Richard Zeits • 42 Comments
Tue, Sep. 6, 2:48 PM
- EOG Resources (EOG +6.7%) surges more than 6%, as analysts say its $2.5B acquisition of Yates Petroleum strengthens its Permian Basin presence at an inexpensive price.
- Tudor Pickering & Holt analysts say EOG is paying $7K-$8K/acre for the Delaware Basin properties, assuming a value on proven reserves that are producing and still being developed of ~$800M for the 29.6M boe/day EOG said it is picking up (48% oil).
- Simmons analyst Pearce Hammond calculates that the deal comes in well below some recent transactions in the play, including Diamondback Energy's (FANG +0.1%) $560M purchase of Luxe Energy, which he says came in at $26K-$27K/acre.
- Cowen analysts say EOG is paying less than $1M per new premium location, and the deal is $2/share accretive to net asset value just on initial locations.
Tue, Sep. 6, 7:37 AM
- EOG Resources (NYSE:EOG) agrees to acquire privately-held Yates Petroleum as well as some of Yates' subsidiaries and other entities in a cash and stock deal valued at $2.5B, raising its position in the Permian Basin and Powder River Basin.
- EOG will issue slightly more than 26M common shares valued at $2.3B and pay $37M in cash, and assume $245M of Yates' debt while receiving $131M in cash from Yates at closing.
- EOG says the Yates acquisition adds ~1,740 net premium drilling locations in the Delaware Basin and Powder River Basin to EOG's inventory of premium drilling locations, a 40% increase; EOG plans to begin drilling on the Yates acreage in late 2016 with additional rigs added in 2017.
Jul. 16, 2015, 2:57 PM
- Global oil majors have $150B of firepower than can be used for M&A and have the ability to defer another $325B in capex on marginal projects; with so much cash available for potential deals and up to 15M bbl/day of production potentially available for purchase, Goldman Sachs analyst Ruth Brooker sees a pickup in M&A activity in the oil and gas space coming soon.
- The firm thinks shale production has the potential to double by 2025, and Brooker argues majors likely will take the current opportunity to increase their exposure to U.S. shale at historically low prices.
- Goldman sees seven companies as most likely to draw buyout attention from the majors: EOG, PXD, CLR, COG, NBL, APC, RRC.
Mar. 16, 2015, 10:17 AM
- Street chatter says Statoil (STO -2.8%) may be pursuing EOG Resources (EOG +0.5%) in a merger or acquisition that could exceed $50B.
- Analysts say the deal would make sense for STO, which is seeking to expand its U.S. shale presence; STO also has been mentioned as one of several companies showing interest in Whiting Petroleum (WLL -8%).
- Color Raymond James analyst Andrew Coleman skeptical, saying that a 25% premium over EOG's recent $85 share price - suggesting an offer near $60B - would be needed just to get a returned phone call.
Sep. 8, 2014, 6:43 PM
- The energy sector has seen little M&A activity despite a growth shortfall and cheap borrowing rates, but UBS analysts think a focus on incremental returns may lead to less exploration and more deals as resource prices on the market have fallen.
- The firm figures four large-cap E&P companies - Anadarko Petroleum (NYSE:APC), EOG Resources (NYSE:EOG), Marathon Oil (NYSE:MRO) and Pioneer Natural Resources (NYSE:PXD) - could prove tantalizing acquisition targets, but the buyer likely would need very deep pockets.
- In the case of EOG, UBS says the company's strong position in the three biggest tight oil plays - the Eagle Ford, Bakken and Permian - make it a perfect fit for an integrated major looking to expand in those areas.
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
Jan. 18, 2013, 9:48 AMSome analysts say the coming leadership change at EOG Resources (EOG +0.3%) makes a takeover more possible, with Chevron (CVX) and Statoil (STO) seen as potential suitors. EOG is “an attractive target from the perspective of a super-high-quality asset base in all the right plays in the U.S.,” an RBC analyst says. With CEO Mark Papa leaving in June, “it does increase the possibility” of a deal. | Jan. 18, 2013, 9:48 AM
Dec. 24, 2012, 2:22 PM
EOG Resources (EOG -0.6%) is the “big winner” in the shale-gas deal between Chevron (CVX -0.9%) and Apache (APA -1.6%), UBS analysts write in a note to clients. EOG will realize an estimated $450M "for exiting a project it had little interest in pursuing," UBS says, while the deal likely will cause capital expenditure concerns for CVX and APA.| Dec. 24, 2012, 2:22 PM | 3 Comments
Dec. 24, 2012, 9:41 AM
Chevron (CVX) and Apache (APA) each agree to acquire 50% interests in the Kitimat liquefied natural gas project and proposed Pacific Trail Pipeline from EOG Resources (EOG) and Encana (ECA), with CVX becoming operator. CVX and APA also will acquire 50% interests in ~644K acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia from EOG and ECA, with APA becoming operator.| Dec. 24, 2012, 9:41 AM | 3 Comments
Oct. 26, 2012, 5:21 PM
As Exxon (XOM) falls behind in discovering untapped oil fields, it may be forced to buy what it cannot find, some analysts say. Anadarko (APC) could be an M&A candidate because utilities from Singapore to Seoul would pay a premium to import gas it finds off Mozambique’s coast. EOG could rejuvenate XOM with its oil-rich reservoirs in the Eagle Ford shale in Texas.| Oct. 26, 2012, 5:21 PM | 5 Comments
Jul. 15, 2011, 8:58 AM
Oil-and-gas takes the pole among premarket gainers following Petrohawk's (HK +63%) $12.1B bid from BHP Billiton (BHP -1.6%) as it moves deeper into the U.S. shale. The deal values HK at 50% higher than 30-day prices. LNG +6.2%. CHK +5.6%. FST +4.7%. SD +4.2%. XCO +3.8%. EOG +3.7%. HES +2.3%.| Jul. 15, 2011, 8:58 AM | 1 Comment