OGFJ100P company update
Independent research firm IHS Herold Inc. has provided OGFJ with updated production data for our periodic ranking of US-based private E&P companies. The rankings provided by IHS are based on operated production only within the United States.
Acquisitions and divestitures
The buying and selling of assets continues in the private company space. One major difference in the list from the January installment is the omission of three big names. Marbob Energy Corp., Talon Oil & Gas, and Enduring Resources all sold enough assets in 4Q10 to drop off the current list.
Ranked No. 20 in the January issue, Marbob was acquired by Concho Resources in a $1.1 billion transaction that closed in 4Q10. Dallas-based Talon, previously ranked No. 30 on the list, sold oil and natural gas assets in the Barnett Shale to EnerVest Ltd. and affiliates for $967 million in the same quarter. Another name to drop off the list is Enduring Resources. The UT-based company hit No. 61 on the list before selling its Eagle Ford acreage to a joint venture formed by Canada's Talisman and Norway's Statoil.
On the A&D flipside, some privately held companies added to their holdings. In November, Hess announced plans to acquire an additional 167,000 net acres in the Bakken from privately-held TRZ Energy LLC for $1.05 billion in cash. The properties are located near Hess's existing acreage and have current net production of roughly 4,400 boe/d.
Moving forward into 1Q11, Legend Natural Gas IV LP signed two oil and gas asset acquisition agreements totaling nearly $1 billion.
Legend will acquire the Barnett Shale properties from a Range Resources subsidiary for nearly $900 million. The properties include 390 producing wells and approximately 52,000 net acres with current daily net production of 113 MMcfe per day (86% gas).
The second acquisition consists of conventional Vicksburg production in South Texas. The company will acquire a majority interest in the Samano and Santa Fe Vicksburg fields from Smith Production Inc. for roughly $99.2 million. The 7,200 net acres are located 20 miles from Legend's West La Grulla Field, include 83 operated wells producing 8.8 MMcfe/d net (65% gas). Legend will serve as the operator of the properties.
Funding for the acquisitions is being provided by the Riverstone/Carlyle Global Energy and Power Funds, a group of energy-focused private equity funds managed by Riverstone Holdings LLC.
In late January, Austin-based Three Rivers Natural Resource Holdings LLC acquired Permian Basin assets from another privately held company, Tulsa, Okla.-based Samson Resources.
As of Jan. 21, Three River held an ownership interest in more than 1,400 wells, with production of approximately 7,400 boe/d, and proven reserves of 86 MMboe. Three Rivers expects 2011 full year revenue to be approximately $150 million.
Financing
Three Rivers was also the recipient of an additional investment by The Riverstone/Carlyle Global Energy and Power Funds. Details were not disclosed. In April 2010, Riverstone made its original investment in Three Rivers to fund the acquisition of certain Permian Basin assets from Chesapeake Energy.
Another private company receiving a financial boost in late January was Tulsa, Okla.-based Laredo Petroleum Inc. The company, ranked No. 35, planned the sale of $350 million of senior unsecured notes in the private placement market. The notes, which carry a coupon rate of 9.5%, will mature on February 15, 2019, with interest payable on a semi-annual basis. Bank of America Merrill Lynch, JP Morgan, and Wells Fargo Securities acted as joint book running managers for the sale. BMO Capital Markets was lead manager in Laredo's credit facility and Tudor, Pickering, Holt & Co. were co-managers. Net proceeds are expected to repay the company's term loan facility, to pay down loan amounts outstanding under its senior secured credit facility and for general working capital purposes.
Kayne Anderson Energy Funds and management infused XOG LLC with a $50 million equity commitment. Houston-based XOG was founded in December 2010 to acquire and develop oil and gas properties with identifiable upside in the Ark-La-Tex and onshore Gulf Coast Texas regions.
Appointments
John Crum, who served as co-chief operating officer and president — North America of Apache Corp., has left the company to become CEO of privately held Midstates Petroleum. The Houston-based E&P company is backed by First Reserve Corp. and operates primarily in central Louisiana.
Click here to download the pdf of the "2010 Year-to-date production ranked by BOE
Click here to download the pdf of the "2010 Year-to-date production - alphabetical listing
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