looking at efs deals up to $200m, page-2

the parts i thought interesting were



“A lot of companies are running a lot of rigs in the Eagle Ford, and people are very focused on drilling the acreage positions they have,” McCrady said. “So that has resulted in a little less competition for smaller deals.”


“The corporate activity in the Eagle Ford lately highlights the potential there,” Krista Walter, an energy analyst at Morgans Financial Ltd. in Brisbane, said today by phone. With one of its previous acquisitions in the region, Sundance “has done well in reducing costs and increasing efficiencies, so we’d think they could apply the same efficiencies into any new acreage,” she said.



Part of the Eagle Ford acreage Sundance acquired is close to assets held by Anadarko Petroleum Corp. (APC:US) and Chesapeake Energy Corp., according to McCrady.
The company will probably sell its share of a Bakken asset in North Dakota operated by Hess Corp. and intends to complete a deal within two months, he said. Sundance this week also sold assets in Colorado for $116 million.




While it’s not the main focus of its expansion plans, Sundance does see some larger transactions of A$100 million to A$200 million “that we may have a strategic advantage in and may be able to pursue,” according to McCrady.

U.S. drillers are struggling to keep pace with the spending needed to get oil and gas out of the ground. Shale debt has almost doubled over the last four years, according to a Bloomberg News analysis of 61 shale drillers.

“We are cognizant of a number of companies significantly increasing their debt component of their capital structure, and we’ve intentionally kept our capital structure pretty conservative,” McCrady said. “There may be opportunities that shake out down the road, and we would want to be in a position to capture those if and when they materialize.”

How much does the Hess Sale give sundance in cash again?