2nd Quarter - Energy Spectrum Advisors Inc.

2nd Quarter - Energy Spectrum Advisors Inc.

Majority Gas: Net Production Rate Multiple ($ / MCFEPD) vs. Proved R/P
All Property Sales ($10MM - $2,000MM) Announced in the Last 12 Months
Red Indicates Last Quarter. Point Size is Proportionate to Total Price.
20,000
$3.25
15,000
10,000
5,000
$18.00
Majority Oil
$2.75
$19.50
Majority Gas
$3.00
$15.00
$2.25
$12.00
$1.75
Jun
-1
5
10
15
20
25
Total Proved Reserves / Current Net Daily Production Annualized (Years)
$21.00
$16.50
$2.50
$13.50
$2.00
$10.50
$1.50
$1.25
$9.00
$1.00
y = 164 x + 4,219
0
0
1
Median $ / BOE
$ per Net MCFEPD
Median $ / MCFE
Se
p-
D
ec
11
30
-1
M
ar
1
-1
Jun
-1
2
2
Se
p-
D
ec
12
-1
M
ar
2
-1
Jun
-1
3
3
Se
p-
D
ec
13
-1
M
ar
3
-1
4
$7.50
Jun
-1
4
Trailing Twelve Months Through
Majority Oil: Net Production Rate Multiple ($ / BOEPD) vs. Proved R/P
All Property Sales ($10MM - $2,000MM) Announced in the Last 12 Months
Red Indicates Last Quarter. Point Size is Proportionate to Total Price.
300,000
250,000
$ / Net BOEPD
200,000
150,000
100,000
50,000
y = 3,311x + 45,553
$100,000
$13,000
$ 110,000
$14,500
$120,000
$16,000
$70,000
$8,500
$80,000
$10,000
$90,000
$11,500
$40,000
$4,000
$50,000
Majority Oil
$5,500
$60,000
Majority Gas
$7,000
Jun
0
-1
0
5
10
15
20
25
Total Proved Reserves / Current Net Daily Production Annualized (Years)
30
1
35
Se
D
p-
ec
11
M
-
ar
11
-
12
Jun
-1
2
Se
D
p-
ec
12
M
-1
ar
2
Jun
-1
-1
3
3
Se
D
p-
ec
13
M
-1
ar
3
-1
4
Jun
Median $ / BOEPD
Median $ / MCFEPD
-1
4
Trailing Twelve Months Through
Proved R/P as Estimate of Asset Sale Price
Why does one property sell for $40,000 per net BOEPD and another for $140,000 per net BOEPD? Using statistical analysis, E-Spectrum Advisors has identified a positive correlation
between Proved R/P and dollar paid per daily unit of net production.
R is defined as Total Net Proved Reserves. P is defined as Current Net Daily Production Annualized. As indicated in the data table, most reserve information is taken from buyers’ press releases.
For example, using the oil chart and formula above, one can see that a majority-oil transaction with an R/P of 15 years could sell on average for $95,218 per net BOEPD.
Securities offered through E-Spectrum Advisors LLC,
a member of FINRA and SIPC.
Coy Gallatin
(713) 870-0426
Damian Wells, P.E.
(214) 987-6127
Lindsay Sherrer
(214) 987-6109
Sale of South TX /
Gulf Coast / South LA
Properties
Sale of
North Texas Oil
Properties
Sale of
OFS Company
Sale of
Mid-Continent
Red Fork Properties
BJ Brandenberger
(214) 987-6145
Jason B. Webb
(214) 987-6133
William Hundley
(214) 987-6153
Pending
Closed
July 2014
July 2014
Patrick George
(214) 987-6129
Stephanie Sullivan
(214) 987-6143
Becky Buckner
(214) 987-6163
Sale of
Eagle Ford
Royalty Interests
Sale of Operated
Cleveland Properties
Sale of Multi-Basin
Royalty / Overriding
Royalty Interests
Sale of Permian Basin
and North Texas
Oil Properties
July 2014
July 2014
May 2014
January 2014
www.energyspectrumadvisors.com
5956 Sherry Lane, Suite 900
Dallas, TX 75225
Phone (214) 987-6100
7500 San Felipe, Suite 600
Houston, TX 77063
Phone (713) 706-6382
Pizzitola
Resources, Inc.
Extensive technical and financial expertise, complimented by
unmatchable industry relationships and personalized service, allows us
to repeatedly help our clients realize their transaction goals.
Focused on asset and corporate divestitures in the
upstream energy sector.
Sale of
Permian Basin
Properties
Sale of
Non-Op Bakken Shale /
Three Forks Properties
Sale of
Barnett Shale Mineral
and Royalty Interests
Sale of Multi-Basin
Royalty, Overriding Royalty
and Non-Operated
Working Interests
Available 3Q 2014
Available 3Q 2014
PSA Negotiations
Marketing
Central Oklahoma
Reclamation
Sullivan
Osage, LLC
American
Standard
Energy Corp.
Las Colinas
Energy Partners, LLC
Select Current and Recent Transactions
SECOND QUARTER
2014
Trailing Twelve Months through June 2014
MAJORITY GAS
ALL U.S. FROM $10 MILLION TO $2 BILLION
An
no D
un ate
ce
d
6/30/14
6/27/14
6/9/14
5/30/14
5/7/14
5/5/14
5/5/14
5/2/14
5/2/14
4/30/14
4/29/14
4/1/14
3/31/14
3/7/14
3/4/14
2/26/14
2/14/14
2/13/14
1/31/14
1/30/14
12/23/13
11/11/13
11/5/13
10/22/13
10/3/13
9/30/13
9/27/13
9/11/13
9/3/13
8/28/13
8/9/13
7/29/13
7/2/13
7/2/13
Bu
ye
r
Se
lle
r
To
tal
($ Pric
MM e*
)
Undisclosed
Talos Energy LLC
American Energy Partners LP
KKR
Antero Resources Corp.1
Sabine Oil & Gas LLC
Saka Energi Indonesia
Cimarex, Devon, EVEP, FourPoint
Legacy Reserves L.P.
Indigo Minerals LLC
Hawkwood Energy; Covey Park Energy
Undisclosed1
Jonah Energy LLC
Rooster Energy LLC
Memorial Production Partners LP
Gulfport Energy Corp.1
Atlas Resource Partners LP
Merit Energy
New Source Energy Partners LP
FourPoint Energy LLC
Vanguard Natural Resources LLC
EnerVest Management Partners Ltd.
EnerVest Management Partners Ltd.
EnerVest Management Partners Ltd.
Templar Energy; Le Norman Fund I
EnerVest Management Partners Ltd.
Cubic Energy
Memorial Production Partners LP
Carrizo Oil & Gas Inc.
Undisclosed
Constellation Energy
Questar Corp.
Exco Resources, Inc.
Undisclosed1
Cimarex Energy Co.
Stone Energy Corp.
East Resources Inc.; Undisclosed
Penn Virginia Corp.
Muskingum Watershed Conservancy District
Forest Oil Corp.
Swift Energy Co.
QEP Resources, Inc.
WPX Energy Inc.
EP Energy LLC
EnCana Oil & Gas (USA) Inc.
Red Fork Energy Ltd.
EnCana Oil & Gas (USA) Inc.
Cochon Properties LLC
Memorial Resource Development LLC
Rhino Resource Partners LP
Geomet Inc.
Occidental Petroleum Corp.
CEU Paradigm LLC
EnerVest Management Partners Ltd.
Anadarko Petroleum Corp.
Undisclosed
SM Energy Co.
Bill Barrett Corp.
Forest Oil Corp.
Noble Energy Inc.
Alta Mesa Holdings LP
Undisclosed
EnerVest Management Partners, Ltd.
Energen Resources Corp.
Sanchez Oil & Gas
Undisclosed
Chesapeake Energy Corp.
Gastar Exploration Ltd.
Per MCFE
Median
Simple Average
138
200
1,750
73
95
1,131
175
772
355
150
530
11
1,800
30
35
185
107
1,400
19
268
581
22
343
372
1,000
68
19
29
236
160
30
106
316
12
Re
se
($ Pric rve
MM e
)
138
200
1,170
73
95
925
158
772
355
150
431
11
1,800
30
35
185
107
1,054
19
268
581
22
343
372
1,000
68
19
29
236
160
30
106
316
5
Re Pro
(B serv ved
CF es
E)
($ Va
/M lu
CF e*
E)
50
77
NA
85
NA
595
189
463
276
84
200
NA
1,493
14
15
NA
70
408
NA
NA
847
17
174
262
517
72
11
21
201
97
10
118
145
2
(M Pro
MC du N
FE ctio et
PD n
)
2.76
2.59
NA
0.85
NA
1.55
0.84
1.67
1.29
1.79
2.16
NA
1.21
2.20
2.27
NA
1.53
2.58
NA
NA
0.69
1.29
1.97
1.42
1.93
0.94
1.73
1.36
1.17
1.65
3.06
0.90
2.18
1.94
($
/M V
CF alu
EP e*
D)
15.0
57.0
175.0
11.9
NA
105.1
8.5
109.0
63.0
21.0
107.2
NA
351.2
5.6
4.3
6.0
22.0
110.0
2.9
35.0
113.5
6.0
51.0
68.2
100.0
11.0
NA
5.3
44.0
32.9
7.0
21.3
114.0
NA
9,200
3,509
6,686
6,113
NA
8,796
18,690
7,087
5,635
7,143
4,021
NA
5,125
5,348
8,136
30,833
4,863
9,583
6,395
7,658
5,119
3,667
6,725
5,444
10,000
6,183
NA
5,473
5,355
4,867
4,342
4,992
2,768
NA
$1.66
$1.70
Re
gio
n
%
MC
GOM
Multiple
GC Onshore
Utica
GC Onshore
STX (Eagle Ford)
Multiple
RM
GC Onshore
GC Onshore
MC
RM
GOM
GC Onshore
APP (Utica)
CBM
MC
MC
MC
RM
Barnett
Various
RM
MC
RM
STX (Eaglebine)
RM
Barnett
CBM
GC Onshore
RM
Haynesville
MC
Ga
s
Pr
ov
ed
R/
P
72%
58%
93%
100%
>50%
78%
100%
63%
83%
85%
97%
>50%
92%
72%
54%
>50%
100%
70%
NA
NA
79%
100%
86%
99%
57%
100%
100%
93%
100%
100%
75%
100%
100%
73%
9.1
3.7
NA
19.6
NA
15.5
61.1
11.6
12.0
11.0
5.1
NA
11.6
6.7
9.8
NA
8.7
10.2
NA
NA
20.4
7.8
9.3
10.5
14.2
17.9
NA
11.0
12.5
8.1
3.9
15.2
3.5
NA
O
il*
*
101.10
101.32
99.25
97.83
95.95
95.01
95.01
95.38
95.38
95.47
96.79
95.19
96.72
97.64
97.94
97.30
96.57
96.42
92.74
93.69
95.42
94.27
92.76
96.67
98.82
97.91
98.11
100.79
101.79
102.96
99.70
98.93
95.46
95.46
Ga
s*
*
4.35
4.32
4.54
4.44
4.74
4.67
4.67
4.66
4.66
4.77
4.78
4.37
4.46
4.65
4.66
4.58
4.67
4.72
4.52
4.44
4.28
3.67
3.61
3.78
3.75
3.80
3.84
3.81
3.90
3.82
3.55
3.71
3.84
3.84
$5,635
$6,514
MA JORITY OIL
ALL U.S. FROM $10 MILLION TO $2 BILLION
An
no D
un at
ce e
d
6/25/14
6/24/14
6/24/14
6/16/14
5/27/14
5/23/14
5/23/14
5/21/14
5/21/14
5/20/14
5/15/14
5/15/14
5/6/14
5/6/14
5/5/14
5/1/14
4/30/14
4/29/14
4/18/14
4/10/14
4/10/14
4/8/14
4/7/14
3/26/14
3/25/14
2/28/14
2/25/14
2/24/14
2/14/14
1/31/14
1/30/14
1/24/14
1/21/14
1/7/14
1/2/14
12/31/13
12/12/13
12/10/13
12/9/13
12/9/13
12/5/13
11/22/13
11/4/13
10/21/13
10/15/13
10/11/13
9/26/13
9/17/13
9/12/13
9/12/13
9/6/13
9/4/13
9/4/13
9/4/13
9/2/13
8/27/13
8/19/13
8/12/13
8/5/13
7/15/13
7/11/13
7/2/13
7/1/13
Bu
ye
r
Se
lle
r
To
tal
($ Pric
MM e*
)
PetroQuest Energy, Inc.1
Dome Energy AB
Dome Energy AB
Energy & Exploration Partners Inc.
U.S. Energy Corp.1
Undisclosed
Sundance Energy1
Sanchez Energy Corp.
Bonanza Creek Energy Inc.1
W&T Offshore Inc.
Panhandle Oil & Gas Inc.
Earthstone Energy Inc.
Atlas Resource Partners L.P.
Triangle Petroleum
Memorial Production Partners LP
Parsley Energy LP
EP Energy Corp.
SM Energy Co.1
Vitesse Oil LLC
Parsley Energy LP1
Undisclosed
Athlon Energy Inc.
SK Innovation
Legacy Reserves LP
Memorial Production Partners LP
Mid-Con Energy Partners LP
New Gulf Resources
Lonestar Resources Inc.
Diamondback Energy
Lime Rock Resources
Liberty Resources II LLC
Athlon Energy LP
Pacific Energy Development Corp.
Fieldwood Energy LLC
EPL Oil & Gas Inc.
Willow Bend Oil LLC
BreitBurn Energy Partners LP
New Standard Energy Ltd.
QEP Resources, Inc.
Petroflow Energy Corp.
F-250 LLC
Jones Energy
Eagle Energy Trust
Ultra Petroleum
PostRock Energy Corp.
Chaparral Energy, Inc.
EPL Oil & Gas Inc.
Synergy Resources Corp.
Linn Energy LLC
Undisclosed
Sanchez Energy Corp.
Oasis Petroleum Inc.
Undisclosed1
Gastar Exploration Ltd.
Oasis Petroleum Inc.
Whiting Petroleum
Cardinal Energy Group Inc.
American Eagle Energy Inc.
Triangle Petroleum
Memorial Production Partners LP
Meidu Holding Co Ltd.
Exco Resources, Inc.
QR Energy LP
Midstates Petroleum Company
VistaTex Energy LLC
Range Ventures LLC
Treadstone Energy Partners LLC
Undisclosed
Sundance Energy
Undisclosed
Shell Oil Co.
DJ Resources LLC
Woodside Energy (USA)
Undislosed
Oak Valley Energy Resources LLC
Merit Energy Co.
Marathon; QEP Resources, Inc.
Merit Energy Co.
Pacer Energy Ltd.
BHP Billiton
TS Dudley; Chesapeake; Baseline Minerals Inc.
Undisclosed
OGX Resources LLC
Neon Energy Ltd.
Hibernia Resources; Piedra Energy II; Undisclosed
Plymouth Exploration LLC; Kayne Anderson
Celero Energy; SM Energy Co.
Alta Mesa Holdings LP
Mid-Con Energy III LLC
Halcón Resources Corp.
Clayton Williams Energy, Inc.
Henry Resources LLC; Various
Oasis Petroleum Inc.
Sequel Energy
Mid-Energy Partners
Continental Resources Inc.
SandRidge Energy, Inc.
CNOOC
Primexx Energy Partners Ltd.
CrownRock LP
Magnum Hunter Resources Corp.
EnerVest Management Partners Ltd.
Equal Energy
Abraxas Petroleum Corp.
Sabine Mid-Continent LLC
Cimarex Energy Co.
Axia Energy LLC
Undisclosed
Cabot Oil & Gas Corp.
W&T Offshore
Trilogy Resources LLC
Various
Halcón Resources Corp.
Rock Oil Company LLC
Roda Drilling LP; Zeneco Inc.
Carrizo Oil & Gas Inc.
LRR Energy
Magnum Hunter Resources Corp.; Various
Petro-Hunt LLC
Kansas Petroleum Resources LLC
USG Properties Bakken I LLC
Kodiak Oil & Gas Corp.
Boaz Energy Partners LLC; Various
Woodbine Holdings LLC
Chesapeake Energy Corp.
Various
Per BOE
Median
Simple Average
24
35
27
715
12
116
43
639
226
51
80
71
420
120
935
165
153
100
64
133
27
873
367
112
173
41
450
71
288
333
455
88
30
750
70
156
282
27
950
230
73
195
26
650
10
160
22
21
525
302
220
1,450
32
188
65
260
28
47
82
606
535
681
110
Re
se
($ Pric rve
MM e
)
24
35
27
715
12
80
16
445
69
40
75
71
420
110
935
129
93
100
64
133
27
409
367
112
173
41
398
63
200
333
393
60
21
750
70
156
282
18
950
230
73
195
26
650
10
160
22
21
525
302
220
839
9
188
44
260
28
47
82
606
535
681
110
(M Res Prov
M erv ed
BO e
E) s
($ Val
/B ue
O *
E)
NA
NA
NA
33
<1
5
NA
60
NA
2
9
11
47
4
83
8
NA
NA
NA
NA
2
31
NA
9
7
2
16
7
7
9
31
3
NA
57
3
12
17
<1
37
25
4
14
1
37
1
8
1
1
30
21
11
44
1
11
2
17
NA
NA
5
46
28
17
6
P
(M rod
BO uc Ne
EP tion t
D)
NA
NA
NA
21.80
32.88
17.04
NA
7.42
NA
21.05
7.93
6.19
8.94
24.72
11.24
15.86
NA
NA
NA
NA
13.68
13.20
NA
12.44
23.38
25.63
24.41
8.60
28.81
38.72
12.81
20.69
NA
13.11
27.08
13.46
17.00
38.31
25.59
9.32
19.21
13.64
21.00
17.38
17.42
19.06
36.33
19.52
17.50
14.25
19.64
19.10
8.70
16.89
24.61
15.20
NA
NA
16.65
13.20
18.90
40.06
18.33
$17.46
$18.88
($
NA
0.8
0.2
8.4
0.1
0.6
0.2
20.0
0.7
1.7
0.7
2.1
2.9
1.2
5.9
0.9
1.0
NA
0.6
NA
0.3
4.8
3.3
0.9
1.7
0.3
3.8
0.7
2.2
2.7
4.0
0.8
0.4
25.0
0.9
2.0
2.9
0.3
6.7
6.7
0.7
3.4
0.3
4.0
0.1
2.0
NA
0.3
4.8
4.5
2.0
9.0
0.2
2.1
0.3
2.4
0.2
0.6
0.8
7.6
5.0
6.1
0.9
/B
V
O alu
EP e*
D)
NA
46,667
135,000
84,813
234,615
128,215
79,500
22,250
98,757
24,099
101,905
33,161
144,828
93,617
158,475
149,245
93,150
NA
108,383
NA
103,654
85,250
113,046
125,843
104,848
117,479
104,726
95,301
92,733
123,746
98,325
80,000
52,500
30,000
78,222
76,433
97,324
61,300
141,791
34,272
111,450
57,353
102,941
162,500
200,000
80,065
NA
68,333
109,375
67,111
110,000
93,178
54,375
90,231
147,667
107,438
114,583
78,333
103,797
80,265
107,000
111,658
122,222
Re
gio
n
GC Onshore
Multiple
RM
Multiple
Bakken
RM
STX (Eagle Ford)
STX (Eagle Ford)
RM
GOM
STX (Eagle Ford)
STX (Eagle Ford)
RM
Bakken
RM
PER
PER
RM
Bakken
PER
West Coast
PER
MC
Multiple
STX (Eagle Ford)
MC
ETX (Woodbine)
STX (Eagle Ford)
PER
Bakken
Bakken
PER
Niobrara
GOM
GOM
PER
PER
STX (Eagle Ford)
Multiple
MC
STX (Eagle Ford)
MC
MC
RM
MC
PER
GOM
Niobrara
PER
Multiple
STX (Eagle Ford)
Bakken
E. TX
MC
Bakken
Bakken
MC
Bakken
Bakken
Multiple
Woodbine
STX (Eagle Ford)
MC
%
O
il
Pr
ov
ed
R/
P
NA
NA
100%
82%
100%
54%
NA
57%
85%
87%
89%
65%
100%
100%
100%
74%
75%
NA
89%
NA
100%
67%
NA
95%
92%
100%
93%
93%
69%
89%
88%
60%
>50%
51%
91%
91%
60%
96%
79%
50%
87%
59%
97%
100%
95%
81%
90%
60%
70%
77%
89%
82%
100%
66%
84%
85%
NA
NA
91%
51%
91%
94%
92%
$101,905
$97,565
*Total Price may include and Value may exclude consideration for non-E&P assets, such as gathering & processing assets and working capital. **12-month NYMEX Strip as of the transaction announcement date.
Considered to be an acreage transaction and / or is not included in the R/P correlation.
(1)
NA
NA
NA
10.7
19.5
20.6
NA
8.2
NA
3.1
35.2
14.7
44.4
10.4
38.6
25.8
NA
NA
NA
NA
20.7
17.7
NA
27.7
12.3
12.6
11.7
30.4
8.8
8.7
21.0
10.6
NA
6.3
7.9
15.5
15.7
4.4
15.2
10.1
15.9
11.5
13.4
25.6
31.4
11.5
NA
9.6
17.1
12.9
15.3
13.4
17.1
14.6
16.4
19.3
NA
NA
17.1
16.7
15.5
7.6
18.3
O
il*
*
101.74
101.32
101.32
101.51
98.67
98.91
98.91
98.61
98.61
98.15
97.31
97.31
94.84
94.84
95.01
95.17
95.47
96.79
98.87
98.04
98.04
97.76
96.07
95.51
94.71
97.51
96.86
97.73
96.57
92.74
93.69
92.69
92.32
91.60
93.34
96.34
95.57
96.20
95.49
95.49
95.51
94.01
93.70
97.62
98.91
99.40
98.50
99.41
101.68
101.68
102.93
100.99
100.99
100.99
101.17
102.35
101.62
100.24
100.47
100.12
99.00
95.46
93.41
Ga
s*
*
4.48
4.47
4.47
4.62
4.45
4.37
4.37
4.43
4.43
4.50
4.45
4.45
4.75
4.75
4.67
4.69
4.77
4.78
4.77
4.96
4.96
4.59
4.55
4.50
4.51
4.62
4.70
4.68
4.67
4.52
4.44
4.51
4.27
4.23
4.27
4.32
4.27
4.20
4.20
4.20
4.10
3.83
3.57
3.86
3.98
3.98
3.79
3.95
3.86
3.86
3.79
3.91
3.91
3.91
3.85
3.82
3.62
3.62
3.65
3.87
3.82
3.84
3.76