The following information is provided by Detring Energy Advisors LLC. All inquiries on the following listings should be directed to Detring. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Foundation Energy Management LLC retained Detring Energy Advisors LLC to market for sale its upstream and midstream oil and gas assets across Colorado, Kansas and Nebraska.
The assets—comprising robust and predictable cash flow from shallow-decline production with healthy margins—are located in Colorado’s Yuma, Washington, Phillips and Lincoln counties, Kansas’ Cheyenne and Sherman counties and Nebraska’s Chase and Dundy counties.
Foundation will entertain bids on either or both upstream and midstream asset packages, according to Detring.
Highlights:
- Upstream Operations:
- Robust Operating Cash Flow ($7 million next 12-month PDP) and Production (13.1 MMcfe/d, net)
- 9% next 12-month decline from ~2,200 wells underpins stable production profile
- PDP PV-10 of $26.4 million
- Net reserves of 54.9 Bcfe (PDP only)
- Resilient cash flow stream ensured by low operating expenses and healthy margins
- ~$1.73/Mcf operating cash margin
- Turn-key business unit inclusive of five yards outfitted with substantial inventory including high-value equipment and materials to support continued asset operations
- Robust Operating Cash Flow ($7 million next 12-month PDP) and Production (13.1 MMcfe/d, net)
- Midstream Operations:
- 100% ownership in extensive gathering and transportation infrastructure gives mission critical control over operations and cost efficiencies
- Over 650 miles of pipeline and 24,000 HP of compression
- Long-lived production base inclusive of true third-party producers with an 8% annual decline through 2026
- ~$1.6 million next 12-month EBITDA on current throughput of ~18,400 Mcf/d
- 100% ownership in extensive gathering and transportation infrastructure gives mission critical control over operations and cost efficiencies
Process Summary:
- Evaluation materials available via the Virtual Data Room on June 30
- Proposals due on July 28
The seller anticipates executing a purchase and sale agreement by late August and closing by mid-October, Detring said.
For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.
Recommended Reading
Beyond Permian? Breaking Down E&Ps’ Second Half M&A Prospects
2024-07-22 - From Permian Resources and Diamondback Energy to Matador Resources and Civitas Resources, analysts weigh in on upstream companies’ M&A mindset as second-quarter earnings season gets underway.
Mike Wirth: The ‘Remarkable’ Rise Of Chevron’s Permian Portfolio
2024-08-20 - Chevron aims to grow Permian volumes past 1 MMboe/d in 2025—less than a decade after it averaged less than 100,000 boe/d from legacy holdings in West Texas and New Mexico, Chevron CEO Mike Wirth said.
Marketed: ConocoPhillips Bakken Shale Opportunity
2024-09-04 - ConocoPhillips has retained EnergyNet for the sale of working interest participation in three wells located in the Bakken Shale in McKenzie County, North Dakota.
Why Buying Double Eagle Does (and Doesn’t) Make Sense for Ovintiv
2024-08-29 - Proceeds from an Ovintiv divestiture in the Uinta Basin could help fund a deal for Double Eagle’s Midland Basin assets, but analysts say the money could just as easily be used for debt reduction.
The $22.5B Deal: How ConocoPhillips Won Marathon Oil in 33 Days
2024-07-19 - ConocoPhillips didn’t show up until April 25, while two other unidentified public E&Ps were bidding for Marathon, according to a filing with the Securities & Exchange Commission.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.