Anadarko Enters Eaglebine Joint Venture with KKR & Co - $442 Million

Anadarko Eaglebine Acreage
Anadarko Eaglebine Acreage

During the third-quarter of 2014, Woodlands, TX-based Anadarko Corp. entered into a joint venture (JV) with private equity firm KKR & Co. to develop a portion of Anadarko's East Texas/Eaglebine acreage.

Under the terms of the deal, KKR agreed to carry $442-million of Anadarko's future capital expenditures in Brazos, Burleson, and Robertson Counties, situated northwest of Houston, TX. In exchange, KKR received 36,000 net acres in the JV area of mutual interest (AMI) and 40% of Anadarko's working interest (WI) in 33 wells. In a prepared release, KKR company officials said through long-term development of the field, they expect to participate in more than 500 wells.

We see the Eaglebine as a really exciting and potentially explosive area, Anadarko CEO Al Walker said on an investor conference call in late October of 2014.

Anadarko will remain the operator of the acreage with an average post-transaction WI of approximately 51% in the JV AMI. Anadarko company officials say the transaction will enable the company to more rapidly develop this short-cycle oil opportunity with the addition of incremental drilling rigs, while further enhancing Anadarko’s capital efficiency and flexibility.

During the third-quarter, Anadarko spud five wells with one rig in the Eaglebine. Production from these new wells increased the company's net sales volumes to more than 3,000 boe/d, with a 90% oil cut, according to Anadarko's third-quarter operations update.

Devon Expects Peak Eagle Ford Production of 140,000 boe/d

Devon Energy Eagle Ford Acreage Map
Devon Energy Eagle Ford Acreage Map

Devon's Eagle Ford acquisition of GeoSouthern Energy's assets in the play is on track to close by the end of the first-quarter of 2014.

The company  announced the acquisition of GeoSouthern Energy’s assets in the Eagle Ford oil play in November.

The acquired Eagle Ford acreage includes 82,000 net acres located in DeWitt and Lavaca counties. Devon expects to almost triple production from 53,000 boe/d at the time of the deal to ~140,000 boe/d over the next several years.

Read more: Devon Energy Acquires Eagle Ford Assets from GeoSouthern for $6 Billion

2013 was a year of strong execution and exciting change for Devon,” said John Richels, CEO. “...... Additionally, we high-graded our portfolio through an accretive Eagle Ford Shale acquisition, an innovative midstream combination, and initiated an asset divestiture program. These actions provide a platform for Devon to achieve attractive high-margin growth in 2014 and for many years to come.

Devon Eagle Ford Production Estimates

Devon predicts production will grow at a compound annual growth rate of 25% over the next several years, reaching peak production of ~140,000 boe/d. I suspect we'll see much more than 25% growth in the first few years.

According to the company, the Eagle Ford development program in 2014 will be self-funding and is expected to start generating free cash flow beginning in 2015. Risked recoverable resources in the Eagle Ford are estimated at 400 million boe, of which more than 60% are proved reserves.

Devon Fourth Quarter 2013 U.S. Production

  • Natural Gas - 1.9 Bcf/d
  • Oil - 85,300 bd
  • NGL's - 122,400 b/d


Eagle Ford Deal Value Leads the U.S. in 2013

Devon Energy Eagle Ford Acreage Map
Devon Energy Eagle Ford Acreage Map

Eagle Ford deal value led a down year for upstream exploration and production deals in the U.S. with almost $9 billion in activity in 2013.

A record was set in 2012 with almost $90 billion in mergers and acquisitions. The value of deals fell more than 42% to ~$52 billion in 2013. Worldwide total deal value fell from $271 billion in 2012 to $138 billion in 2013.

Of the almost $9 billion spent in the Eagle Ford, almost two-thirds was contributed by one deal - Devon Energy Acquiring Eagle Ford Assets From GeoSouthern for $6 Billion. Add oilfield service & pipeline deals and the Eagle Ford accounted for much more than $9 billion in activity.

You can read more on deals with regional relevance in 2013 by following the links below:

First Quarter 2013

Second Quarter 2013

Third Quarter 2013

Fourth Quarter 2013

Read the full PLS upstream deal activity report at also find a full list of Eagle Ford Deals here.

GE - Vess Oil Acquire Woodbine & Eagle Ford Acreage From Enervest - $108 Million

Vess Oil Operations Map
Vess Oil Operations Map

GE and Vess Oil have partnered to acquire 13,000 net acres in Brazos, Grimes, and Madison counties from EnerVest for $108 million.

The acreage is producing from the Woodbine and prospective for the Eagle Ford Shale.

This is the third partnership GE Energy Financial Services and Vess Oil have entered. Previous partnerships have acquired reserves in Brazos County, TX, and Kansas. A separate Vess Oil affiliate also operates Woodbine acreage in the Kurten Field adjacent to the assets acquired here.

I am eager to launch our program and look forward to expansion opportunities predicated on demonstrable results.
— Ronnie Nutt, COO of Vess Oil

Read the full release at

B/E Aerospace Acquires LT Energy Services & Wildcat Wireline for $265 Million

Halliburton Operated Wireline Truck
Halliburton Operated Wireline Truck

B/E Aerospace describes itself as the "worldwide leading manufacturer of aircraft passenger cabin interior products..." and the company now can boast about its Eagle Ford equipment rental and wireline businesses in South Texas.

B/E acquired LT Energy Services, an equipment rental company, and Wildcat Wireline who is also active in the Eagle Ford. The company spent ~$265 million to acquire the two companies.

The acquisitions of LT, headquartered in Houston, TX, and Wildcat, headquartered in Marshall, TX, continues our initiative to expand our consumables management segment into the oilfield equipment rental, logistics and services business. The acquisition of LT establishes a new geographical base of operations in the Southwestern United States.....The acquisition of Wildcat expands the Company’s service offerings in both locations.
— Amin J. Khoury, CEO

The two businesses had combined revenue of $125 million for the 12-month period ending September, 30, 2013.

Read the full news release at