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Helmerich & Payne's $1.97 Billion Acquisition of KCA Deutag - Helmerich & Payne, has announced its acquisition of KCA Deutag for $1.97 billion in cash, a deal that significantly enhances H&P's standing in the global onshore drilling market. This acquisition is particularly impactful in the Middle Eastern region, where KCA Deutag has established a strong operational base, contributing approximately 70% of its Operating EBITDA in 2023. - The financial implications of this acquisition are substantial for H&P. The transaction is anticipated to immediately boost both cash flow and free cash flow per share, with expectations of achieving double-digit free cash flow accretion by 2025. This financial uplift is further supported by KCA Deutag's $5.5 billion contract backlog, which ensures steady revenue streams and robust growth prospects. - Morgan Stanley acted as the financial advisor and provided committed financing services for the deal, while Kirkland & Ellis offered legal counsel to H&P. On the side of KCA Deutag, Moelis & Company and PJT Partners were the financial advisors, with A&O Shearman handling the legal aspects of the transaction. - This acquisition significantly expands H&P's operational footprint, increasing its rig count in the Middle East from 12 to 88, making it one of the largest service providers in this critical region. Additionally, the deal broadens H&P's business scope by integrating KCA Deutag's offshore management and engineering services, thus diversifying its service offerings across multiple markets. - From a financial perspective, H&P is focused on maintaining a strong investment-grade credit rating post-acquisition. The company aims to reduce its net-debt-to-EBITDA ratio from 1.7x at the time of closing to below 1.0x within the next one to two years, reflecting a prudent approach to leverage and financial stability. - The transaction, which has received unanimous approval from H&P’s Board of Directors, is expected to close by the end of 2024, subject to the fulfillment of customary closing conditions and regulatory approvals. #onshoredrilling #mergersandacquisitions #helmerichandpayne #kcadeutag #middleeastenergy #oilandgas #financialadvisory #corporatelaw #investmentgrade #rigcount #freecashflow #revenuegrowth #shareholdervalue

Crescent Energy, a US independent energy company, completed the acquisition of SilverBow Resources, an independent oil and gas company, for $2.1bn. “Today is an exciting day for Crescent. We are well positioned to create value, and I am grateful for the trust from our original Crescent and new SilverBow shareholders, each of whom voted with an overwhelming majority to approve our merger and to take equity consideration and participate in the go-forward company. Through disciplined investing and operations, we have delivered profitable growth, tripling the size of our business over the last four years. We have created a premier growth through acquisition platform by executing on our cash flow and returns-oriented strategy. Today, we are focused on rapidly integrating our new assets and personnel and continuing to deliver on the significant synergies we’ve identified to strengthen returns. We are highly confident in our ability to execute and demonstrate Crescent’s value proposition as a leading mid-cap company,” David Rockecharlie, Crescent CEO. SilverBow (led by Sean Woolverton) was advised by Bank of America, Evercore, Gibson Dunn (led by Stephen Olson) and Joele Frank (led by Adam Pollack). Crescent (led by David Rockecharlie) was advised by Intrepid Financial Partners, Jefferies, Wells Fargo, Richards, Layton & Finger, Vinson & Elkins (led by Jackson O’Maley, Doug McWilliams, Robert Hughes and Jordan Fossee). Debt financing was provided by Wells Fargo. Financial advisors were advised by Baker Botts (led by Joshua Davidson) and Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates (led by Ann Beth Stebbins). #MergersAcquisitionsDivestitures #Energy #OilandGas

Reflecting on My Journey: Key Milestones and Valuable Lessons In my career, time seems to have flown by, but it's been a journey marked by significant moments that have left a lasting impact. The first pivotal milestone was Townsend Energy's initial acquisition in 1983. Witnessing how this decision spurred our company's growth and profitability was a revelation. It underscored the power of strategic acquisitions as a catalyst for expansion and diversification. Another defining moment occurred around 1999-2000 when we ventured into the propane business from scratch rather than through an acquisition. This endeavor diversified our company and proved the value of being in the propane industry, especially as propane emerged as the preferred fuel choice in regions without access to natural gas pipelines. This transition marked a profound shift from an era dominated by oil to the growth opportunities presented by propane. These milestones in my journey have taught me the importance of seizing opportunities, whether through strategic acquisitions or bold entrepreneurial leaps, and the significance of adapting to changing landscapes. As I look back, it's clear that our ability to embrace change and innovation has been a cornerstone of the success of Townsend Energy. #KeyMilestones #Reflection

BTV Season Finale featuring ROK Resources Inc.: From 100 to 4,000 barrels per day! | Airing on BNN Bloomberg on Saturday Dec 2 @ 8:00pm ET, Sunday Dec 3 @ 4:30pm ET and Fox Business Network on Sunday Dec 10 @ 5:30pm ET Capitalizing on strategic acquisitions in Saskatchewan and Alberta, ROK Resources is on the fast track to success. Additionally, the discovery of a significant lithium field positions ROK to potentially surpass the value of its oil and gas assets. This exciting development, coupled with a target of 50% growth in six months, positions ROK as a compelling opportunity for investors. Learn More: https://lnkd.in/e2bFE2we (TSX.V: ROK) #OilandGas #LithiumDiscovery #OilStocks #LithiumStocks #Naturalgas #stockstowatch #StocksinFocus #StocksinNews Bryden Wright | Jared Lukomski | Cam Taylor

“It’s a new era of the shale industry. We’ve been calling it Shale 4.0,” said Matthew Bernstein, a senior analyst and manager of shale analytics at Rystad Energy. “Perhaps there has been a higher degree of FTC scrutiny, given the pace and the size of these deals.” Pleased to have shared my thoughts and see the “Shale 4.0” terminology in The Washington Post. The degree of consolidation in the US upstream space over the past year has fundamentally transformed the once fragmented industry, as large public operators seek to build scale in order to ensure long-term returns to shareholders. However, these megadeals have attracted FTC antitrust scrutiny. As we approach November’s election, Rystad Energy continues to deliver best in class data-driven, quantitative analysis of the US energy sector. https://lnkd.in/erAWJ6nz

According to Bloomberg News, the merger of two Texas-based oil companies, Diamondback Energy and Endeavor Energy Resources, LP, valued at $26 billion, represents the latest milestone in a series of deals shaping the Big Shale era. Endeavor's retention of 40% equity in Diamondback and Warren Buffett's implicit support of Occidental Petroleum Corp.'s acquisition of CrownRock LP are part of why investors found comfort in these shale deals. “At some social or emotional level that validation has driven the market embracing these transactions,” states Andy Rapp, co-founder of Petrie Partners LLC. Read the entirety of this article from Bloomberg News: https://lnkd.in/eS4hbePp #InvestingInsights #MarketAnalysis #StrategicDecisions #Petrie #shale

The Oil Battle Between Exxon and Chevron Is Ridiculous When earnings season rolls around, which it now has with 1Q in the bag for most oil and gas companies, Wall Street analysts are nothing short of giddy to share their comparisons and contrasts among rivals following earnings reports. That’s what shareholders expect. But in the echelon of largest U.S. energy players, this exclusively translates to ExxonMobil and Chevron—also ranked as fifth and seventh largest, respectively, in the world. Reese Energy Consulting today is following the latest from these two, both of which accounted for the bulk of last year’s multi-billion-dollar merger mania.  Helming these ginormous companies, Exxon CEO Darren Woods and Chevron head Mike Wirth are far from strangers. Back in 2021, the two discussed a possible coupling that would have created the largest merger ever. And why not? They work together on large projects across the world. But it wasn’t to be. So, each went about their way with Exxon last October picking up Pioneer Natural Resources Company for $59.5 billion to become the Permian’s largest operator, followed days later by Chevron snapping up Hess Corporation for $53 billion. The latter deal rang loud cow bells for Exxon—the first and largest oil producer in the Magical Land of Guyana where oil flows like honey. Chevy’s Hess acquisition meant the two would meet again on shared territory—the nation’s two largest rivals at work in the world’s hottest play. We’ll tickle ourselves to assume Woods and Wirth shared double-secret phone calls upon Chevron’s deal, but nevertheless a huge, right-of-first-refusal conflict quickly emerged and now set for arbitration. Returning to Wall Street commentary, Exxon reigns with 1Q earnings of $8.2 billion. Chevron reports $5.5 billion. Together, they returned $12.8 billion to shareholders during the quarter. No one is sobbing. Work it out, guys. What do you think? Learn more about REC and our crude oil and natural gas consulting services at https://lnkd.in/ewhkGFa.          

**EQT Completes Acquisition of Equitrans Midstream** ===================================================== EQT Corporation has completed its acquisition of Equitrans Midstream Corporation, a leading midstream service provider in the Appalachian Basin. The deal was valued at approximately $7 billion, including the assumption of debt. The acquisition expands EQT's presence in the midstream sector, providing customers with a comprehensive suite of natural gas services. The combined company will operate approximately 12,000 miles of pipelines, 150 billion cubic feet of natural gas storage capacity, and 14 billion cubic feet per day of processing capacity. The transaction is expected to generate significant synergies and cost savings, and will position EQT as a leading natural gas producer and midstream service provider in the Appalachian Basin. **#EQT #EquitransMidstream #Acquisition #Midstream #NaturalGas** Source: https://lnkd.in/e2Fr4ACM Update Date: 1 day ago

I'm thankful for the two-day Thrive Conference by Daniel Energy Partners. Not many events you can hear from CEOs of almost every large service company (Weatherford, Baker Hughes, SLB, NOV, Helmerich & Payne, Patterson-UTI, Halliburton, & STEP Energy Services) as well as many top operators (Aethon Energy, Ascent Resources, bp, Marathon Oil Corporation, Chesapeake Energy, Diamondback Energy) This week, I'll digest what I heard and share some of my big takeaways from the talks I attended. The major topics that resonated with me were: ↩ 2023 review 🔭 Oilfield Service Outlook for 2024 ➕ Mergers & Acquisitions affect the industry 🔥 Natural Gas Markets Including what happened in 2023 and how that frames 2024, what OFS companies are focusing on for growth in 2024, how producers & service companies perceive the consolidation in the US, what's in store for natural gas & how it will affect our market.

Yet another monster O&G deal announced today as the consolidation trend continues. While the number of “targets” has decreased significantly, there are still quite a few remaining that are likely to be scooped up before this latest round of M&A is complete. And as I have been saying, despite all the political chest-pounding and noise, each of these transactions has been, and will continue to be, permitted to close, given the lack of any sound legal or regulatory arguments against them. #transactionadvisory #dealmaking #mergersandacquisitions #oilandgas