Baker Hughes reports U.S. rig count down 15 to 781 rigs
Baker Hughes (BKR) reports that the U.S. rig count is down 15 rigs from last week to 781, with oil rigs down 11 to 659, gas rigs down 4 to 119, and miscellaneous rigs unchanged at 3.
The U.S. Offshore Rig Count is down 1 to 21, Stockwinners
The U.S. Rig Count is down 294 rigs from last year’s count of 1,075, with oil rigs down 214, gas rigs down 83, and miscellaneous rigs up 3 to 3.
The U.S. Offshore Rig Count is down 1 to 21 unchanged year-over-year.
Rig Counts Decline- See Stockwinners.com Market Radar to read more
The Canada Rig Count is up 118 rigs from last week to 203, with oil rigs up 93 to 120 and gas rigs up 25 to 83.
The Canada Rig Count is up 19 rigs from last year’s count of 184, with oil rigs up 17 and gas rigs up 2.
Crude oil is down 30 cents to $59.25 per barrel. Brent is down 15 cents to $65.22.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
WPX Energy (WPX) “is taking another significant step in its commitment to delivering shareholder value” with the $2.5B purchase of Felix Energy, “one of the highest quality Delaware Basin operators.”
Felix has approximately 1,500 gross undeveloped locations in the eastern portion of the basin, with expected production of approximately 60 MBoe/d (70% oil) at the time of anticipated closing. WPX plans to implement a dividend post-closing, targeting approximately $0.10 per share on an annualized basis at initiation.
WPX buys Felix Energy for $2.5B, Stockwinners
WPX Energy, Inc., an independent oil and natural gas exploration and production company, engages in the exploitation and development of unconventional properties in the United States. The company operates 657 wells and owns interests in 808 wells covering an area of approximately 130,000 net acres located in Delaware Basin, Texas and New Mexico; and operates 323 wells and owns interests in 87 wells that covers an area of approximately 85,087 net acres situated in the Williston Basin, North Dakota.
Felix Energy sold for $2.5B, Stockwinners
The acquisition and dividend program follow other steps WPX took in 2019 to enhance its value proposition, including reducing net debt, executing attractive midstream monetizations, launching a share buyback program and generating free cash flow.
The purchase price consists of $900M cash, subject to closing adjustments, and $1.6B in WPX stock issued to the seller.
WPX plans to fund the cash portion through issuance of $900M of senior notes on an opportunistic basis.
WPX also has obtained committed financing from Barclays in connection with the transaction and has full access to a $1.5B revolving credit facility.
The stock consideration comprises approximately 153M WPX shares, which is based on the 10-day volume-weighted average price as of Dec. 13.
The transaction is subject to customary closing conditions and approval by WPX shareholders. The parties anticipate closing the transaction early in the second quarter of 2020.
WPX’s board unanimously approved the transaction.
The acquisition is consistent with all of the tenets in WPX’s five-year vision for shareholders that the company introduced in November during its third-quarter report.
On a pro forma basis, WPX expects to generate significant free cash flow in 2020 at $50 oil.
Following the acquisition, cash flow per share, EPS, free cash flow per share, return on capital employed, and cash margins are all expected to increase.
WPX also expects to continue its opportunistic share buybacks, to implement the previously mentioned dividend program, and to reduce its leverage to 1.0x by year-end 2021.
WPX based all of its transaction economics on $50 oil, with no assumptions for improvements in development costs or operating efficiencies. However, WPX believes significant upside exists by capturing synergies associated with scale.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
Callon Petroleum to acquire Carrizo Oil & Gas in all-stock deal valued at $3.2B
Carrizo sold for $3.2 billion, Stockwinners
Callon Petroleum (CPE) and Carrizo Oil & Gas (CRZO) announced that their Boards of Directors have unanimously approved a definitive agreement under which Callon will acquire Carrizo in an all-stock transaction valued at $3.2B.
This highly complementary combination will create a leading oil and gas company with scaled development operations across a portfolio of core oil-weighted assets in both the Permian Basin and Eagle Ford Shale.
Callon Petroleum buys Carrizo for $3.2B, Stockwinners
Under the terms of the agreement, Carrizo shareholders will receive a fixed exchange ratio of 2.05 Callon shares for each share of Carrizo common stock they own.
This represents $13.12 per Carrizo share based on Callon’s closing common stock price on July 12 and a premium of 18% to Carrizo’s trailing 60-day volume weighted average price.
Following the close of the transaction, Callon shareholders will own approximately 54% of the combined company, and Carrizo shareholders will own approximately 46%, on a fully diluted basis.
The all-stock transaction is intended to be tax-free to Carrizo shareholders.
The transaction has been unanimously approved by the Boards of Directors at both Callon and Carrizo.
In addition, each of the Carrizo directors has committed to vote his or her shares in favor of the transaction.
Upon closing, the Board of Directors of the combined company will consist of 11 members, including Callon’s eight current Board members and three to be appointed from the Board of Carrizo.
The combined company will be led by Callon’s executive management team and will remain headquartered in Houston, Texas.
The transaction, which is expected to close during the fourth quarter, is subject to customary closing conditions and regulatory approvals, including the approval of shareholders of both companies.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
