Richard Zeits • 20 Comments
Richard Zeits • 18 Comments
Thu, Oct. 13, 4:47 PM
- RSP Permian (NYSE:RSPP) -5.8% AH after agreeing to acquire Silver Hill Energy Partners and Silver Hill E&P II for $1.25B in cash and 31M common shares of its common stock, implying a total purchase price of ~$2.4B.
- RSPP says the deal is a unique acquisition of a highly contiguous acreage position in the core of the Delaware Basin with 41K net surface acres, which creates substantial scale with combined current production of ~50K boe/day, 100K-plus net surface acres, 500K-plus net effective horizontal acres, and 3,600 net drilling locations with substantial additional upside.
- To help fund the deal, RSPP launches a 20M-share public offering, with an underwriters option to purchase up to an additional 3M common shares.
- Silver Hill reportedly had attracted interest from the likes of Diamondback Energy (NASDAQ:FANG), Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY).
Fri, Sep. 30, 6:22 PM
- Diamondback Energy (NASDAQ:FANG) is close to a deal to buy privately held Silver Hill Energy Partners in a deal that could fetch ~$2.5B, WSJ reports.
- FANG would be the winner of an auction that reportedly attracted interest from Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY), in the latest rush to grab drilling land in west Texas' Permian Basin.
- A deal could be announced as soon as next week, according to the WSJ report.
Thu, Sep. 15, 5:40 PM
- Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY) are considering making offers for Permian Basin explorer Silver Hill Energy Partners, in a sale that could fetch more than $2B, Bloomberg reports.
- Silver Hill, which was started in 2011, controls drilling rights on more than 42K net acres in the Delaware Basin on the western shelf of the Permian.
Mon, Jun. 20, 2:25 PM
- Marathon Oil (MRO +10.4%) powers higher after snapping up P-E-backed PayRock Energy for $888M, increasing its footprint in Oklahoma's prolific STACK oil play.
- MRO expects internal rates of return for the new addition of 60%-80% before taxes at a WTI price of $50/bbl.
- CEO Lee Tillman says MRO would ratchet up drilling activity if crude prices held above $50/bbl for a while, and that the Oklahoma oil region is profitable enough that it can compete for capital against the company’s other oil plays.
- SunTrust analysts consider ~60% of Payrock’s position to be in the core STACK, and estimates the core acreage value at ~$15K/acre, which appears in line with recent transactions.
- The firm also thinks MRO's move is good news for core STACK players Newfield Exploration (NFX +0.5%), Cimarex Energy (XEC +1.3%), Continental Resources (CLR +1.2%), Devon Energy (DVN +4.6%) and Chesapeake Energy (CHK +3.3%).
Mon, Jun. 20, 7:17 AM
- Marathon Oil (NYSE:MRO) agrees to acquire PayRock Energy Holdings from venture capital firm EnCap Investments for $888M.
- PayRock has ~61K net surface acres and current production of 9K net boeday of oil in Oklahoma's Anadarko Basin STACK play.
- MRO says capital spending on the acquired assets would fit within its already announced $1.4B capex budget.
- The acquisition "will meaningfully expand the quality and scale of Marathon Oil's existing portfolio in one of the best unconventional oil plays in the U.S.," CEO Lee Tillman says.
Wed, Mar. 2, 5:59 PM
- A new report from Credit Suisse effectively suggests that Marathon Oil (NYSE:MRO) share price could double from this morning's $7.90 level, even after trimming its target price to $16 from $18 following MRO's upsized 145M-share public offering.
- History will decide whether it would have been more or less dilutive for MRO to wait for oil prices to rebound, but "the rest of the Marathon game plan should remain unchanged," the firm writes, citing MRO's deep inventory - some of which could prove quite valuable over time and be worth selling once oil recovers, given the improvement in operational performance - which is not reflected in the share price.
- Worth noting: The last time MRO shares were under $10 before the current cycle was more than 10 years ago, on a split-adjusted basis.
Dec. 3, 2015, 7:51 AM
- Devon Energy (NYSE:DVN) is in talks to buy Felix Energy for ~$2B, including debt, Reuters reports.
- DVN owns oil acreage and an interest in oil and gas pipelines located close to Felix's assets in northern Oklahoma.
- A deal would represent a bet by DVN that crude oil prices will recover from their current $40/bbl lows to ~$65 sooner rather than later, according to the report.
- Besides DVN, other major players with investments in the are where Felix operates include Marathon Oil (NYSE:MRO), Newfield Exploration (NYSE:NFX), Continental Resources (NYSE:CLR) and Cimarex Energy (NYSE:XEC).
Nov. 17, 2014, 3:59 PM
- In the wake of Halliburton's (NYSE:HAL) $34.6B offer for Baker Hughes (NYSE:BHI), it appears the next hot sector for M&A action is energy: More consolidation is likely, given the weakness for stocks in the oilfield services subsector, low interest rates, and as a drop in demand for oil increases cutthroat pricing competition.
- Speculation is running rampant as investors try to figure out who is next in an industry that is sure to undergo some more consolidation; some names identified as possible candidates include Kodiak Oil and Gas (NYSE:KOG), Marathon Oil (NYSE:MRO), Northern Oil and Gas (NYSEMKT:NOG), Anadarko Petroleum (NYSE:APC), Pioneer Natural Resources (NYSE:PXD).
- GE could go after National Oilwell Varco (NYSE:NOV) to show it is serious about the energy industry after last year’s purchase of pumpmaker Lufkin, Royal Bank of Canada says, and Oppenheimer says even BP could be an acquisition candidate.
- But Morgan Stanley does not see offshore drillers getting in on the action, as larger players like Diamond Offshore (NYSE:DO), Transocean (NYSE:RIG) and Seadrill (NYSE:SDRL) are still addressing dividend concerns while smaller companies such as Atwood Oceanics (NYSE:ATW) and Pacific Drilling (NYSE:PACD) still trade close to replacement value.
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.
Jun. 24, 2013, 8:48 AMSinopec (SNP) agrees to buy a 10% stake in a Marathon Oil (MRO) Angolan offshore oil and gas field for $1.52B. Adding overseas assets should be good news for SNP and its parent China Petrochemical, as upstream businesses traditionally provide better margins, an analyst says, but Chinese energy stocks likely will fall today on broader concerns over China's economy. | Jun. 24, 2013, 8:48 AM
Apr. 25, 2013, 10:43 AMCobalt Energy (CIE +1.8%), which has doubled in value since going public in 2009 but still trades at a substantial discount to the value of its underlying assets, is turning into a takeover target for energy companies attracted to its oil finds from Africa to the Gulf of Mexico, Bloomberg writes. CIE’s assets are "a needle mover" for a large international player, Guggenheim says. | Apr. 25, 2013, 10:43 AM | 1 Comment
Apr. 3, 2013, 5:20 AMMarathon Oil (MRO) has reportedly put its 10% holdings in two Angolan offshore oil and gas fields up for sale, possibly as part of its plans to offload up to $3B worth of assets. China National Petroleum Corp and Malaysia's Petronas are considering making bids for the assets in what would be the third major energy deal in Africa in 2013. | Apr. 3, 2013, 5:20 AM | 1 Comment
May 9, 2012, 9:07 AM
Apr. 9, 2012, 5:20 PM
Marathon Oil (MRO) sells substantially all its Alaskan assets to Hilcorp Alaska. The sale includes 17M barrels of oil equivalent of net proved reserves across 10 fields in the Cook Inlet, as well as natural gas storage, and interests in natural gas pipeline transmission systems. The sale does not include Marathon Oil's Alaska onshore drilling rig, which is being marketed separately.| Apr. 9, 2012, 5:20 PM | 2 Comments
Nov. 2, 2011, 11:52 AM
Marathon Oil (MRO +2.9%) reportedly is exploring a sale of ~30% of a venture that comprises the bulk of its Gulf of Mexico assets, and is gauging the interest of several potential buyers in Asia. The stake sale may raise up to $1B; the company says it wants to sell $1.5B-$3B in assets over the next two to three years to reinvest in core operations.| Nov. 2, 2011, 11:52 AM | 2 Comments