Recent Appalachian Basin Mergers and Acquisitions
James Engineering, Inc.
A presentation has been prepared of recent Appalachian Basin acquisitions to provide operators better insight into the historic basis for asset sales. The materials presented are drawn from public data sources, press releases, and Securities and Exchange Commission Reports.
The presentation includes a discussion on “Price Drivers” - factors that influence a purchase or sale price and “Pricing Yardsticks” – common methods for determining an asset’s worth including quick look “Rule of Thumb” methods and reserve based methods. The presentation compares the historic impact of the prime interest rate and natural gas prices on oil and gas asset acquisition values. Historic average Appalachian Basin asset values are presented for the years 2000 – 2004 in $ per mcfe of proved reserves and in $ per mmcfdeq.
Details of acquisitions are presented including the asset size($), annual cash flow, daily production, net proved reserves, geographic location, well count, miles of pipeline, and acreage.
Acquisition details are presented for EOG acquiring Energy Search, Inc., Triana Energy Holdings acquiring Columbia, EXCO Resources acquiring North Coast Energy, Range Resources acquiring First Energy’s 50% of Great Lakes Energy Partners, Capital C Energy acquiring Belden & Blake, and Fortuna acquiring Belden and Blake’s Trenton Black River acreage and wells. Finally, a comparison is made of the
“Price Drivers and Pricing Yardsticks” for each of the acquisitions presented.