Anschutz Exploration Corp. retained SunTrust Robinson Humphrey Inc. as its exclusive financial adviser for the sale of a Denver-Julesburg (D-J) Basin Royalty and Non-Op package through an offering with bids due in late September. The offering is comprised of Royalty Interests and associated Non-Operated oil and gas producing properties located in Weld County, Colo.

Highlights:

  • HighPoint Resources and Bonanza Creek Energy are active operators on the acreage
  • 4,500 Net barrels of oil equivalent/day as of September 1, 2019
  • 211 gross non-operated producing wells, Over 90% of acreage is HBP
  • 26 wells in drilling and completion operations stages
  • 250-plus additional future development locations across position
  • Last 12-month Operating Cash Flow $60.3 MM (June 2018 – May 2019, excluding capex)
  • Rural setting in pro-industry Weld County minimizes regulatory risk
Anschutz D-J Basin Royalty and Non-Op Package Asset Map Weld County, Colorado (Source: SunTrust Robinson Humphrey Inc.)
Anschutz D-J Basin Royalty and Non-Op Package Asset Map Weld County, Colorado  (Source: SunTrust Robinson Humphrey Inc.)

Summary of Packages Offered: 

  • Royalty Interest Packages:
    • Anschutz Family Investment Co. (AFIC) royalty package
      • AFIC – 1,598 net acres
      • AFIC royalty interest ranges from less than 1% up to 14.5% per 1,280 acre drill spacing unit (DSU), where ownership is present
        • 2018 net cash flow of $13.8 million
        • Last 12-month net cash flow of $14.0 million (June 2018 through May 2019)
    • Anschutz “ORRI Portfolio”
      • Overriding Royalty Interest (ORRI) Portfolio - 360 net acres
      • ORRI Portfolio interest ranges from less than 1% to 3.7% per 1,280 DSU, where ownership is present
        • 2018 net cash flow of $2.5 million
        • Last 12-month net cash flow of $3.1 million (June 2018 through May 2019)
  • Non-Op Working Interest Package:
    • 39,481 Gross (7,236 net acres) in Weld County
      • Current net production: 3,500 boe/d, 65% oil
      • January 2020 forecasted net production: 3,700 boe/d (Aries 3-stream net results as of Jan. 1, 2020)
        • Over 200% production increase from January 2018
      • Last 12-month net cash flow of $43.2 million (June 2018 through May 2019, excluding capex)
Anschutz D-J Basin Royalty and Non-Op Package Key Asset Stats Chart (Source: SunTrust Robinson Humphrey Inc.)

The transaction is structured as a sale of assets with an effective date of Sept. 1.   

This information is provided by SunTrust Robinson Humphrey Inc. Contact Samantha Holroyd, Managing Director, at 713-426-9001 or Samantha.Holroyd@suntrust.com.

Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

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