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

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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,

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

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	9-2015	30	9027	9071	0	13589	12321	1268
BAKKEN	8-2015	14	11740	11583	0	14419	11710	2709

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:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	9-2015	30	13506	13079	14062	16404	6351	10053
BAKKEN	8-2015	26	13306	13330	16161	15741	9783	5958
BAKKEN	7-2015	9	231	225	222	443	443	0
BAKKEN	6-2015	30	1276	1333	460	1925	1817	108
BAKKEN	5-2015	31	1390	1335	468	1786	1631	155
BAKKEN	4-2015	30	1395	1336	527	1892	1569	323
BAKKEN	3-2015	31	1639	1795	585	2142	2090	52
BAKKEN	2-2015	28	2021	2067	683	1993	1761	232
BAKKEN	1-2015	9	368	240	258	348	348	0
BAKKEN	12-2014	31	1524	1788	632	2142	2142	0
BAKKEN	11-2014	30	1606	1597	612	2110	2087	23
BAKKEN	10-2014	31	1562	1382	542	1882	1882	0
BAKKEN	9-2014	30	1481	1815	502	1836	1658	178
BAKKEN	8-2014	31	1579	1355	567	2022	1935	87

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:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	9-2015	14	3801	3687	7088	4278	2161	2117
BAKKEN	8-2015	1	222	265	0	202	0	202
BAKKEN	7-2015	1	68	0	0	63	0	63