Sunday, July 25, 2021

Deals In The Oil Patch -- Reuters -- July 25, 2021

Link here to Reuters. Numbers rounded from original article.

Macro:

  • first five months of 2021: sales of land parcels worth $6.9 billion, almost eclpsing the $7 billion recorded in all of 2020;
  • 2020: last year was the worst for US acreage sales since at least 2006
  • more deals on the way: more than $12 billion either up for sale or being prepared to come to market in the US

Individual exhibits:

  • OXY:
    • marketing 250,000 net acres in Delaware portion of the Permian;
    • $550 million
    • the company has targeted more than $2 billion from divestments in the first hal fo f2021
  • Ovintiv:
    • completed in mid-May, $880 million sale of its Eagle Ford position
    • sold to Validus Energy
  • Laredo Petroleum:
    • will sell a 37.5% stake in two Texas counties
    • buyer: Sixth Street Partners
  • Exxon Mobil:
    • may divest parts of its shale gas business in North America
  • Pursuing acreage sales:
    • OXY
    • Chevron
    • Whiting
    • COP
    • Callon Petroleum
  • Advance Energy Partners, majority owned by EnCap
    • exploring a sale around $2 billion
  • NORTH DAKOTA RimRock Oil & Gas
    • private equity firm Warburg Pincus asked for indicative acquisition offers for a deal that could exceed $500 million
  • EnCap-backed Grayson Mill Energy:
    • bought the Bakken shale assets of Equinor for $900 million (previously posted)
  • Uinta (Utah), Denver-Julesburg (Colorado)
    • unattractive due to federal and state political issues

From the blog's "Bakken Operators":

RimRock Oil & Gas

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Warburg Pincus - RimRock Oil & Gas

Link here

A portfolio company is a company (public or private) that a venture capital firm, buyout firm, or holding company owns equity. In other words, companies that private equity firms hold an interest in are considered portfolio companies. Investing in a portfolio company aims to increase its value and earn a return on investment through a sale. Link here. And here (wiki).

$500 million / 120,000 acres = $5,000 / acre
$500 million / 30,000 acres = $17,000 / acre

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