Sunday, November 8, 2015

Someone Buying Apache? Market Cap Now $18 Billion; Enterprise Value, $25 Billion -- November 8, 2015


November 13, 2015: Anadarko withdrew its bid for Apache.

November 10, 2015: it wasn't "China" that approached Apache recently; it was Anadarko.

  • market cap: $33 billion
  • enterprise value: $50 billion
  • debt: $17 billion
  • cash: $2.0 billion  
For someone who doesn't follow Anadarko, would it be safe to post these data points:
  • natural gas
  • Colorado, Wattenberg field, Denver-Julesburg (DJ) Basin
  • Apache with oil in the Permian would be a good fit
Original Post
BloombergBusiness is reporting:
Apache Corp., the oil and natural gas company worth more than $18 billion, has received an unsolicited takeover approach, according to people familiar with the matter.
The Houston-based company rejected the initial offer and is working with financial adviser Goldman Sachs Group Inc. on defense, said the people, who asked not to be identified because deliberations are private. The potential buyer, who could not immediately be identified, sent a letter to Apache in the past few weeks and it’s unclear whether talks will resume, one of the people said.
A spokesman for Apache couldn’t immediately be reached for comment outside of regular business hours. A representative for Goldman Sachs declined to comment.
Apache on November 5, 2015, reported a smaller-than-expected adjusted loss and boosted its 2015 production forecast.
It’s one of the biggest leaseholders in the Permian Basin in western Texas, the largest U.S. shale play and the only one where oil output has continued to grow even as drillers slash spending and idle rigs. It also explores in Egypt, the Gulf of Mexico, Canada and the Eagle Ford and Woodford shale basins in the U.S.
A deal for Apache would be the largest for an independent oil and gas producer in the U.S. this year. Noble Energy Inc. bought Texas shale driller Rosetta Resources Inc. for $3.9 billion, including assumed debt, in an all-stock transaction in July.
Over at Yahoo!Finance:
  • market cap: $18 billion
  • enterprise value: $25 billion
  • debt: $9 billion
  • cash: $1.7 billion 
  • 378 million shares x $1.00/share annual dividend = $378 million
  • 52-week high at almost $80/share = a market cap of $30 billion sometime in the past 52 wks
  • 60% of $30 billion = $18 billion
The Concerts In China, Jean Michel Jarre
Weyerhaeuser will buy Plum Creek: will become a $23-billion timber, land, and forest products company. 

Wells Coming Off Confidential List Monday -- November 9, 2015

Monday, November 9, 2015
  • 30913, SI/NC, XTO, Johnsrud Federal 34X-14F, Bear Den, no production data,
  • 31000, 576, Hess, EN-Cvancara A-155-93-3231H-7, Robinson Lake, 35 stages, 2.4 million lbs; t8/15 cum 21K 9/15;
Sunday, November 8, 2015 
No wells listed

Saturday, November 7, 2015
  • 27418, SI/NC, CLR, Garfield Federal 7-5H1, Banks, no production data,
  • 29862, SI/NC, XTO, Johnsrud Federal 34X-14AXB, Bear Den, no production data,

31000, see above, Hess, EN-Cvancara A-155-93-3231H-7, Robinson Lake:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

Update On A Well That Might Indicate Halo Effect Of Fracking -- November 8, 2015

For background to this post, which I think relates to a very interesting well and a very interesting phenomenon in the Bakken, go to this post. I am not going to go through the background or the "argument" all over again. So read first that post linked above before going on.

Okay, now that you have read it, note the production profile, now that we have another month of production data:
  • 19013, 399, CLR, Bridger 2-14H, Rattlesnake, t12/10; cum 186K 9/15; this well is a THREE FORKS well:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

The production for the other well in this discussion:
  • 29554, 290, CLR, Bridger 4-14H2, Rattlesnake, 4 sections, 30 stages, 6 million lbs, t7/15; cum 4K 9/15; this well is also a THREE FORKS well (B1 in the permit application). API: 33-025-02679-00-00:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare