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
Dividends Declared in the Week of May 6
2024-05-10 - Here is a selection of upstream, midstream and service and supply companies’ dividends declared in the past week.
Permian M&A: Oxy Shops Delaware Assets, Family Oil Cos. Stand Out
2024-05-10 - As operators scour the Permian Basin for M&A opportunities, they’re keeping an eye on a tepid divestiture market. Family-owned oil companies also stand out among the pack of private inventory holders remaining in the Permian, according to Enverus Intelligence Research.
GeoPark, Vitol Sign Offtake Deal for Llanos 34 Block
2024-05-10 - Under the agreement, GeoPark will sell and deliver to Vitol a minimum of 20,000 bbl/d of oil from the Llanos 34 Block in Colombia, which GeoPark holds 45% working interest.
Enbridge Plans to Increase Permian Oil Pipeline’s Capacity
2024-05-10 - Midstream company Enbridge announced an open season on the Gray Oak Pipeline for a proposed 120,000 bbl/d expansion and updated its M&A efforts.
Energy Transition in Motion (Week of May 10, 2024)
2024-05-10 - Here is a look at some of this week’s renewable energy news, including $1.5 billion in investment commitments for low-carbon energy initiatives.