Marathon buying Ensign for $3.0B
Houston..we have a problem....
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Last: 11 hrs ago by Bibendum 86
hmmm was wondering who was going to come out on top of the bidders there
Ensign's deal has to be one of the best ever in private equity backed E&P realm. Did Warburg ever even write an equity check into the business??AustinAg008 said:
Marathon buying Ensign for $3.0B
What were those Twitter accounts that discussed insider information about how badly the industry was mismanaged from the top? I can't seem to find them searching Twitter so not sure if those guys got banned or if they are still around.
I've been thinking the same thing. $25MM purchase price with up to $450MM in earnout payments. The earnout was publicly disclosed as being based on commodity prices. If it was a 3 year earnout, there is a decent chance none of the earnout got paid because commodity prices tanked after the deal closed going into COVID. I just checked DrillingInfo and they have completed 82 wells since June 2018 so thats less than $1 billion in capital deployed. A good chunk of their capital was financed with free cash flow and debt financing so yeah, they may have done this with $0 in equity.Gig-Em2003 said:Ensign's deal has to be one of the best ever in private equity backed E&P realm. Did Warburg ever even write an equity check into the business??AustinAg008 said:
Marathon buying Ensign for $3.0B
Wow.
Terrible deal by Pioneer to sell that for pennies on the dollar. Kudos to Ensign for negotiating such a favorable deal though.
A big part of the consideration Ensign gave was taking on the liability associated with large minimum volume contracts with Enterprise that Pioneer was under water on. Marathon is probably in a position where they have extra volume to help make up for those shortfalls.Maverick06 said:
Terrible deal by Pioneer to sell that for pennies on the dollar. Kudos to Ensign for negotiating such a favorable deal though.
Agree- I thought the MVCs on gathering made it a really tough deal to find a buyer. Ensign guys took a gamble but sure didnt have to risk too much to get there. Agree that Marathon can likely cover MVCs on a go forward (if not covered now) hence the valuation.
Heard from a buddy in the PE world. Warburg and Kayne will each cash out more than a billion from this transaction. He wasn't sure of all the details but he didn't think more than $150MM total was invested between those two & he had no clue how much of that hadn't already been paid back already before this deal was announced. Equates to roughly a 15x for those firms....Gig-Em2003 said:Ensign's deal has to be one of the best ever in private equity backed E&P realm. Did Warburg ever even write an equity check into the business??AustinAg008 said:
Marathon buying Ensign for $3.0B
Ensign team blew it outta the park.
Great freaking turn right there. I was looking up trying to get a handle on the MVC which was the big issue.
That's awesome. So the Ensign Team could be looking at a $500MM B pool????RulesForTheeNotForMe said:Heard from a buddy in the PE world. Warburg and Kayne will each cash out more than a billion from this transaction. He wasn't sure of all the details but he didn't think more than $150MM total was invested between those two & he had no clue how much of that hadn't already been paid back already before this deal was announced. Equates to roughly a 15x for those firms....Gig-Em2003 said:Ensign's deal has to be one of the best ever in private equity backed E&P realm. Did Warburg ever even write an equity check into the business??AustinAg008 said:
Marathon buying Ensign for $3.0B
Ensign team blew it outta the park.
His guess was north of that. They killed it.AustinAg008 said:That's awesome. So the Ensign Team could be looking at a $500MM B pool????RulesForTheeNotForMe said:Heard from a buddy in the PE world. Warburg and Kayne will each cash out more than a billion from this transaction. He wasn't sure of all the details but he didn't think more than $150MM total was invested between those two & he had no clue how much of that hadn't already been paid back already before this deal was announced. Equates to roughly a 15x for those firms....Gig-Em2003 said:Ensign's deal has to be one of the best ever in private equity backed E&P realm. Did Warburg ever even write an equity check into the business??AustinAg008 said:
Marathon buying Ensign for $3.0B
Ensign team blew it outta the park.
SLB rebrand is dumb
Oil price returning $100 after midterms?
guaranteed!Motis B Totis said:
Oil price returning $100 after midterms?
once the powers that be in the deep state don't care about the mid-term elections, prepare yourself!
Yep, should happen as SPR releases just wrapped up this month as well as OPEC+'s 2MM BOPD cut going into effect this month.
Any rumors on who is gonna take down the CHK EF packages?
Will be interesting to see if someone gobbles up the whole thing, or they sell in separate packages. I'm sure Wildfire's looking at the Brazos Valley package. I've heard they expect the competition to come from privates.Deepslant said:
Any rumors on who is gonna take down the CHK EF packages?
They made a few acquisitions during and after Covid that really improved their position as well. Good timing all around.Cyp0111 said:
Great freaking turn right there. I was looking up trying to get a handle on the MVC which was the big issue.
Think they bought out Reliance during Covid. Heard yesterday that equity made a 15x on the deal. I would have thought higher, but management/employees likely got over $500MM.ThreeFive said:They made a few acquisitions during and after Covid that really improved their position as well. Good timing all around.Cyp0111 said:
Great freaking turn right there. I was looking up trying to get a handle on the MVC which was the big issue.
Anyone here in the Completion side of things? I took on a couple of PM positions during the downturn and I'm hoping to get back my foot door with an E&P as a comp/operations engineer again. I've interviewed a couple of times and both times they ended up "hiring internally". TIA
They acquired Newpek's interest (increasing their WI to ~50% and reduced their GP&T rates) in 2020 and Reliance at the end of 2021 (increasing their WI to ~100%). Both were well-timed.Goose06 said:Think they bought out Reliance during Covid. Heard yesterday that equity made a 15x on the deal. I would have thought higher, but management/employees likely got over $500MM.ThreeFive said:They made a few acquisitions during and after Covid that really improved their position as well. Good timing all around.Cyp0111 said:
Great freaking turn right there. I was looking up trying to get a handle on the MVC which was the big issue.
jaggiemaggie said:
Anyone here in the Completion side of things? I took on a couple of PM positions during the downturn and I'm hoping to get back my foot door with an E&P as a comp/operations engineer again. I've interviewed a couple of times and both times they ended up "hiring internally". TIA
I believe the company I work for is hiring. I'm on the land side of things, but saw some openings that position last week.
PM me
FANG keeps rolling - picks up Lario scattered midland Basin acreage for 1.55B
https://www.globenewswire.com/news-release/2022/11/16/2557661/0/en/Diamondback-Energy-Inc-Announces-Northern-Midland-Basin-Acquisition.html
https://www.globenewswire.com/news-release/2022/11/16/2557661/0/en/Diamondback-Energy-Inc-Announces-Northern-Midland-Basin-Acquisition.html
What's the thought on FANG? Continuing to find bolt-on acreage to continue growth, or working to be more attractive to a potential suitor?
They just sold some non-core Delaware for $155M last week too
Trading baseball cards to keep blocking up.
Trading baseball cards to keep blocking up.
China ruining their economy, worse, while they crash oil prices. Over Covid!
Wouldn't be Thanksgiving week without an OPEC surprise....
Oil tanking.
Oil tanking.
AustinAg008 said:
Wouldn't be Thanksgiving week without an OPEC surprise....
Oil tanking.
Seriously…
Maybe opec was playing politics with Biden and are ready to change their mind.
Yikes…I thought WTI was done puking @ $79/bbl. All this China-not-reopening talk is getting old.
Funny how Biden grants MBS immunity on the journalist killing and this hits the wire.....Premium said:AustinAg008 said:
Wouldn't be Thanksgiving week without an OPEC surprise....
Oil tanking.
Seriously…
Maybe opec was playing politics with Biden and are ready to change their mind.
What is going on today, back up near 80
Shouldn't be this low. Odd, indeed.
Biden admin floated rumors that Saudi was considering production increases, driving price does. Then Saudi said that was a completely unsubstantiated rumor, driving prices back up. Whether it is true or not is still unclear, but obviously market is now leaning back towards it being bull*****Premium said:
What is going on today, back up near 80
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