7 Hart’s A&D Strategies and Opportunities

Sep 13 IADC Shale Energy Workshop

Sep 13 IPAA/TIPRO Leaders in Industry Luncheon

Sep 13-14 SPE Liquids Rich Basins Conference

Sep 15 ADAM-Houston Monthly Luncheon

Sep 19 Houston Producers Forum Luncheon

Sep 19-21 DUG Midcontinent

Oct 3 IPAA OGIS New York

Oct 4 SPEE-Houston Luncheon

Oct 9-11 SPE Annual Technical Conference

Oct 11 IPAA/TIPRO Leaders in Industry Luncheon

Oct 17 Houston Producers Forum Luncheon

Oct 17-18 IADC Human Factors Conference

Oct 20 ADAM-Houston Monthly Luncheon

Oct 24-25 IADC Advanced Rig Technology Conference

Nov 1 SPEE-Houston Luncheon

Nov 6-7 Hart’s Executive Oil Conference (Midland)

Nov 6-8 AICPA Oil & Gas Conference

Nov 8 IPAA Annual Meeting

Nov 8 IPAA/TIPRO Leaders in Industry Luncheon

Nov 8-10 IADC Annual General Meeting

Nov 17 ADAM-Houston Monthly Luncheon

Nov 21 Houston Producers Forum Luncheon

Dec 5 SPEE-Houston Luncheon

Dec 13 IPAA Leaders in Industry Luncheon

Jan 16 Houston Producers Forum Luncheon

Jan 19 ADAM-Houston Monthly Luncheon

Jan 23-25 SPE Hydraulic Fracturing Technology

Jan 30-Feb 1 Hart’s Marcellus-Utica Midstream

Mar 5-9 CERA Week

Mar 6-8 IADC/SPE Drilling Conference

Mar 18 ADAM-Houston Monthly Luncheon

Mar 20 Houston Producers Forum Luncheon

Feb 7-9 NAPE Summit

Feb 6-7 IADC HSE & Training Conference

Feb 16 ADAM-Houston Monthly Luncheon

Feb 20 Houston Producers Forum Luncheon


15

April 10, 2017

This

Week Change

Last

Week

Last

Year

Total Rigs 839 15 824 443

Oil 672 10 662 354

Gas 165 5 160 89

Miscellaneous 2 -- 2 --

Directional 71 1 70 52

Horizontal 695 10 685 341

Vertical 73 4 69 50

Basin

Arkoma 10 1 9 4

Barnett 5 -- 5 4

Cana 50 2 48 32

DJ-Niobrara 23 -- 23 15

Eagle Ford 72 (1) 73 43

Fayetteville 1 -- 1 --

Granite Wash 10 (4) 14 4

GOM 22 -- 22 24

Haynesville 38 -- 38 12

Marcellus 45 1 44 29

Mississippian 8 2 6 5

Permian 331 12 319 142

Utica 22 -- 22 12

Williston 42 -- 42 27

Other 160 2 158 90

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

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Bank of Montreal or its subsidiaries (“BMO Financial Group”) has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets.

The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital

Markets endeavors to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and

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

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

Geoff Roberts

MD & Head of U.S. A&D

713-518-1268

[email protected]

Howard Barnwell

Director & Transactions Mgr.

713-546-9767

[email protected]

TRANSACTIONS NEWSLETTER

Contacts

Disclaimer

Source of rig count stats: Baker Hughes

Rig Count Summary

MAPS IN

MASTER VIEW

Rob Priske


713-546-9727

[email protected]

Legend

Current

Change

Arkoma

Barnett

Cana

DJ-Niobrara

Eagle Ford

Haynesville

Fayetteville

Granite Wash

GOM

Permian

Marcellus

Mississippian

Utica

Williston

10

1

5

--

50

2

23

--

72

(1)

1

--

10

(4)

22

--

38

--

45

1

8

2

331

12

22

--

42

--

Chelsea Neville

Transactions Coordinator

713-546-9703

[email protected]

Rob Priske


713-546-9727

[email protected]

Geoff Roberts

MD & Head of U.S. A&D

713-518-1268

[email protected]

Marshall Soper

Analyst

713-546-9706

[email protected]

Aaron Moeller

Analyst

713-518-1262

[email protected]

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