Marketed: Anschutz D-J Basin Royalty, Non-Op Package

Transaction Type
Basin
D-J Basin
Announce Date
Post Date
Close Date
Room Opening Date
Estimated Price
MM
Description

Anschutz Exploration Corp. retained SunTrust Robinson Humphrey Inc. as its exclusive financial adviser for the sale of a Denver-Julesburg (D-J) Basin Royalty and Non-Op package through an offering with bids due in late September. The offering is comprised of Royalty Interests and associated Non-Operated oil and gas producing properties located in Weld County, Colo.

Highlights:

  • HighPoint Resources and Bonanza Creek Energy are active operators on the acreage
  • 4,500 Net barrels of oil equivalent/day as of September 1, 2019
  • 211 gross non-operated producing wells, Over 90% of acreage is HBP
  • 26 wells in drilling and completion operations stages
  • 250-plus additional future development locations across position
  • Last 12-month Operating Cash Flow $60.3 MM (June 2018 – May 2019, excluding capex)
  • Rural setting in pro-industry Weld County minimizes regulatory risk

Summary of Packages Offered: 

  • Royalty Interest Packages:
    • Anschutz Family Investment Co. (AFIC) royalty package
      • AFIC – 1,598 net acres
      • AFIC royalty interest ranges from less than 1% up to 14.5% per 1,280 acre drill spacing unit (DSU), where ownership is present
        • 2018 net cash flow of $13.8 million
        • Last 12-month net cash flow of $14.0 million (June 2018 through May 2019)
    • Anschutz “ORRI Portfolio”
      • Overriding Royalty Interest (ORRI) Portfolio - 360 net acres
      • ORRI Portfolio interest ranges from less than 1% to 3.7% per 1,280 DSU, where ownership is present
        • 2018 net cash flow of $2.5 million
        • Last 12-month net cash flow of $3.1 million (June 2018 through May 2019)
  • Non-Op Working Interest Package:
    • 39,481 Gross (7,236 net acres) in Weld County
      • Current net production: 3,500 boe/d, 65% oil
      • January 2020 forecasted net production: 3,700 boe/d (Aries 3-stream net results as of Jan. 1, 2020)
        • Over 200% production increase from January 2018
      • Last 12-month net cash flow of $43.2 million (June 2018 through May 2019, excluding capex)

The transaction is structured as a sale of assets with an effective date of Sept. 1.   

This information is provided by SunTrust Robinson Humphrey Inc. Contact Samantha Holroyd, Managing Director, at 713-426-9001 or Samantha.Holroyd@suntrust.com.

Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.