Mon, May 23, 4:42 PM
- Parsley Energy (NYSE:PE) -2.2% AH after agreeing to acquire mineral rights under ~30K acres consisting of Parsley leasehold and other adjacent properties in the Southern Delaware basin in Texas for $280.5M.
- PE says estimated net current production associated with the acquired mineral rights totals ~280 boe/day.
- To help fund the deal, PE announces concurrent equity and debt offerings of 8M common shares, with an underwriters option to purchase up to an additional 1.2M shares, and $200M in aggregate principal amount of senior unsecured notes due 2024.
Sep. 29, 2014, 12:26 PM
- Encana’s (ECA +2.3%) takeover of Athlon Energy (ATHL +24.6%) is good news for Diamondback Energy (FANG +2.3%) and Energen (EGN +2.2%), according to analysts at Sterne Agee.
- The acquisition implies a value of $98/share for FANG, Sterne says, based on FANG's 85K net acre leasehold position, estimated 19.8K boe/day of Q3 production, $585M of assumed debt, and a $1.7B market value for the Viper Energy Partners (NASDAQ:VNOM) units it owns.
- The firm sees even more upside for EGN, as ECA’s price implies a value of $102/share for EGN, based on 180K net acres across both sides of the Permian Basin, 48K boe/day of Q3 Permian Basin production, 132M cfe/day of Q3 San Juan Basin, and $835M of pro forma net debt as of Sept. 30.
- Permian producers Laredo Petroleum (LPI +5%), Parsley Energy (PE +5%) and RSP Permian (RSPP +4.8%) also are higher following the acquisition news.
Parsley Energy, Inc. engaged in the acquisition, development, production, exploration, and sale of crude oil and natural gas properties located in the Permian Basin region of West Texas and Southeastern New Mexico and are comprised of three primary sub-areas: the Midland Basin, the Central Basin... More
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
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