OGI September

Oil and Gas Investor Magazine - September 2019

One can only hope that some of the worst for energy is behind us, and that some of what is forecast to come doesn’t materialize, writes Oil and Gas Investor's senior financial analyst Chris Sheehan. The correlation between energy stocks and crude oil, he continues, seems to be slipping, or possibly broken, even with a backdrop of potentially escalating geopolitical events. This issue of Oil and Gas Investor takes a deep dive into the economics of the industry.

Also in this issue:

  • As producers acquiesce to investor demands, are they leaving returns on the table in lieu of payouts?
  • Well stimulation firms are experiencing economic headwinds despite completing more stages at higher pump rates for customers as pricing softens and frack equipment stacks out.
  • Although the A&D market has been hit or miss, there’s still a large enough toolbox for the market to crank out some deals.

Cover Story

The PE-Backed E&P, v.2019

Public E&P investors are insisting that operators produce returns, so private-equity-backed E&Ps wanting to sell to a public E&P are working to do the same. One said, “It all rolls downhill.”

Feature

Deal Doldrums Lead To Low-Key Energy Lending

Faced with a slowdown in transactions, commercial banks await a catalyst to bolster energy market confidence.

Montage Resources Executive Q&A: Appalachian Blend

In a basin full of bigs, the combination of Eclipse Resources and Blue Ridge Mountain Resources to form Montage Resources creates a compelling gas and liquids growth story despite commodity headwinds. The question: Will Wall Street notice?

Production Forecasting: Creating A Better Type Curve

Predicting well economics can be a matter of opinion when it comes to the method of estimating production. This engineer believes greater transparency would benefit users of type curves.

Shadow Market: E&P A&D Six-Month Review

As asset-level A&D struggles in the background of multibillion E&P mergers and market indifference to oil and gas, deal advisers see a spike in transactions for minerals, conventional assets and even combinations of private-equity companies.

Technology Capital: OFS Investment Opportunity

Private-equity firms are seeking new technology for oilfield service assets.

A&D Trends

A&D Market: Permian Treasure Maps

The A&D market still has a large toolbox from which to crank deals, but more often it seems to be pulling out standard wrenches when a metric socket would be better suited.

At Closing

OGI At Closing: The Road Not Taken

So far, 2019 continues to be challenging for E&Ps and investor sentiment. Oil prices have tumbled, natural gas and NGL prices are beyond terrible, and stock prices are taking a huge hit.

E&P Momentum

E&P Momentum: Killing The Goose That Lays The Golden Egg

Well stimulation firms are experiencing economic headwinds despite completing more stages at higher pump rates for customers as pricing softens and frack equipment stacks out.

From the Editor-in-Chief

From OGI Editor-In-Chief: The Free Cash Flow Goal

As oil and gas producers acquiesce to investor demands, are they leaving returns on the table in lieu of payouts?

On the Money

On The Money: How Low Can E&P Valuations Go?

E&P stock valuations are down hard, but have they yet discounted a worst-case scenario?