Energy Advisors Group Releases Focused Oil & Gas Perspectives Series
Initial studies on Eagle Ford Area, Delaware and Appalachian Basins HOUSTON, September 12, 2023: As part of its ongoing research and thought leadership efforts, Energy Advisors Group (EAG) launches its Oil & Gas Basin Perspectives Series intended to provide industry participants with actionable intelligence regarding oil and gas resource plays. “These reports provide content, contrast, and context by incorporating analysis on M&A activity, E&P operations and capital market highlights,” said Ronyld W. Wise, Founder and Managing Partner of the firm. Eagle Ford Perspectives – Surge in M&A Activity Energy Advisors’ inaugural Eagle Ford Perspectives highlights factors driving a surge in Eagle Ford A&D activity to $11.7 billion for the 12 months ending June 30, 2023, the highest volume since the 12 months ending June 30, 2014. In just three months from November 2022 to February 2023, the play saw four billion-plus dollar deals with buyers including Marathon, Wildfire, INEOS and Baytex. These buyers all seek to establish or expand core areas with enough running room to maintain production levels for years to come. The play, which stretches along the Texas Gulf Coast, is attractive with ample existing infrastructure and proximity to both oil and LNG export markets. The play also includes all commodities from dry gas to oil and continues to evolve with the Austin Chalk renewal being the latest example of meaningful value creation. Delaware Basin Perspectives – Industry’s Most Active Play Next in the series is the Delaware Basin, a play that tracks from West Texas into Southeast New Mexico. The Delaware is currently the industry’s most active U.S. resource play and witnessed increased A&D activity such as the $7.1 billion in 1H 2023 deals compared to $8.7 billion in all of 2022. Virtually all of this deal activity was triggered by small to mid-cap public companies on the buyside and the exit of private equity backed companies on the sellside. Energy Advisors expects competitive A&D pressures to remain strong in the Delaware as the universe of meaningful private and private equity backed companies shrinks to just 24 and 12, respectively. Recent buyers report well level breakeven economics as low as $40 per barrel. The area is home to a host of operating innovations including optimized co-development of multiple benches and a pilot project to drill a “horseshoe” lateral which, if successful, would save $5 million and up to 50% by drilling one two-mile lateral versus two one-mile laterals. In services, Atlas Energy Solutions is building the “first of its kind” 42-mile conveyor belt for sand delivery – an effort that will not only provide cost efficiencies but also reduce truck traffic and related fatalities. Appalachian Basin – Industry’s Largest Natural Gas Play Our most recent study is the Appalachian Basin Perspectives, a play that accounts for ~30% of U.S. natural gas production yet is currently hampered by pipeline takeaway capacity and lower natural gas prices. These factors caused an abrupt pause in A&D in 1H 2023 to just $125 million after a stellar $8.6 billion in deals in 2022 – the highest level of deal dollars since the record $10.4 billion in 2014. Despite the current short-term challenges, this basin’s long-term future is bright given the increasing importance of U.S. natural gas on a global scale. According to some industry sources, surges in U.S. Gulf Coast LNG takeaway capacity plus exports to Mexico may drive a projected 4.8 Bcf/d shortfall in supply by year-end 2025 and leave U.S. consumers in competition with offshore LNG buyers. Also supporting strong underlying demand outlook and despite headlines of natural gas storage being above the five-year average, the days of supply of natural gas storage is actually below trend driven by record demand for natural gas for electricity generation. On the E&P side, the top three operators (EQT, Chesapeake and Southwestern Energy) account for 37% of the basin’s output. EOG Resources is also active, having leased nearly 400,000 incremental acres in late 2022 as it focuses on expanding the Utica Combo play in Ohio westward. Regarding takeaway, the Mountain Valley Pipeline got the green light to complete construction of the 42-inch, 2 Bcf/d pipeline which is expected year-end 2023. Williams is also progressing on its Southeast Supply projects to increase capacity for natural gas flows from Appalachia to the Texas/Louisiana Gulf Coast. Brian Lidsky, Director of Research at Energy Advisors, notes that additional reports are in the works including Oklahoma’s SCOOP and STACK play to be released in September along with a report on the Haynesville. “These reports are helpful for buyers, sellers and capital providers as they make decisions on portfolio rationalization” says Lidsky. The EAG team understands oil and gas dealmaking having been in the space for over 30 years under the PLS Inc. brand. Lidsky adds, ”Lessons learned, and insights gained studying E&P operations, M&A and capital markets have led us to identify improved methods to originate, manage and close transactions on behalf of industry clients.” To receive the EAG Oil & Gas Basin Perspective Series reports email Richard Martin at email@example.com. About Energy Advisors Group EAG is a leading provider of global oil and gas marketing and advisory services. The firm and its partners have worked on over 1,000 assignments and advised on over $100 billion in transactions for over 400 clients. More information can be found at: www.energyadvisors.com. Contacts: Brian Lidsky Director of Research firstname.lastname@example.org (713) 600-0138 Cole Reynolds Director, Geosciences & Market Research email@example.com (281) 809-6186
TEXEGY Announces Gulf Coast Operating Divesture to Fortify Energy Using Energy Advisors Group
HOUSTON, May 5, 2022 /PRNewswire/— TEXEGY LLC ("TEXEGY"), a Texas-based oil and gas venture, and Chato Energy LLC ("Chato"), an affiliate of Fortify Energy ("Fortify"), today announced the closing of a transaction whereby TEXEGY has sold to Chato all of its leasehold in the South Bearhead Creek ("SBC"), Raccoon Bend and AWP fields, as well as a non-operating interest in the South Burr Ferry field for an undisclosed amount. Following the transaction, TEXEGY has retained an 18-month exclusive farmout over SBC. The transaction is in line with its strategy to focus on its the upside potential of the undeveloped proven reserves in SBC. TEXEGY Royalty LLC ("TEXEGY Royalty") holds full mineral ownership over approximately 80,000 acres, 50,000 of which are contiguous unleased acres in the Austin Chalk. "We view Chato as a great fit for our divested assets and look forward to partnering with them on the SBC farm-out. Through this transaction, we can sharpen our focus on exploiting our substantial mineral position in Austin Chalk of over 50,000 unleased contiguous acres, utilizing technical studies including fully processed 3D seismic that was shot recently over the entire footprint. Such a unique and a serious position in the Austin Chalk deserves our full attention," said Sherif Wadood, Co-Founder of TEXEGY group. The TEXEGY assets add meaningful production and cash flow to Fortify's existing portfolio of conventional, low decline assets, while also providing exposure to high quality, low risk recompletion opportunities and additional upside via the South Bearhead Creek farmout agreement." The acquisition of the TEXEGY assets fits well into Fortify's strategy of acquiring low risk producing properties, and their proximity to our existing operations along the Gulf Coast provide the opportunity for further operational efficiencies. Fortify is creating value via accretive acquisitions, current production optimization and exposure to high-quality, low-risk recompletion opportunities. We look forward to continuing this growth strategy with the acquisition of the TEXEGY assets," said Tony Schnur, CEO of Fortify Energy. AdvisorsEnergy Advisors Group served as exclusive financial advisor to TEXEGY. Energy Advisors Group (EAG) has been a trusted advisor to clients in both the upstream and midstream energy industry for more than 30 years. The firm assists clients with portfolio rationalization and optimization, and offers advice on commercial alternatives and transaction strategy. EAG’s proprietary CRM tools offer extensive market intelligence on past transaction activity, current M&A appetite, and forward plans. Comprised of engineering, geoscience, finance and marketing professionals, EAG does the heavy lifting for clients by efficiently organizing data, carrying out in-depth technical analysis, preparing tailored marketing materials, and leveraging complementary marketing channels to promote a successful sale process. EAG provides sellside, buyside, prospect marketing, and select capital markets services. EAG typically closes 30 to 35 deals per year and has successfully completed over 1,000 transactions since 1989. About TEXEGYTEXEGY was formed in late 2014 and has made a series of acquisitions of leaseholds across Texas and Louisiana. TEXEGY Royalty LLC owns full mineral rights of over 80,000 acres in the Austin Chalk. Additional information about TEXEGY can be found on the website at www.texegy.com. About Chato EnergyChato Energy was formed in 2020 as an affiliated entity of Arena Investors managed by Fortify Energy. Fortify is a private oil & gas merchant company acquiring and managing assets across Texas, Louisiana, Utah and Colorado with a focus on low risk producing properties. Arena Investors, LP is an institutional asset manager founded in partnership with The Westaim Corporation (TSXV: WED). With $3.4 billion of committed assets under management as of March 1, 2022, and a team of over 100 employees in offices globally, Arena provides creative solutions for those seeking capital in special situations.
Rene McKale promoted to Managing Director at Energy Advisors Group
HOUSTON, February 7, 2022: Energy Advisors Group (EAG), a leading energy advisory firm ispleased to announce the promotion of Rene McKale to Managing Director. Rene McKaleoriginally joined EAG in June 2021 as a Director in the Houston office. Mr. McKale is responsible for sourcing and leading the execution of assignments for the firm,utilizing his extensive investment banking experience and strong petroleum engineeringbackground. He has more than 20 years of energy industry experience, and more than 15 yearsof transaction advisory experience in energy investment banking. His successful transactionexperience includes advising on asset and corporate deals, buyside and sellside, conventionaland unconventional, on-and-offshore, domestically and internationally. He developed extensiveUS experience advising on assets onshore in the Eagle Ford, Permian, Mid-Continent, Rockies,Appalachia, and Alaska as well as offshore GOM, supplemented by a broad international body ofwork across Latin America (primarily Argentina, Brazil, and Colombia), West Africa, and SE Asia. Prior to joining EAG, Mr. McKale was with Scotiabank/Scotia Waterous for over 15 years, and leftthe firm as a Director in their energy investment banking team out of Houston, specializing inupstream and midstream oil and gas M&A&D. While there, he closed 50+ transactions worthover $40B in aggregate value. Prior to that, Mr. McKale obtained worldwide oil and gas industryexperience in reservoir engineering, most recently working for Dubai Petroleum Company (thena subsidiary of ConocoPhillips) in the United Arab Emirates. He has also been employed withpetroleum engineering consulting firm Gaffney, Cline & Associates (GCA) in Houston, Texas, andbefore that was with a mid-size independent in Calgary, Canada. “Having worked with Rene at Scotiabank/Scotia-Waterous for more than a decade, I know firsthandthat Rene has the right skills and experience that will be a perfect complement to our growingenergy coverage franchise,” said Adrian Goodisman, Partner at EAG. “Rene’s years of investmentbanking experience and technical expertise will be incredibly beneficial as our upstream oil andgas clients seek advice on how best to optimize their portfolios.” Mr. McKale holds a degree in Petroleum Engineering from the University of Alberta, Canada, andhe completed studies in Renewable Energy Technologies in 2021. He is a member of theAssociation of Professional Engineers and Geoscientists of Alberta (APEGA), and the Society ofPetroleum Engineers (SPE), volunteering for the latter’s Gulf Coast Section BusinessDevelopment Study Group. About Energy Advisors GroupEAG has been a trusted advisor to clients in both the upstream and midstream energy industryfor more than 30 years. The firm assists clients with portfolio rationalization and optimization, andoffers advice on commercial alternatives and transaction strategy. EAG’s proprietary CRM toolsoffer extensive market intelligence on past transaction activity, current M&A appetite, and forwardplans. Comprised of engineering, geoscience, finance and marketing professionals, EAG doesthe heavy lifting for clients by efficiently organizing data, carrying out in-depth technical analysis,preparing tailored marketing materials, and leveraging complementary marketing channels topromote a successful sale process. EAG provides sellside, buyside, prospect marketing, andselect capital markets services. EAG typically closes 30 to 35 deals per year and has successfullycompleted over 1,000 transactions since 1989. For further information, please visit: www.energyadvisorsgroup.com
Adrian Goodisman joins Energy Advisors Group as a Partner in the firm
HOUSTON, January 25, 2022: Energy Advisors Group (EAG), a leading energy advisory firm is pleased to announce the appointment of Adrian Goodisman as a Partner in the firm. Adrian originally joined the firm in March 2021 as an Advisory Board Director and has been a key contributor to the firm in several areas, including assisting the firm in expanding its international and cross border business, while also taking on larger domestic mandates. Goodisman joins EAG with over 30 years of investment banking and technical experience in the Oil & Gas Exploration & Production (E&P) sector. He previously worked for Moelis & Co, a leading global independent investment bank where he provided financial and strategic advice to upstream oil and gas companies. Prior to Moelis & Co. he was a Managing Director at Scotiabank where he served in a variety of positions including Co-Head U.S. of Scotia Waterous – the firm’s oil and gas investment banking division. Prior to Scotiabank, Mr. Goodisman was a Managing Director and President at Waterous & Co USA, the predecessor to Scotia Waterous, where he was responsible for building out the firm’s US practice. Before Waterous & Co, he was a Senior Vice President at Ziff Energy Group. Mr. Goodisman also gained extensive technical experience earlier in his career serving in a variety of roles and locations at Phillips Petroleum (now ConocoPhillips). “Adrian’s experience building and developing businesses, as well as his deep client relationships particularly in the E&P space, will be a perfect complement to our growing energy coverage franchise,” said Ronyld Wise, Founder of EAG. “Given the improvement in oil and gas prices, we expect to see an increase in M&A activity. In particular, we expect significant acquisition and divestiture activity at the asset level, as companies look to re-balance their portfolio. Adrian’s years of investment banking experience and technical expertise will be incredibly beneficial as our upstream oil and gas clients seek advice on how to adapt to this dynamic.” Goodisman presently serves on the Advisory Board of the Bilateral Chamber (founded as the Bilateral U.S. – Arab Chamber of Commerce), as well as the Advisory Board of Globalturk Capital. Additionally, he is a Partner at Bancroft Guyana Investment Group. Goodisman holds an MS degree in Petroleum Engineering from the University of Texas, and previously served as a Society of Petroleum Engineers (SPE) distinguished lecturer. He is also a registered representative of FINRA, holding Series 24, 7 and 63 licenses. About Energy Advisors Group EAG has been a trusted advisor to clients in both the upstream and midstream energy industry for more than 30 years. The firm assists clients with portfolio rationalization and optimization, and offers advice on commercial alternatives and transaction strategy. EAG’s proprietary CRM tools offer extensive market intelligence on past transaction activity, current M&A appetite, and forward plans. Comprised of engineering, geoscience, finance and marketing professionals, EAG does the heavy lifting for clients by efficiently organizing data, carrying out in-depth technical analysis, preparing tailored marketing materials, and leveraging complementary marketing channels to promote a successful sale process. EAG provides sellside, buyside, prospect marketing, and select capital markets services. EAG typically closes 30 to 35 deals per year and has successfully completed over 1,000 transactions since 1989. For further information, please visit: www.energyadvisorsgroup.com