1 October 29, 2018 Indicator Current Value Week's Change % Change Direction Prompt Oil Price ($/bbl) $67.33 ($1.32) (1.9%) Prompt Gas Price ($/mmbtu) $3.20 -- -- Wkly Trans. Value ($mm) $1 ($1,275) (100%) Wkly Trans. Count 3 1 50% US Rig Count 1,068 1 0.1% US Oil Prod'n (mmbbl/d) 10.9 -- -- US Gas Prod'n (bcf/d) (1) 100.2 -- -- US Oil Storage (mmbbl) 422.8 6.3 1.5% US Gas Storage (tcf) 3.1 0.1 1.9% $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 $2.8 -- 50 100 150 200 250 300 350 400 450 500 -- $5 $10 $15 $20 $25 $30 $35 $40 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% Number of Transactions Transaction Value ($bn) Asset Corporate Number of Transactions % Oil Debt Markets Three issuers priced four tranches for $3.9 billion in proceeds Year-to-date U.S. volume is down 32% year-on-year U.S. high yield funds reported an outflow of $2.4 billion ETFs reported an outflow of $1.85 billion, while mutual funds reported an outflow of $513 million High yield index yield was 6.77%; high yield energy index yield was 7.28% Royale Energy, Inc. announced that it entered into a joint venture with California Resources Corporation to drill 30 wells throughout the Rio Vista field in California Wishbone Energy’s Central Basin Platform asset is on the market (see page 4 for more detail) 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 July 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 (10.1)% vs. SPX (2) (2.3)% It was another volatile week in the equity markets. Major U.S. equity indexes finished lower. Sector performance was mixed. Consumer discretionary, financials, health care, industrials, materials, and tech were all down. Consumer staples and real estate traded up Equity Markets Oil ended last week down as tensions with Saudi Arabia continued. The Saudis originally said that they and their allies were in “produce as much as you can mode.” OPEC then changed and said it might curb output heading into 2019. The Trump administration might slow down the 2020 implementation of shipping fuel restrictions, which would be painful for U.S. refiners who are well-equipped at this point to produce the lower sulfur fuel. The near-term contract closed down $1.32, or 1.9%, at $67.33 Natural gas ended last week unchanged. Gas storage increased. The near-term contract closed unchanged at $3.20 Commodities Week in Review Covering the Week of October 19 to October 25, 2018
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2. Calculated as percentage of total LTM transaction count (number of transactions, not dollar value).
3. 58 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 --->
[TBU]
[TBU]
[TBU]
3
October 29, 2018
10/20/2018
Appalachia 2
Ark-La-Tex 6
Bakken 6
Eagle Ford 6
Mid-Con 8
Other 15
Permian 19
Rockies 10
72
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
19 Deals
Other
15 Deals
Rockies
10 Deals
(Click headline to link to the full article)
A&D Headlines
Bakken
6 Deals
Ark-La-Tex
6 Deals
No Energy Policy, No Problem for U.S. Oil Producers
U.S. Shale Has a Glaring Problem
U.S. Shale Producers Eye Global Pricing as Exports
Surge
Overshadowed by Permian, But Eagle Ford Making Its
Own Comeback
Natural Gas Prices Plummet in Western Canada
In Colorado, a Bitter Battle Over Oil, Gas and the
Environment Comes to a Head
Schlumberger Counting on International Business to
Offset Permian Headwinds
Royale Signs Joint Venture to Expand Drilling in Rio
Vista Field
Permian Explorer Endeavor Energy Eyes Potential
Sale
BMO Deals (Status)
Wishbone CBP (In Market) – Pg. 4
[TBU]
[TBU] [TBU]
Covering the Week of October 19 to October 25, 2018
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 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.
Asset descriptions are all hard-coded and need to
be adjusted if new deals are added
[TBU]
[TBU]
[TBU] [TBU]
[TBU] [TBU]
[TBU]
8
October 29, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-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.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
9
October 29, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-15. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, and 2018.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
10
October 29, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-15. Calculated as the weighted average of each quarter’s transactions.
4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, and 2018.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
11
October 29, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-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.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
12
October 29, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-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.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
13
October 29, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 156 (1) 157 Oil Differential -- -- --
Permitting Activity 38 (49) 87 Gas Differential ($0.36) $0.08 ($0.43)
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.
3. Red line denotes average since 01-Jan-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.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)
GROSS PRODUCTION
14
October 29, 2018
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Note: Current quarter’s data is through the week covered by this issue.
1. Permits include directional and unidentified drilling permits. 2. Represents total enterprise value. Excludes transactions with deal value <$20 million.
3. $/acre multiple not adjusted for value associated with production.
4. Red line denotes average since 01-Jan-15. Calculated as the weighted average of each quarter’s transactions.
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
GROSS PRODUCTION
TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)
TRANSACTION PRODUCTION MULTIPLES(4) TRANSACTION PROVED RESERVE MULTIPLES(4)
15
October 29, 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 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 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
Jan 29-31 Marcellus-Utica Midstream Conference & Exhibition
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
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All values in this document are in US$ unless otherwise specified.
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.