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1
October 3, 2016
OPEC members apparently agreed to a production cut on Thursday, which sent both Brent and WTI up by almost $3. As
in the past there will be a close watch on actual production numbers going forward. And, Russia has no part in this
agreement. Still, the market reaction was sustained and the near-term contract closed the week up $3.76, or 8.5%, at
$48.24.
Not much change in the natural gas markets this week as the some of the frothiness around the prompt month rolling off
didn’t lead to much actual movement. Hurricane Matthew might have something to say about that next week however as it
is expected to make landfall in the Caribbean as a category 4 storm before making its way to the U.S. The near-term
contract closed this week down $0.01, or 0.3%, at $2.95.
Debt
Markets
Energy Week in Review
S&P E&P(3) outperformed this week +6.4% vs. SPX(3) +0.2%
This week, one U.S. E&P issuer accessed the equity markets raising $1 billion in proceeds
Rice Energy executed a $1 billion block trade representing 26% of market cap and 14.5x 90D-ADTV(3) in acquisition
related financing
20 issuers priced 20 issues to raise $9.8 billion this week
Year-to-date volume stands at $266.9 billion, down 15.3% from $315.2 billion in year-to-date 2015
Retail cash inflows from U.S. high yield mutual funds totaled $2.0 billion this week, following outflows of $273.5 million last
week
This brings total inflows for 2016 to $9.3 billion, compared to $4.9 billion of outflows for the comparable 2015 period
One E&P HY issue priced this week:
Double Eagle Energy (Caa2/CCC+), a Texas based oil and gas exploration and production company, priced its $675
million 7.500% Senior Notes due 2024 at par. The proceeds will be used to fund an acquisition.
Another unusually quiet week in upstream asset A&D, with
no noteworthy asset transactions
On the corporate M&A front, Rice Energy agreed to acquire
Vantage Energy, LLC and Vantage Energy II, LLC for
approximately $2.7 billion, including the assumption of debt
(see page 4 for details)
KKR and Venado Oil and Gas, LLC formed a partnership to
pursue oil and gas investments in the Eagle Ford Shale
Extraction Oil set the terms of its initial public offering on
Thursday, saying it will offer 33.3 million shares at $15 to
$18 a share
See page 13 for our newly added Gulf of Mexico
Snapshot!
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. U.S. gas production reported monthly as of June 2016.
2. Global oil production and global oil storage reported monthly as of October 2015 and annually as of 2014, respectively.
3. 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
$16.3
$27.0 $28.5
$30.8
$2.1
$8.1 $10.0 $9.7
$4.4
$14.7
$17.1
--
20
40
60
80
100
120
140
160
180
200
--
$5
$10
$15
$20
$25
$30
$35
$40
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
69% 52% 77% 21% 61% 82% 76% 79% 52% 54% 63%
Nu
mb
er
of
Tra
ns
acti
on
s
Tra
ns
acti
on
Valu
e (
$b
n)
Asset Corporate Number of Transactions
% Oil
Indicator
Current
Value
Week's
Change
%
Change Direction
Prompt Oil Price ($/bbl) $48.24 $3.76 8.5%
Prompt Gas Price ($/mmbtu) $2.95 ($0.01) (0.3%)
Wkly Trans. Value ($mm) $2,100 $2,080 nmf
Wkly Trans. Count 3 1 50%
US Rig Count 522 11 2.2%
US Oil Prod'n (mmbbl/d) 8.5 (0) (0.2%)
US Gas Prod'n (bcf/d)(1) 87.4 (0) (0.4%)
US Oil Storage (mmbbl) 502.7 (2) (0.4%)
US Gas Storage (tcf) 3.6 0 1.4%
Global Oil Prod'n (mmbbl/d)(2) 96 1 1.3%
Global Oil Storage (mmbbl)(2) 4,293 142 3.4%
Covering the Week of September 24-30, 2016
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.
2
October 3, 2016
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 Jan 2013 to 2016YTD with transaction value >$20mm. Adjusted for changes in price outlooks. Recalculated boe reserves are on a 15:1
(gas:oil) basis. Acreage transactions excluded by using deals with PDP of >= 40% of total proved.
Permian27%
Bakken7%
Appalachia8%Mid-Con
13%
Eagle Ford5%
Ark-La-Tex5%
Gulf of Mexico
2%
Other33%
LTM By Region
Oil75%
Gas25%
LTM By Commodity
Public Company
43%
PE / PE-Backed
20%
Private11%
MLP1%
Other25%
LTM By Buyer Type
Ann'd
Date Buyer Seller Area Asset Description Value(1)
Proved
Multiple
Prod.
Multiple
Net
Acres
($mm) ($/boe) ($/boe/d) ($/acre)
12-Sep-16 Anadarko Freeport-McMoRan Inc Gulf of Mexico Deepwater GOM assets $2,000 $15.88 $25,000 n.a.
09-Sep-16 Total Chesapeake Barnett 75% WI in Barnett Shale assets $558 $6.89 $8,585 $2,595
06-Sep-16 Callon Petroleum Plymouth Petroleum LLC Permian 5,667 net acres in Howard Co., TX $327 $26.80 $142,174 $57,702
29-Aug-16 EnVen Energy Ventures Shell Gulf of Mexico Brutus/Glider GOM assets $425 n.a. $17,000 n.a.
23-Aug-16 PDC Energy Arris Pet.; 299 Resources Permian 57,000 net acres in Delaware Basin $1,505 n.a. $215,000 $26,404
18-Aug-16 Jones Energy American Energy Partners LP Mid-Continent 18,000 net acres in SCOOP/STACK $137 n.a. n.a. $7,583
18-Aug-16 Undisclosed Buyer Continental Resources Inc Bakken 80,000 net acres in ND and MT $222 n.a. $79,286 $2,775
15-Aug-16 Concho Resources Inc Reliance Energy Inc Permian 40,000 net acres in Midland Basin $1,625 $37.79 $162,500 $40,625
15-Aug-16 Parsley Energy LP BTA Oil Producers LLC Permian 9,140 net acres in Midland Basin $400 n.a. n.a. $43,764
08-Aug-16 SM Energy Rock Oil Company LLC Permian 24,783 net acres in Midland Basin $980 n.a. $200,000 $39,543
R / PSales Value /
Proved Reserves (15:1)
(ratio) ($ / boe) ($ / mcfe)
8x $18.58 $1.24
10x $16.36 $1.09
15x $11.90 $0.79
20x $8.66 $0.58
y = 31.496e-0.065x
R² = 0.3668
--
$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
15
:1)
R / P
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
(2) (2) (2)
3
October 3, 2016
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 Macro Headlines
Rice Energy Announces Acquisition of Vantage Energy
KKR and Venado Form Partnership to Pursue Oil and Gas
Investments in Eagle Ford Shale
Extraction Oil to Offer 33.3 Million Shares in Its IPO at $15
to $18 a Share
For more detail contact Chelsea Neville at [email protected]
Bakken
2 Deal Appalachia
3 Deals
Mid-Con
15 Deals
Eagle Ford
9 Deals
Permian
23 Deals
Other
7 Deals
Ark-La-Tex
6 Deals
Rockies
5 Deals
10/3/2016
Appalachia 3
Ark-La-Tex 6
Bakken 2
Eagle Ford 9
Mid-Con 15
Other 7
Permian 23
Rockies 5BMO Deals (Status)
EOG Haynesville (Post Bid)
Comstock S. TX (Post Bid)
(Click headline to link to the full article)
Lighter Stuff
A&D/E&P Headlines
E&P Headlines Oil Soars as OPEC Reaches Deal to Limit Production First
Time in 8 Years
U.S. Oil Rig Count Set for Biggest Quarterly Rise in 2 Years
– Baker Hughes
Crude Inventories Fall Again; Gasoline Stockpiles Rise
Report: U.S. Crude Inventories Fall for Fourth Straight Week
Pipeline Disruption Leads to Record Gasoline Stock
Changes in Southeast, Gulf Coast
United States Exports Distillate from the Gulf Coast While
Importing it on the East Coast
4
October 3, 2016
Purchase Price (US$ mm)
Common Stock (26.06 million EOG Shares) - Implies $88.26/share $2,300
EOG Cash 37
Assumption of Yates Debt Less Yates Cash 114
Total Consideration $2,451
Metrics
Daily Production (boe/d) 29,600
Proved Developed (mmboe) 44
Permian - Delaware Acreage (net acres) 186,000
Permian - NW Shelf Acreage (net acres) 138,000
Total Permian Acreage (net acres) 324,000
Powder River Basin Acreage (net acres) 200,000
Other Acreage - NM, WY, CO, MT, ND, UT (net acres) 1,100,000
Total Yates acreage (net acres) 1,624,000
Basic Multiples
Production ($/boepd) $82,804
PD Reserves ($/boe) $55.70
Total Acreage - 1,624,000 Net Acres ($/net acre) $1,509
Permian & PRB Acreage Only - 524,000 Net Acres ($/net acre) $4,677
Implied Total Permian (Delaware & NW Shelf) Acreage Value (US$ mm)
Low - High
Production Value ($25,000/boe/d)(1) $740 - $740
Other Acreage Value $50 - --
PRB Acreage Value ($500/acre - $1,000/acre) $200 - $100
Implied Total Permian Acreage Value (US$ mm) $1,461 - $1,611
Implied Total Permian Acreage Value (US$/acre) $4,509 $4,972
Implied Delaware Basin Acreage Value (US$ mm)
Low - High
Implied Total Permian Acreage Value $1,461 - $1,611
NW Shelf Acreage Value ($1,000/acre - $2,000/acre) $276 - $138
Implied Total Delaware Acreage Value $1,185 - $1,473
Implied Total Delaware Acreage Value (US$/acre) $6,371 $7,919
On 6-Sep-2016, Rice Energy agreed to acquire Vantage
Energy, LLC and Vantage Energy II, LLC for approximately
$2.7 billion, including the assumption of debt
Total consideration for the transaction includes ~$1.02
billion in cash, the assumption and retirement of assumed
net debt of ~$700 million and the issuance of membership
interests in REA that are immediately exchangeable into
~39.1 million shares of common stock of Rice Energy,
valued at ~$980 million
Concurrently with the acquisition, Rice Energy entered into
an agreement with Rice Midstream Partners (“RMP”), in
which RMP will purchase the midstream assets associated
with the Vantage acquisition for $600 million
The transaction will be funded through borrowings
under RMP’s revolving credit facility and potential
equity and debt financings prior to closing, or the
issuance to Rice Energy of up to $250 million of RMP
common units representing limited partner interests
TRANSACTION SUMMARY
ACQUISITION METRICS(1)
Source: Company filings, press releases, and presentations
1. TEV / Adjusted Net Acres multiple based on flowing production adjustment of $2,000 per flowing mcfe.
Expands Rice Energy’s dry gas Appalachia acreage to
231,000 net acres
RMP will control one of the largest dry gas acreage
dedications in the Marcellus
Leaseholds are ~50% held or owned in fee
OBSERVATIONS
ACQUIRED ASSETS
Interesting Deal of the Week:
Rice Energy Acquires Vantage Energy for ~$2.7 Billion
VANTAGE OPERATIONAL OVERVIEW
Vantage Energy operates in the Marcellus and Barnett
shales
Their operations consist of:
85,000 net core Marcellus acres (including ~5,000 net
royalty acres, the majority of which are leased to Rice
Energy) in Greene County, PA
Rights to deeper Utica Shale on ~52,000 net acres
37,000 net acres in the Barnett Shale
Q2 2016 production of 399 mmcfe/d (~65% Appalachia,
35% Barnett)
Core of the midstream assets include 30 miles of dry
gas gathering and compression assets
Purchase Price (US$ mm)
Cash Consideration $1,020
Assumption of Vantage Net Debt 700
Membership Interests in REA 980
Total Consideration $2,700
RMP Acquisition of Midstream Assets 600
Total Consideration for E&P Assets $2,100
Metrics
Daily Production (mmcfe/d) 399
Appalachia Net Acreage 85,000
Barnett Net Acreage 37,000
Total Net Acreage 122,000
Basic Multiples
TEV / Production ($/mcfe/d) $5,263
TEV / Net Acreage $17,213
TEV / Adj. Net Acres(1) $10,672
DESKTOP
RICE Acreage
Vantage Acreage
OHIO
PENNSYLVANIA
WEST VIRGINIA
5
October 3, 2016
--
$1
$2
$3
$4
Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
($/m
mb
tu)
$20
$30
$40
$50
$60
$70
$80
Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
($/b
bl)
NGL PRICING(2)
HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)
Commodity Prices
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, FactSet
1. 2016 = November 2016 to December 2016 average; rest are calendar year average unless stated otherwise.
2. Assumes typical Gulf Coast barrel composition.
WTI OIL (HISTORICAL / FORECAST)
NYMEX WTI Futures as of 30-Sep-16 Close ($/bbl) NYMEX Gas Futures as of 30-Sep-16 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $50.36 $46.84 $41.58 $43.88
2016 $48.53 $44.78 $41.14 $48.70
2017 $51.30 $47.97 $44.50 $52.42
2018 $53.41 $50.59 $46.63 $54.95
2019 $54.73 $52.17 $48.24 $56.81
2020 $55.92 $53.46 $49.51 $58.08
NYMEX Gas Futures as of 30-Sep-16 Close ($/mmbtu)
Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago
12 Mo. Strip $3.08 $3.12 $2.45 $2.76
2016 $3.02 $3.06 $2.33 $2.80
2017 $3.09 $3.13 $2.82 $2.99
2018 $2.91 $2.96 $2.90 $3.05
2019 $2.81 $2.88 $2.95 $3.11
2020 $2.84 $2.91 $3.03 $3.21
Historical Prices as of 30-Sep-16 Close ($/gal)
NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago
Ethane $0.22 $0.21 $0.18 $0.20
Propane $0.55 $0.53 $0.44 $0.46
Butane $0.71 $0.67 $0.51 $0.62
Iso-butane $0.76 $0.74 $0.54 $0.63
Pentane+ $1.07 $0.98 $0.91 $0.94
20%
30%
40%
50%
60%
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16
% 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 Graph
Link to Detailed
Historical Graph
Link to Detailed
Futures Graph
Link to Detailed
Historical Graph
6
October 3, 2016
$2.95
AECO
Northern
California
Sumas
Southern
California
El Paso - SJ
Waha
HSC
Henry Hub
Panhandle
CIG Chicago
Dominion
Transco
NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 30-SEP-16
Commodity Prices (cont’d)
OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 30-SEP-16
Clearbrook
Midland
Cushing
St. James
(LLS)
East Coast
U.S. (Brent)
Midland Sweet-
Sour Spread
EMS(1) 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.
1. Effective 3-Oct-2016 price and differential are for EMS = Edmonton Mixed Sweet crude (39.7 API). Issues prior to 3-Oct-2016 showed WCS = Western Canadian
Select heavy crude (20.5 API).
$48.24
$49.70
$1.46
$47.56
($0.68)
$45.28
($2.96)$47.24
($1.00)
$49.06
$0.82
($0.87)
$3.34
$0.39
$2.62
($0.33)
$2.78
($0.17)
MAPS IN
MASTER VIEW
$1.98
($0.97)
$2.64
($0.31)
$2.92
($0.03)
$2.93
($0.02)
$2.72
($0.23)
$0.88
($2.07)$2.70
($0.25)
$2.70
($0.25)
$2.80
($0.15)
7
October 3, 2016
--$20$40$60$80
$100$120
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
3 5 3 6 2 3 7 4 1 2 3 2 2 3 4
$ /
bo
e
# Deals
$33.36
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple
Net
Acres
($mm) ($/boe) ($/boe/d) ($/acre)
06-Sep-16 Callon Petroleum Plymouth Petroleum LLC 5,667 net acres in Howard Co., TX $327 $26.80 $142,174 $57,702
23-Aug-16 PDC Energy Arris Pet.; 299 Resources 57,000 net acres in Delaware Basin $1,505 n.a. $215,000 $26,404
15-Aug-16 Concho Resources Inc Reliance Energy Inc 40,000 net acres in Midland Basin $1,625 $37.79 $162,500 $40,625
15-Aug-16 Parsley Energy LP BTA Oil Producers LLC 9,140 net acres in Midland Basin $400 n.a. n.a. $43,764
08-Aug-16 SM Energy Rock Oil Company LLC 24,783 net acres in Howard County $980 n.a. $200,000 $39,543
Mean $967 $32.30 $179,918 $41,608
Median $980 $32.30 $181,250 $40,625
GROSS PRODUCTION
TRANSACTION ACTIVITY
TRANSACTION PROVED RESERVE MULTIPLES(1) TRANSACTION PRODUCTION MULTIPLES(1)
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS
Permian Snapshot
RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info
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. Red line denotes average since 1-Jan-15.
--
100
200
300
400
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
D H V
($0.40)
($0.20)
--
$0.20
Jan-15 Jun-15 Nov-15 Apr-16 Sep-16
($4.00)
($2.00)
--
$2.00
$ /
mm
btu
$ /
bb
l
Midland Waha
--
$100,000
$200,000
$300,000
$400,000
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4 6 6 6 3 7 9 6 1 3 8 8 5 8 10
$ /
bo
e/d
# Deals
$149,823
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 204 3 201 Oil Differential ($0.40) $0.45 ($0.85)
Permitting Activity 187 11 176 Gas Differential ($0.11) $0.05 ($0.15)
751683
568635
474 480 473
653582
670
541611
675
Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16
V H D
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
mcf/
d
mb
bl/
d
Oil Gas1,991
6,895
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
8
October 3, 2016
6,000
8,000
10,000
12,000
1,000
1,500
2,000
2,500
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16
mcf/
d
mb
bl/
d
Oil Gas
1,456
8,825
437398
325 332288 278
248300
245201 228
305266
Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16
V H D
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 36 (1) 37 Oil Differential $1.50 ($0.10) $1.60
Permitting Activity 50 (4) 54 Gas Differential ($0.02) ($0.01) ($0.01)
($0.20)
--
$0.20
$0.40
Jan-15 Jun-15 Nov-15 Apr-16 Sep-16
($4.00)
($2.00)
--
$2.00
$4.00
$6.00
$8.00
$ /
mm
btu
$ /
bb
l
LLS HSC
--
50
100
150
200
250
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
D H V
--
$50,000
$100,000
$150,000
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4 4 2 4 3 6 3 3 1 1 3 1 2 2 1
$ /
bo
e/d
# Deals
$60,438
--$10$20$30$40$50$60
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
3 2 2 3 3 5 2 2 1 1 3 0 2 1 0
$ /
bo
e
# Deals
$11.77
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple
Net
Acres
($mm) ($/boe) ($/boe/d) ($/acre)
03-Aug-16 Protégé LLC Newfield Exploration Dimmit Co. and Atascosa Co., TX $310 n.a. $38,419 $8,611
29-Apr-16 EnerVest GulfTex Energy Primarily in Karnes Co., TX $501 $4.56 $58,473 $119,343
29-Apr-16 EnerVest BlackBrush Primarily in Karnes Co., TX $674 n.a. $130,368 $95,522
27-Jan-16 Carrier Energy Partners II AWE Karnes Co., TX $199 $8.16 $48,126 $82,917
18-Jan-16 Carrier Energy Partners II Empyrean Energy Plc Karnes Co., TX $62 $9.35 $49,200 $84,362
Mean $349 $7.36 $64,917 $78,151
Median $310 $8.16 $49,200 $84,362
Eagle Ford Snapshot
GROSS PRODUCTION
TRANSACTION ACTIVITY
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info
Note: Current quarter’s data is through the week covered by this issue.
1. Represents total enterprise value. Excludes transactions with deal value <$20 million. Red line denotes average since 1-Jan-15.
TRANSACTION PROVED RESERVE MULTIPLES(1) TRANSACTION PRODUCTION MULTIPLES(1)
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
9
October 3, 2016
5,000
7,000
9,000
50
100
150
200
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16
mcf/
d
mb
bl/
d
Oil Gas
103
7,422
192
120
83 94118
6953
88 78 74 86
121 117
Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16
V H D
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)
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 Buyer Devon Energy Panola Co., TX $525 $1.01 $3,977 n.a.
18-Mar-16 Covey Park Energy LLC EP Energy Corp De Soto & Bossier Pa., LA $420 $2.05 $3,717 $12,293
29-Feb-16 KJ Energy LLC Cabot Cotton Valley $57 $3.41 n.a. n.a.
08-Oct-15 Indigo Minerals LLC HRG Group Inc 90,000 net acres in Cotton Valley $160 n.a. $4,706 $1,778
Mean $250 $2.16 $4,133 $5,093
Median $160 $2.05 $3,977 $1,778
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 14 1 13 Oil Differential $1.50 ($0.10) $1.60
Permitting Activity 20 (15) 35 Gas Differential -- -- --
($0.20)
--
$0.20
$0.40
Jan-15 Jun-15 Nov-15 Apr-16 Sep-16
($4.00)
($2.00)
--
$2.00
$4.00
$6.00
$8.00
$ /
mm
btu
$ /
bb
l
LLS HSC
--
10
20
30
40
50
60
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
D H V
--
$5,000
$10,000
$15,000
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
2 1 2 1 1 3 2 3 0 0 4 1 1 2 0
$ /
mcf/
d
# Deals
$5,380
$0.0$0.5$1.0$1.5$2.0$2.5$3.0
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
2 1 2 0 3 2 1 2 0 0 4 0 2 2 0
$ /
mcf
# Deals
$1.90
Ark-La-Tex Snapshot
GROSS PRODUCTION
TRANSACTION ACTIVITY
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info
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. Red line denotes average since 1-Jan-15.
TRANSACTION PROVED RESERVE MULTIPLES(1) TRANSACTION PRODUCTION MULTIPLES(1)
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
10
October 3, 2016
12,000
14,000
16,000
18,000
20,000
22,000
24,000
--
50
100
150
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16
mcf/
d
mb
bl/
d
Oil Gas
15
13,914488
445384 373
291 269 277 308236
310 280 261
126
Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16
V H D
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 47 2 45 Oil Differential $0.82 ($0.74) $1.56
Permitting Activity 2 (7) 9 Gas Differential ($1.96) $0.05 ($2.00)
($2.00)
($1.00)
--
$1.00
$2.00
Jan-15 Jun-15 Nov-15 Apr-16 Sep-16
($15.00)
($10.00)
($5.00)
--
$5.00
$10.00
$15.00
$ /
mm
btu
$ /
bb
l
Brent Dominion
--
50
100
150
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
D H V
--
$10,000
$20,000
$30,000
$40,000
$50,000
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
0 1 1 2 1 2 4 3 0 1 0 0 1 2 1
$ /
mcfe
/d
# Deals
$19,644
--
$10
$20
$30
$40
$50
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
0 1 1 0 0 0 3 1 0 0 0 0 3 1 0
$ /
mcfe
# Deals
$20.91
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple
Net
Acres
($mm) ($/mcfe) ($/mcfe/d) ($/acre)
10-Jul-16 Antero Resources Corp Statoil Wetzel and Tyler Counties, WV $96 n.a. $32,000 $7,385
09-Jun-16 Antero Resources Corp Southwestern Energy West Virginia $450 $40.92 $32,147 $8,182
16-May-16 Vantage Energy Inc Alpha Natural Resources Greene Co., PA $340 n.a. n.a. n.a.
02-May-16 EQT Corporation Statoil West Virginia $407 n.a. $8,140 $6,512
01-Mar-16 Benefit Street Partners Rex Energy Corp Butler Co., PA $175 n.a. n.a. n.a.
Mean $294 $40.92 $24,096 $7,359
Median $340 $40.92 $32,000 $7,385
Appalachia Snapshot
GROSS PRODUCTION
TRANSACTION ACTIVITY
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info
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. Red line denotes average since 1-Jan-15.
TRANSACTION PROVED RESERVE MULTIPLES(1) TRANSACTION PRODUCTION MULTIPLES(1)
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
11
October 3, 2016
1,000
1,250
1,500
1,750
2,000
600
800
1,000
1,200
1,400
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16
mcf/
d
mb
bl/
d
Oil Gas
1,091
1,774160 153
118
8869 79
67 77
4668
82100
57
Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16
V H D
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 30 2 28 Oil Differential ($1.00) ($0.20) ($0.80)
Permitting Activity 5 (13) 18 Gas Differential ($0.29) ($0.00) ($0.29)
($0.80)
($0.60)
($0.40)
($0.20)
--
$0.20
Jan-15 Jun-15 Nov-15 Apr-16 Sep-16
($8.00)
($6.00)
($4.00)
($2.00)
--
$2.00
$ /
mm
btu
$ /
bb
l
Clearbrook CIG
--
50
100
150
200
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
D H V
--
$50,000
$100,000
$150,000
$200,000
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
1 4 6 1 4 2 6 2 0 0 1 3 0 3 2
$ /
bo
e/d
# Deals
$47,855
--
$50
$100
$150
$200
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
1 2 4 1 3 1 4 1 0 0 1 2 0 2 1
$ /
bo
e
# Deals
$19.11
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple
Net
Acres
($mm) ($/boe) ($/boe/d) ($/acre)
18-Aug-16 Undisclosed Buyer Continental Resources Inc 80,000 net acres in ND and MT $222 n.a. $79,286 $2,775
01-Aug-16 Undisclosed Buyer SM Energy 76,000 net acres in Williston $173 $18.16 $52,273 $2,270
14-Jun-16 Lime Rock Resources Natural Resource Partners Non-operated WI Williston $116 $11.54 $33,642 $5,413
27-May-16 Undisclosed Buyer Arsenal Energy Inc Mountrail Co., & Williams, ND $34 $5.05 $44,156 n.a.
25-May-16 New Emerald Holdings Emerald Oil Inc McKenzie Co., ND $73 n.a. $12,836 $849
Mean $124 $11.58 $44,439 $2,827
Median $116 $11.54 $44,156 $2,522
Bakken Snapshot
GROSS PRODUCTION
TRANSACTION ACTIVITY
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info
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. Red line denotes average since 1-Jan-15.
TRANSACTION PROVED RESERVE MULTIPLES(1) TRANSACTION PRODUCTION MULTIPLES(1)
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
12
October 3, 2016
--
5,000
10,000
15,000
--
200
400
600
800
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16
mcf/
d
mb
bl/
d
Oil Gas
492
8,158
319 305 286
216171 175 172 160
198225
257 255213
Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16
V H D
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 52 3 49 Oil Differential -- -- --
Permitting Activity 30 (45) 75 Gas Differential ($0.26) ($0.02) ($0.24)
($0.40)
($0.20)
--
$0.20
Jan-15 Jun-15 Nov-15 Apr-16 Sep-16
($0.40)
($0.20)
--
$0.20
$ /
mm
btu
$ /
bb
l
Cushing Panhandle
--
50
100
150
200
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
D H V
--
$50,000
$100,000
$150,000
$200,000
$250,000
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4 6 3 9 2 2 5 4 0 3 1 2 1 5 4
$ /
bo
e/d
# Deals
$80,309
--$5
$10$15$20$25$30
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4 6 2 7 1 1 4 1 0 3 0 0 0 2 0
$ /
bo
e
# Deals
$10.98
Ann'd
Date Buyer Seller Asset Description Value(1)
Proved
Multiple
Prod.
Multiple
Net
Acres
($mm) ($/boe) ($/boe/d) ($/acre)
18-Aug-16 Jones Energy American Energy Partners LP 18,000 acres in SCOOP/STACK $137 n.a. n.a. $7,583
02-Aug-16 Undisclosed Buyer Continental Resources Inc 29,500 net acres in SCOOP $281 n.a. $510,909 $9,525
02-Aug-16 Jones Energy EOG 26,000 in Anadarko Basin $27 n.a. $31,882 $1,042
28-Jul-16 Rimrock Merit Energy 24,500 net acres in SCOOP $150 n.a. $71,429 $6,122
28-Jul-16 Cornerstone Petroleum Rimrock 6,125 net acres in SCOOP $38 n.a. $71,429 $6,122
Mean $126 n.a. $171,412 $6,079
Median $137 n.a. $71,429 $6,122
Mid-Continent Snapshot
GROSS PRODUCTION
TRANSACTION ACTIVITY
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info
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. Red line denotes average since 1-Jan-15.
TRANSACTION PROVED RESERVE MULTIPLES(1) TRANSACTION PRODUCTION MULTIPLES(1)
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
13
October 3, 2016
--
$20,000
$40,000
$60,000
$80,000
$100,000
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
2 1 1 1 5 2 0 0 0 0 1 1 0 0 2
$ /
bo
e/d
# Deals
$18,186
2,000
3,000
4,000
5,000
1,000
1,500
2,000
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16
mcf/
d
mb
bl/
d
Oil Gas
1,538
3,459
20 2023 24 24
3028
22 22
17 16
6
15
Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16
V H D
Item Value Wkly Change Last Week Item Value Wkly Change Last Week
Rig Count 21 1 20 Oil Differential $1.50 ($0.10) $1.60
Permitting Activity 1 (5) 6 Gas Differential -- -- --
--
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-15 Jun-15 Nov-15 Apr-16 Sep-16
--
$2.00
$4.00
$6.00
$8.00
$10.00
$ /
mm
btu
$ /
bb
l
LLS Henry Hub
--
10
20
30
40
50
60
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
D H V
--
$10
$20
$30
$40
$50
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
1 1 2 1 5 2 0 0 0 0 1 0 0 0 1
$ /
bo
e
# Deals
$9.06
Gulf of Mexico Snapshot
GROSS PRODUCTION
TRANSACTION ACTIVITY
PERMITTING ACTIVITY BY MONTH
DIFFERENTIALS RIG COUNT
Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info
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 <$20 million. Red line denotes average since 1-Jan-15.
TRANSACTION PROVED RESERVE MULTIPLES(2) TRANSACTION PRODUCTION MULTIPLES(2)
Asset descriptions are all hard-coded and need to be
adjusted if new deals are added
(1)
Ann'd
Date Buyer Seller Asset Description Value(2)
Proved
Multiple
Prod.
Multiple Net Acres
($mm) ($/boe) ($/boe/d) ($/acre)
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 Buyer 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
October 3, 2016
This
Week Change
Last
Week
Last
Year
Total Rigs 522 11 511 809
Oil 425 7 418 614
Gas 96 4 92 195
Miscellaneous 1 -- 1 --
Directional 51 2 49 83
Horizontal 407 5 402 609
Vertical 64 4 60 117
Basin
Arkoma 4 1 3 8
Barnett 1 -- 1 6
Cana 35 2 33 37
DJ-Niobrara 17 1 16 26
Eagle Ford 36 (1) 37 82
Fayetteville 1 1 -- 4
Granite Wash 10 1 9 12
GOM 21 1 20 29
Haynesville 13 -- 13 26
Marcellus 32 2 30 47
Mississippian 3 -- 3 14
Permian 204 3 201 245
Utica 15 -- 15 21
Williston 30 2 28 66
Other 100 (2) 102 186
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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Trademark of Bank of Montreal in the United States and Canada.
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
herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its
affiliates that is not reflected in this report. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual client
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.
Geoff Roberts
MD & Head of U.S. A&D
713-518-1268
Howard Barnwell
Director & Transactions Mgr.
713-546-9767
Ani Sen
Associate
713-546-9759
TRANSACTIONS NEWSLETTER
Contacts
Disclaimer
Source of rig count stats: Baker Hughes
Rig Count Summary
MAPS IN
MASTER VIEW
Rob Priske
Director & Transactions Mgr.
713-546-9727
Legend
Current
Change
Arkoma
Barnett
Cana
DJ-Niobrara
Eagle Ford
Haynesville
Fayetteville
Granite Wash
GOM
Permian
Marcellus
Mississippian
Utica
Williston
4
1
1
--
35
2
17
1
36
(1)
1
1
10
1
21
1
13
--
32
2
3
--
204
3
15
--
30
2
Chelsea Neville
Transactions Coordinator
713-546-9703
Rob Priske
Director & Transactions Mgr.
713-546-9727