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14
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 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 $40 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 69% 52% 77% 21% 61% 82% 76% 79% 52% 54% 63% Number of Transactions Transaction Value ($bn) 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

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Page 1: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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.

Page 2: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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)

Page 3: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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

Page 4: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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

Page 5: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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

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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)

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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

Page 8: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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

Page 9: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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

Page 10: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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

Page 11: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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

Page 12: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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

Page 13: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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.

Page 14: Indicator US Gas Prod'n (bcf/d) - Bank of Montreal Page Document Library/ADLibrary...To paste the arrows with colors, • FactSet ... Asset descriptions are all hard-coded and need

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

Ireland p.l.c, and Bank of Montreal (China) Co. Ltd and the institutional broker dealer businesses of BMO Capital Markets Corp. (Member SIPC) in the U.S., BMO Nesbitt Burns Inc.

(Member Canadian Investor Protection Fund) in Canada and Asia and BMO Capital Markets Limited (authorised and regulated by the Financial Conduct Authority) in Europe and

Australia. “Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Inc., used under license. “BMO Capital Markets” is a trademark of Bank of Montreal, used under license. "BMO

(M-Bar roundel symbol)" is a registered trademark of Bank of Montreal, used under license. ® Registered trademark of Bank of Montreal in the United States, Canada and elsewhere.™

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

other derivative instruments based thereon. BMO Capital Markets may act as financial advisor and/or underwriter for the issuers mentioned herein and may receive remuneration for

same. The reader should assume that BMO Capital Markets or its affiliates may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or

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

[email protected]

Howard Barnwell

Director & Transactions Mgr.

713-546-9767

[email protected]

Ani Sen

Associate

713-546-9759

[email protected]

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

[email protected]

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

[email protected]

Rob Priske

Director & Transactions Mgr.

713-546-9727

[email protected]