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Apollo-backed Northwood Energy Acquires SM Energy Powder River Property For $500 Million

Announced Date
January 10,2018
Deal Value $
500,000,000
Net Acres
112,000
Transaction Type
Property
Buyer
Seller
Source Documents:
   Source Link
   Source Link
Location
Region
Rockies - Powder River Basin

Country
United States

State
Wyoming

County
Converse ,Johnson ,Campbell

Play


Production & Reserves
Production
2,200 Boe/d

Production Mix
50 % Oil

Reserves
4.2 MMboe (1P)


Multiples
Production ($/boe/d)
227,273

$Price/Net Acre
4,464

$Price/Adj. Net Acre
3,777

$1P Boe
119

Adj. $/acre is based on production @35,000 Boe/d

Transaction Details: 

SM Energy is selling its 112,000 net acres powder river asset for $500 million to Apollo-backed Northwood Energy LLC.

This deal closed on March 27, 2018.

Northwoods is led by Chief Executive Officer Tom Tyree, who has extensive experience in the acquisition and development of upstream oil and gas properties in the Rocky Mountains, Marcellus Shale, and Barnett Shale. Mr. Tyree was Co-Founder, President, and CFO of Vantage Energy from 2006 to 2016.

He is currently on the board of directors of Bonanza Creek Energy and served as CFO of Bill Barrett Corporation prior to Vantage Energy. The Apollo funds, including Apollo Investment Fund VIII and Apollo Natural Resources Partners II, have committed to invest up to an aggregate of $850 million in Northwoods.

Mr. Tyree said, “Northwoods is excited to be working with Apollo to build a leading Powder River Basin-focused independent E&P business. We believe the basin has some of the best geology of any play in the Lower 48 and that Northwoods has a tremendous opportunity to develop this highly contiguous, core acreage position.”

SM Energy reported some good wells with IP 30 of 1,657 - 2,337 Boe/d (80% oil) from the Frontier formation in december of last year though JV program.

EOG has also reported some 30-day ip rates of 1000 bopd.

Transaction Details

  • Land : 112,000 Net Acres
  • Production : 2,200 boe/d (50% oil)
  • Reserves   : 4.2 MMBOE (1P)
  • Formations : Shannon, Frontier, Niobrara

 

SM Energy (Yellow)

 

 

 

Rockies - Powder River Basin Deal Activity In Last 12 Months



Other Rockies - Powder River Basin Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Feb-07-2019 - - Click here Texas  E&P
Oct-26-2018 - - Click here Wyoming  E&P
Oct-17-2018 - - Click here Wyoming  E&P
Aug-27-2018 - - Click here Wyoming  E&P
Jul-10-2018 - - Click here Wyoming  E&P

Price History



Date Deal Headline Price$/acre
Feb-07-2019 Kimbell Picks Up Multi-Play Assets from EnCap in $151MM Deal - -
Oct-26-2018 Vermilion Acquires Powder River Property for $186 Million - -
Aug-27-2018 Rebellion Energy Acquires Powder River Basin Assets for $100MM - -

Other SM Energy Company Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Apr-04-2018 - - Click here Texas  E&P
Nov-04-2017 - - Click here Texas  E&P
Jan-03-2017 - - Click here Texas  E&P
Oct-18-2016 - - Click here North Dakota  E&P
Oct-18-2016 - - Click here Texas  E&P