DI Blog

Insights across the energy value chain

 

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.

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Colin Westmoreland

Senior Vice President, General Manager-Market Research