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EnerVest Sells Eagle Ford / Austin Chalk Assets to TPG For $2.6 Billion

Announced Date
March 20,2018
Deal Value $
2,660,000,000
Net Acres
360,000
Location Count
1,435
Transaction Type
Property
Buyer
Seller
Price Per BOE $
40,000
Source Documents:
   Source Link
Location
Region
Gulf Coast - South Texas

Country
United States

State
Texas

County
Karnes ,Fayette ,Washington ,Lee ,Brazos ,Grimes ,Burleson

Play


Production
Production
40,000 Boe/d

Production Mix
62 % Oil


Multiples
Production ($/boe/d)
66,500

$Price/Net Acre
7,389

$Price/Adj. Net Acre
2,944

$/Location
738,676

Adj. $/acre is based on production @40,000 Boe/d

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

 

 

 

 

 

 



Other Gulf Coast - South Texas Region's Deals



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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

Price History



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 - -

Other Enervest Ltd. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
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