Before the Ink Dries — Drillinginfo Quickly Delivers Detailed Analysis of Chevron-Anadarko Deal

Before the Ink Dries — Drillinginfo Quickly Delivers Detailed Analysis of Chevron-Anadarko Deal

After a quiet start to 2019 M&A activity, Chevron and Occidental woke the oil & gas industry from its slumber with competing bids to acquire Anadarko, setting the entire industry and the media who cover it into a whirlwind of speculation about the potential short- and long-term ramifications.

On April 12, Chevron announced its $50 billion bid, which would be the sixth largest deal in oil & gas history and the largest deal since Shell bought BG for $82 billion in 2015.

Less than two weeks later, on April 24, Occidental topped that number with its $57 billion bid. The offer of $76/share (50 percent equity, 50 percent cash) represents a ~17 percent premium to Chevron’s $65/share bid using prices at announcement, and a 20 percent premium using closing prices as of April 23.

Minutes after both companies made their bids public, our research team members around the world began delivering their initial insights via the new DI Dealmaker Suite platform. I’ve written in previous posts about how the integration of the Drillinginfo, PLS, and 1Derrick databases and technologies transform how our clients learn about and evaluate potential and completed deals, and that power has been on full display during the 24 hours following both announcements.

The Chevron deal turned what might have been a typical Friday into one of the busiest — and most interesting — days of the last two years. Chevron made its announcement at 5 a.m. Eastern, and that’s when we started developing a steady stream of rich and timely content for our clients: 

Friday, April 12, 2019

  • 5 a.m. — Chevron announces the agreement to acquire Anadarko, Drillinginfo initiates deal analysis
  • 5:17 a.m. — The first email requests for interviews with our analysts from media outlets including Reuters, CNBC, The Wall Street Journal, Seeking Alpha, and the Denver Post start flooding in
  • 7:25 a.m. — The deal is already added to the Drillinginfo M&A database with initial data points, source documents, and a brief analysis
  • 10:47 a.m. — Map digitization and updates are loaded into the database so our clients can see Chevron’s complete acreage position including the Anadarko acreage, and the specific acreage associated with the deal
  • 11:45 a.m. — We post this article to the Drillinginfo blog that includes valuation analysis breaking out the Permian acreage valuation — before any of our competitors
  • 2:12 p.m. — The complete deal is updated in the database with valuation breakout and analysis
  • 5:17 p.m. — A seven-page Deal Insight report is published with — detailed maps of acreage, historical comps as well as valuation breakouts, history and effect on both parties, and forward-looking market analysis

Saturday, April 13, 2019

  • 8 a.m. — The Executive Deal Summary (EDS) report is published to the DI Dealmaker Suite database. It includes all relevant information such as total acreage, drilling locations, rig counts, and net production impact

We launched the EDS platform late last year, and it’s a key component of DI Dealmaker Suite. EDS delivers reports on any significant transaction within 48 hours of a deal being announced.

The full Chevron-Anadarko report is only available to subscribers, but here are some of the slides to give you a better idea of just how comprehensive it is, beginning with the cover page that breaks down the highlights:

 

My colleague Andrew Dittmar told CNBC’s Tom DiChristopher that, “a large driver of the deal is Anadarko’s prized position in the Delaware Basin where Chevron increases its position by 240,000 net acres to more than 1,400,000 net acres. The Delaware Basin currently provides the best well economics of any shale play in the country.” 

That’s clear when you look at these slides:

Notice that this Initial Production (30-day average) slide includes direct links to source documents in our database that take you directly to the relevant source documents. 

The report also provides similar breakdowns of how the deal will affect Chevron’s presence in both the DJ Basin and the Gulf of Mexico.

As the saying goes, “there’s no rest for the weary.” We’ve already populated the DI Dealmaker Platform with our analysis of the Occidental deal, fielded a number of media interviews, and are finalizing the EDS report.

“It is rare to see a competitor come out publicly with a competing bid once a deal is announced, and we think this move by Occidental speaks to the quality of Anadarko’s asset base,” adds Dittmar. “This deal will set a new and important benchmark for future transactions. Those looking to acquire other Permian-centric E&Ps are probably disconcerted to see the competition intensify in the form of aggressive counter offers.”

To review the full Executive Deal Summary report, and to receive new reports within 48 hours of a significant transaction being announced, visit: https://info.drillinginfo.com/products/dealmaker-suite/.

The DI Dealmaker Suite is Live!

The DI Dealmaker Suite is Live!

After months of hard work and collaboration that both managed to make for some long days (and nights) and yet still seemed to fly by, I’m proud to announce the launch of our new DI Dealmaker Suite. By integrating the databases and technologies of the three most trusted sources for information and analysis: Drillinginfo, PLS, and 1Derrick, we have built a platform that will forever change how you learn about and evaluate potential and completed deals. As the Houston Chronicle’s Sergio Chapa wrote after seeing a short demo at the North American Prospect Expo (NAPE), we have created the “oilfield version of Zillow.”

With the combination of the top three sources of data and analysis in the DI Dealmaker Suite, we deliver deal information and commentary to your preferred devices in a matter of minutes. It’s this pedigree that positions us as the only provider with a platform that brings together powerful transaction data and analysis, historical data from years of collection, and objective industry data including production, rigs, permits, and leases into a single source for decision making.

 

Within minutes of a new deal announcement that fits within parameters you set, you receive a push notification with the news on your phone via the Drillinginfo mobile app.

 

Opening the deal on the mobile or desktop apps enables you to view the deal terms, the deal report, comps, and other information about publicly reported IP’s, type curves, etc., complete with links to source documents. Create heat maps comprised of layers that show dozens of different parameters for active deals and historical transactions to instantly gain more context into any transaction.

 

Although we officially launched the DI Dealmaker Suite today, we provided hands-on demonstrations to attendees at NAPE in Houston earlier this year. I lost count of how many demos we led, but a handful of features that proved to be real attention-grabbers:

 

  • Quickly identifying private company funding along with initial fund dates and commitments
  • Visualizing a heat map by cost per acre based on individual analysis of 10,000 deals over the last 15 years
  • Fast and easy access to source documents for company profiles, transactions, and deals for sale
  • The ability to view active deals, recent transactions, and source documents directly from the mobile app

 

If you didn’t attend NAPE, no problem! Head to https://info.drillinginfo.com/dealmaker-suite/ to learn about all the features and schedule a 1:1 demonstration.

Drillinginfo’s Executive Deal Summary Platform Analyzes Elliott’s Bid for QEP

Drillinginfo’s Executive Deal Summary Platform Analyzes Elliott’s Bid for QEP

Despite the precipitous drop in oil prices to close out the year, 2018 set records for U.S. upstream oil & gas M&A activity. The total: $84 billion – the highest since oil prices fell from their peak in late 2014, fueled by a record-setting $32 billion in Q3. That was 76 percent above the quarterly average since 2009. While it’s unlikely 2019 will be another record-setting year, it definitely won’t be quiet. The New Year was just a week old when hedge fund Elliott Management Corp. announced its offer to buy QEP for $2.07 billion.

 

Private and institutional capital is still highly active in the upstream business, and the Elliott-QEP transaction signals that PE capital is ready to move whenever it feels public markets are undervaluing assets or companies.

 

Last month we launched our Executive Deal Summary platform, which produces a concise yet detailed analysis of a significant transaction no more than 48 hours after it’s announced. The Elliott-QEP transaction made headlines on Jan. 7, and two days later the Executive Deal Summary publication was ready.

 

The cover slide provides a detailed transaction summary, and you can see why Elliott finds QEP so attractive. The $8.75/share cash offer price represents a 44 percent premium to QEP’s prior day closing price but is 35 percent below its 52-week high of $13.37/share in July 2018 and below where it was trading in mid-November 2018. Yet QEP shares have been trading at an enterprise value per BOE of proved reserves of $6.77, far below pure Permian producers such as FANG ($23.76/BOE), PE ($18.45/BOE), and PXD ($26.25/BOE).

 

Slide 1 summarizes the agreement terms, asset highlights, and features a map that shows where QEP’s assets are located across the 50,700 net acres in Texas’ Martin, Andrews, and Crockett Counties.

Before we continue, I want to call your attention to the bottom right-hand corner of the slide, where you’ll find the Drillinginfo, 1Derrick, and PLS logos. Executive Deal Summary represents the power of the first true integration of Drillinginfo along with PLS and 1Derrick data and analysis since we acquired both companies in 2018. Every Executive Deal Summary publication draws data from the enormous virtual vault of historical data that includes more than 2.5 million source slides in the combined library of all three companies, as well as from current market data.

 

I’ve said it before and it’s worth repeating: no other company can build such an enormous library from scratch or match the speed at which we can deliver an analysis of a significant new deal that incorporates historical data including production, rigs, and leases.

 

Slide 2 shows the historical transactions and assets on the market. Elliott is offering QEP $2.55B or $11,415/acre – well below the past market price for deals in core Midland Basin.

Slides 3 and 4 show color-coded maps of Initial Production (30-day Average) and Initial Production (24-hr). Notice that the Initial Production (30-day average) includes direct links to relevant source documents in our database. Additional information is available with quick click hyperlink access to the M&A database on each slide.

 

 

Slide 5 draws from our Private Equity Database to show private equity-backed operators around this transaction and identifies each PE company along with its commitment and fund year. It includes links directly to the PE database which has detailed information on operators’ strategies, executive team summaries, and primary operational and M&A focus. The map shows all the players – notice this is not Elliott’s first foray into this region.

Slide 6 pinpoints all active rigs and recent permits around the Elliott-QEP transaction sorted by operator. Exxon is the most active operator with 10 active rigs and 30 permits in the vicinity of the transacted acreage. QEP, Concho, Endeavor, and Diamondback all have at least four active rigs and 30+ active permits to be drilled.

 

Slides 7-9 break down the type curves and leasing information.

 

 

We launched Executive Deal Summary less than a month ago, and it’s very exciting and gratifying to see it prepare such a detailed publication so soon after the Elliott-QEP transaction was announced. Executive Deal Summary is unique in its ability to quickly compile such detailed reports that our customers can use to quickly source and analyze the most critical factors of a deal.

Executive Deal Summary is available now at no additional cost to all subscribers of the new Drillinginfo M&A database. For more information, click here. Executive Deal Summary will be a key feature of our new Drillinginfo M&A Dealmaker Platform which we will launch this year.

As always, you can follow our progress on this blog and engage with me and my team directly by following us on Twitter and Facebook.

Drillinginfo’s New Executive Deal Summary is Like Zillow for O&G Investors

Drillinginfo’s New Executive Deal Summary is Like Zillow for O&G Investors

 

If you’re a real estate investor evaluating a potential deal, you don’t have a lot of time to spend on research. Other investors are probably eyeing the same opportunity. So, you log in to one app like LoopNet or Zillow which serves as your single source for all relevant information such as recent deals in the area and pricing forecasts. You collect and analyze all the data you need to make a decision before another investor does.

 

Oil & gas industry investors and executives need that same combination of speed, access to historical data, and ease-of-use. After all, deals can be won or lost in a matter of days. But they typically have to spend a week or longer researching, analyzing, and consolidating volumes of raw data from multiple sources. As time ticks by, the risk of a competitor snatching a new investment opportunity out of their hands increases.

 

Our new Executive Deal Summary (EDS) platform eliminates that risk by delivering a concise, yet detailed presentation less than 48 hours after the announcement of a significant investment transaction.

 

The EDS publication provides all relevant information such as total acreage, drilling locations, rig counts, and net production impact. It also places the new transaction in historical context by comparing it to relevant past deals. Its unique capability to quickly compile such detailed reports will make it invaluable to investors and senior executives, not to mention their teams of researchers and analysts.

 

EDS represents the power of the first true integration of Drillinginfo, PLS, and 1Derrick data and analysis since Drillinginfo acquired both companies earlier this year.

 

I’ve met with users of all three platforms, and many had the same feedback: the culmination of their Drillinginfo, PLS, and 1Derrick workflows are very similar. After generating their reports, they spend hours, even days, merging them into one slide deck. Executive Deal Summary takes that workload off their shoulders and speeds the process for sourcing and analyzing the most critical factors that will inform decisions related to their own investments.

 

We have combined the three databases into one enormous virtual vault of historical data that includes more than 2.5 million source slides. EDS draws from it and from current market data, such as production data and rigs and leases to create an easy-to-read publication. No other company can build such an enormous library from scratch or match the speed at which we can now tap into our data stores to deliver an analysis of a significant new deal.

 

Let’s look at a real-world example of a publication Executive Deal Summary created following Cimarex Energy’s recent announcement that it will buy Resolute Energy in a deal valued at $1.6 billion:

 

The introductory slide includes the deal’s highlights such as how many acres it adds to Cimarex’s current net acreage in Reeves County, and the expected impact to Cimarex’s production in its Delaware Basin core area:

 

The second slide dives into the details without getting into the weeds. Again, the goal is to provide investors and executives with just the information they need to decide their next steps:

 

 

The next few slides bring context to the deal by overlaying historical comparables surrounding the acreage with initial production statistics for key wells that have been publicly reported by operators:

 

 

Notice that the above slide on the Initial Production (30-day average) includes direct links to source documents in the Drillinginfo database. Clicking on one of those links brings you to the relevant source document, like the one below which shows the comps, type curves, and IP data.

 

 

Back to the EDS publication, the following slides include all relevant information and historical data you need to conduct a thorough initial analysis, including type curves, rigs and permits, and leasing:

 

 

The final slide draws from our Private Equity Database to show private equity-backed operators around this transaction and identifies each PE company along with its commitment and fund year. Notice this slide includes links directly to the PE database which has detailed information on operators’ strategies, executive team summaries, and primary operational and M&A focus:

The Executive Deal Summary publication also includes hyperlinks directly to the transaction’s  source documents and deal sheets in the Drillinginfo M&A database. Every EDS report will be archived so you can revisit them for future research projects.

 

To paraphrase the television infomercial, “But wait, there’s more!”

 

You do not have to take the time to build a new workspace from scratch in the Drillinginfo web application and import EDS components each time a new deal occurs. EDS will automatically populate pre-built workspaces based on your content preferences. This means that you can immediately start diving further down into details on a dynamic platform that is always current, even if the deal occurred months ago.

 

Below you see that EDS has automatically populated a pre-built workspace in Drillinginfo with relevant information on the Cimarex-Resolute deal, including:

 

A slide that shows all active rigs and recent permits around the transaction sorted by operator:

 

First month production for key wells in the area bubbled by PracIP and colored by operator alias:

 

 

A map displaying leasing and rigs, and recent permit locations with a heat map for leases filed over the last 6 months:

Executive Deal Summary is available now at no additional cost to all subscribers of Drillinginfo’s new M&A database. For more information, click here.

 

We’ll be adding new features and functionalities to EDS in the coming weeks and months. It will also be a key feature of our new Drillinginfo M&A Dealmaker Platform which is on schedule to launch early next year.

 

You can follow our progress on this blog and by following us on Twitter and Facebook.

Drillinginfo’s New Dealmaker Platform: One Source for M&A Actionable Intelligence

Drillinginfo’s New Dealmaker Platform: One Source for M&A Actionable Intelligence

 

In my previous post, I described our ongoing work to build the Oil & Gas industry’s first M&A deal evaluation platform that will incorporate the databases and technologies of the three most trusted sources for information and analysis: Drillinginfo, PLS and 1Derrick. We’re building a “single pane of glass” that will revolutionize how you research and evaluate potential and completed deals, no matter what area of our industry you represent.

Drillinginfo has built its reputation as the industry-leading provider of data and analysis for decision-making in the oil & gas space. Our acquisitions of PLS and 1Derrick enable us to deliver a new depth of insight, specific to the transactions that happen in the industry and delivered to a much broader audience, including C-level executives, M&A professionals and others who want more context around transactions. We’ll be able to deliver the most relevant information related to deals in a matter of minutes on all their preferred devices.

 

What Once Took Days…

Let’s use a recent real-world example to show how our new platform will put actionable intelligence right at your fingertips at any time, wherever you are.

  • Diamondback Energy announces it will acquire Energen in an all-stock transaction for $9.2 billion:

 

  • You receive a push notification with the news on your phone via the Drillinginfo mobile app because you have set up a Drillinginfo “Virtual Scout” that constantly monitors for news related to parameters you pre-defined including buyers, sellers and custom areas of focus.

 

  • You’ll receive notifications whenever buyers and sellers you specify complete a transaction or post a deal for sale offset from your core acreage positions.

 

  • You open the app and tap on the deal to view the deal terms, the deal report and other related information, analysis and commentary compiled from the unmatched combination of the Drillinginfo, PLS and 1Derrick analysts and platforms. This includes comps and other information about publicly reported IP’s, type curves, etc., complete with links back to source documents.

 

  • Within seconds, you can map the deal within the app to see acreage position and add layers of active rigs, permits and deals for sale to instantly get more context into the transaction.

 

A Team Effort

Go back to the Activity Detail screen and tap on the “Alert Team” button to save the deal to a workspace in your Drillinginfo dashboard and send an alert to your team. Your lead analysts jump into research mode by quickly accessing that same workspace in the Drillinginfo web or mobile app, which by now has the acreage position and other relevant context such as offset production and transactions, permits, rigs, leases and type curves.

 

If you’re familiar with our web app, you’ll notice one very important new addition: M&A Data Sets. This is where you can filter all the transactions you’re following by a number of factors including location, date, deal types and value and acreage.

 

Let’s say one of your analysts wants to see the impact the Diamondback-Energen deal will have in Reeves (Tex.) county. Setting that parameter returns a detailed map of all transactions in the county which you can color-code deals by values, price per acreage or a wide range of other factors to see how that deal stacks up.

 

 

Clicking on the Diamondback-Energen headline brings up the Transactions Card so the analyst can see all the details of the deal including direct links to relevant source documents.

 

 

Within an hour after your received that first mobile alert, you and your team have volumes of information at your disposal that would have normally taken days, even weeks, to compile.

 

We’re on schedule to launch our new dealmaker platform early next year. But we’re not going to wait until the calendar flips to 2019 to start rolling out some of the platform’s innovative features and capabilities.

 

Next month, we will launch a new product for O&G industry executives, investors, analysts and anyone else who wants to be able to quickly and easily evaluate deals that will demonstrate the power of combining data from the Drillinginfo, PLS and 1Derrick databases.

 

That’s all I can divulge for now, so stay tuned to this blog and be on the lookout for my next post… You can also stay up-to-date by following us on Twitter and Facebook.

 

Get ready to get smarter – faster – on what’s happening in O&G M&A.