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DerrickPetroleum
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Energy Analyst focused on analyzing Global Upstream Oil & Gas E&P opportunities
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Upstream E&P Announced Deals
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  • $42 Billion In Oil & Gas Deals Announced In Q3-2013

    After slow start, oil and gas deal activity back to tracking normal levels

    · Global value up nearly 60% from Q2.

    · US value up 40%, Europe and Canada rebound.

    · Africa and South America continuing strong.

    · Inventory of Deals in Play stabilizes at $135 billion.

    · NOCs and Private Equity most active set of buyers.

    · China snaps up 25% of the global market.

    · US valuation benchmarks are $110,000 per flowing bbl and $5,800 per flowing Mcf.

    · North America deal market reflects impact of large capital needs for resource play development.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: Upstream M A
    Oct 10 8:37 AM | Link | Comment!
  • Will Nabors Go Private And Hive Off E&P Assets?

    Nabors Industries' stock has fallen so steeply that markets are betting on the world's largest land-drilling contractor to be a takeover candidate.

    Nabors, which lost $2.4 billion in value in the past six months as delays in equipment deliveries and upgrades of rigs in Saudi Arabia cut profitability, is cheaper than 97% of oil and gas services companies versus sales, according to Bloomberg. Nabors last week traded at a 10 percent discount to sales of $5.7 billion for the past 12 months, Bloomberg data shows. That was the lowest among US oil and gas service companies with a market capitalization of more than $1 billion and cheaper than 60 of 62 rivals globally. Nabors was also valued at 8 times this year's estimated earnings, about 40 percent less than the industry average.

    It is rumored that Houston-based oil and gas services companies Baker Hughes Inc and Schlumberger Ltd could be the potential buyers. Buyout firms could consider taking Nabors private as well, said Todd Lowenstein, Highmark Capital Management Inc.

    In Nov-2011, the company was looking to sell its non-core oil and gas exploration and production assets in Alaska's North Slope, Texas and Arkansas in US, and Colombia. As of 31-Dec-2010, Nabors' Proved reserves were 130.22 MMBOE (75% Gas, US contributes 96% of the proved reserves), and average production was 11.60 MBOE/d (81% Gas). Nabors holds total of 153,573 net developed acres and 1,130,157 net undeveloped acres.

    The value of Nabors' proved reserves can be estimated between $800 million to $1 billion million based on a $/Proved BOE of 6-8. This is another large deal after Kinder Morgan's proposed divestiture of El Paso's E&P assets.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: NBR, Upstream, M A, Oil, Gas, Texas, Shale
    Jan 31 7:22 AM | Link | Comment!
  • Apache (APA) – The Opportunistic Acquirer

    In 2009, Apache (APA) stayed away from the acquisition market and instead, built it's cash position from operations and waited for the right opportunities to surface.

    During 2010, Apache spent more than $11 billion on acquisitions including $8.1 billion in the US, securing the second position globally after Sinopec and first position in the US. Post Macondo incident, Apache acquired essentially all of BP's upstream operations in western Alberta, British Columbia, Permian Basin and Egypt's Western Desert. Apache waited with cash on hand all this while for the right assets to come its way.

    Apache also increased it's exposure to offshore Gulf of Mexico operations significantly during 2010 with the acquisition of Devon's Gulf of Mexico shelf properties in June 2010 and the addition of deep-water properties with the Mariner merger in November. Recently, in September 2011, Apache signed an agreement with ExxonMobil to acquire certain North Sea assets, including the Beryl field and related properties, for $1.75 billion.

    In 2010, Shell, Oxy, Chevron, Consol, Reliance, BP, CNOOC (CHINA), Concho and Hess were among the top 10 buyers contributing to almost 50% of total US deal value.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: APA
    Jan 31 6:28 AM | Link | Comment!
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