The MLP and its private equity backer Quantum Energy team up for acquisitions in a distressed market, but A&D may not kick into high gear until second-half 2015.
Whitecap Resources pays $115,200 per boe/d for production in the Viking, a highly economical oil asset near the Kerrobert area of west central Saskatchewan.
With acreage the Barnett Shale, Delaware Basin and Horn River Basin, the company wants to reorganize and is continuing to pay vendors, maintain payroll.
Deal activity flounders as Cabot Oil & Gas Corp., Energen Corp., Diamondback Energy Inc., Gulfport Energy Corp. and others are said to be companies that may be targeted for deals but would command premiums, analyst says.
Operators in the Utica, Eagle Ford and other prominent shales have raised an average $429 million, some with an eye toward buying core assets in a down market.
A sharp drop in revenue and deal to merge with competitor Eos Petro Inc. fell through, according to court filings March 9 in Austin, Texas, Bloomberg said.
The top Bakken producer’s capex is down 50% compared with 2014, and its shares are down 63% from a 52-week high in late August.
Oil and gas companies will spend about $450 billion buying each other this year.
‘The Anadarko Basin is not a five-minute story like other shale plays. It is more complex, but we like the optionality of either oil, gas or liquids, shallow and deep,’ said Four Point’s Brad Marvin.
When the price collapse is no longer the hot topic of discussion, we will get back to business in the property transaction market, analyst says.
Huge deals came back just in time in the summer of 2014 as the rest of the year unspooled a tickertape of declining oil prices. In 2015, deals will be made by aggressors and risk takers.
Oil prices at five-year lows are crimping cash flow for energy producers, which are selling shares to fund spending plans.