Prompt Oil Price ($/bbl) $56.41 ($1.72) (3.0%) Let’s follow these … · 2019-09-30 · Prompt Oil Price ($/bbl) $56.41 ($1.72) ... 13-Sep-19 Viper Energy Partners Santa Elena Minerals

1

September 30, 2019

IndicatorCurrent

Value

Week's

Change

%

Change Direction

Prompt Oil Price ($/bbl) $56.41 ($1.72) (3.0%)

Prompt Gas Price ($/mmbtu) $2.43 ($0.11) (4.3%)

Wkly Trans. Value ($mm) -- ($150) (100%)

Wkly Trans. Count 1 -- --

US Rig Count 860 (8) (0.9%)

US Oil Prod'n (mmbbl/d) 12.5 0.1 0.8%

US Gas Prod'n (bcf/d)(1) 109.8 -- --

US Oil Storage (mmbbl) 419.5 2.4 0.6%

US Gas Storage (tcf) 3.2 0.1 3.3%

$2.2

$8.0

$9.9 $10.7

$4.9

$15.8

$21.2 $21.9 $24.1

$17.0

$9.1 $9.2

$20.8

$8.2

$31.6

$19.5

$1.7

$16.7

--

50

100

150

200

250

300

350

400

450

500

--

$5

$10

$15

$20

$25

$30

$35

$40

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

61% 83% 74% 79% 39% 52% 62% 71% 93% 24% 68% 82% 91% 64% 46% 93% 51% 95% 75%

Nu

mb

er

of

Tra

ns

ac

tio

ns

Tra

ns

ac

tio

n V

alu

e (

$b

n)

Asset Corporate Number of Transactions

% Oil% Oil% Oil

$64.3

Pickering Energy Partners and Henry Resources announced a

strategic joint venture to pursue acquisitions across the

Permian Basin

Tellurian and Petronet signed a memorandum of

understanding to negotiate the purchase of up to five million

tonnes of LNG through equity investment in Driftwood

Debt

Markets

Eight issuers priced eight tranches for $5.5 billion last week

U.S. high yield funds reported an outflow of $258 million

ETFs reported an outflow of $66 million while mutual funds reported an outflow of $192 million

High yield index yield was 5.82%; high yield energy index yield was 8.72%

Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, EIA, PLS

Note: Current quarter’s data is through the week covered by this issue.

1. EIA U.S. natural gas gross withdrawals and production reported monthly as of June 2019.

2. S&P E&P = S&P Oil & Gas E&P Select Industry, SPX = S&P 500 Index.

Key Industry Indicators

Quarterly Deal Activity

S&P E&P(2) underperformed last week (4.4)% vs. SPX(2) 1.0%

Most of the major U.S. equity indexes finished lower. Consumer staples finished up 0.5% Equity

Markets

Oil ended last week down. Tropical Storm Imelda hit Houston with more than three feet of rain and

temporarily closed some refineries in the Houston Ship Channel. There were reports that full repairs of

Saudi Arabia’s facilities would take months. However, Saudi Arabia reiterated that it will restore almost all

of the lost output by the end of September. Tensions continue to mount between the U.S. and Iran while

France and others try to calm the feud as the U.N. General Assembly gathered. Trump’s speech at the

U.N. General Assembly contained strong rhetoric regarding China and Iran. The speech also contained

anti-globalist refrains which indicated that the trade war is far from over. President Trump reiterated no

desire for using military force against Iran. The U.S. imposed new sanctions on Chinese entities accused

of skirting oil sanctions against Iran. These sanctions had the immediate effect of increasing tanker rates.

The near-term contract closed down $1.72, or 3.0%, at $56.41

Natural gas ended last week down. Storage numbers were higher than expected. Warmer-than-normal

temperatures also affected the market. The near-term contract closed down $0.11, or 4.3%, at $2.43

Commodities

Week in Review

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 Covering the Week of September 20 to September 26, 2019

This is the final issue for 2018. The Market Monitor will

return on Monday, January 7th. Happy Holidays from the

BMO Capital Markets team!

The October issue of BMO Calgary’s A&D (Canadian) Market

Monitor went live last week – read more here

One E&P deal priced last week

WPX Energy (b1/BB-) priced $600 million of x% Senior

Notes due 2027

One E&P issuer priced last week

Noble Energy priced $500 million of 3.25% senior notes

due 2029 and $500 million of 4.20% senior notes due

2049. BMO Capital Markets acted as a Joint

Bookrunner on this transaction

All references to last week in the comments below are through Thursday

Last week was another volatile week for crude oil. Inventory numbers were affected by Tropical Storm Imelda, which hit Houston with

more than three feet of rain and temporarily closed some refineries in the Houston Ship Channel. There were some reports that full

repairs of Saudi Arabia’s facilities would take months. However, Saudi Arabia reiterated that it will restore almost all of the lost output

by the end of September. Tensions continue to mount between the U.S. and Iran while France and others try to calm the feud as the

U.N. General Assembly gathered. Trump’s speech at the U.N. General Assembly contained strong rhetoric regarding China and Iran.

The speech had anti-globalist refrains which indicated that the trade war is far from over. President Trump reiterated no desire for

using military force against Iran. The U.S. imposed new sanctions on Chinese entities accused of skirting oil sanctions against Iran.

The market seemed to anticipate a tighter trading range for the next few weeks before we possibly get a glimpse of early winter

weather. In basis, it is worth highlighting weakness along the curve in Permian and Waha as GCX came online.

The U.S. Department of Defense stated that the U.S. would deploy “one patriot battery, four sentinel RADARs, and approximately 200

support personnel” to Saudi Arabia. The sanctions on certain Chinese shipping companies yesterday, including COSCO Dalian, had

the immediate effect of increasing tanker rates, especially VLCC rates, as traders scrambled to re-book ships in order to avoid

penalties. According to Bloomberg, COSCO Dalian operates 26 supertankers capable of carrying 52mm barrels total of oil. Notable

selling of MEH versus buying of Midland was in the market today which pushed Cal20 and Cal21 Mid/Cush to around +70 cents.

Storage numbers were higher than expected. Warmer-than-normal temperatures also affected the market.

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

http://click.bmocapitalmarkets.bmo.com/?qs=06431ffcb9e46ff9ceb552c71599979cce1497589a985c6f6db2bcdad857fec824bec1ef9245eef7759c94d656a26e446b38de2e8b6d3a20

2

September 30, 2019

Permian27%

Rockies (ex. Bakken)

8%

Bakken4%

Appalachia5%

Mid-Con14%

Eagle Ford5%

Ark-La-Tex5%

Gulf of Mexico6%

Other26%

LTM By Region

Ann'd

Date Buyer Seller Area Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)

13-Sep-19 Viper Energy Partners Santa Elena Minerals LP Permian 1,358 net royalty acres in Permian $150 n.a. $107,143 nmf

12-Sep-19 Contango Will Energy Corporation Mid-Continent TX Panhandle, W. Anadarko, and N.LA $23 n.a. $16,429 $144

03-Sep-19 Spur Energy Partners Concho Resources Inc Permian ~70,000 net acres in Eddy and Lea, NM $925 n.a. $37,000 $13,214

03-Sep-19 Undisclosed Buyer Crescent Point Other Rockies 224,000 net undeveloped acres in Uinta $525 n.a. $32,051 $2,344

28-Aug-19 Scout Energy Partners Riviera Resources Inc Mid-Continent Hugoton Basin assets $295 $2.30 $17,020 $295

27-Aug-19 Hilcorp Energy Co BP Alaska Alaskan area exit $5,600 n.a. $75,676 n.a.

06-Aug-19 Undisclosed Buyer Pioneer Permian 3,300 net acres in Martin County $66 n.a. n.a. $20,000

31-Jul-19 Continental Resources Inc Undisclosed Seller Mid-Continent SCOOP assets $80 n.a. n.a. n.a.

31-Jul-19 Ecopetrol Oxy Permian Midland Basin JV $1,500 n.a. n.a. $31,559

31-Jul-19 Undisclosed Buyer Whiting Petroleum Multi-Region 6,800 net acres in non-op assets $53 n.a. $75,391 $7,794

Blue = BMO provided transaction advisory services Green = BMO provided acquisition financing or related services

Purple = BMO provided both transaction advisory services and acquisition financing or related services

R / P

Sales Value /

Proved Reserves

(15:1)

(ratio) ($ / boe) ($ / mcfe)

8x $17.81 $1.19

10x $15.54 $1.04

15x $11.03 $0.74

20x $7.84 $0.52

y = 30.926e-0.068x

R² = 0.3414

--

$10

$20

$30

$40

$50

$60

-- 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x

Sa

les

Pri

ce

/ P

rove

d R

es

erv

es

($

/bo

e @

15

:1)

R / P

$27.6 $32.9 $38.3

$18.1

$12.1 $16.4

$22.2 $64.7 $39.7

$49.3

$60.5

$82.7

2016 2017 2018 2019

851 1,241 721 159

Asset Corporate

Deal Count

Oil61%

Gas39%

LTM By Commodity

Public Company

44%

PE / PE-Backed

17%

Private10%

Other29%

LTM By Buyer Type

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, PLS

1. Represents total enterprise value. 2. Calculated as percentage of total LTM transaction count (number of transactions, not dollar value).

3. 65 transactions from January 2015 to 2019 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.

4. Year-to-date data is through this week’s date for each respective year.

(2) (2) (2)

Confirm number of transactions weekly --->

YTD Deal Activity ($bn)(4)

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

3

September 30, 2019

9/23/2019

Appalachia 3

Ark-La-Tex 5

Bakken 6

Eagle Ford 12

Mid-Con 6

Other 13

Permian 19

Rockies 9

73

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: BMO Transaction Database

Source of Headlines: Press releases

Industry Headlines

Appalachia

3 Deals

Mid-Con

6 Deals

Eagle Ford

12 Deals

Permian

19 Deals

Other

13 Deals

Rockies

9 Deals

(Click headline to link to the full article)

M&A&D Headlines

Bakken

6 Deals

Ark-La-Tex

5 Deals

BMO Deals (Status)

Siltstone Appalachia (In Market) – See page 6

The $47 Trillion Death Sentence For Oil & Gas

Saudi Oil Capacity Recovering From Attacks Faster

Than Expected

Texas Oil and Gas Activity Declines in Third Quarter

Permian 'Child' Wells May Cut Oil Recovery by 20%,

Bank Says

'A Muddy Mess.' Ill. Landowners Fight FERC Over

Pipeline

Tellurian and Petronet Sign MOU for Up to 5 Million

Tonnes of LNG Through Equity Investment in

Driftwood

Pickering Energy Partners, Henry Resources Strike

Permian Basin JV Deal

Callon Highlights Compelling Value Proposition of

Transaction with Carrizo

TPG Terminates $930 Million Purchase of Shale

Water Handler Goodnight Midstream

Talos Energy Announces Full Year 2019 Operating

and Financial Guidance (includes A&D

announcement)

BMO Deals (Status)

Siltstone Appalachia (In Market) – See page 4

PayRock Eagle Ford (In Market) – See page 5

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

https://oilprice.com/Energy/Energy-General/The-47-Trillion-Death-Sentence-For-Oil-Gas.html

https://www.worldoil.com/news/2019/9/25/saudi-oil-capacity-recovering-from-attacks-faster-than-expected

https://www.worldoil.com/news/2019/9/25/saudi-oil-capacity-recovering-from-attacks-faster-than-expected

https://www.chron.com/business/energy/article/Texas-oil-and-gas-activity-declines-in-third-14468396.php

https://www.businesswire.com/news/home/20190921005017/en/

https://www.bloomberg.com/news/articles/2019-09-19/permian-child-wells-may-cut-oil-recovery-up-to-20-bank-says

https://www.bloomberg.com/news/articles/2019-09-19/permian-child-wells-may-cut-oil-recovery-up-to-20-bank-says

https://www.eenews.net/stories/1061140891

https://www.eenews.net/stories/1061140891









https://www.worldoil.com/news/2019/9/24/pickering-energy-partners-henry-resources-strike-permian-basin-jv-deal

https://www.worldoil.com/news/2019/9/24/pickering-energy-partners-henry-resources-strike-permian-basin-jv-deal

https://www.callon.com/news/news-releases/detail/292/callon-highlights-compelling-value-proposition-of




https://www.worldoil.com/news/2019/9/26/tpg-terminates-930-million-purchase-of-shale-water-handler-goodnight-midstream



https://www.prnewswire.com/news-releases/talos-energy-announces-full-year-2019-operating-and-financial-guidance-300779250.html





4

September 30, 2019

Opportunity to acquire a substantial portfolio of mineral and

royalty assets in the core of the Utica, Marcellus, and Upper

Devonian

52,406 net royalty acres(1), 1,771 ORRI acres(1), and

1,930 additional leased working interest acres

Low concentration risk, with interest in >625 currently

producing wells across 20 counties in OH, PA, and WV

March 2019 production of 16.2 net mmcfe/d (90% gas)

with drilling inventory consisting of >5,000 locations

Well-distributed acreage provides high-confidence upside

exposure across the tri-state region

Siltstone has exposure to >50% of the future

development locations in core Utica

Source: Siltstone Appalachia Divestiture announcement

1. Net royalty acres normalized to 1/8th royalty.

2. March 2019 daily production. Upper Devonian production represents <1% of total production.

Currently on the Market from BMO: Siltstone Appalachia Minerals Divestiture

ASSET HIGHLIGHTS

ASSET OVERVIEW ASSET MAP

VDR available soon

Contact Sandra Ramsey at [email protected]

or 713-518-1187 for a Confidentiality Agreement, access to

the VDR, and/or to request a data room presentation

PROCESS OVERVIEW

Virginia

Butler

Indiana

Somerset

Stark

Randolph

Fayette

Garrett

Hardy

Grant

Preston

Clarion

Wayne

Mercer

Greene

Cambria

Allegheny

Washington

Meigs

Roane

Athens

Westmoreland

Lorain

Jefferson

Elk

PerryNoble

Pendleton

Lewis

Braxton

Ritchie

Belmont

Mason

Wood

Armstrong

Portage

Clearfield

Tucker

Beaver

Carroll

Monroe

Trumbull

Muskingum

Gallia

Wirt

Medina

Jackson

Bedford

Holmes

Morgan

Summit

Washington

Guernsey

Tyler

Coshocton

Wetzel

Gilmer

Harrison

Upshur

Harrison

Tuscarawas

Rockingham

Ashland

Marion

Jefferson

Columbiana

Mineral

Mahoning

Barbour

Knox

Venango

Webster

Lawrence

Marshall

Hampshire

Allegany

Clay

Calhoun

Monongalia

Doddridge

Licking

Taylor

Putnam

Cuyahoga

Ohio

Pocahontas

Shenandoah

Kanawha

Vinton

Geauga

Pleasants

Hocking

Brooke

Blair

CabellHighland

Nicholas

Forest

Legend

Hancock

Austin Chalk Wells Since 2015Sized by Peak IP30 boe/d

Siltstone Footprint

Drilling Rigs

PENNSYLVANIA

WEST VIRGINIA

OHIO

Elk

Erie

York

Tioga

Erie

Potter

Steuben

Centre

Oneida

Berks

Butler

Bradford

Kent

Lycoming

Bedford

Clinton

McKeanWarren

Clearfield

Augusta

Allegany

Blair

Indiana

Crawford

Luzerne

Somerset

Stark

Otsego

Wayne

Cattaraugus

Randolph

Bath

Fayette

Perry

Lancaster

Hardy

Mercer

Kanawha

Franklin

Chester

Garrett

Sussex

Cayuga

Tioga Delaware

Oswego

Broome

Ontario

Knox

Wayne

Chautauqua

Monroe

Chenango

Grant

Clarion

Preston

Schuylkill

Gallia

Cambria

Wayne

Monroe

Herkimer

Pike

Pocahontas

Lorain

Madison

Huntingdon

Onondaga

Venango

Greene

Perry

Clay

Nicholas

Allegheny

Adams

Fauquier

Trumbull

Washington

Meigs

Roane

Athens

Westmoreland

Cecil

Jefferson

Ashtabula

Frederick

Mifflin

Fulton

Rockingham

Licking

Noble

Pendleton

Carroll

Louisa

Yates

Fayette

Lewis

Wayne

Forest

Niagara

Webster

Braxton

Dauphin

Ritchie

Belmont

Mason

Wyoming

Wood

Armstrong

Portage

Baltimore

Livingston

Tucker

Beaver

Caroline

Lincoln

Albemarle

Carroll

Monroe

Boone

Susquehanna

Fairfax

Loudoun

Page

Hampshire

Cortland

Charles

Kent

Harford

Muskingum

Wirt

Medina

Sullivan

Jackson

Holmes

Morgan

Bucks

Summit

Washington

Guernsey

Genesee

Juniata

Union

Tyler

Carbon

Coshocton

Wetzel

Ashland

Greenbrier

Columbia

Tompkins

Lehigh

Gilmer

Geauga

Dorchester

Orleans

Vinton

Harrison

Upshur

Allegany

Harrison

Salem

Lake

Tuscarawas

Highland

Snyder

Orange

Frederick

Marion

Putnam

Cuyahoga

Cumberland

Jefferson

Columbiana

Cabell

Mineral

Wyoming

Cameron

Mahoning

Barbour

Culpeper

Chemung

Lebanon

Huron

Montgomery

Washington

Schuyler

Hocking

Wicomico

Essex

Lawrence

Marshall

Berkeley

Montgomery

Stafford

Howard

Monongalia

Morgan

Warren

Taylor

Clarke

Erie

Ohio

Doddridge

Ohio

Pennsylvania

New York

Virginia

West Virginia Maryland

Elk

Erie

Tioga

Potter

Steuben

Centre

Berks

Bradford

Lycoming

Clinton

McKean

Clearfield

Allegany

Luzerne

Cattaraugus

Blair

Wayne

Perry

Tioga

Broome

Ontario

Chenango

Schuylkill

Cayuga

Madison

Otsego

Monroe

Onondaga

Mifflin

Indiana

Cambria

Yates

Wayne

Monroe

WyomingLivingston

Susquehanna

Cortland

Dauphin

Sullivan

Jefferson

Genesee

Delaware

Juniata

Union

Carbon

Huntingdon

Columbia

Tompkins

Niagara

Lehigh

Seneca

Oneida

Snyder

Wyoming

Cameron

Chemung

Lebanon

Schuyler

Lackawanna

Northumberland

Orleans

Warren

Pike

Herkimer

Montgomery

Northampton

Bucks

Montour

Forest

Lancaster

Erie

Chester

PENNSYLVANIA

6

Acreage concentrated in the core of the play

Exposure to premier acreage within portfolios of major Appalachian operators including Antero, Ascent, Encino, EQT, and

Gulfport, plus well-capitalized operators including Chevron, ExxonMobil, and Shell

Increasing development activity due to unrestricted market access following recent midstream de-bottlenecking efforts

Substantial free cash flow generation

Royalty revenue from interest in >625 producing horizontal wells

Lease extensions and renewals provide additional revenue source

Significant potential upside

Portfolio contains repeatable drilling inventory of highly economic locations with line of sight to >175 DUCs/PUDs

Wells spud on Siltstone acreage increasing annually

Comprehensive land and title documentation (both digital and hard copy)

OH29,173 PA

13,785

WV9,448

Net Royalty Acres

by State(1)

52% in

Belmont and

Jefferson, OH

42% in

Washington and

Greene, PA

OH86%

PA9%

WV5%

Production

by State(2)

Production

by Formation(2)

Utica87%

Marcellus13%

Concentrated in most

economic and actively

developed areas

Production

by Operator(2)

EQT23%

Encino22%

GPOR21%

Ascent12%

AR7%

MR4%

CNX3% SWN

2%

Other6%

mailto:[email protected]

5

September 30, 2019

Opportunity to acquire economic, highly contiguous,

and de-risked acreage position in the Eagle Ford

11,212 gross / net largely undeveloped acres located

in La Salle, McMullen, and Dimmit counties, TX

100% operated with 100% working interest

Highly economic locations with average >8,500’

lateral length and robust EURs of >100 boe/ft

Executable optimized development plan on 660’

well spacing supports 63 gross drilling locations

in the Lower Eagle Ford

Volatile oil window provides favorable liquids content

with pressure and gas volumes to sustain solution gas

drive

June 2019 net production of ~1,500 boe/d (72%

liquids) from 4 gross wells

Offset activity by top tier operators including EOG,

Chesapeake, XTO, Sundance Energy, EP Energy,

and Carrizo

Significant upside potential from Upper Eagle Ford

and Austin Chalk

EOR pilots being delineated near PayRock’s acreage

position

Favorable marketing contracts and no minimum

volume commitments or acreage dedications

VDR available now

Contact Chelsea Neville at [email protected] or

713-546-9703 for a Confidentiality Agreement and access to the VDR

Source: PayRock Energy 2019 Eagle Ford Divestiture announcement

Asset Ready for

Full-Scale

Development

High degree of control as asset is 100% operated

Nominal number of leases simplifies the management of the land position

Ample access to third party gathering for oil and gas in addition to salt water disposal

No minimum volume commitments or acreage dedications

Largely

Undeveloped

Blocky Eagle Ford

Position

Attractive acquisition opportunity with exposure to the highly economic Eagle Ford volatile oil window

11,212 net acre position located in La Salle, McMullen, and Dimmit counties, TX

100% operational control with 100% working interest and 75% NRI across acreage

Distinct contiguous acreage blocks allow for average lateral length >8,500’ and 23 locations in excess of 10,000’

High Quality

Subsurface

Attributes

The Lower Eagle Ford exhibits exceptional reservoir quality across PayRock’s acreage

Efficiently developed with a single drilling target

Average in-place volume of 15 MMBO/section

Two distinct Eagle Ford reservoirs allow for flexible development strategy

Shallow, liquids-rich, low water saturation in the Thurman area

Deeper, volatile oil with significant over-pressure in the STS area

The Austin Chalk represents significant opportunity for co-development with the Eagle Ford

Thurman overlies a thick section of reservoir-quality lower Austin Chalk

Sugarkane Field has demonstrated that higher GORs support success in the Austin Chalk

Highly Economic

Drilling Inventory

through

Enhanced

Completions

One of the last remaining undeveloped areas of scale in the core Eagle Ford

63 gross operated Lower Eagle Ford drilling locations at conservative 660’ inter-well spacing provide ample running room

Position de-risked by existing wells and offset performance

PayRock wells exceed historical type curve for the area due to improved completion technology

Additional upside from offsetting Austin Chalk activity, a potential second bench in the Eagle Ford, and EOR pilots in the

area

Currently on the Market from BMO: PayRock Energy Eagle Ford Divestiture

ASSET HIGHLIGHTS

ASSET OVERVIEW PROCESS OVERVIEW

.

ASSET MAP

mailto:[email protected]

6

September 30, 2019

Historical Prices as of 26-Sep-19 Close ($/gal)

NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago

Ethane $0.19 $0.21 $0.23 $0.50

Propane $0.47 $0.46 $0.64 $1.05

Butane $0.55 $0.56 $0.62 $1.21

Iso-butane $0.84 $0.71 $0.83 $1.27

Pentane+ $1.15 $1.14 $1.28 $1.60

NYMEX Gas Futures as of 26-Sep-19 Close ($/mmbtu)

Period(1) Current Last Wk. 6 Mo. Ago 1 Yr. Ago

12 Mo. Strip $2.46 $2.53 $2.92 $2.84

2019 $2.49 $2.61 $2.87 $2.77

2020 $2.47 $2.51 $2.76 $2.64

2021 $2.46 $2.46 $2.66 $2.60

2022 $2.64 $2.63 $2.83 $2.73

2023 $2.64 $2.63 $2.83 $2.73

NYMEX WTI Futures as of 26-Sep-19 Close ($/bbl) NYMEX Gas Futures as of 26-Sep-19 Close ($/mmbtu)


12 Mo. Strip $54.32 $56.07 $60.00 $70.23

2019 $56.35 $58.08 $60.21 $69.98

2020 $53.60 $54.80 $58.69 $66.17

2021 $51.37 $51.81 $56.28 $62.64

2022 $51.05 $51.04 $54.56 $59.87

2023 $51.43 $51.17 $53.76 $58.08

25%

35%

45%

55%

65%

Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19

% o

f W

TI

NGL as % of WTI

$1

$2

$3

$4

$5

Sep-18 Mar-19 Sep-19 Mar-20 Sep-20

($/m

mb

tu)

$20

$30

$40

$50

$60

$70

$80

Sep-18 Mar-19 Sep-19 Mar-20 Sep-20

($/b

bl)

NGL PRICING(2)

HENRY HUB NATURAL GAS (HISTORICAL / FORECAST)

Commodity Prices

Source: BMO Commodity Products Group, Bloomberg, FactSet

1. Future prices are calendar year average unless stated otherwise.

2. Assumes typical Gulf Coast barrel composition.

WTI OIL (HISTORICAL / FORECAST)

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 Data

Link to Detailed

Historical Graph

Link to Detailed

Futures Data

Link to Detailed

Historical Graph

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

[TBU]

Historical Prices as of 19-Sep-19 Close ($/gal)

NGLs Current Last Wk. 6 Mo. Ago 1 Yr. Ago

Ethane $0.21 $0.23 $0.27 $0.59

Propane $0.46 $0.43 $0.68 $1.06

Butane $0.56 $0.49 $0.68 $1.18

Iso-butane $0.71 $0.63 $0.86 $1.35

Pentane+ $1.14 $1.03 $1.30 $1.57

NYMEX Gas Futures as of 19-Sep-19 Close ($/mmbtu)


12 Mo. Strip $2.53 $2.56 $3.01 $2.78

2019 $2.61 $2.65 $2.97 $2.73

2020 $2.51 $2.54 $2.78 $2.62

2021 $2.46 $2.47 $2.66 $2.58

2022 $2.63 $2.63 $2.84 $2.72

2023 $2.63 $2.63 $2.84 $2.72

NYMEX WTI Futures as of 19-Sep-19 Close ($/bbl) NYMEX Gas Futures as of 19-Sep-19 Close ($/mmbtu)


12 Mo. Strip $56.07 $53.82 $59.88 $69.34

2019 $58.08 $55.00 $59.89 $68.78

2020 $54.80 $53.10 $58.99 $65.07

2021 $51.81 $51.29 $56.95 $61.74

2022 $51.04 $50.82 $55.44 $59.23

2023 $51.17 $51.08 $54.73 $57.60














http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html

http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html



http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html

http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html



7

September 30, 2019

($0.32)

AECO

Northern

California

Sumas

Southern

California

El Paso - SJ

Waha

HSC

Henry Hub

Panhandle

CIG Chicago

Dominion

Transco

$2.32

($0.11)

$2.55

$0.12

$3.09

$0.66

$1.63

($0.80)

$2.35

($0.08)

$1.28

($1.15)

$2.43

$1.63

($0.80)

$1.35

($1.08)

$1.80

($0.63)

$1.73

($0.70)

$2.10

($0.33)

$1.73

($0.70)

Clearbrook

Midland

Cushing

St. James

(LLS)

East Coast

U.S. (Brent)

Midland Sweet-

Sour Spread

EMS

$53.91

($2.50)

$62.74

$6.33

$56.41

NATURAL GAS PRICING & DIFFERENTIALS TO HENRY HUB ($ / MMBTU) – AS OF 26-SEP-19

Commodity Prices (cont’d)

OIL PRICING & DIFFERENTIALS TO CUSHING WTI ($ / BBL) – AS OF 26-SEP-19

$50.66

($5.75)

Legend

Price

Diff.

Legend

Price

Diff.

Source: BMO Commodity Products Group, Bloomberg

Note: Prices and differentials are for prompt month futures except for Clearbrook which is based on spot prices.

MAPS IN

MASTER VIEW

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU $58.98

$2.57

$57.08

$0.67

TBU

TBU

TBU

8

September 30, 2019

0%

10%

20%

30%

40%

50%

--

100

200

300

400

500

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

H V+D % of Total Rigs

Item Value Wkly Change Last Week Item Value Wkly Change Last Week

Rig Count 414 (3) 417 Oil Differential $0.85 $0.55 $0.30

Permitting Activity 86 (43) 129 Gas Differential ($0.81) ($0.05) ($0.76)

-$4.80

-$3.20

-$1.60

$0.00

$1.60


-$18.00

-$12.00

-$6.00

$0.00

$6.00

$ /

mm

btu

$ /

bb

l

Midland Waha

5,000

7,000

9,000

11,000

13,000

15,000

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19

mm

cf/

d

mb

bl/

d

Oil Gas

4,057

13,900

9931,212

1,010868

1,247

1,0651,207

1,050

1,256

910763 744

417

Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19

H V+D

--

$20,000

$40,000

$60,000

$80,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

1 2 8 8 6 6 12 13 15 7 2 2 7 2 5 4 1 2 0

$ /

acre

# Deals

$25,221

Ann'd

Date Buyer Seller Asset Description Value(1)

Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

13-Sep-19 Viper Energy Partners Santa Elena Minerals LP 1,358 net royalty acres in Permian $150 n.a. $107,143 nmf

03-Sep-19 Spur Energy Partners Concho Resources Inc ~70,000 net acres in Eddy and Lea, NM $925 n.a. $37,000 $13,214

06-Aug-19 Undisclosed Buyer Pioneer 3,300 net acres in Martin County $66 n.a. n.a. $20,000

31-Jul-19 Ecopetrol Oxy Midland Basin JV $1,500 n.a. n.a. $31,559

30-Jul-19 Viper Energy Partners Diamondback Energy Permian royalty assets $700 n.a. $175,000 nmf

Mean $668 n.a. $106,381 $21,591

Median $700 n.a. $107,143 $20,000



--

$50,000

$100,000

$150,000

$200,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

1 2 6 9 5 7 11 9 9 6 1 0 7 2 5 4 1 2 3

$ /

bo

e/d

# Deals

$113,122

GROSS PRODUCTION

TRANSACTION ACTIVITY (EXCLUDES CORPORATE DEALS)

TRANSACTION PRODUCTION MULTIPLES(3) TRANSACTION ADJUSTED NET ACRE MULTIPLES(3,4)

PERMITTING ACTIVITY BY MONTH

DIFFERENTIALS

Permian Snapshot

RIG COUNT

Source: BMO Transaction Database, Baker Hughes, BMO Commodity Products Group, Bloomberg, Drilling Info, PLS


1. Represents total enterprise value. Excludes transactions with deal value <$20 million. 2. $/acre multiple not adjusted for value associated with production.

3. Red line denotes average since 01-Jan-17. Calculated as the weighted average of each quarter’s transactions.

4. Production valued at $45,000/boepd in 2014, $30,000/boepd in 2015, $35,000/boepd in 2016 & 2017, and $40,000/boepd in 2018 & 2019.

TBU

TBU TBU

TBU TBU

TBU TBU

TBU

TBU

TBU

TBU

9

September 30, 2019

0%

5%

10%

15%

20%

--

100

200

300




Rig Count 75 (2) 77 Oil Differential $2.95 ($0.70) $3.65


-$0.30

-$0.20

-$0.10

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50


-$6.00

-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

MEH HSC

6,000

6,500

7,000

7,500

8,000

1,000

1,200

1,400

1,600

1,800

2,000


mm

cf/

d

mb

bl/

d

Oil Gas

1,353

6,916329

402350

315

398353

472

351

401

222175 200

161


H V+D

--$10,000$20,000$30,000$40,000$50,000$60,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 1 2 1 2 2 0 4 2 3 1 2 4 2 1 3 0 0 0

$ /

acre

# Deals

$6,130

--

$50,000

$100,000

$150,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

1 1 3 1 2 2 2 4 4 3 1 2 7 2 0 3 0 0 1

$ /

bo

e/d

# Deals

$68,384

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

17-Jul-19 Undisclosed Buyer Sundance Energy 6,100 net acres in Dimmit County $30 n.a. $28,069 $4,836

19-Nov-18 Lonestar Resources Inc Sabine Oil & Gas Corp 2,706 net acres in Eagle Ford $39 $2.98 $48,375 $14,302

20-Sep-18 WildHorse Undisclosed Seller 20,305 net Eagle Ford/Austin Chalk acres $35 n.a. n.a. $1,743

07-Sep-18 Undisclosed Buyer Viking Minerals LLC 1,191 net royalty acres in Eagle Ford $28 n.a. n.a. nmf

31-Jul-18 EP Energy Corp Undisclosed Seller Additional working interests in Eagle Ford $31 n.a. n.a. n.a.

Mean $33 $2.98 $38,222 $6,960

Median $31 $2.98 $38,222 $4,836



Eagle Ford Snapshot



DIFFERENTIALS RIG COUNT







GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

10

September 30, 2019

0%

5%

10%

15%

20%

--

20

40

60

80




Rig Count 54 -- 54 Oil Differential $3.60 -- $3.60

Permitting Activity 6 (18) 24 Gas Differential -- -- --

--

$2.00

$4.00

$6.00

$8.00

$10.00


--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

70

80

90

100

110

120


mm

cf/

d

mb

bl/

d

Oil Gas

81

11,502177 180

115 105

174

113 116 116132

8698

177

70


H V+D

--$2,000$4,000$6,000$8,000

$10,000$12,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 0 5 1 1 3 2 3 0 2 2 0 1 1 2 1 0 1 1

$ /

mcfe

/d

# Deals

$4,808

--

$5,000

$10,000

$15,000

$20,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 0 3 1 1 2 1 3 0 1 2 0 1 1 1 1 0 1 1

$ /

acre

# Deals

$3,267

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)

29-Jul-19 Osaka Gas Sabine Oil & Gas Corp 175,000 net acres in East TX $610 n.a. $2,905 $9,136

19-Dec-18 Comstock Shelby Shale LLC 6,023 net acres in Haynesville $21 n.a. n.a. $3,404

19-Nov-18 Aethon III QEP Resources Inc 49,700 net acres in Haynesville $735 $0.77 $2,475 $14,789

05-Sep-18 Viking Energy Group Multiple Sellers Texas and Louisiana assets $100 n.a. n.a. n.a.

05-Sep-18 Equinor Texegy LLC 60,000 net acres in Austin Chalk $75 n.a. n.a. $1,250

Mean $308 $0.77 $2,690 $7,145

Median $100 $0.77 $2,690 $6,270



Ark-La-Tex Snapshot








4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.


GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

11

September 30, 2019

0%

5%

10%

15%

20%

--

50

100

150




Rig Count 63 -- 63 Oil Differential $6.33 $0.06 $6.27


-$3.00

-$2.00

-$1.00

$0.00

$1.00

$2.00

$3.00


-$15.00

-$10.00

-$5.00

$0.00

$5.00

$10.00

$15.00

$ /

mm

btu

$ /

bb

l

Brent Dominion

14,000

19,000

24,000

29,000

34,000

50

70

90

110

130

150


mm

cf/

d

mb

bl/

d

Oil Gas

101

30,257

373 370

305258

397

276

382419

384334 346

278

176


H V+D

--$5,000

$10,000$15,000$20,000$25,000$30,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 1 0 0 1 2 2 3 2 5 1 4 3 4 3 1 1 0 2

$ /

mcfe

/d

# Deals

$4,878

--$2,000$4,000$6,000$8,000

$10,000$12,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 1 0 0 1 2 2 4 2 4 1 3 1 3 2 0 0 0 0

$ /

acre

# Deals

$2,083

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/mcfe) ($/mcfe/d) ($/acre)(2)

24-Jul-19 Diversified Gas & Oil EdgeMarc Energy Holdings 12,730 net acres in Ohio Utica $50 $0.32 $769 $3,928

19-Jul-19 Multiple Range Resources Corp Southwest Applachia ORRIs $600 n.a. $15,790 nmf

30-Jun-19 Undisclosed Buyer Range Resources Corp 20,000 non-producing net acres in PA $34 n.a. n.a. $1,700

27-Mar-19 Diversified Gas & Oil HG Energy II LLC Huckleberry assets in Appalachia $400 n.a. $3,227 n.a.

15-Oct-18 Undisclosed Buyer Range Resources Corp Overriding royalty interests in Appalachia $300 n.a. $17,649 nmf

Mean $277 $0.32 $9,359 $2,814

Median $300 $0.32 $9,509 $2,814



Appalachia Snapshot








4. Production valued at $3,000/mcfepd in 2014, and $2,000/mcfepd in 2015, 2016, 2017, 2018, and 2019.


GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

12

September 30, 2019

0%

5%

10%

15%

20%

--

50

100

150

200




Rig Count 53 -- 53 Oil Differential ($2.50) ($0.50) ($2.00)

Permitting Activity 18 (28) 46 Gas Differential ($0.72) -- ($0.72)

-$1.00

-$0.50

$0.00

$0.50


-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

1,500

1,800

2,100

2,400

2,700

3,000

800

900

1,000

1,100

1,200

1,300

1,400

1,500


mm

cf/

d

mb

bl/

d

Oil Gas

1,432

2,918

127

201

12896

133

114

144 138 145 144 154137

87


H V+D

--

$5,000

$10,000

$15,000

$20,000

$25,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 0 1 2 0 0 2 3 1 0 3 2 0 5 2 0 0 1 0

$ /

acre

# Deals

$2,702

--

$20,000

$40,000

$60,000

$80,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 1 1 4 0 2 3 3 0 1 3 3 0 6 3 0 0 1 0

$ /

bo

e/d

# Deals

$43,737

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

22-Apr-19 Northern Oil and Gas Flywheel Energy LLC 18,000 net acres in Williston Basin $310 n.a. $47,014 $17,238

31-Jul-18 Northern Oil and Gas W Energy Partners 10,600 net acres in Williston Basin $288 n.a. $42,708 $27,196

18-Jul-18 Northern Oil and Gas Pivotal Petroleum Partners LP Producing assets in Williston Basin $152 n.a. $37,032 n.a.

12-Jul-18 PetroShale Inc Slawson Exploration Co 1,981 net acres in Williston Basin $55 $6.04 $100,000 $27,764

06-Jul-18 Energy Resources 12 LP Bruin E&P Partners LLC 2.8% non-operated WI in Bakken assets $83 n.a. n.a. n.a.

Mean $178 $6.04 $56,688 $24,066

Median $152 $6.04 $44,861 $27,196



Bakken Snapshot










GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

13

September 30, 2019

0%

5%

10%

15%

20%

--

50

100

150




Rig Count 65 (2) 67 Oil Differential ($2.50) ($0.50) ($2.00)

Permitting Activity 26 (72) 98 Gas Differential ($0.72) -- ($0.72)

-$1.00

-$0.50

$0.00

$0.50


-$20.00

-$10.00

$0.00

$10.00

$ /

mm

btu

$ /

bb

l

Clearbrook CIG

12,500

13,000

13,500

14,000

14,500

15,000

15,500

500

600

700

800

900

1,000


mm

cf/

d

mb

bl/

d

Oil Gas

874

13,718

512

689

829 812

352 402 494

328164

306 283

434

228


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

03-Sep-19 Undisclosed Buyer Crescent Point 224,000 net undeveloped acres in Uinta $525 n.a. $32,051 $2,344

14-Feb-19 Undisclosed Buyer Harvest Oil & Gas Corp San Juan Basin assets $43 $1.57 $10,835 n.a.

31-Jan-19 Undisclosed Buyer Extraction Oil & Gas 5,000 net acres in Powder River $22 n.a. n.a. $4,480

01-Oct-18 DJR Energy LLC Encana 182,000 net acres in San Juan Basin $480 n.a. $88,889 $2,637

28-Aug-18 Vermilion Energy Inc Massif Oil & Gas LLC 55,000 acres in Powder River Basin $150 n.a. $56,604 $2,727

Mean $244 $1.57 $47,095 $3,047

Median $150 $1.57 $44,328 $2,682



--$20,000$40,000$60,000$80,000

$100,000$120,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

2 0 4 4 1 6 2 0 1 6 3 9 3 1 3 1 1 0 2

$ /

bo

e/d

# Deals

$36,959

--

$5,000

$10,000

$15,000

$20,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 0 3 3 0 1 1 0 1 0 1 5 2 0 2 1 0 0 0

$ /

acre

# Deals

$4,655



DIFFERENTIALS

Rockies (excl. Bakken) Snapshot

RIG COUNT







GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU TBU

14

September 30, 2019

0%

5%

10%

15%

20%

--

100

200

300

400




Rig Count 72 -- 72 Oil Differential -- -- --


-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25


-$1.00

-$0.75

-$0.50

-$0.25

$0.00

$0.25

$ /

mm

btu

$ /

bb

l

Cushing Panhandle

8,000

10,000

12,000

14,000

16,000

18,000

550

600

650

700

750

800

850


mm

cf/

d

mb

bl/

d

Oil Gas 763

14,274

449405 382

355403

339

435

389298

359 341311

259


H V+D

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(2)

12-Sep-19 Contango Will Energy Corporation TX Panhandle, W. Anadarko, and N.LA $23 n.a. $16,429 $144

28-Aug-19 Scout Energy Partners Riviera Resources Inc Hugoton Basin assets $295 $2.30 $17,020 $295

31-Jul-19 Continental Resources Inc Undisclosed Seller SCOOP assets $80 n.a. n.a. n.a.

08-Jul-19 NextEra Energy Inc Encana 140,000 net acres in Arkoma Basin $165 n.a. $12,857 $1,179

12-Jun-19 Glendale Energy; TPG Undisclosed Seller Non-op interests in STACK $55 n.a. n.a. n.a.

Mean $124 $2.30 $15,435 $539

Median $80 $2.30 $16,429 $295



--

$5,000

$10,000

$15,000

$20,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

1 3 1 2 0 3 3 2 4 1 2 1 0 0 0 1 0 0 0

$ /

acre

# Deals

$5,760

--

$50,000

$100,000

$150,000

$200,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

1 4 1 3 1 6 3 1 4 2 4 5 2 2 5 4 2 0 3

$ /

bo

e/d

# Deals

$40,951

Mid-Continent Snapshot










GROSS PRODUCTION

TBU

TBU

TBU

TBU

TBU TBU

TBU

TBU

TBU

TBU

TBU

TBU

TBU

15

September 30, 2019

0%

5%

10%

15%

20%

--

10

20

30

40


Deep Water Shelf % of Total Rigs


Rig Count 22 (1) 23 Oil Differential $3.60 -- $3.60

Permitting Activity 14 5 9 Gas Differential -- -- --

--

$2.00

$4.00

$6.00

$8.00

$10.00


--

$2.00

$4.00

$6.00

$8.00

$10.00

$ /

mm

btu

$ /

bb

l

LLS Henry Hub

2,000

2,500

3,000

3,500

4,000

4,500

1,000

1,200

1,400

1,600

1,800

2,000

2,200


mm

cf/

d

mb

bl/

d

Oil Gas1,932

3,116

3339

32 30 32 33

2629

26 27 28

22

36


--

$15,000

$30,000

$45,000

$60,000

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 0 1 1 0 0 2 0 0 0 0 1 2 2 2 1 1 3 0

$ /

bo

e/d

# Deals

$32,727

--

$10

$20

$30

$40

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

0 0 1 0 0 0 2 1 0 0 0 1 2 1 0 1 1 2 0

$ /

bo

e

# Deals

$16.39

Ann'd


Proved

Multiple

Prod.

Multiple Net Acres

($mm) ($/boe) ($/boe/d) ($/acre)(3)

27-Jun-19 W&T Offshore ExxonMobil Mobile Bay assets $200 $2.70 $10,101 n.a.

13-May-19 Equinor Shell 22.45% WI in Caesar-Tonga Field $965 n.a. $60,313 n.a.

23-Apr-19 Murphy LLOG Bluewater LLC Mississippi Canyon & Green Canyon $1,375 $20.83 $36,184 n.a.

16-Jan-19 Talos Energy Inc Samson Energy Co LLC Non-op Gulf of Mexico working interest $30 $13.45 $17,939 n.a.

10-Oct-18 Murphy Petrobras Gulf of Mexico joint venture $900 $15.00 $21,951 n.a.

Mean $694 $13.00 $29,298 n.a.

Median $900 $14.23 $21,951 n.a.



Gulf of Mexico Snapshot

PERMITTING ACTIVITY BY MONTH(1)




1. Permits include directional and unidentified drilling permits. 2. Represents total enterprise value. Excludes transactions with deal value <$20 million.

3. $/acre multiple not adjusted for value associated with production.


GROSS PRODUCTION


TRANSACTION PRODUCTION MULTIPLES(4) TRANSACTION PROVED RESERVE MULTIPLES(4)

TBU

TBU TBU

TBU TBU

TBU

TBU

TBU TBU

TBU

TBU TBU

16

September 30, 2019

Upcoming Industry Events

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.

Click event to open

April 2019 Apr 22-23 Mineral & Royalty Conference

June 2019 Jun 24-26 IPAA Midyear Meeting

September 2019 Sep 30-Oct 2 SPE Annual Technical Conference and Exhibition

October 2019 Oct 9 IPAA Leaders in Industry Luncheon

Oct 15 Houston Producers Forum Luncheon

Oct 18 ADAM-Houston Monthly Luncheon

Oct 22-23 A&D Strategies and Opportunities Conference

2020

Sep 8-10 DUG Eagle Ford (San Antonio)

Oct 27-28 A&D Strategies and Opportunities Conference

Nov 2-4 Executive Oil Conference & Exhibition

November 2019 Nov 4-6 Executive Oil Conference & Exhibition

Nov 13 IPAA Leaders in Industry Luncheon

Nov 15 ADAM-Houston Monthly Luncheon

Nov 19 IPAA Oil & Gas for Newcomers

Nov 19 Houston Producers Forum Luncheon

Nov 19-21 DUG Midcontinent (Oklahoma City)

Nov 20-21 11th Annual North America Assembly & Dinner

December 2019 Dec 5 177th OPEC Meeting

Dec 11 IPAA Leaders in Industry Luncheon

Dec 17 Houston Producers Forum Luncheon

Dec 20 ADAM-Houston Monthly Luncheon

January 2019 Jan 15 Houston Producers Forum Luncheon

Jan 25 ADAM-Houston Monthly Luncheon

Jan 24 IPAA Private Capital Conference

May 2019

May 21 Houston Producers Forum Luncheon

May 22 SPE Business Development Group Meeting

March 2019 Mar 26-28 International Petroleum Technology Conference

February 2020 Feb 3-7 NAPE Summit Week

Feb 18-19 DUG Rockies (Denver)

Feb 19 Houston Producers Forum Luncheon

March 2020 Mar 2 Energy Capital Conference

Mar 4 Women in Energy Luncheon

Mar 5-7 IADC/SPE International Drilling Conference

Mar 9-13 Houston CERA Week

Mar 17 Houston Producers Forum Luncheon

Mar 20 ADAM-Houston Monthly Luncheon

April 2020 Apr 6-8 DUG Permian (Fort Worth)

Apr 17 ADAM-Houston Monthly Luncheon

Apr 20-22 OGIS New York

Apr 21 Houston Producers Forum Luncheon

May 2020 May 15 ADAM-Houston Monthly Luncheon

May 19 Houston Producers Forum Luncheon

May 19-20 DUG Haynesville (Shreveport)

June 2020 Jun 16 Houston Producers Forum Luncheon

Jun 16-18 DUG East (Pittsburgh)

Jun 19 ADAM-Houston Monthly Luncheon

January 2020 Jan 15 ADI Forum

Jan 17 ADAM-Houston Monthly Luncheon

Jan 21 Houston Producers Forum Luncheon

Jan 23 IPAA Private Capital Conference

July 2020 Jul 17 ADAM-Houston Monthly Luncheon

Jul 21 Houston Producers Forum Luncheon

Jul 22-24 SPE Unconventional Resources Technology

August 2020 Aug 9-12 Enercom Oil & Gas Conference

Aug 18 Houston Producers Forum Luncheon

Aug 21 ADAM-Houston Monthly Luncheon

https://mineralconference.com/





https://www.ipaa.org/events/midyear-meeting-2019/





http://www.atce.org/welcome






https://www.ipaa.org/events/leaders-industry-luncheon-october-2019/



http://www.houstonproducersforum.org/Luncheons.aspx



http://adamhouston.org/events





https://www.hartenergyconferences.com/ad-strategies-and-opportunities





https://www.hartenergyconferences.com/dug-eagle-ford











https://www.hartenergyconferences.com/executive-oil-conference










https://www.ipaa.org/events/leaders-industry-luncheon-november-2019/









https://www.ipaa.org/events/oil-gas-orientation-november-2019/








https://www.hartenergyconferences.com/dug-midcontinent






https://oilandgascouncil.com/event-events/north-america-assembly-and-dinner/





https://www.opec.org/opec_web/en/311.htm



https://www.ipaa.org/events/























http://www.ipaa.org/events/private-capital-conference-2019/



http://www.spegcs.org/events/4214/

https://ace.aapg.org/2019


https://events.mergermarket.com/energy




https://www.spegcs.org/events/4376/



http://www.iptcnet.org/19iptc/home/?_ga=2.149135166.98797786.1524242931-1252836126.1522358097





https://www.ipaa.org/events/nape-summit-week/





https://www.hartenergyconferences.com/dug-rockies









https://www.hartenergyconferences.com/energy-capital-conference



https://www.hartenergyconferences.com/women-in-energy



https://www.spe.org/en/events/drilling-conference/home/

https://www.spe.org/events/en/2019/conference/19dc/schedule-overview.html





https://ceraweek.com/register.html













https://www.hartenergyconferences.com/dug-permian-basin





https://www.ipaa.org/events/ogis-new-york-2020/























https://www.hartenergyconferences.com/dug-haynesville








https://www.hartenergyconferences.com/dug-east












https://www.adi-forum.com/












https://www.ipaa.org/events/private-capital-conference-2019-2/












https://www.spe.org/events/calendar/







https://www.theoilandgasconference.com/















17

September 30, 2019

SCOOP/STACK/Merge

DJ-Niobrara

Eagle Ford

Haynesville

Granite Wash

GOM

Permian

Marcellus

Utica

Williston

Gulf Coast Onshore

Piceance

Powder River Green River

Legend

Current

Change

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. No part of this

publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted, or otherwise reproduced, stored, disseminated, transferred or used, in any form or

by any means by any third parties, except with the prior written permission of BMO Capital Markets.

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

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

Burns Inc. (Member Investment Industry Regulatory Organization of Canada and Member Canadian Investor Protection Fund) in Canada and Asia, Bank of Montreal Europel p.l.c.

(authorised and regulated by the Central Bank of Ireland) in Europe and BMO Capital Markets Limited (authorised and regulated by the Financial Conduct Authority) in the UK 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. © 2018 BMO Financial Group

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.

Source of rig count stats: Baker Hughes

Rig Count Summary MAPS IN

MASTER VIEW

Contacts

Disclaimer

Jason Martinez

MD & Head of U.S. A&D

713-546-9771

[email protected]

Howard Barnwell

MD & Transactions Mgr.

713-546-9767

[email protected]

Rob Priske

MD & Transactions Mgr.

713-546-9727

[email protected]

Dan Schockling

Director & Head of Commercial

713-518-1223

[email protected]

Michael Hackett

Vice President

Marian Yu

Associate

Aaron Moeller

Associate

BMO uses updated basin outlines, and the resulting rig counts, to more accurately represent current basin knowledge. The data below reflect these changes

and is different than those shown by Baker Hughes. The totals are the same.

414

(3)

53

--

12

--

51

--22

(1)

22

(1)

5

(1)55

1

54

--

75

(2)

16

--

3

--

25

--12

(1)

This

Week Change

Last

Week

Last

Year

Total Rigs 860 (8) 868 1,054

Oil 713 (6) 719 863

Gas 146 (2) 148 189

Miscellaneous 1 -- 1 2

Directional 57 (4) 61 69

Horizontal 752 (4) 756 922

Vertical 51 -- 51 63

Basin

Permian 414 (3) 417 486

SCOOP/STACK/Merge 55 1 54 110

Granite Wash 5 (1) 6 27

Eagle Ford 75 (2) 77 92

Haynesville 54 -- 54 56

Marcellus 51 -- 51 55

Utica 12 -- 12 20

Williston 53 -- 53 53

DJ-Niobrara 22 (1) 23 28

Green River 12 (1) 13 18

Powder River 25 -- 25 15

Piceance 3 -- 3 7

Gulf Coast Onshore 16 -- 16 27

GOM 22 (1) 23 18

Alaska 8 -- 8 6

Other 33 -- 33 36

Mid-Con 12 -- 12 18

Rockies 3 -- 3 3

Western 16 -- 16 13

Eastern 2 -- 2 2

Michelle Tankimovich

Analyst

TBU

TBU

TBU

TBU

Documents

Prompt Oil Price ($/bbl) $56.41 ($1.72) (3.0%) Let’s follow these … · 2019-09-30 · Prompt Oil Price ($/bbl) $56.41 ($1.72) ... 13-Sep-19 Viper Energy Partners Santa Elena Minerals