oil & gas - m&a transactions summary

OIL & GASMergers & Acquisitions AnalysisSeptember 2015Alps Venture Partners

TRANSACTION MULTIPLES | HISTORICAL TRENDS | GEOGRAPHIC HEAT MAP

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Merger & Acquisition Summary – Oil & GasValuation Summary

Total Deal Value ($mm) 786,950

Average Deal Value ($mm) 886

Average TEV/Revenue 4.2x

Average TEV/EBITDA 12.5x

Average Day Prior Premium (%) 19%

Average Week Prior Premium (%) 21%

Average Month Prior Premium (%) 22%

*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015

info@alpsvp.com

Transaction Ranges

Greater than $1 billion 121

$500 - $999.9 mm 50

$100 - $499.9 mm 227

Less than $100 mm 485

2pageA L P S V E N T U RE P A R T N E R S

Transaction Multiples – Oil & Gas Trends

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 20150.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

4.1x 4.9x3.9x 4.3x 4.2x 3.5x

15.5x17.2x

10.5x 10.2x 10.0x8.7x

Average TEV/RevenueAverage TEV/EBITDA

Mul

tiple

s

Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year

Average TEV/Revenue 4.1x 4.9x 3.9x 4.3x 4.2x 3.5x 4.3x

Average TEV/EBITDA 15.5x 17.2x 10.5x 10.2x 10.0x 8.7x 12.7x

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3pageA L P S V E N T U RE P A R T N E R S

Transaction Numbers – Oil & Gas Trends

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 2015 -

20

40

60

80

100

120

20 26

19 21 22 13

12 10 10 8 7 3

40 47 45

38 40

17

96 100 90

68

91

40

> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm

Num

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f Tra

nsac

tions

(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year

Average Deal Value 828 667 837 1,098 966 1,110 879

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OIL & GAS DRILLING – HISTORICAL TREND ANALYSIS

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Merger & Acquisition Summary – Oil & Gas Drilling

Valuation Summary

Total Deal Value ($mm) 20,175

Average Deal Value ($mm) 504

Average TEV/Revenue 3.0x

Average TEV/EBITDA 8.3x

Average Day Prior Premium (%) 18%

Average Week Prior Premium (%) 18%

Average Month Prior Premium (%) 18%

*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015

info@alpsvp.com

Transaction Ranges

Greater than $1 billion 4

$500 - $999.9 mm -

$100 - $499.9 mm 8

Less than $100 mm 28

5pageA L P S V E N T U RE P A R T N E R S

Transaction Multiples – Oil & Gas Drilling

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 20150.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

2.7x3.1x

1.6x2.6x 2.6x

5.6x

9.9x10.4x

5.0x

7.8x

5.6x 5.6xAverage TEV/RevenueAverage TEV/EBITDA

Mul

tiple

s

Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year

Average TEV/Revenue 2.7x 3.1x 1.6x 2.6x 2.6x 5.6x 2.5x

Average TEV/EBITDA 9.9x 10.4x 5.0x 7.8x 5.6x 5.6x 7.7x

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6pageA L P S V E N T U RE P A R T N E R S

Transaction Numbers - Oil & Gas Drilling

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 2015 -

1

2

3

4

5

6

7

8

9

2 2

- - - - - - - - - -

1

3

1 1 1 1

8

5 5

3 3

4 > $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm

Num

ber o

f Tra

nsac

tions

(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year

Average Deal Value 508 1,365 55 49 46 44 405

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7pageA L P S V E N T U RE P A R T N E R S

Geographic Heat Map - Oil & Gas Drilling

*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;

Asia Pacific – 13% Americas – 62% Europe/MENA/Africa – 25%

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 Region / Transactions Number Total Value Average Size

Asia Pacific 5 232 46 Europe/MENA/Africa 10 7,846 785 Americas 25 12,098 484

8pageA L P S V E N T U RE P A R T N E R S

Biggest Transactions - Oil & Gas Drilling

Target Deal Value ($mm)

Pride International Inc. 9,219

Frontier Drilling ASA 4,003

Transocean Norway Drilling AS 3,436

Scorpion Offshore Limited 1,074

Bronco Drilling Co. Inc. 343

Union Drilling, Inc. 244

Stoneham Drilling Trust 243

Compania Perforadora Mexico, S.A. DE C.V. 240

Caroil SAS 209

Northern Offshore Ltd 184

*Source – CapitalIQ, AlpsVP Analysisinfo@alpsvp.com

OIL & GAS REFINING & MARKETING – HISTORICAL TREND ANALYSIS

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Merger & Acquisition Summary – Refining & Marketing

Valuation Summary

Total Deal Value ($mm) 79,886

Average Deal Value ($mm) 832

Average TEV/Revenue 1.1x

Average TEV/EBITDA 12.6x

Average Day Prior Premium (%) 3%

Average Week Prior Premium (%) 5%

Average Month Prior Premium (%) 9%

*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015

info@alpsvp.com

Transaction Ranges

Greater than $1 billion 12

$500 - $999.9 mm 5

$100 - $499.9 mm 25

Less than $100 mm 51

10

pageA L P S V E N T U RE P A R T N E R S

Transaction Multiples – Refining & Marketing

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 20150.0x

5.0x

10.0x

15.0x

20.0x

25.0x

0.5x 0.6x 0.7x

3.1x1.8x

0.6x

20.9x

9.4x

6.8x

13.9x

18.2x

10.9xAverage TEV/RevenueAverage TEV/EBITDA

Mul

tiple

s

Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year

Average TEV/Revenue 0.5x 0.6x 0.7x 3.1x 1.8x 0.6x 1.3x

Average TEV/EBITDA 20.9x 9.4x 6.8x 13.9x 18.2x 10.9x 13.9x

info@alpsvp.com

pageA L P S V E N T U RE P A R T N E R S

Transaction Numbers - Refining & Marketing

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 2015 -

2

4

6

8

10

12

14

1 2

4

2 1

2

- 1 1

- 1

2

5 4

5 4 4

3

11

5

11

6 6

12

> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm

Num

ber o

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tions

(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year

Average Deal Value 211 890 1,518 456 277 1,157 670

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11

pageA L P S V E N T U RE P A R T N E R S

Geographic Heat Map - Refining & Marketing

*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;

Asia Pacific – 40% Americas – 40% Europe/MENA/Africa – 20%

info@alpsvp.com

 Region / Transactions Number Total Value Average Size

Asia Pacific 39 29,840 765 Europe/MENA/Africa 19 4,519 238 Americas 38 45,527 1,198

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pageA L P S V E N T U RE P A R T N E R S

Biggest Transactions - Refining & Marketing

Target Deal Value ($mm)

Regency Energy Partners LP 18,823

GS Caltex Corp. 14,105

Sunoco, Inc. 8,712

PTT Aromatics and Refining Public Company Limited 5,670

EMG Marketing Godo Kaisha 4,966

Alliance Oil Company Ltd. 3,668

Frontier Oil Corp. 3,241

CVR Energy, Inc. (NYSE:CVI) 3,231

OMV Petrol Ofisi AS 2,333

S-Oil Corporation (KOSE:A010950) 1,950

*Source – CapitalIQ, AlpsVP Analysisinfo@alpsvp.com

13

OIL & GAS STORAGE & TRANSPORTATION – HISTORICAL TREND ANALYSIS

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Merger & Acquisition Summary – Storage & Transportation

Valuation Summary

Total Deal Value ($mm) 227,435

Average Deal Value ($mm) 1,602

Average TEV/Revenue 5.0x

Average TEV/EBITDA 14.2x

Average Day Prior Premium (%) 15%

Average Week Prior Premium (%) 17%

Average Month Prior Premium (%) 18%

*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015

info@alpsvp.com

Transaction Ranges

Greater than $1 billion 29

$500 - $999.9 mm 10

$100 - $499.9 mm 34

Less than $100 mm 69

14

pageA L P S V E N T U RE P A R T N E R S

Transaction Multiples – Storage & Transportation

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 20150.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

3.1x

6.9x

3.9x 4.3x6.0x

4.7x

12.2x

24.2x

11.1x13.3x 13.2x 12.6x

Average TEV/RevenueAverage TEV/EBITDA

Mul

tiple

s

Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year

Average TEV/Revenue 3.1x 6.9x 3.9x 4.3x 6.0x 4.7x 4.8x

Average TEV/EBITDA 12.2x 24.2x 11.1x 13.3x 13.2x 12.6x 14.8x

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15

pageA L P S V E N T U RE P A R T N E R S

Transaction Numbers - Storage & Transportation

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 2015 -

2

4

6

8

10

12

14

16

18

2

5 5 5

8

4

3

1 2 2 2

-

6 7

3

8

6

4

8

16 15

10

17

3

> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm

Num

ber o

f Tra

nsac

tions

(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year

Average Deal Value 930 459 2,466 589 3,105 1,599 1,510

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16

pageA L P S V E N T U RE P A R T N E R S

Geographic Heat Map - Storage & Transportation

*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;

Asia Pacific – 26% Americas – 51% Europe/MENA/Africa – 23%

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 Region / Transactions Number Total Value Average Size

Asia Pacific 37 6,886 186 Europe/MENA/Africa 32 11,038 345 Americas 73 209,510 2,870

17

pageA L P S V E N T U RE P A R T N E R S

Biggest Transactions - Storage & Transportation

Target Deal Value ($mm)

Kinder Morgan Energy Partners, L.P. 62,938

El Paso LLC 35,658

Kinder Morgan Management, LLC 10,840

Enterprise ETE LLC 9,610

Southern Union Co. 9,377

El Paso Pipeline Partners, L.P. 8,622

Southern Union Co. 8,581

Atlas Energy, L.P 8,258

PVR Partners, L.P. 5,527

Oiltanking Partners, L.P. 5,156

*Source – CapitalIQ, AlpsVP Analysisinfo@alpsvp.com

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OIL & GAS EXPLORATION & PRODUCTION – HISTORICAL TREND ANALYSIS

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Merger & Acquisition Summary – Exploration & Production

Valuation Summary

Total Deal Value ($mm) 277,268

Average Deal Value ($mm) 843

Average TEV/Revenue 6.6x

Average TEV/EBITDA 13.9x

Average Day Prior Premium (%) 26%

Average Week Prior Premium (%) 28%

Average Month Prior Premium (%) 29%

*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015

info@alpsvp.com

Transaction Ranges

Greater than $1 billion 50

$500 - $999.9 mm 20

$100 - $499.9 mm 83

Less than $100 mm 175

19

pageA L P S V E N T U RE P A R T N E R S

Transaction Multiples – Exploration & Production

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 20150.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

3.1x

6.9x

3.9x 4.3x6.0x

4.7x

12.2x

24.2x

11.1x13.3x 13.2x 12.6x

Average TEV/RevenueAverage TEV/EBITDA

Mul

tiple

s

Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year

Average TEV/Revenue 7.3x 7.5x 6.2x 6.3x 5.4x 6.2x 7.3x

Average TEV/EBITDA 20.1x 21.1x 9.3x 10.6x 9.1x 4.7x 20.1x

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20

pageA L P S V E N T U RE P A R T N E R S

Transaction Numbers - Exploration & Production

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 2015 -

5

10

15

20

25

30

35

40

45

50

10 9 5

9 12

5 4 3 4

6 2 1

13 16

20

13 17

4

38

43

26 23

34

11

> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm

Num

ber o

f Tra

nsac

tions

(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year

Average Deal Value 1,081 726 467 1,184 595 1,411 811

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21

pageA L P S V E N T U RE P A R T N E R S

Geographic Heat Map - Exploration & Production

*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;

Asia Pacific – 16% Americas – 71% Europe/MENA/Africa – 13%

info@alpsvp.com

 Region / Transactions Number Total Value Average Size

Asia Pacific 51 22,375 439 Europe/MENA/Africa 42 23,737 565 Americas 236 231,156 979

22

pageA L P S V E N T U RE P A R T N E R S

Biggest Transactions - Exploration & Production

Target Deal Value ($mm)

XTO Energy Inc. 40,764

Nexen Energy ULC 19,222

Petrohawk Energy Corporation 15,754

Talisman Energy Inc. 13,518

Freeport-McMoRan Oil & Gas Inc. 11,404

EP Energy LLC 8,187

Athlon Energy Inc. 6,980

DEA Deutsche Erdoel AG 6,268

Whiting Canadian Holding Company ULC 6,129

Cairn India Limited (NSEI:CAIRN) 6,023

*Source – CapitalIQ, AlpsVP Analysisinfo@alpsvp.com

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OIL & GAS EQIPMENTS & SERVICES – HISTORICAL TREND ANALYSIS

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Merger & Acquisition Summary – Equipment & Services

Valuation Summary

Total Deal Value ($mm) 87,641

Average Deal Value ($mm) 358

Average TEV/Revenue 2.4x

Average TEV/EBITDA 11.3x

Average Day Prior Premium (%) 20%

Average Week Prior Premium (%) 21%

Average Month Prior Premium (%) 23%

*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015

info@alpsvp.com

Transaction Ranges

Greater than $1 billion 18

$500 - $999.9 mm 11

$100 - $499.9 mm 65

Less than $100 mm 150

24

pageA L P S V E N T U RE P A R T N E R S

Transaction Multiples – Equipment & Services

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 20150.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

2.3x 2.2x 2.5x 2.9x2.1x 2.4x

10.6x

16.4x

12.2x

8.1x 7.5x9.1x Average TEV/Revenue

Average TEV/EBITDA

Mul

tiple

s

Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year

Average TEV/Revenue 2.3x 2.2x 2.5x 2.9x 2.1x 2.4x 2.4x

Average TEV/EBITDA 10.6x 16.4x 12.2x 8.1x 7.5x 9.1x 10.9x

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25

pageA L P S V E N T U RE P A R T N E R S

Transaction Numbers - Equipment & Services

*Source – CapitalIQ, AlpsVP Analysis;

2010 2011 2012 2013 2014 2015 -

5

10

15

20

25

30

35

4 5 5 2

- 2 3 4

2 -

2 -

15 15

10 9 11

5

28 28

33

26 27

8

> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm

Num

ber o

f Tra

nsac

tions

(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year

Average Deal Value 568 364 313 202 134 770 316

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26

pageA L P S V E N T U RE P A R T N E R S

Geographic Heat Map - Equipment & Services

*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;

Asia Pacific – 23% Americas – 46% Europe/MENA/Africa – 31%

info@alpsvp.com

 Region / Transactions Number Total Value Average Size

Asia Pacific 56 9,176 164 Europe/MENA/Africa 77 16,753 218 Americas 112 61,712 551

27

pageA L P S V E N T U RE P A R T N E R S

Biggest Transactions - Equipment & Services

Target Deal Value ($mm)

Smith International, Inc. 14,647

Dresser-Rand Group Inc. 7,628

BJ Services Company LLC 5,761

Lufkin Industries Inc. 3,387

Complete Production Services, Inc. 3,310

Dresser, Inc. 3,200

Subsea 7 Inc. 3,085

Wood Group ESP, Inc. and Wood Group Pressure Control, LP and Wood Group Logging Services, Inc. 2,850

Nabors Red Lion Limited 2,407

SapuraKencana Petroleum Berhad (KLSE:SKPETRO) 2,313

*Source – CapitalIQ, AlpsVP Analysisinfo@alpsvp.com

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