EnerVest Sells Eagle Ford / Austin Chalk Assets to TPG For $2.6 Billion
Multiples
Transaction Details:
TPG Pace Energy Holdings has inked a deal to aquire EnerVest's Eagle Ford and Austin Chalk assets for $2.66 billion in cash and stock.
Asset Details
- Acreage : 360000 net Acres
- Location : 1435 (435 in Karnes, 1000 in Giddings)
- Production : 4,000 boe/d (62% oil)
- Price : $2,660M
TPG is a blank check company that was formed by ex-Oxy CEO Steve Chazen and private equity firm TPG Capital.
As part of the transaction, TPGE and EnerVest are partnering to create a pure-play Eagle Ford company, Magnolia Oil & Gas Corporation. The new company will be led by Steve Chazen, who will serve as Magnolia’s full-time Chairman, President and CEO. EnerVest will retain a significant ownership stake in Magnolia.
EnerVest initially acquired the position back in 2016, via two deals totaling ~$1.2 billion:
The Giddings Field asset also hosts EnerVest's JV with Apache, which was signed back in 2007.
Magnolia Company Highlights:
- Approximately 40,000 boe per day of current net production with 31,000 boe per day in Karnes County and 9,000 boe per day in Giddings Field - Total production base is 62% oil and 78% liquids (value of ~$1.2 billion based on $30,000 per flowing BOE average)
- 360,000 net acres, including 14,000 net acres in the core of Karnes County (land value of ~$1.46 billion or $4,055 per acre)
- Industry leading all-in-cost and full cycle economics in Karnes County with break-evens in the low $30’s per barrel
- Estimated new well paybacks of less than one year in both Karnes County and Giddings Field
- Strong financial profile with low leverage, strong liquidity and substantial cash flow generation after capital requirements of the planned rig program
- Estimated 2018 EBITDA of $513 million and approximately $240 million of estimated 2018 free cash flow after capital investment
- Industry leading 10% free cash flow yield. Very low leverage (0.6x 2018 estimated EBITDA) and more than $500 million of initial liquidity
Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
---|---|---|---|---|---|
Nov-03-2022 | - | - | Click here | Texas | E&P |
Jul-09-2021 | - | - | Click here | Texas | E&P |
Nov-03-2020 | - | - | Click here | Texas | E&P |
Aug-18-2020 | - | - | Click here | Texas | E&P |
Jul-20-2020 | - | - | Click here | Colorado | E&P |
Date | Deal Headline | Price | $/acre |
---|---|---|---|
Aug-14-2023 | Silverbow Increase Eagleford Footprint , Chesapeake Exits | - | - |
May-03-2023 | Crescent Energy Acquires Eagle ford Assets For $600 Million | - | - |
Feb-28-2023 | Baytex Acquires Pure Play Eagle Ford Operaor Ranger Oil | - | - |
Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
---|---|---|---|---|---|
May-17-2016 | - | - | Click here | Texas | E&P |
May-17-2016 | - | - | Click here | Texas | E&P |
Nov-05-2015 | - | - | Click here | Virginia | E&P |
Sep-22-2015 | - | - | Click here | Oklahoma | E&P |
Sep-22-2015 | - | - | Click here | Texas | E&P |