Prompt Oil Price ($/bbl) $63.69 ($3.64) (5.4%) Prompt Gas ... · 01-Nov-18 Undisclosed Buyer Parsley Energy LP Permian 11,850 net acres in Midland Basin $170 n.a. $141,667 $14,346

1

November 5, 2018

IndicatorCurrent

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $63.69 ($3.64) (5.4%)

Prompt Gas Price ($/mmbtu) $3.24 $0.04 1.3%

Wkly Trans. Value ($mm) $13,728 $13,727 nmf

Wkly Trans. Count 6 3 100%

US Rig Count 1,067 (1) (0.1%)

US Oil Prod'n (mmbbl/d) 11.2 0.3 2.8%

US Gas Prod'n (bcf/d)(1) 102.5 2.3 2.3%

US Oil Storage (mmbbl) 426.0 3.2 0.8%

US Gas Storage (tcf) 3.1 0.0 1.6%

$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

$8.0

$31.5

$16.5

--

50

100

150

200

250

300

350

400

450

500

--

$5

$10

$15

$20

$25

$30

$35

$40

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

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

Nu

mb

er

of

Tra

nsacti

on

s

Tra

nsacti

on

Valu

e (

$b

n)

Asset Corporate Number of Transactions

% Oil

Debt

Markets

Five issuers priced six tranches for $2.6 billion in proceeds

U.S. volume is down 33% year-on-year

U.S. high yield funds reported an outflow of $1 billion

ETFs reported an inflow of $153 million, while mutual funds reported an outflow of $1.2 billion

High yield index yield was 6.87%; high yield energy index yield was 7.57%

Encana Corporation acquired Newfield Exploration for

approximately $7.7 billion (see page 4 for more details)

Chesapeake acquired WildHorse for approximately $4.0

billion (see page 5 for more detail)

Denbury Resources acquired Penn Virginia for approximately

$1.7 billion (see page 6 for more detail)

Parsley Energy sold Midland Basin assets for $170 million

Pioneer Natural Resources divested its South Texas Sinor

Nest assets for $132 million

Halcón Resources divested its Delaware Basin water

infrastructure assets for $325 million. BMO Capital Markets

acted as co-advisor on this transaction

BMO is hosting a call to discuss U.S. midterm elections and

market implications on November 7, 2018 at 9:00 am ET

(1-800-952-5114, conference code 3279053#)

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 August 2018.

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 1.1% vs. SPX(2) 1.3%

The major U.S. equity indexes finished slightly higher last week, with generally higher sector

performance. Consumer discretionary, consumer staples, financials, health care, industrials, materials,

and tech were all up. Real estate ended down 0.3%

Equity

Markets

Oil ended last week down as sanctions on Iran are expected to start soon. Initial indications suggest that

OPEC output in October reached the highest level since late 2016. Libya and Saudi Arabia showed the

biggest gains month-over-month. Refineries returning to service should help alleviate pressure from an

abundance of lighter barrels. WCS diffs were supported by BP’s announcement that BP Whiting work will

finish in late November. The near-term contract closed down $3.64, or 5.4%, at $63.69

Natural gas ended last week up. Gas production and gas storage increased. Mid-day weather runs

showed some impressive cold creeping into the longer term forecast. The near-term contract closed up

$0.04, or 1.3%, at $3.24

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 October 26 to November 1, 2018

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

Market Monitor went live last week – read more here

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

2

November 5, 2018

Ann'd

Date Buyer Seller Area Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

01-Nov-18 Undisclosed Buyer Parsley Energy LP Permian 11,850 net acres in Midland Basin $170 n.a. $141,667 $14,346

31-Oct-18 Undisclosed Buyer Newpek Other 725 net acres in Live Oak Co., TX $33 n.a. $42,581 $45,517

31-Oct-18 Undisclosed Buyer Pioneer Other 2,900 net acres in Live Oak Co., TX $132 n.a. $42,581 $45,517

17-Oct-18 Earthstone Energy Inc Sabalo Energy Permian 20,800 net acres in Midland Basin $976 $10.73 $87,143 $46,923

15-Oct-18 Undisclosed Buyer Range Resources Corp Marcellus/Utica Overriding royalty interests in Appalachia $300 n.a. $105,895 nmf

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

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

25-Sep-18 Undisclosed Buyer W&T Offshore Permian Royalty interests in 25,493 net acres $57 n.a. n.a. nmf

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

11-Sep-18 Carlyle Group Diamondback Energy Permian JV in Pecos Co., TX; Carlyle funds ~85% $527 n.a. n.a. 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

R / P

Sales Value /

Proved Reserves

(15:1)

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

8x $19.89 $1.33

10x $17.56 $1.17

15x $12.86 $0.86

20x $9.41 $0.63

y = 32.952e-0.062x

R² = 0.3088

--

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

-- 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x

Sale

s P

rice /

Pro

ved

R

eserv

es (

$/b

oe @

15:1

)

R / P

Public Company

31%

PE / PE-Backed

31%

Private24%

Other14%

LTM By Buyer Type

Permian40%

Rockies (ex. Bakken)

8%

Bakken3%

Appalachia3%

Mid-Con17%

Eagle Ford5%

Ark-La-Tex4%

Gulf of Mexico1%

Other17%

LTM By Region

Oil71%

Gas29%

LTM By Commodity

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. 59 transactions from January 2015 to 2018YTD 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.

Asset descriptions are all hard-coded and need to be

adjusted if new deals are added

(2) (2) (2)

Confirm number of transactions weekly --->

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3

November 5, 2018

10/28/2018

Appalachia 2

Ark-La-Tex 6

Bakken 7

Eagle Ford 6

Mid-Con 8

Other 15

Permian 20

Rockies 10

74

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

20 Deals

Other

15 Deals

Rockies

10 Deals

(Click headline to link to the full article)

A&D Headlines

Bakken

7 Deals

Ark-La-Tex

6 Deals

Upstream Uncertainty Tempers Otherwise Upbeat

Outlook

Rising U.S. Crude Output Sparks Race to Build Export

Terminals

China's Tariff on U.S. Natural Gas Delays Louisiana

LNG Project

Adams County Approves Moratorium on New Drilling

Permits Through End of November

Big Oil Outspends Billionaires in Washington State

Carbon Tax Fight

Encana Announces Strategic Combination with

Newfield Exploration Company; Intends to Raise

Dividend by 25 Percent and Expand its Share

Buyback Program to $1.5 Billion, Post Closing

Chesapeake Energy Corporation Accelerates

Strategic Plan with Acquisition of WildHorse Resource

Development Corporation For a Combination of

Chesapeake Common Stock and Cash

Denbury to Acquire Penn Virginia in $1.7 Billion

Transaction

Parsley Energy Announces Third Quarter 2018

Financial and Operating Results (includes A&D

announcement)

Pioneer Natural Resources Sells South Texas Assets

for $132 Million

Halcón Resources Announces the Sale of its

Delaware Basin Water Infrastructure Assets for $325

Million

BMO Deals (Status)

Wishbone CBP (In Market) – Pg. 4

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BMO Deals (Status)

Wishbone CBP (In Market) – Pg. 7

https://www.worldoil.com/news/2018/10/30/upstream-uncertainty-tempers-otherwise-upbeat-outlook-deloitte-survey-says

https://www.worldoil.com/news/2018/10/30/upstream-uncertainty-tempers-otherwise-upbeat-outlook-deloitte-survey-says

https://www.reuters.com/article/us-usa-oil-export-terminals/rising-u-s-crude-output-sparks-race-to-build-export-terminals-idUSKCN1N42C1

https://www.reuters.com/article/us-usa-oil-export-terminals/rising-u-s-crude-output-sparks-race-to-build-export-terminals-idUSKCN1N42C1

https://www.cnbc.com/2018/10/30/chinas-tariff-on-us-natural-gas-delays-louisiana-lng-project.html

https://www.cnbc.com/2018/10/30/chinas-tariff-on-us-natural-gas-delays-louisiana-lng-project.html

https://www.thedenverchannel.com/news/politics/adams-county-approves-moratorium-on-new-drilling-permits-through-end-of-november

https://www.thedenverchannel.com/news/politics/adams-county-approves-moratorium-on-new-drilling-permits-through-end-of-november

https://www.reuters.com/article/us-usa-election-carbon/big-oil-outspends-billionaires-in-washington-state-carbon-tax-fight-idUSKCN1N51H7

https://www.reuters.com/article/us-usa-election-carbon/big-oil-outspends-billionaires-in-washington-state-carbon-tax-fight-idUSKCN1N51H7

https://globenewswire.com/news-release/2018/11/01/1640876/0/en/Encana-announces-strategic-combination-with-Newfield-Exploration-Company-intends-to-raise-dividend-by-25-percent-and-expand-its-share-buyback-program-to-1-5-billion-post-closing.html




https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-accelerates-strategic-plan-with-acquisition-of-wildhorse-resource-development-corporation-for-a-combination-of-chesapeake-common-stock-and-cash-300740062.html







https://www.denbury.com/investor-relations/press-releases/press-release-details/2018/Denbury-to-Acquire-Penn-Virginia-in-17-Billion-Transaction/default.aspx

https://www.denbury.com/investor-relations/press-releases/press-release-details/2018/Denbury-to-Acquire-Penn-Virginia-in-17-Billion-Transaction/default.aspx

https://www.chron.com/business/energy/article/Pioneer-Natural-Resources-sells-South-Texas-13351018.php

https://www.prnewswire.com/news-releases/parsley-energy-announces-third-quarter-2018-financial-and-operating-results-300742609.html





https://globenewswire.com/news-release/2018/10/31/1640592/0/en/Halc%C3%B3n-Resources-Announces-the-Sale-of-its-Delaware-Basin-Water-Infrastructure-Assets-for-325-Million.html





4

November 5, 2018

On November 1, 2018, Encana Corporation (TSX,

NYSE: ECA) (“Encana”) and Newfield Exploration

Company (NYSE: NFX) (“Newfield”) announced that

they entered into a definitive agreement whereby

Encana will acquire Newfield for a total consideration

of $7.7 billion

Newfield shareholders will receive 2.6719 Encana

common shares for each share of Newfield

common stock

– Valued at approximately $5.5 billion

Encana will also assume $2.2 billion in net debt

Upon completion of the transaction, Encana

shareholders will own approximately 63.5% of the

combined company and Newfield shareholders will

own approximately 36.5%

The transaction is expected to close in Q1 2019

TRANSACTION SUMMARY

Source: Company press release, Company presentation, PLS, 1Derrick, Company teaser

1. Excludes China production.

2. Value adjusted by $35,000 per flowing boe/d.

ASSET SUMMARY

~874,000 total net acres across the Anadarko,

Williston, Uinta, and Arkoma basins

369,000 net acres in the Anadarko Basin

82,000 net acres in the Williston Basin

221,000 net acres in the Uinta Basin

144,000 net acres in the Arkoma Basin

~283,000 net acres in mineral interests and other

areas

Q3 2018 production of 199 mboe/d (61% liquids)(1)

2017 YE proved reserves of 678 mmboe

Q3 2018 LTM Adj. EBITDA of $1.4 billion

~6,000 gross risked locations with ~3 billion BOE of

net unrisked resources in Anadarko Basin

Interesting Deal of the Week #1:

Encana Corporation Acquires Newfield Exploration for $7.7 Billion

ACQUIRED ASSETS ACQUISITION METRICS

Purchase Price (US$ mm)

Cash $2,200

Stock $5,500

Total Consideration $7,700

Metrics

3Q 2018 Production (boe/d) 199,000

Proved Reserves (mboe) 678,000

Net Acres 874,000

3Q 2018 LTM Adj. EBITDA ($mm) $1,400

Multiples

TEV / 3Q 2018 Production ($/boe/d) $38,693

TEV / Proved Reserves ($/boe) $11.36

TEV / Net Acre $8,810

TEV / Adj. Net Acre(2) $841

TEV / 3Q 2018 LTM Adj. EBITDA 5.5x

Newfield Assets

5

November 5, 2018

On October 30, 2018, Chesapeake Resources

Corporation (NYSE: CHK) (“Chesapeake”) announced

that it entered into an agreement to buy WildHorse

Resource Development Corporation (NYSE: WRD)

(“WildHorse”) for a total consideration of $3,977 million

The transaction consideration consists of $930

million of assumed debt and the option to

exchange each WildHorse share for either:

– 5.989 Chesapeake shares

– 5.336 Chesapeake shares and $3.00 cash

The cash consideration is expected to be between

$275 million and $400 million

Upon closing of the transaction, Chesapeake

stockholders will own ~55% of the combined company

and WildHorse shareholders will own ~45%


TRANSACTION SUMMARY


1. Pro forma for sale of Louisiana assets.

2. Consideration consists of $930 million of assumed debt and the option of either 5.989 shares of CHK or 5.336 shares of CHK and $3.00 per share of WRD.


ASSET SUMMARY

420,000 net acres in the Eagle Ford

84% WI, 66% NRI

~80% undeveloped

2Q 2018 production of 47,000 boe/d

88% liquids / 73% oil

Proved reserves of 385.6 mmboe(1)

Proved PV-10 of $3,209 million(1)

3,207 net locations


Chesapeake Resources Acquires WildHorse Resource Development for $4.0 Billion

ACQUIRED ASSETS

WildHorse

ACQUISITION METRICS


Assumed Debt(2) $930

Stock(2) $3,047


Metrics


Proved Reserves (mboe) 385,640

Net Acres 420,000

Net Locations 3,207

Proved PV-10 ($mm) $3,209

Multiples




TEV / Adj. Net Acre(3) $5,552

TEV / Net Location $1,240,100

TEV / Adj. Net Location(3) $727,159

TEV / Proved PV-10 1.24x

6

November 5, 2018

On October 28, 2018, Denbury Resources Inc.

(NYSE: DNR) (“Denbury”) announced that it entered

into an agreement to acquire Penn Virginia

Corporation (NASDAQ: PVAC) (“Penn Virginia”) for a

total consideration of $1,716 million

The transaction consideration consists of $400

million in cash, the assumption of $483 million in

debt, and approximately 191.6 million shares of

Denbury stock valued at $833 million (assuming

26-Oct-18 closing price of $4.35)

Upon closing of the transaction, Denbury stockholders

will own 71% of the combined company and Penn

Virginia shareholders will own 29%


TRANSACTION SUMMARY


1. As of 1Q earnings presentation at strip pricing.


ASSET SUMMARY

84,060 net (97,900 gross) acres in the Eagle Ford

Ongoing nearby EOR pilots

99% operated

93% HBP

2Q 2018 production of 22,000 boe/d

87% liquids / 74% oil

Proved reserves of 85 mmboe(1)

Proved PV-10 of $823 million(1)

461 net (560 gross) locations


Denbury Resources Inc. Acquires Penn Virginia Corporation for $1.7 Billion

ACQUIRED ASSETS

Penn Virginia

ACQUISITION METRICS


Cash $883

Stock $833


Metrics


Proved Reserves (mboe)(1) 85,000

Net Acres 84,060

Net Locations 461

Proved PV-10 ($mm)(1) $823

Multiples




TEV / Adj. Net Acre(2) $11,254

TEV / Net Location $3,722,343

TEV / Adj. Net Location(2) $2,052,061

TEV / Proved PV-10 2.09x

7

November 5, 2018

Opportunity to acquire ~37,206 net contiguous acres in the core of

the San Andres horizontal play in Northern Central Basin Platform

Operated average WI/NRI of 77%/58%

Approaching 50% HBP with minimal annual drilling

commitments

96% operated by production

Net production of ~8,100 boe/d (November 2018E)

80% oil, 13% NGL

100%+ ROR oil play in the highly coveted Permian Basin

Future drilling opportunities have reserve models of 385 to

700 Mboe (80% oil)

Position has largely been de-risked through active development by

Wishbone and offset operators

Extensive inventory of high return drilling remains with over 344

San Andres horizontal drilling locations

5,000’ laterals – 323 locations

7,500’ laterals – 21 locations

Controlled surface lands/water infrastructure creates high margins

and empowers the buyer to be a play consolidator

WTS barrels and crude pipeline infrastructure in place with no

takeaway issues

VDR available now

Contact Mark Nelson at [email protected] or 713-452-1595

to request a Confidentiality Agreement, access to the VDR, and/or

a data room presentation

Source: Wishbone CBP Divestiture announcement

Integrated

Water

Infrastructure

Owned and operated SWD system and fresh water source wells keep operating expenses low and enhance well

economics

Water infrastructure generates additional income

Infrastructure provides flow assurance for disposal and source water

1,385 acres of owned surface acreage allows buyer to expand system

Ample existing disposal capacity of 178,000 bw/d with excess available for third-party or commercialization

Improved

Horizontal

San Andres

Performance

Highly oil-saturated, oil-wet, dolomite reservoir located in the core area of very active development in the horizontal San

Andres play

Over the last four years, operators have developed a significant understanding of the reservoir and operational

characteristics defining the play

Recent drilling activity has yielded improved well performance

Time to peak production is less than 60 days

Initial peak 30-day rates of 400-700 bo/d

Operators continue to commit significant capital to the play with multiple active drilling rigs and 54 horizontal San Andres

permits

Wishbone’s

Premier

Position

Contiguous leasehold, adjacent to the prolific Wasson and Brahaney fields offering the best combination of reservoir

quality, quantity, and oil saturations in the core of the horizontal San Andres play

Position has largely been de-risked through active development by Wishbone and offset operators

Most recent quarter (2Q18) annualized cash flow of $60 MM can easily support a one rig drilling program

Acreage is approaching 50% HBP with minimal annual drilling commitments

High

Return

Inventory

Extensive inventory of high return drilling remains with over 344 San Andres horizontal drilling locations

Well economics of greater than 100% ROR compete with other top Permian plays

Future drilling opportunities have reserve models of 385 to 700 Mboe (80% oil)

Spacing of 4 to 8 wells per section supported by volumetrics with a recovery factor of 12-15% of OOIP; further supported

by an independent Von Gonten report

Stacked potential in San Andres could add additional drilling locations

Successful step-out completion helps prove play continuity in northern area

Currently on the Market from CIBC and BMO: Wishbone CBP Divestiture

ASSET HIGHLIGHTS

ASSET OVERVIEW PROCESS OVERVIEW

mailto:[email protected]

8

November 5, 2018

--

$1

$2

$3

$4

Nov-17 May-18 Nov-18 May-19 Nov-19

($/m

mb

tu)

$20

$30

$40

$50

$60

$70

$80

Nov-17 May-18 Nov-18 May-19 Nov-19

($/b

bl)

25%

35%

45%

55%

65%

Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17 Jul-17 Dec-17May-18 Oct-18

% o

f W

TI

NGL as % of WTI

Historical Prices as of 01-Nov-18 Close ($/gal)

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

Ethane $0.32 $0.33 $0.27 $0.26

Propane $0.82 $0.86 $0.91 $0.95

Butane $0.93 $0.91 $0.89 $1.02

Iso-butane $0.97 $0.96 $1.11 $1.05

Pentane+ $1.30 $1.43 $1.55 $1.34

NYMEX Gas Futures as of 01-Nov-18 Close ($/mmbtu)

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

12 Mo. Strip $2.85 $2.91 $2.85 $2.94

2018 $3.24 $3.23 $2.86 $2.94

2019 $2.83 $2.84 $2.74 $2.89

2020 $2.67 $2.67 $2.71 $2.87

2021 $2.61 $2.60 $2.73 $2.88

2022 $2.74 $2.73 $2.88 $3.03

NYMEX WTI Futures as of 01-Nov-18 Close ($/bbl) NYMEX Gas Futures as of 01-Nov-18 Close ($/mmbtu)

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

12 Mo. Strip $64.14 $67.48 $64.91 $53.94

2018 $63.69 $67.33 $66.19 $53.94

2019 $64.15 $67.43 $61.33 $51.48

2020 $62.51 $65.11 $56.43 $50.22

2021 $59.96 $62.10 $53.26 $49.73

2022 $57.63 $59.43 $51.41 $49.80

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]

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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



9

November 5, 2018

AECO

Northern

California

Sumas

Southern

California

El Paso - SJ

Waha

HSC

Henry Hub

Panhandle

CIG Chicago

Dominion

Transco

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 01-NOV-18

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 01-NOV-18

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]

$75.47

$11.78

$30.19

($33.50)

$58.32

($5.37)

$63.69

($0.88)

$42.69

($21.00)

$71.44

$7.75

$2.79

($0.45)

$3.48

$0.24

$3.24

$3.01

($0.23)

$3.39

$0.15

$1.64

($1.60)

$2.79

($0.45)$2.63

($0.61)$4.04

$0.80

$3.62

$0.38

$6.99

$3.75

$1.84

($1.40)

$2.75

($0.49)

10

November 5, 2018

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

Rig Count 487 (2) 489 Oil Differential ($5.65) $1.60 ($7.25)

Permitting Activity 187 (132) 319 Gas Differential ($1.51) $0.20 ($1.71)

0%

10%

20%

30%

40%

50%

--

100

200

300

400

500

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

H V+D % of Total Rigs

-$1.95

-$1.30

-$0.65

$0.00

$0.65

Jan-15 Nov-15 Sep-16 Jul-17 May-18

-$18.00

-$12.00

-$6.00

$0.00

$6.00

$ /

mm

btu

$ /

bb

l

Midland Waha

--$10,000$20,000$30,000$40,000$50,000$60,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

acre

# Deals

$21,225

--

$50,000

$100,000

$150,000

$200,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

3 7 9 5 1 2 6 9 5 7 11 9 9 6 1 0 7 1 5 2

$ /

bo

e/d

# Deals

$122,200

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

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

01-Nov-18 Undisclosed Buyer Parsley Energy LP 11,850 net acres in Midland Basin $170 n.a. $141,667 $14,346

17-Oct-18 Earthstone Energy Inc Sabalo Energy 20,800 net acres in Midland Basin $976 $10.73 $87,143 $46,923

25-Sep-18 Undisclosed Buyer W&T Offshore Royalty interests in 25,493 net acres $57 n.a. n.a. nmf

11-Sep-18 Carlyle Group Diamondback Energy JV in Pecos Co., TX; Carlyle funds ~85% $527 n.a. n.a. n.a.

07-Sep-18 Matador Resources Bureau of Land Mgmt. 8,400 net acres in Lea and Eddy, NM $387 $23.74 n.a. $46,071

Mean $423 $17.23 $114,405 $35,780

Median $387 $17.23 $114,405 $46,071



5,000

6,000

7,000

8,000

9,000

10,000

1,000

1,500

2,000

2,500

3,000

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

mm

cf/

d

mb

bl/

d

Oil Gas2,867

9,321

873

1,123

805

1,053990

1,1791,157

1,298

1,0931,159

1,225

1,009

1,229

Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18

H V+D

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


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 10-Jan-15. 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.

[TBU]

[TBU]

[TBU] [TBU]

[TBU] [TBU]

[TBU]

11

November 5, 2018


Rig Count 97 -- 97 Oil Differential $7.85 ($0.15) $8.00

Permitting Activity 89 (22) 111 Gas Differential $0.12 ($0.10) $0.22

0%

5%

10%

15%

20%

--

100

200

300



-$0.30

-$0.20

-$0.10

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50


-$6.00

-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS HSC

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


mm

cf/

d

mb

bl/

d

Oil Gas

1,501

8,430

371 375 386419

449

377425 470 435

375

456

319

424


H V+D

--$10,000$20,000$30,000$40,000$50,000$60,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

acre

# Deals

$10,222

--

$50,000

$100,000

$150,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

3 6 3 2 1 1 3 1 2 2 2 4 4 3 1 2 7 2 0 2

$ /

bo

e/d

# Deals

$64,268

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

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

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

03-May-18 Apollo Global Management EP Energy Corp Eagle Ford JV in La Salle County, TX $38 n.a. n.a. n.a.

02-Apr-18 NextEra Energy Inc Comstock 9,900 net acres in South TX Eagle Ford $125 $14.12 $49,466 $12,626

Mean $2,145 $14.12 $49,466 $7,185

Median $38 $14.12 $49,466 $7,185



Eagle Ford Snapshot



DIFFERENTIALS RIG COUNT







GROSS PRODUCTION

12

November 5, 2018



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

0%

5%

10%

15%

20%

--

20

40

60

80



--

$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

5,000

6,000

7,000

8,000

9,000

10,000

80

90

100

110

120

130

140


mm

cf/

d

mb

bl/

d

Oil Gas

101

9,752

210

163

120

164180

237

152160 141 136 146

126145


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

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

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

19-Jul-18 Comstock Enduro Resource Partners 9,900 net acres in North Louisiana $31 $0.11 $1,192 $3,131

Mean $2,165 $0.90 $3,846 $4,964

Median $100 $0.90 $3,846 $3,131



--

$5,000

$10,000

$15,000

$20,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

acre

# Deals

$4,886

--

$5,000

$10,000

$15,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

mcfe

/d

# Deals

$5,901

Ark-La-Tex Snapshot








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


GROSS PRODUCTION

13

November 5, 2018


Rig Count 74 (1) 75 Oil Differential $9.20 ($0.36) $9.56

Permitting Activity 25 (93) 118 Gas Differential ($0.47) ($0.26) ($0.21)

0%

5%

10%

15%

20%

--

50

100

150



-$3.00

-$2.00

-$1.00

$0.00

$1.00

$2.00

$3.00


-$15.00

-$10.00

-$5.00

$0.00

$5.00

$10.00

$15.00

$ /

mm

btu

$ /

bb

l

Brent Dominion

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

30,000

50

70

90

110

130

150


mm

cf/

d

mb

bl/

d

Oil Gas

115

27,303453395

347390 367

454

282328 299 269

491

370315


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

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

29-Jun-18 Ascent Resources LLC CNX Resources; Hess 78,000 acres in the Utica $800 n.a. $4,762 $10,256

Mean $860 $0.62 $8,674 $9,079

Median $700 $0.62 $4,762 $7,257



--

$10,000

$20,000

$30,000

$40,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

mcfe

/d

# Deals

$5,999

--

$5,000

$10,000

$15,000

$20,000

$25,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

acre

# Deals

$3,707

Appalachia Snapshot








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


GROSS PRODUCTION

14

November 5, 2018

-$1.00

-$0.50

$0.00

$0.50


-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG


Rig Count 56 -- 56 Oil Differential ($21.00) ($13.00) ($8.00)


0%

5%

10%

15%

20%

--

50

100

150

200



1,100

1,300

1,500

1,700

1,900

2,100

2,300

800

900

1,000

1,100

1,200

1,300

1,400


mm

cf/

d

mb

bl/

d

Oil Gas

1,232

2,214156136

92111 104

125108

138126

171 164

127

176


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

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.

25-Jun-18 Riverbend Oil & Gas LLC Oasis Petroleum 10,167 net acres in Williston Basin $153 n.a. $49,196 $15,049

Mean $146 $6.04 $57,234 $23,336

Median $152 $6.04 $45,952 $27,196



--

$5,000

$10,000

$15,000

$20,000

$25,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

acre

# Deals

$3,992

--

$50,000

$100,000

$150,000

$200,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

bo

e/d

# Deals

$44,564

Bakken Snapshot










GROSS PRODUCTION

15

November 5, 2018

-$1.00

-$0.50

$0.00

$0.50


-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG


Rig Count 71 -- 71 Oil Differential ($21.00) ($13.00) ($8.00)

Permitting Activity 162 90 72 Gas Differential ($0.46) ($0.26) ($0.20)

0%

5%

10%

15%

20%

--

50

100

150



11,500

12,000

12,500

13,000

13,500

14,000

400

450

500

550

600

650

700

750

800


mm

cf/

d

mb

bl/

d

Oil Gas745

13,120

570622 653

435 460

650

327

456551

665

523 510

663


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

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

09-Aug-18 Undisclosed Buyer Ultra Petroleum ~8,000 net acres in the Uinta $75 n.a. $37,500 $9,375

10-Jul-18 Middle Fork Energy Part. QEP Resources Inc ~230,000 net acres in the Uinta $155 $1.54 $17,222 $674

Mean $192 $1.54 $50,054 $4,135

Median $150 $1.54 $47,052 $2,727



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

$100,000$120,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

4 7 3 4 2 0 4 4 1 6 2 0 1 6 3 9 3 1 3 1

$ /

bo

e/d

# Deals

$40,251

--

$5,000

$10,000

$15,000

$20,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

3 7 2 2 0 0 3 3 0 1 1 0 1 0 1 5 2 0 2 1

$ /

acre

# Deals

$4,226



DIFFERENTIALS

Rockies (excl. Bakken) Snapshot

RIG COUNT







GROSS PRODUCTION

16

November 5, 2018


Rig Count 157 1 156 Oil Differential -- -- --


0%

5%

10%

15%

20%

--

100

200

300

400



-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25


-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25

$ /

mm

btu

$ /

bb

l

Cushing Panhandle

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

400

450

500

550

600

650

700


mm

cf/

d

mb

bl/

d

Oil Gas

595

10,093

260

365 346392

351 354 366 355

427367

414366

313


H V+D

--

$50,000

$100,000

$150,000

$200,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

bo

e/d

# Deals

$53,482

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

04-Sep-18 Flywheel Energy LLC Southwestern Energy 915,000 net acres in Fayetteville Shale $1,865 $3.04 $15,629 $2,038

06-Aug-18 Franco Nevada Corp Continental Resources Inc Mineral rights JV in the SCOOP/STACK $220 n.a. n.a. nmf

02-Aug-18 Sanguine Gas Exploration Vanguard Natural Res. 9,530 net acres in the Arkoma Basin $23 $4.79 $24,981 $2,403

31-Jul-18 Undisclosed Buyer Chaparral Energy Non-core assets in TX and OK $27 n.a. $19,536 n.a.

31-Jul-18 Scout Energy Partners Pioneer 239,500 net acres in West Panhandle $201 n.a. n.a. $839

Mean $467 $3.91 $20,048 $1,760

Median $201 $3.91 $19,536 $2,038



--

$5,000

$10,000

$15,000

$20,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

acre

# Deals

$6,841

Mid-Continent Snapshot










GROSS PRODUCTION

17

November 5, 2018



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

0%

5%

10%

15%

20%

--

10

20

30

40


Deep Water Shelf % of Total Rigs

--

$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

2,000

2,500

3,000

3,500

4,000

4,500

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900


mm

cf/

d

mb

bl/

d

Oil Gas1,699

2,667

10

2321

24

13

19

27

3329 29 32

33

24


Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

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

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.

27-Apr-18 Stone Energy Shell; ExxonMobil; Anadarko GOM Ram Powell assets $234 n.a. $38,361 n.a.

28-Mar-18 W&T Offshore Cobalt International Energy 9.375% non-op WI in the Heidelberg unit $31 $23.92 $9,345 n.a.

12-Mar-18 Total Cobalt International Energy Non-op interest in 13 blocks $25 n.a. n.a. n.a.

Mean $256 $19.46 $32,581 n.a.

Median $91 $19.46 $30,156 n.a.



--

$20,000

$40,000

$60,000

$80,000

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

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

$ /

bo

e/d

# Deals

$29,039

--

$10

$20

$30

$40

1Q

14

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

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

3Q

18

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

$ /

bo

e

# Deals

$15.40

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.


GROSS PRODUCTION


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

18

November 5, 2018

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

August 2018 Aug 19-22 Enercom Oil & Gas Conference

Aug 21 Houston Producers Forum Luncheon

September 2018 Sep 24-26 SPE Annual Technical Conference and Exhibition

November 2018 Nov 5-7 Executive Oil Conference

Nov 7-9 IADC Annual General Meeting

Nov 9 Rice Energy Finance Summit 2018

Nov 11-13 IPAA Annual Meeting

Nov 11-13 AICPA Oil & Gas Conference

Nov 13-15 DUG Midcontinent

Nov 14 IPAA Leaders in Industry Luncheon

Nov 16 ADAM-Houston Monthly Luncheon

Nov 28 Houston Producers Forum Luncheon

July 2019 Jul 16 Houston Producers Forum Luncheon

Jul 19 ADAM-Houston Monthly Luncheon

December 2018 Dec 3-5 Marcellus-Utica Midstream Conference & Exhibition

Dec 12 IPAA Leaders in Industry Luncheon

Dec 18 Houston Producers Forum Luncheon

Dec 21 ADAM-Houston Monthly Luncheon

January 2019 Jan 15 Houston Producers Forum Luncheon

Jan 18 ADAM-Houston Monthly Luncheon

Jan 24 IPAA Private Capital Conference

February 2019 Feb 5-7 SPE Hydraulic Fracturing Technology Conference

Feb 11-15 NAPE Summit Week

Feb 15 ADAM-Houston Monthly Luncheon

Feb 19 Houston Producers Forum Luncheon

Feb 19-20 DUG Haynesville

March 2019 Mar 5-7 IADC/SPE Drilling Conference

Mar 15 ADAM-Houston Monthly Luncheon

Mar 19 Houston Producers Forum Luncheon

Mar 26-28 International Petroleum Technology Conference

April 2019 Apr 8-10 IPAA Oil & Gas Investment Symposium

Apr 15-17 DUG Permian

Apr 16 Houston Producers Forum Luncheon

Apr 19 ADAM-Houston Monthly Luncheon

ADAM-Houston Monthly Luncheon – 3rd Friday

Houston Producers Forum Luncheon – 3rd Tuesday

2019

Nov 19 IPAA Oil & Gas for Newcomers

Nov 19-21 DUG Midcontinent

July 2018 Jul 23-25 SPE Unconventional Resources Technology

May 2019 May 6-9 Offshore Technology Conference

May 13-17 SPE Electric Submersible Pumps Symposium

May 14-15 DUG Rockies

May 14 Houston Producers Forum Luncheon

May 17 ADAM-Houston Monthly Luncheon

June 2019 Jun 5-6 Midstream Texas Conference & Exhibition

Jun 18 Houston Producers Forum Luncheon

Jun 18-20 DUG East

Jun 21 ADAM-Houston Monthly Luncheon

Jun 24-26 IPAA Midyear 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

October 2018 Oct 22-23 Midstream Finance Conference

Oct 23-24 IADC International Well Control 2018 Conference

Oct 23-25 SPE Asia Pacific Oil & Gas Conference

Covering the Week of October 19 to October 25, 2018

September 2019 Sep 17 Houston Producers Forum Luncheon

Sep 20 ADAM-Houston Monthly Luncheon

Sep 24-26 DUG Eagle Ford

Sep 30-Oct 2 SPE Annual Technical Conference and Exhibition

http://www.theoilandgasconference.com/





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



http://www.atce.org/welcome






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





http://www.iadc.org/event/2018-iadc-annual-general-meeting/





https://business.rice.edu/continuous-evolution-global-energy-industry



http://www.ipaa.org/events/annual-meeting-2018/





https://www.aicpastore.com/ManagementAccounting/aicpa-oil---gas-conference/PRDOVR~PC-OIL/PC-OIL.jsp






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





http://www.ipaa.org/events/leaders-industry-luncheon-november-2018/



http://adamhouston.org/events

















https://www.hartenergyconferences.com/marcellus-utica-midstream







http://www.ipaa.org/events/leaders-industry-luncheon-december-2018/
























http://www.ipaa.org/events/private-capital-conference-2019/



http://www.spe.org/events/en/2019/conference/19hftc/hydraulic-fracturing-conference-woodlands-texas





http://napeexpo.com/summit















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





https://www.spe.org/en/events/drilling-conference/home/














http://www.iptcnet.org/19iptc/home/?_ga=2.149135166.98797786.1524242931-1252836126.1522358097





http://www.ipaa.org/events/





https://www.hartenergyconferences.com/dug-permian-basin













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


https://www.ipaa.org/events/summer-nape-2019/








http://urtec.org/2018/





http://2019.otcnet.org/





http://www.spe.org/events/en/2019/symposium/19esp/electric-submersible-pumps-symposium.html





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















https://www.hartenergyconferences.com/midstream-texas








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











https://www.ipaa.org/events/midyear-meeting-2019/











https://www.ipaa.org/events/oil-gas-overview-course-august-2019/








http://napeexpo.com/summer






https://www.hartenergyconferences.com/midstream-finance





http://www.iadc.org/event/wc2018/





http://www.spe.org/events/en/2018/conference/18apog/asia-pacific-oil-and-gas-conference-and-exhibition.html





















https://www.spe.org/events/calendar/





19

November 5, 2018

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.

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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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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

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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

Geoff Roberts

MD & Co-Head of U.S. A&D

713-518-1268

[email protected]

Jason Martinez

MD & Co-Head of U.S. A&D

713-546-9771

[email protected]

Howard Barnwell

MD & Transactions Mgr.

713-546-9767

[email protected]

Rob Priske

Director & Transactions Mgr.

713-546-9727

[email protected]

Marian Yu

Associate

Elliott Finch

Analyst

Aaron Moeller

Analyst

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.

487

(2)

56

--

20

1

54

(2)27

--

18

--

25

(2)112

5

59

--

97

--

26

1

7

--

15

--18

--

This

Week Change

Last

Week

Last

Year

Total Rigs 1,067 (1) 1,068 898

Oil 874 (1) 875 729

Gas 193 -- 193 169

Miscellaneous -- -- -- --

Directional 73 -- 73 73

Horizontal 929 2 927 764

Vertical 65 (3) 68 61

Basin

Permian 487 (2) 489 380

SCOOP/STACK/Merge 112 5 107 94

Granite Wash 25 (2) 27 18

Eagle Ford 97 -- 97 82

Haynesville 59 -- 59 54

Marcellus 54 (2) 56 43

Utica 20 1 19 30

Williston 56 -- 56 48

DJ-Niobrara 27 -- 27 26

Green River 18 -- 18 22

Powder River 15 -- 15 9

Piceance 7 -- 7 8

Gulf Coast Onshore 26 1 25 17

GOM 18 -- 18 18

Alaska 5 -- 5 5

Other 41 (2) 43 44

Mid-Con 20 (2) 22 22

Rockies 4 -- 4 5

Western 15 -- 15 14

Eastern 2 -- 2 3

[TBU]

Chelsea Neville

Transactions Coordinator

Prompt Oil Price ($/bbl) $63.69 ($3.64) (5.4%) Prompt Gas ... · 01-Nov-18 Undisclosed Buyer Parsley Energy LP Permian 11,850 net acres in Midland Basin $170 n.a. $141,667 $14,346

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