Oilpatch A&D Discussion Thread - Apache, Talisman, Baker Hughes and anyone else

[ExtraSlow]

Thought it would be nice to have all the A&D discussions in one place.

December 15th, 2014, Today, Apache has announced that they are selling their Kitimat LNG project, plus "associated gas reserves" in Horn River and Laird Basin to Woodside LNG of Australia.

Repsol appears close to announcing their purchase of Talisman Energy.

I know there are a bunch of folks more knowledgeable than me about these subjects, please chime in.

[Brent.ff]

Hasn't Apache been out of the Kitimat game for a while? Pretty sure they sold their stake in the PTP pipeline a long time ago?

*edit* guess it was them wanting to pull out and finally got a buyer? Will be interesting to see the final result with the Kitimat LNG port..

[killramos]

I didn't even recognize you with that hat on slow.

Some other topics will be BP's downsizing ( likely leading to getting out of the Canadian market)

Baytex has been trying to sell out of Canada for a year as well.

Within the scope of this thread every should be very careful about posting about their respective companies in times like this. So easy you something to come off as tipping and if found out you can get in VERY hot water... Even small A&D type topics can have huge impacts.

People i know who work in A&D wont even tell me how their day is going, if they are busy etc. Keeping your mouth shut about your work is half the job in those departments.

Just a friendly tip

:D

[ExtraSlow]

A hat can really make a mans outfit, can't it?

Good point about not discussing anything to do with your current workplace. I was thinking this could be more of an aggregation of publicly available information, and some discussion of that information by persons without insider knowledge.

Luckily for me, I'm not in a position to get any insider knowledge.

I'll add a deal to the list, EOG Resources is closing it's Calgary office after selling off properties in SW Sask to Tundra and properties in Alberta, reportedly to CNRL. Total sale price was $410 million. They are reportedly keeping their Horn River Basin assets.

[killramos]

Originally posted by ExtraSlow
A hat can really make a mans outfit, can't it?

Good point about not discussing anything to do with your current workplace. I was thinking this could be more of an aggregation of publicly available information, and some discussion of that information by persons without insider knowledge.

Luckily for me, I'm not in a position to get any insider knowledge.

I'll add a deal to the list, EOG Resources is closing it's Calgary office after selling off properties in SW Sask to Tundra and properties in Alberta, reportedly to CNRL. Total sale price was $410 million. They are reportedly keeping their Horn River Basin assets.

There is a good saying in this town. Every downturn CNRL gets a little bit bigger :D

That's the value of free cashflow and patience. IMO CNRL is one of the safest bets for long term growth in the patch. I would bet my pension on them.

:dunno:

[lasimmon]

Nabors Canada sold off all their production services (service rigs) in Canada to C&J Energy services, along with production services and pressure pumping units in the USA. Been some stalls in regards to this is the Courts but is likely to go through.

[Perfect Dark]

Originally posted by lasimmon
Nabors Canada sold off all their production services (service rigs) in Canada to C&J Energy services, along with production services and pressure pumping units in the USA. Been some stalls in regards to this is the Courts but is likely to go through.

Nabors didn't sell it off per se, they are joining with C&J but have positioned themselves so that they will be majority owners of the combined company (53%).

I've heard some grumblings about why it's dragging out and it mostly sounds like it's on the C&J side, but as mentioned it should still be going through.

[lasimmon]

Originally posted by Perfect Dark


Nabors didn't sell it off per se, they are joining with C&J but have positioned themselves so that they will be majority owners of the combined company (53%).

I've heard some grumblings about why it's dragging out and it mostly sounds like it's on the C&J side, but as mentioned it should still be going through.

I mentioned it sold in the sense that C&J will be the name and will operate independently even though Nabors Industries will own 53% of the stock.

Well yes some C&J stock holders were upset since it was "Essentially" a takeover in their mind and they didn't shop around. Which is why the judge said they had to be shopped for 30 days.

Honestly I would see Nabors slowly divesting their 53% stock and their aim is not be involved in production services and solely focus on drilling.

[ExtraSlow]

Originally posted by Repsol press release December 15,2014
The company reports that, at the ordinary meeting of its board of directors to be held today, it will submit for consideration, among other matters, the analysis of a possible transaction consisting in the acquisition of the total share capital of the Canadian company Talisman Energy Inc.

[schurchill39]

I'm not surprised that Apache pulled out of the Horn River and Liard basin at all. I wouldn't actually be surprised if they sold off even more of their larger assets and downsized quite a bit in the next half year.

That being said Apache seems to be the only guys exiting out of NE B.C. as all of the other companies (such as EOG) are selling off all of their assets EXCEPT that play. Now I am not too sure if that's because they are expecting a boom in the coming years or with the current economics it doesn't make financial sense so some of the producers on here will have to chime in. I am intimately familiar with the completions side of things up there so I know how tight the margins are and without having your efficiency down pat then it doesn't make any sense to even try.

Longrun Explorations and Crew Energy seem to be scooping up any little company they can lately to expand.

[kaput]

.

[ExtraSlow]

The deal is done, Reported price is $8 USD, which is about $9.33 Canadian. That seems high to me, but I'm no expert.

[ExtraSlow]

Originally posted by The Calgary Herald

Lauren Krugel, The Canadian Press 12.14.2014
Spanish company Repsol to purchase Talisman Energy
CALGARY - Talisman Energy Inc. (TSX:TLM) says it has agreed to be purchased by Spanish energy giant Repsol in a transaction worth about US$13 billion (C$8.3 billion).

Under the agreement confirmed early Tuesday by Talisman, Repsol will acquire all outstanding common shares of the Calgary-based company at US$8 (C$9.33) each.

Talisman shares had closed at $5.97 on the Toronto Stock Exchange, up 93 cents or more than 18 per cent. The purchase price, which includes Talisman's debt, represents a 75 per cent premium to the seven-day volume weighted average share price.

The Financial Times had reported Repsol was looking at a bid for Calgary-based Talisman of between $6 and $8 per share.

Also under the deal, Talisman will pay aggregate cash dividends of 18 cents per common share prior to closing. The Talisman board is recommending shareholders accept the deal at a special meeting to be held in mid-February 2015.

Completion of the transaction, which is targeted to close in the second quarter of 2015, is subject to customary closing conditions, including court approval.

"This deal creates significant and immediate value for Talisman stakeholders," said board chairman Chuck Williamson.

"Repsol is a world-class operator with a solid track record and the financial capability to continue the development of these assets within their international portfolio."

Talisman has strong operational capability, a highly skilled work force and we look forward to leveraging their expertise as we partner to create a stronger, more profitable and competitive organization," said Repsol chairman Antonio Brufau.

Repsol is an oil and gas giant with a presence in more than 30 countries, employing more than 24,000 people. The combined company will be among the 15 largest privately-owned oil and gas companies with activity in more than 50 countries and more than 27,000 employees.

Repsol said Talisman's incorporation will increase Repsol's output by 76 per cent to 680,000 barrels of oil equivalent per day, and boost reserves by 55 per cent.

According to a Bloomberg report, the Canada Pension Plan Investment Board was also said to be weighing a bid for Talisman.

Analysts have predicted the pace of mergers and acquisition in the oil patch will pick up as low oil prices put pressure on some names, especially those with high debt loads.

U.S. benchmark crude for January delivery dropped below $56 on Monday, down more than 47 per cent over the past six months.

Talisman, which over the past few years has been striving to better focus its global portfolio, has long been the subject of takeover speculation.

While its offshore assets in Southeast Asia and its position in several North American shale regions are seen to be attractive to potential bidders, its holdings in the U.K. North Sea have been cited as a hindrance to any potential deals as they've been prone to unplanned outages and have struggled to meet targets.

Last week, Edward Jones analyst Lanny Pendill said Talisman's bargain stock price — around $4 before the takeover talk heated up — increased the chances of an all-out takeover panning out.

"Obviously the North Sea assets are the Achilles heel here and that could be a stumbling block, but that may have been more of an issue when the stock was at $10-$11," Pendill said.

Repsol's shares were down nearly three per cent at 15.3 euros in early trading in Madrid.

[mr2mike]

You figure they're going to spin off some Canadian Talisman assets or keep the whole lot to themselves?

[killramos]

Originally posted by mr2mike
You figure they're going to spin off some Canadian Talisman assets or keep the whole lot to themselves?

I think they will spin off alot yea, production particularly. Maybe stay in some of the infrastructure game.

That or they sell all of it to CNQ lol. That is the go to move for companies these days right?

[adamc]

Anyone get in on that sweet 47.15% TLM uptick today?

[kaput]

.

[Canmorite]

Originally posted by kaput
Does this need to pass the government's ambiguous net benefit test since repsol is foreign? Or can they work around it based on the value of the Canadian assets without regard for all their foreign holdings? I don't know how the value of their Canada vs foreign compares.

Talisman's production is roughly ~50% of North America (Not sure how much Canada, probably 30-35%). However, they don't have any oilsands assets, and a good chunk of that production is from US assets.

[riander5]

Originally posted by adamc
Anyone get in on that sweet 47.15% TLM uptick today?

No :cry:

[killramos]

Originally posted by Canmorite


Talisman's production is roughly ~50% of Talisman's production.

lolWut? :nut:

[Canmorite]

Originally posted by killramos


lolWut? :nut:

Haha! Oops, it's crazy around here. 30-35% of production is in Caanda is what I meant to say, with 50% in North America.

[broken_legs]

Anyone know: Did TLM keep their assets in Iraq? Is Repsol taking over there?

[ExtraSlow]

TLM isn't keeping anything. They aren't going to continue operation at all. Repsol is buying every single asset and every single share. If anything is sold afterwards, it's Repsol who is selling it.

[Ntense_SpecV]

Well I guess the layoffs are going to be coming right after Christmas or very early in the new year. I got a text yesterday that MEG cancelled every project at WorleyParsons right now - town hall meeting saying full and complete work stoppage. I know that they have been unhappy for years with them and I think this was a good excuse for them to pull the plug on current engineering contracts.

[Feruk]

I wonder who gets bought out first... Penn West, Baytex, or Light Stream. None have a sustainable business at this price. My bets are 2 of the 3 gone by next year.

[broken_legs]

Originally posted by ExtraSlow
TLM isn't keeping anything. They aren't going to continue operation at all. Repsol is buying every single asset and every single share. If anything is sold afterwards, it's Repsol who is selling it.

my Q wasnt very clear. I thought that TLM had already sold most of their world wide assets. My question was regarding whether or not the assets in Iraq still belonged to TLM or whether they had already been sold off.

[ExtraSlow]

Strong speculation that CNRL announces something within the week.

[flipstah]

Originally posted by Feruk
I wonder who gets bought out first... Penn West, Baytex, or Light Stream. None have a sustainable business at this price. My bets are 2 of the 3 gone by next year.

IMO, Lightstream seems to have more attractive inventory judging by quick glances of websites: Montney play and the Bakken.

[adamc]

CNRL announces acquisition of the City of Calgary.

[you&me]

Originally posted by adamc
CNRL announces acquisition of the City of Calgary.


Pffft, not based on yesterday's release of assessments... They'll wait for a sale.

[SKR]

Lightstream has said that they are planning on selling part or all of their Bakken unit.

I should call them and see if I can buy one well.

[16hypen3sp]

Originally posted by ExtraSlow
Strong speculation that CNRL announces something within the week.

Where is the speculation coming from? All I have heard is the Penn West rumours.

[flipstah]

Originally posted by 16hypen3sp


Where is the speculation coming from? All I have heard is the Penn West rumours.

ExtraSlow is Murray Edwards stirring the pot.

THE JIG IS UP, HONEY BADGER!

[ExtraSlow]

Well, I'm definitely stirring the pot, but you have my secret identity partly wrong.
I'm more this:
http://www.selkirk.bc.ca/sites/default/files/styles/large/public/Allan%20Markin-Photo---2010-WEB-199x300.jpg
than this:
http://www.ottawacitizen.com/business/cms/binary/9577689.jpg?size=640x420

Anyone who was in that jeans thread would know I'm too skinny to be Murray. Sheeet, I still have a neck at least.

[ekguy]

Originally posted by killramos


There is a good saying in this town. Every downturn CNRL gets a little bit bigger :D

That's the value of free cashflow and patience. IMO CNRL is one of the safest bets for long term growth in the patch. I would bet my pension on them.

:dunno:

yeah but CNRL has a horrible environmental track record and I do alot of work there and they seem to be the bottom of the barrel type company. Maybe im seeing things wrong but it seems like they aren't the ones paying their staff top dollar

[killramos]

Originally posted by ekguy


yeah but CNRL has a horrible environmental track record and I do alot of work there and they seem to be the bottom of the barrel type company. Maybe im seeing things wrong but it seems like they aren't the ones paying their staff top dollar

I never said I wanted to work for them. I have no interest in joining the evil empire, that place changes people.

Invest in them though, that I would do :dunno:

[lasimmon]

I have lots of friends who work at CNRL and love it :dunno:

[ExtraSlow]

I have friends who work at CNRL. I don't think I can honestly say any of them love it. Some of them have been there a long time and love the stock.

[Feruk]

Originally posted by ekguy
it seems like they aren't the ones paying their staff top dollar
I've heard the opposite.


Originally posted by ExtraSlow
I have friends who work at CNRL. I don't think I can honestly say any of them love it. Some of them have been there a long time and love the stock.
Maybe my memory is shit, but didn't you used to work drilling for Devon, and therefore would've gone to CNQ?

[killramos]

Originally posted by Feruk

Maybe my memory is shit, but didn't you used to work drilling for Devon, and therefore would've gone to CNQ?

Perhaps but now he is at Baker-Burton or Halli-Hughes ( not sure which :D ) , as per the last Baker-Halliburton thread lol

[ExtraSlow]

Yes, I am no longer an employee of CNQ.
From what I know, folks at CNRL don't make top dollar in terms of salary, but everyone gets stock, right from the mailroom and receptionists on up, and that stock has done really well for the last decade, so people have made a killing on the shares.

[mr2mike]

Originally posted by ekguy


CNRL has a horrible environmental track record and I do alot of work there and they seem to be the bottom of the barrel type company.

The term you're after is "Low cost operator". Sales guys don't speak highly of them because they don't buy the Cadillac equipment that other large companies do.
Other companies like the Spartans, Tamaracks, Toro, etc. Track records are the same but being small and relatively unknown, they skirt under the radar.
I was at a very small O&G company once and the think of the most cost effective way was honored by management.
It's business.

A downside to all these acquisitions is trying to discover the liabilities before they become headlines. Every company has them, every company tries to slide them off to the next in their sales package.

[dirtsniffer]

I Figured it would be Crescent Point to pick up Lightstream.

[ExtraSlow]

As far as I know CNRL has more wells and pipelines in Alberta than anyone else, so the fact that they are often on the list of top offenders isn't really surprising. Does anyone "normalize" the data for company size? I would be willing to bet they aren't as bad as they seem. There are some juniors that are totally scandalous in their disregard for good practices and environmental protection.

[SKR]

Originally posted by dirtsniffer
I Figured it would be Crescent Point to pick up Lightstream.

I hope not, it's already almost impossible to do any work in southeast Saskatchewan without working for Crescent Point. Not that they're bad to work for, it's just nice to have some variety. I like to check rigs for at least a couple different companies at the same time and that's tough when one company owns the whole province.

Crescent Point already bought a bunch of stuff from Lightstream though, so maybe now they'l take the rest.

[adamc]

Originally posted by lasimmon
I have lots of friends who work at CNRL and love it :dunno:


This. The 3-4 very good friends of mine whom work there all seem to love it.

Now I'm not entirely sure if this is because they're workaholic types that value experience over culture, but they all seem very content and I've never heard any of them having the desire to move.

The one geo I know best has stock holdings that could be cashed out to purchase a nice family home here in Calgary, if he so desired. And I think he's only 5 years in to his career there.