Oil and Gas M&A Activity Ramps up in Anadarko Basin
The oil and gas industry’s consolidation trend continues to accelerate with a pronounced emphasis on the Anadarko Basin. Following the $2 billion acquisition of Citizen Energy by Validus Energy last September and the $1.275 billion agreement between Diversified Energy and Maverick Natural Resources announced on January 27th, the region remains alive with mergers and acquisitions. On January 30th, Reuters reported that NGP Energy Capital Management is considering the sale of Camino Natural Resources, potentially valuing the company at $2 billion. Utilizing TGS Well Data Analytics, we can delve deeper into Camino’s assets in the Anadarko Basin to understand what makes them an attractive acquisition target. A key piece to their valuation will be demonstrating that they have been able to achieve one of the highest gas production profiles per well in the basin and proving that their success is replicable throughout their over 100,000 acres in the region.
Figure 1. Camino Natural Resources and neighboring operators' wells.
Most of Camino’s wells are concentrated in the SCOOP play within the Anadarko Basin (Figure 1). Leveraging advanced drilling and completion techniques, Camino has rapidly scaled its natural gas production, reaching an impressive output of 300 MMcf/day (Figure 2). This milestone has positioned Camino as one of the largest private operators in the basin, driven by robust production from the Woodford and Mississippian formations.
Figure 2. Camino Natural Resources production by formation and production by phase.
Comparing type curves shows that Camino has been able to achieve exceptional results on a per-well basis, outperforming all of the other largest operators in the basin (Figure 3). This type curve highlights their operational efficiency and the strength of their acreage position, with over 100,000 acres in the heart of the SCOOP play.
Figure 3. Type Curves of large operators in the Anadarko Basin.
The Anadarko Basin, particularly the SCOOP and STACK plays, has been a hotbed of activity due to its rich hydrocarbon resources. Companies operating in this region benefit from well-established infrastructure, favorable geology, and a supportive regulatory environment. These factors contribute to the basin's attractiveness for mergers and acquisitions, as companies seek to enhance their portfolios and achieve economies of scale. As the industry continues to evolve, strategic acquisitions like these are reshaping the landscape of oil and gas operations in the Anadarko Basin. The consolidation trend underscores the importance of scale, operational efficiency, and asset quality in the competitive environment of upstream oil and gas.
For more information about TGS Well Data Analytics or to schedule a demo, contact us at WDPSales@tgs.com.