There has been no 11-figure M&A in the upstream space since Devon Energy and Coterra Energy announced their $21.4 billion merger in early February, just a few weeks before the U.S. and Israel initiated their coordinated attack on Iran and the Iranian government responded by closing the Strait of Hormuz. Other somewhat smaller — but still noteworthy — acquisitions have continued to happen, however, with their counterparties willing to move forward despite the uncertainties the Iran war and Hormuz closure have brought to global markets. In today’s RBN blog, we’ll look at a few of the largest upstream transactions happening “under the radar” in recent months.
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In the half-year since we examined the Devon Energy/Coterra Energy deal, we’ve looked at upstream M&A through two lenses — first with a focus on efforts by E&Ps to divest assets that weren’t core to their strategies and then (in a two-part series) by zeroing in on producer M&A in the Anadarko, a region that had long been out of the spotlight. Today, we discuss a handful of significant deals that have been announced during the on-and-off war with Iran.
The standout transaction is Magnolia Oil & Gas’s cash-and-stock acquisition of WildFire Energy, which was announced on July 20 and is expected to close by mid-September. Valued at about $4.1 billion, the transaction will bring together the two largest oil and gas producers in the northeastern reaches of the Eagle Ford and, more specifically, the Giddings Field, an area where horizontal drilling was pioneered in the 1980s and ’90s and which is now in a resurgence.
As shown in Figure 1 below, the E&Ps’ assets are highly concentrated and highly complementary — more so than just about any M&A we’ve seen lately. Most of the pro forma company’s roughly 1.25 million net acres (gold, teal and striped gold-and-teal areas) are located within eight South Texas counties: Brazos, Burleson, Fayette, Grimes, Lee, Madison, Robertson and Washington.
Magnolia Oil & Gas and WildFire Energy’s Acreage in the Northeastern Eagle Ford
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About the song
“Under the Radar” was written by Mick Jagger and Keith Richards. It was recorded in June 2005 at Ocean Way Recording Studios in Los Angeles during the sessions for the A Bigger Bang album, but did not make the final cut for the LP. It was released later in April 2010 for inclusion on the A Bigger Bang Special Edition CD & DVD. The song addresses contradictions, obsessions, and concerns about a manipulative relationship. The melody features a modal feel that is similar to some of the psychedelic vibes exhibited in the late-1960s Stones’ songs: “Child of the Moon” and “We Love You.” Personnel on the record were: Mick Jagger (lead vocals, rhythm guitar, bass), Keith Richards (rhythm guitar, backing vocals), Ron Wood (slide guitar), and Charlie Watts (drums).
A Bigger Bang was recorded in 2004-05 at Ocean Way Recording Studios and Village Recorder in Los Angeles, and Chateau de Fourchette in Poce-sur-Cisse, France. Produced by Don Was, The Glimmer Twins, and Matt Clifford, the LP was released in September 2005. It went to #3 on the Billboard 200 Albums chart and has been certified Platinum by the Recording Industry Association of America. Three singles were released from the LP.
The Rolling Stones are an English rock band formed in London in 1962 by vocalist Mick Jagger, guitarists Keith Richards and Brian Jones, bassist Bill Wyman and drummer Charlie Watts. They have been active for over six decades and have released 32 studio albums, 39 live albums, 25 compilation albums, three EPs, and 125 singles. They have sold more than 200 million records worldwide. The Stones have won five Grammy Awards and three MTV Video Music Awards and are members of the Rock and Roll Hall of Fame. Mick Jagger was knighted in December 2003. Brian Jones died in July 1969 at 27 and was replaced by Mick Taylor. Taylor left the band in December 1974 and was replaced by Ron Wood. Bill Wyman left the band in 1993 and was replaced by Darryl Jones. Charlie Watts died in August 2021 at 80 and was replaced by Steve Jordan. The band released their latest album, Foreign Tongues, in July. It is unknown if they plan to tour again.
"About the Song" -- written by Mickey McMahan , RBN Director of Musicology
