bill barrett & fifth harmony merger summary...fifth creek 81,000 113 2.9 1,179 combined entity...

Crude Oil Production Report

December 6, 2017

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Key Crude Oil Production Commentary CONTACT US

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Managing Director

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James Bevan

Editor

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Contango Oil & Gas reported that they were able to accelerate frac operations on a planned well targeting

the Wolfcamp Shale as a completion crew became available sooner than expected. The Crusader #1H Well

is now expected to reach production shortly from its 10,184-ft lateral. Additionally, Contango added 2

Mbbl/d in crude oil collars to its 2018 hedging position at prices between $52.00 and $58.76/bbl. Contango

now has 63% of 2018 forecasted PDP production hedged.

Bill Barrett has made several significant announcements over the last few weeks. In November, they

entered into a deal to divest their Uinta Basin assets for $110 million, which includes 2.3 Mboe/d in

production and 12 Mmboe in proven reserves. Yesterday, Bill Barrett announced that they have entered

into a deal to combine with Fifth Creek Energy Company, LLC in a deal valued at $649 million. Fifth Creek is a

portfolio company of NGP, and they will receive 100 million shares of the new company while Bill Barrett

will exchange their stock on a 1-for-1 basis. The deal is scheduled to close in the second quarter of 2018.

The combined company will hold 151,000-acres and have a drilling inventory of 2,865-wells.

As crude oil producers in the Permian Basin continue to grow their volumes, midstream companies have

announced several new projects to bring supply out of the Basin and into demand centers on the Gulf Coast.

Magellan Midstream is proposing a 350 Mbbl/d, 645-mile pipeline to carry crude oil from Crane to Three

Rivers, then from Three Rivers to Corpus Christi and from Corpus to Houston. If approved, that pipeline

would be online at year-end 2019. Magellan’s new system would be expandable to 600 Mbbl/d if needed.

Meanwhile, Enterprise announced plans to convert one of three current NGL pipelines which carry volumes

from the Permian to the Gulf Coast into a crude oil pipeline in the first half of 2020.

To bring product from the wellhead to the transport pipelines, Wolf Midstream and Western Gas Partners

are both adding on to their respective gathering assets in the Permian Basin. Wolf is developing a 55 Mbbl/

d, 50-mile crude gathering system to serve an independent producer in the Permian. They will deliver these

volumes to a terminal in Colorado City, Texas and then on to downstream pipelines. Meanwhile, Western

Gas announced plans to add 300-miles of pipeline to their Delaware Basin footprint throughout 2018.

Additionally, Western Gas will add 120 Mbbl/d in crude oil treating capacity by year-end 2018.

(Continued on page 2)

Source: Criterion Research & Bill Barrett

DJ Basin

Acreage

YE16 Proved Reserves

(Mmboe)

3Q17 Production

(Mboe)

Undeveloped

Locations

Bill Barrett 70,100 55 20.9 1,686

Fifth Creek 81,000 113 2.9 1,179

Combined Entity 151,100 168 23.8 2,865.0

Increase (%) 116% 205% 14% 70%

Bill Barrett & Fifth Harmony Merger Summary

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December 6, 2017


Crude Oil Production Commentary—United States

Gulfport issued an update on its recent well completions in the SCOOP Springer and SCOOP Woodford formations. The

Company completed its first Springer well, the Lauper 4-26H, and it has produced at a 24-hr peak rate of 780.2 boe/d (79%

oil, 11% NGL and 10% natural gas).

Lilis Energy reported that their recently completed Prizehog BWX State Com #1H well reached a 24-hour production rate of

1,127 boe/d (89% liquids, 71% oil.) The well targeted the Wolfcamp B in the Delaware Basin via 24-frac stages and 200-ft

spacing which was fractured with 2,040-lbs of sand per foot. Two additional wells will be drilling in the first quarter of 2018

targeting the New Mexico acreage, one of which will focus on the Wolfcamp A.

Black Stone Minerals has entered into a deal to acquire mineral and royalty interests for $340 million from Noble Energy. The

deal is being funded via a private placement of Series B Cumulative Convertible Preferred Units to The Carlyle Group. The

assets include 140,000 net mineral acres, 380,000 acres of non-participating royalty interests and 600,000 acres of overriding

royalty interests spread over 20 states. Notably, 8,300 net acres are in the Midland Basin, and 7,200 are located in the

Delaware Basin. Estimated daily production was 2.6 Mboe/d in November, and the deal should close around November 28,

2017.

Crude Oil Production Commentary—Canada

ExxonMobil reported that they had begun production at Hebron Field ahead of schedule after starting the development

process eight years ago. The field will run at 150 Mbbl/d once it hits peak production. The asset is 35.5% owned and operated

by Exxon while Chevron Canada holds a 29.6% stake, Suncor a 21% stake, Statoil a 9% share and Nalcor a 4.9% share.

Husky Energy reported an initial 2018 capital spending guidance that will total between $2.9 and $3.1 billion, rising from

2017 spending which will be between $2.2 and $2.3 billion. Husky intends to dedicate a significant portion of their 2018

upstream budget to developing the Lloyd Thermal portfolio, which will add 60 Mbbl/d in new production between 2019 and

2021. Additionally, capital is being deployed to the 75 Mbbl/d West White Rose Project in the Atlantic to bring it online by

2022. For 2018, Husky intends to produce moderately higher volumes of crude oil, with initial estimates of 235 Mbbl/d.


December 6, 2017


Company Country 12/31/2016 3/31/2017 6/30/2017 9/30/2017 12/31/2017 Change %

Apache Corporation Canada 12.3 11.7 11.6 0.0 0.0 -7.3 -125%

Baytex Energy Corp. Canada 24.3 25.9 26.1 23.8 20.2 -1.0 -4%

Bel latrix Exploration Ltd. Canada 9.0 8.6 9.2 8.6 8.7 -1.1 -13%

Birchcl i ff Energy Ltd. Canada 4.7 5.3 7.1 6.6 6.6 2.7 42%

Bonterra Energy Corp Canada 7.5 7.5 8.3 8.0 8.5 0.1 2%

Canadian Natura l Resources LtdCanada 539.4 552.5 523.6 738.0 763.9 170.3 26%

Cardinal Energy Ltd Canada 12.6 13.0 13.8 13.9 14.8 1.1 8%

Cenovus Energy Inc. Canada 219.6 234.9 333.7 369.0 341.7 114.0 36%

ConocoPhi l l ips Company Canada 218.0 229.0 99.0 67.8 70.0 -73.6 -63%

Crescent Point Energy Canada 130.4 139.3 140.9 186.0 163.8 24.3 15%

Devon Energy Corporation Canada 139.0 138.0 122.0 122.0 148.0 1.6 1%

Encana Corporation Canada 0.4 0.4 0.4 0.6 0.8 -1.4 -260%

Husky Energy Inc Canada 185.9 230.7 221.0 225.5 224.8 42.6 19%

Imperia l Oi l Ltd. Canada 377.0 357.0 370.5 384.0 385.0 11.6 3%

MEG Energy Corp Canada 81.8 77.2 72.4 85.0 89.3 -0.2 0%

Murphy Oi l Corporation Canada 13.2 12.4 11.3 4.0 4.0 -9.1 -114%

Perpetual Energy Inc Canada 1.1 0.9 1.0 1.1 1.3 0.0 -1%

Peyto Exploration Canada 8.9 9.6 8.3 8.1 9.0 1.3 15%

Raging River Exploration Inc Canada 18.8 20.9 20.0 21.2 22.6 5.2 25%

Suncor Energy Inc. Canada 680.9 651.5 469.3 626.5 758.7 69.4 11%

Tamarack Val ley Energy Ltd. Canada 4.8 7.9 9.5 9.9 10.8 5.4 56%

Seven Generations Energy Ltd Canada 43.2 46.8 54.2 56.1 67.2 16.9 30%

Chinook Energy Inc Canada 0.5 0.0 0.0 0.4 0.5 -0.5 -215%

Crew Energy Inc Canada 2.7 2.4 2.3 3.1 4.4 0.3 8%

Kelt Exploration Ltd Canada 4.7 5.8 5.9 8.4 9.5 2.3 31%

Athabasca Oi l Corp Canada 9.8 25.1 33.2 31.8 37.8 24.3 76%

Royal Dutch Shel l PLC Canada 113.5 124.5 62.5 66.3 70.9 -33.4 -41%

Anadarko Petroleum CorporationU.S. 240.0 269.0 243.0 268.0 288.0 34.0 13%

Antero Resources Corporation U.S. 5.4 7.1 6.7 6.5 5.6 1.4 21%

Apache Corporation U.S. 94.6 90.7 86.1 92.6 103.0 -10.8 -12%

Approach Resources , Inc. U.S. 3.3 3.1 3.1 3.0 3.2 -0.4 -13%

Baytex Energy Corp. U.S. 18.9 20.7 21.9 19.9 17.3 0.0 0%

Cabot Oi l & Gas Corporation U.S. 8.9 10.2 11.1 13.4 16.8 1.9 15%

Cal i fornia Resources CorporationU.S. 90.0 86.0 83.0 83.3 89.7 -9.5 -11%

Cal lon Petroleum Company U.S. 14.0 15.9 17.5 17.3 19.4 5.9 33%

Chesapeake Energy Corporation U.S. 87.0 88.9 87.9 86.0 100.0 0.5 1%

Cimarex Energy Co. U.S. 45.6 52.2 57.9 59.7 60.0 12.3 21%

Concho Resources , Inc. U.S. 100.2 113.6 113.2 116.4 123.7 24.3 21%

ConocoPhi l l ips Company U.S. 346.0 351.0 348.0 345.7 338.1 -11.8 -3%

Continenta l Resources , Inc. U.S. 116.5 119.2 125.4 139.7 157.8 7.4 5%

2016-2017Crude Oil Production History & Forecast by Company (Mbbl/d)


December 6, 2017




Denbury Resources Inc. U.S. 58.4 58.3 57.9 59.3 61.9 -2.1 -4%

Devon Energy Corporation U.S. 105.0 123.0 116.0 119.5 125.5 1.7 1%

Earthstone Energy, Inc. U.S. 2.5 4.9 5.0 5.2 5.6 2.9 56%

Ecl ipse Resources Corporation U.S. 4.7 5.0 3.8 3.5 4.5 0.5 13%

Encana Corporation U.S. 66.0 67.0 77.0 119.4 148.8 31.3 30%

Energen Corp. U.S. 32.0 33.3 45.1 47.9 53.4 8.8 20%

EOG Resources , Inc. U.S. 306.3 312.5 333.1 340.0 354.4 56.7 17%

EP Energy Corporation U.S. 45.7 46.9 48.9 48.0 48.2 0.7 1%

EQT Corporation U.S. 1.9 2.5 3.2 3.8 4.3 1.5 42%

EXCO Resources Inc. U.S. 4.1 3.7 3.3 2.0 2.2 -2.0 -73%

Freeport-McMoRan Inc. U.S. 0.0 12.4 12.5 12.4 12.5 12.5 100%

Hess Corporation U.S. 115.0 122.0 115.0 110.0 120.0 -5.5 -5%

Marathon Oi l Corporation U.S. 126.0 118.0 125.0 132.3 151.1 -0.9 -1%

Mid-Con Energy Partners , LP U.S. 3.6 3.4 3.4 3.5 3.7 -0.3 -9%

Murphy Oi l Corporation U.S. 44.2 46.0 44.5 51.5 46.1 -1.2 -3%

Newfield Exploration Co. U.S. 53.0 55.0 56.0 63.3 65.1 3.1 5%

Noble Energy, Inc. U.S. 102.0 99.0 110.0 107.5 126.5 11.0 10%

Oas is Petroleum Inc. U.S. 42.7 49.3 47.5 50.7 56.2 9.4 19%

Occidenta l Petroleum CorporationU.S. 184.0 192.0 195.0 196.3 196.7 7.0 4%

Pars ley Energy, Inc. U.S. 30.6 37.7 43.0 51.7 58.2 22.1 46%

Pioneer Natura l Resources Co. U.S. 142.8 145.6 146.9 162.0 171.9 23.0 15%

QEP Resources , Inc. U.S. 53.1 52.0 53.5 54.1 56.8 -1.3 -2%

Range Resources Corporation U.S. 12.0 11.8 11.6 14.0 15.3 3.3 25%

Rice Energy Inc. U.S. 1.9 2.5 2.3 2.5 2.7 1.7 66%

Ring Energy, Inc. U.S. 2.2 2.7 3.4 3.4 3.7 1.2 38%

RSP Permian, Inc. U.S. 25.4 33.7 38.8 39.6 46.4 18.3 46%

Sanchez Energy Corporation U.S. 16.7 17.4 22.8 22.1 29.0 5.4 24%

Southwestern Energy Co. U.S. 5.0 5.8 6.2 8.2 8.5 1.2 17%

Ultra Petroleum Corp. U.S. 7.7 8.8 7.4 9.6 12.7 1.7 17%

Whiting Petroleum Corp. U.S. 82.1 81.1 75.9 81.3 89.2 -11.0 -13%

WPX Energy, Inc. U.S. 44.7 46.1 58.6 62.5 66.8 17.0 29%

Bi l l Barrett Corp. U.S. 10.4 9.2 9.9 11.5 12.2 0.1 1%

Diamondback Energy, Inc. U.S. 38.1 46.2 57.5 61.7 63.6 25.7 45%

Matador Resources Company U.S. 15.7 18.3 19.4 19.7 21.4 5.8 29%

SandRidge Energy, Inc. U.S. 13.2 12.6 11.5 11.5 10.5 -3.5 -30%

SM Energy Company U.S. 43.9 39.2 32.0 34.6 36.7 -9.7 -27%

W&T Offshore Inc. U.S. 18.5 20.1 21.1 18.8 21.4 0.6 3%

CONSOL Energy Inc. U.S. 0.2 0.2 0.4 0.2 0.2 0.0 15%

Black Stone Minera ls , L.P. U.S. 9.0 9.6 9.1 9.4 9.5 -0.7 -7%

Resolute Energy Corporation U.S. 13.5 13.5 15.4 17.5 23.6 7.1 40%


December 6, 2017




EV Energy Partners LP U.S. 3.0 3.7 4.1 3.8 3.7 0.5 13%

Gulfport Energy Corp. U.S. 4.9 5.7 7.1 7.5 8.5 1.4 19%

National Fuel Gas Company U.S. 7.8 7.5 7.4 7.5 7.7 -0.4 -5%

Northern Oi l and Gas , Inc. U.S. 11.6 11.3 11.6 11.6 11.8 -0.3 -2%

PDC Energy, Inc. U.S. 27.0 27.9 35.6 35.2 42.1 11.3 32%

Contango Oi l & Gas Company U.S. 1.3 1.3 1.6 1.7 1.7 0.0 -2%

PetroQuest Energy Inc. U.S. 1.4 1.5 1.6 1.6 1.8 0.2 15%

Ampl i fy Energy Corporation U.S. 10.4 10.7 10.9 11.0 11.5 0.4 4%

Linn Energy, Inc U.S. 24.6 25.0 21.6 17.0 15.0 -28.0 -142%

SRC Energy Inc. U.S. 6.9 11.4 21.2 27.4 29.7 16.5 73%

Total 6,017.0 6,240.4 6,013.5 6,623.8 7,045.9 665.5 10%

Source: Criterion Research, Investor Presentations


December 6, 2017


ADDITIONAL INFORMATION AVAILABLE UPON REQUEST

_______________________________________________________________________________

This report is for informational purposes only and is not intended as an offer or solicitation with re-

spect to the purchase or sale of any commodity, futures contract, equity, bond or option contract on

any other financial asset. Criterion Research does not provide investment, financial, tax, or other

advice, nor does it operate as a broker-dealer. Criterion Research does not recommend the pur-

chase or sale of any particular security or securities. Although any statements of fact in this report

have been obtained from and are based upon sources that Criterion Research believes to be relia-

ble, we do not guarantee their accuracy, and any such information may be incomplete or con-

densed. Criterion Research, its officers and/or employees, may at any time have a long and/or short

position in any commodity, futures contract, equity, bond or option contract on any other financial

asset mentioned in this report. All opinions and estimates included in this report constitute Criterion

Research judgment as of the date of this report and are subject to change without notice.

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bill barrett & fifth harmony merger summary...fifth creek 81,000 113 2.9 1,179 combined entity...

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