Pages

Sunday, November 8, 2015

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

Updates

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

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

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
BAKKEN9-20153090279071013589123211268
BAKKEN8-2015141174011583014419117102709

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
BAKKEN9-20153013506130791406216404635110053
BAKKEN8-2015261330613330161611574197835958
BAKKEN7-201592312252224434430
BAKKEN6-2015301276133346019251817108
BAKKEN5-2015311390133546817861631155
BAKKEN4-2015301395133652718921569323
BAKKEN3-201531163917955852142209052
BAKKEN2-2015282021206768319931761232
BAKKEN1-201593682402583483480
BAKKEN12-20143115241788632214221420
BAKKEN11-201430160615976122110208723
BAKKEN10-20143115621382542188218820
BAKKEN9-2014301481181550218361658178
BAKKEN8-201431157913555672022193587

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
BAKKEN9-201514380136877088427821612117
BAKKEN8-2015122226502020202
BAKKEN7-20151680063063