Page 12 - NorthAmOil Week 11 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

Murphy intends to use the proceeds to
repay borrowings under the $1.6bn senior
unsecured credit facility, with the remainder
to be held for general corporate purposes.
With the previously announced pending
redemption of its 2022 Notes, Murphy will
have no near-term debt maturities prior to
the November 2023 expiration of its revolving
credit facility.
The King’s Quay FPS is more than 90%
built and is scheduled to go into service in
mid-2022. King’s Quay FPS is designed to
During the year, Topaz invested of Diamondback common stock for each process 80,000 barrels of oil per day and
CAD171.5mn of capital on additional share of QEP common stock issued and 100mn cubic feet of natural gas per day, and
high free cash flow margin assets which outstanding immediately prior to the effective will handle the anticipated production from
contributed annualised 2020 EBITDA of time of the merger, with cash to be received in the Khaleesi/Mormont and Samurai fields.
CAD19.5mn. To date, Topaz has assembled lieu of any fractional shares. As a result of the “We are pleased to announce the
a material royalty position in the Cretaceous merger, QEP common stock will no longer be completion of this transaction. Coupled with
Clearwater play in Alberta with royalty listed for trading on NYSE and its reporting the receipt of necessary regulatory permits
interests on over 190,000 gross acres of obligations under the Securities Exchange Act for our entire drilling campaign to begin on
developed and undeveloped land which are of 1934 will be suspended. April 1, 2021, we remain on target for first
supported by cumulative capital development “We are excited to announce that we oil in mid-2022 in the Khaleesi/Mormont
commitments of CAD143.0mn. The company have completed our acquisition of QEP. This and Samurai fields,” said Roger W. Jenkins,
has also significantly expanded its royalty deal, along with our recently completed president and chief executive officer. “By
interests in the WCSB’s largest natural gas acquisition of certain assets from Guidon utilising the King’s Quay FPS transaction
complex, the Alberta Deep Basin. On January Operating LLC (the “Guidon acquisition”) proceeds to repay our revolver borrowings,
1, 2021, Topaz acquired royalty interests bolsters our depth of Tier 1 Midland Basin along with our recent bond issuance to extend
on 720,000 gross acres of land which Topaz inventory and positions us to allocate a our debt maturity profile, Murphy has a well-
estimates will provide free cash flow growth majority of our capital to the high-returning positioned balance sheet with ample liquidity
on a per share basis, of 8% and 12% in 2021 Midland Basin for the foreseeable future. as we enter the execution phase of this key
and 2022, respectively. We look forward to updating the market on project.”
In 2020, Topaz generated total EBITDA our progress on synergy capture and laying MURPHY OIL, March 17, 2021
of CAD89.3mn and paid CAD73.1mn in out the pro forma operating plan for 2021 as
dividends. Topaz is a unique, premium energy soon as practicable,” stated Travis Stice, Chief
investment vehicle which is underpinned by Executive Officer of Diamondback. MIDSTREAM
its strategic partners’ continued focus and DIAMONDBACK ENERGY, March 17, 2021
commitment to developing Topaz’s royalty Magellan Midstream
acreage which enables Topaz to provide a Murphy Oil announces
reliable and predictable outcome. Topaz is extends open season for
well funded for growth with cash on hand and transaction closing for
a recently expanded, undrawn CAD300.0mn potential New Mexico
credit facility. King’s Quay floating
TOPAZ ENERGY, March 17, 2021 refined products pipeline

Diamondback Energy production system expansion to March 31
Murphy Oil announced today that its
completes acquisition of subsidiary, Murphy Exploration & Production Magellan Midstream Partners announced
Company – USA, has closed the previously
today the extension of its open season
QEP Resources announced transaction with a fund managed to solicit customer commitments for the
potential expansion of the partnership’s New
by ArcLight Capital Partners for the sale of
Diamondback Energy today announced that Murphy’s entire 50% interest in the King’s Mexico refined petroleum products pipeline.
it has completed its previously announced Quay floating production system (King’s Quay Significant interest has been expressed from
acquisition of QEP Resources in an all-stock FPS) and associated export lateral pipelines potential shippers, and the extension provides
merger following approval of the merger and to be located in the Gulf of Mexico. The interested customers additional time to
related proposals by the QEP stockholders at King’s Quay FPS and associated laterals will finalise commitments. Binding commitments
their special meeting held on March 16, 2021. be co-owned in a joint venture with entities are now due by 5:00 p.m. Central Time on
QEP reported the results of its stockholder managed by Ridgewood Energy, including March 31.
vote at the special meeting on its Form 8-K ILX Holdings III. The nearly 250-mile pipeline segment
with the Securities and Exchange Commission This transaction reimburses Murphy’s currently transports various grades of gasoline
on March 16, 2021. past capital expenditures of approximately and diesel fuel from Magellan’s terminal in El
As previously announced, in the merger, $270mn related to the King’s Quay FPS and Paso, Texas to terminals in Albuquerque, New
QEP stockholders will receive 0.05 of a share the associated laterals. Mexico owned by Marathon and Vecenergy.

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