Oil & Gas Acquisitions in 2020

Diamondback Energy agreed to acquire QEP Resources in an all-stock merger valued at approximately $2.2 billion including net debt. The deal adds material Tier‑1 Midland Basin acreage to Diamondback's portfolio, is expected to be accretive on 2021 per‑share metrics, and will be financed via an exchange of Diamondback shares for QEP stockholders.

Petroleum Service Corporation (PSC), a portfolio company of Aurora Capital Partners, has signed an agreement to acquire certain assets of Fryoux Tankerman Service and will absorb Fryoux's shoreside tankerman operations along the U.S. Gulf Coast. The transaction expands PSC's Gulf Coast footprint and personnel capacity to better serve refineries, terminals and petrochemical customers; Jimmy Fryoux will join PSC's marine operations team as an advisor.

Stakeholder Midstream, LLC acquired gas gathering and processing assets from Santa Fe Midstream, LLC in Yoakum County, Texas, including the 30-30 Gas Treating and Processing Plant, gathering pipelines, residue and NGL lines, and a long-term acreage dedication. The deal increases combined gas processing capacity to ~85 MMcf/d, expands total gathering pipeline mileage to ~450 miles and acreage dedications to over 200,000 acres, complementing Stakeholder's existing Campo Viejo system and expanding its capabilities in the San Andres play.

Calgary-based geoLOGIC systems ltd. has acquired SubsurfaceIO (SSIO), a Houston-based provider of cloud-native, data-agnostic mapping and analytics solutions for the oil & gas sector. The acquisition brings SSIO's OSDU-compatible SaaS platform and U.S. subsurface data expertise into geoLOGIC's surface and subsurface data and analytics portfolio to accelerate product functionality and digital capabilities for upstream customers.

Canadian Overseas Petroleum Limited (COPL) agreed to acquire Atomic Oil & Gas LLC for US$54 million in a mix of assumed debt, cash and COPL shares, with an effective date of December 1, 2020 and expected completion by January 31, 2021. The acquisition adds operated onshore oil assets in the Powder River Basin (Wyoming) — including two oil production units, associated midstream assets and ~31.1mm BOE (2P) reserves — materially expanding COPL's production, reserves and U.S. footprint.

Lufkin Industries, a portfolio company of KPS Capital Partners, completed the acquisition of Schlumberger’s North American Land Rod Lift Business, including brands such as Don‑Nan, Shores Lift Solutions, KBA Engineering, Platinum Pumpjack Services and RLC Rod Lift Consulting. The deal expands Lufkin’s manufacturing, distribution and technology capabilities in rod lift and artificial‑lift solutions across major North American onshore oil producing regions, including the Permian Basin.

Riveria Investment Group has sold Empire Petroleum Partners, LLC to GPM Investments, with ARKO/Arko Holdings involved in the transaction. Empire Petroleum is a wholesale fuel distributor operating in 31 states and more than 80 convenience stores; Riveria described the deal as a successful exit.

Dallas-based private equity firm CIC Partners has made a growth capital investment in Tri-State Holdings LLC, a Joaquin, Texas-based provider of water transportation and disposal services to oil and gas producers in the Haynesville Shale. The capital will enable Tri-State to expand its disposal services and follow-on growth, and Tri-State concurrently acquired saltwater disposal assets from Key Energy Services as part of its service expansion.

ConocoPhillips agreed to acquire Concho Resources in an all-stock transaction valued at $9.7 billion, exchanging each Concho share for 1.46 shares of ConocoPhillips. The combination creates a larger independent oil and gas company with expanded Permian Basin scale, expected cost and capital synergies of $500 million annually and an enhanced low-cost resource base.

Pioneer Natural Resources will acquire all outstanding shares of Parsley Energy in an all-stock transaction valued at approximately $4.5 billion (approximately $7.6 billion including assumed debt). The deal, which offers Parsley shareholders 0.1252 shares of Pioneer per Parsley share, is expected to deliver about $325 million of annual synergies and expand Pioneer's scale and asset base in the Permian Basin; closing is subject to customary approvals.

EQT VI has signed a definitive agreement to exit Oz MidCo AS (Altus Intervention) to members of Altus Intervention's management team in a transaction supported by a bank consortium. Headquartered in Stavanger, Norway, Altus Intervention is a leading provider of well intervention services and down-hole technology with ~1,100 employees and operations across ten countries; the transaction is expected to close in Q3 2020 and financial terms were not disclosed.

Argonaut Private Equity acquired the cementing solutions business from BJ Services amid BJ Services' Chapter 11 bankruptcy and has rebranded the operation as American Cementing. The deal preserves approximately 260 jobs, transfers assets including bulk plants and technical labs, and establishes an unlevered PE-backed platform focused on cementing and related well completion services across major U.S. basins.

Cycle Energy Industries Inc. has acquired 100% of Energy Express Canada Corp., a junior oil and gas producer operating in central Alberta. Cycle said the asset currently produces roughly 100–150 barrels of oil per day and expects to increase production materially (2–3x) by applying its recovery and optimization technologies.

Superior Plus Corp.'s wholly-owned U.S. subsidiary agreed to acquire the assets of Rymes Propane and Oil for approximately US$159 million, expanding Superior's U.S. propane distribution footprint in New Hampshire and New England. Rymes is a family-owned retail propane and heating oil distributor with about 46 operating locations, ~370 employees and ~88,000 residential and commercial customers.

Presidio Investment Holdings LLC (Presidio Petroleum), a portfolio company majority-owned by Morgan Stanley Energy Partners, completed the acquisition of substantially all oil and natural gas producing properties of Templar Energy LLC and certain affiliates in the Anadarko Basin. The transaction expands Presidio’s operations from the western Anadarko Basin into the STACK play of central Oklahoma and represents an add-on to the company’s existing portfolio following MSEP's investment.

Pelican Energy Partners announced the acquisition of Noralis, Inc. as an add-on to the Gordon Technologies platform to broaden its measurement-while-drilling (MWD) product offering and accelerate new product development. Noralis will operate as a wholly owned subsidiary within the Gordon platform, enabling a combined mechanical and electrical MWD offering and supporting international expansion.

Superior Plus Corp. has entered into an asset agreement to acquire Champagne's Energy, an independent retail propane distributor serving Maine that delivers approximately 11 million gallons of propane and distillates annually. The tuck-in acquisition — Superior's second in 2020 — is expected to close in Q3 2020, will modestly increase U.S. propane distribution segment EBITDA, and follows a preferred share investment from Brookfield Asset Management that strengthened Superior's balance sheet.

EnerCorp Engineered Solutions has combined with Pro Oil & Gas Services to create an expanded well flow and sand management platform. Both businesses are backed by Intervale Capital; the deal brings Pro’s early-stage flowback, pressure control and drilling services into EnerCorp’s sand management and late-stage flowback offering to broaden capabilities across North American basins.

KLH Capital has completed a recapitalization of D&H United Fueling Solutions, partnering with the company's management team to provide liquidity and support growth. D&H United, based in San Antonio, Texas, is a turnkey service provider and distributor to the retail and commercial fueling industry with more than 230 employees; the transaction was financed with Oxer Capital and CIBC.

Tier 1 Energy Solutions Inc. has agreed to acquire a minority equity interest in Winterhawk Well Abandonment Ltd., a developer of a patented controlled casing expansion technology for environmentally responsible oil and gas well abandonment. The companies also entered an operating agreement under which Tier 1 will provide deployment support services and wireline diagnostics to aid commercialization and field deployment of Winterhawk's technology.

Hunting PLC has acquired 100% of the issued share capital of Enpro Subsea and its subsidiaries in Norway, the United States and Ghana. Enpro, a Westhill, Scotland–based developer of subsea production technologies (headcount ~40), will continue to trade under its existing brand and management; the acquisition strengthens Hunting's subsea product and services offering.

AJ Lucas Group Limited will acquire all of Riverstone's shareholding interest in Lancashire-based Cuadrilla Resources, increasing AJL's stake from 47.6% to approximately 93%, with the remainder held by current and former employees. The transaction streamlines ownership to simplify decision-making and alignment as Cuadrilla works with regulators to address induced seismicity concerns and continue appraisal and potential development of UK shale gas assets.

Energy and Environmental Services, Inc. (OTC: EESE) acquired all membership interests in Abilene Celex Services, LLC, a Texas-based oilfield chemical provider, for $325,000 effective February 1, 2020. Management expects pro forma combined 2019 revenues of approximately $9.5 million, with Celex contributing about $700,000; EES said it will manufacture field-ready products for Celex at its Snyder, Texas plant to capture freight savings and volume discounts.

Parkland Fuel Corporation, through its U.S. subsidiaries (Parkland USA), has entered into an agreement to acquire the entities and assets of Kellerstrass Oil Company, a regional retail dealer and commercial fuel business based in Salt Lake City with branches in Utah, Idaho and Wyoming. The acquisition — which includes storage assets, a 17-car rail spur, trucking/routing capabilities and an 84-location dealer business — is intended to strengthen Parkland's Rockies Regional Operating Center, support its North American diesel platform and deliver supply and logistical efficiencies.

Parsley Energy, Inc. completed its acquisition of Jagged Peak Energy Inc., exchanging Parsley Class A common stock for Jagged Peak shares and causing Jagged Peak to delist from the NYSE. The deal is intended to combine complementary Permian Basin assets to capture operational synergies and improve capital efficiency for the combined company.