Fortis, S1s & Secondaries

“The meek shall inherit the Earth, but not its mineral rights” - J. Paul Getty

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FORTIS.

Fortis - one of EnCap’s minerals business - filed it’s S1 over the weekend.

Long story short, Fortis is STACK + Permian mineral assets:

Currently, most of Fortis’s production is coming from their STACK acreage (see page 8 in the S1) -

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FANG.

Michael Hollis, the President & COO of Diamondback abruptly resigned, for personal reasons. Hollis also resigned from his positions as a director of FANG and Viper Energy Partners -

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RBLs.

Ahead of November borrowing base re-determinations, Debtwire is reporting that banks have published price decks, averaging:

• $47.33/bbl for 2019 & $48.33/bbl for 2023 for Oil; &

• $2.13/MMbtu for 2019 & $2.40/MMbtu for 2023 for Gas

This borrowing base news follows reports of smaller bank lenders reducing and/or selling energy loan book exposure -

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SHALE ON THE AIM.

The FT is reporting that US Small Cap E&Ps are increasingly looking to the London Junior Exchange as a serious source of capital raising.

This news follows the recent trend of smaller US-based conventional players listing in London.

Last week, Houston-based Vaalco priced a secondary listing on the AIM, raising capital to fund further acquisitions -

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SICHUAN SHALE.

On Sunday, Petrochina announced newly added proven shale gas reserves from the Changning-Weiyuan & Taiyang blocks in the Sichuan basin.

Petrochina also said it had newly proven reserves at the Qingcheng oil field in Ordos basin -

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OTHER NEWS.

• Harbour Energy’s Chrysaor (backed by EIG) closed the acquisition of Conoco’s North Sea Assets

• Total closed the acquisition of Anadarko’s interest in the Mozambique LNG project

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That’s it for today - crude/geopolitical news has been relatively calm, for a change - we’ll be back on Friday -