Wilcox Swartzwelder & Co have released the most recent data on notable merger and acquisition trends, deals and valuation in the energy and industrial sector.

1. Energy & Industrial Sector Observations

Barclays: Oil, Gas Companies to Spend 6% More in 14’. Global oil and gas companies
will spend about $723 billion on exploration and production in 2014, an increase of
6.1% from 2013, Barclays Bank said in a report. For North America, Barclays forecast
an increase of more than 7% in E&P spending in 2014, compared with a 2% increase
in 2013, based on a survey of more than 300 oil and gas companies conducted last
month. E&P companies are basing their spending budgets for the year on oil prices of
$98 per barrel for Brent and $89 per barrel for West Texas Intermediate, and a
benchmark U.S. natural gas price of $3.66 per British thermal unit, the bank said.
(Reuters – December 9, 2013)

Fracking Boom Pushes U.S. Oil Output to 25-Year High. U.S. crude production rose to
the highest level in a quarter-century as a shale drilling boom in states such as Texas
and North Dakota cut the need for foreign oil and pushed the country closer to
energy independence. The U.S. pumped 8.1 million barrels a day in the week ended
Dec. 6, a gain of 0.8%, or 64,000 barrels a day, the Energy Information Administration
said today. It’s the most since October 1988. U.S. oil output grew 18 percent in the
past 12 months, the fastest pace on record, boosting fuel exports and reducing
reliance on imports, according to the EIA. The boom will make the country the
world’s largest producer by 2015, five years sooner than last year’s forecast,
the International Energy Agency in Paris said last month. Domestic oil output will
average 8.54 million barrels a day next year, according to the EIA, the statistical arm
of the Energy Department. (New York Times – December 11, 2013

BHP Billiton’s Former Oil Chief Expects More U.S. M&A. BHP Billiton Ltd. (BHP)’s
former oil and gas head J. Michael Yeager expects more industry mergers and
acquisitions in the U.S. as onshore developers seek to sell assets they can’t develop
and boost their technical skills. “There’s a lot of churn that’s going to go on and you
will continue to see a lot of transactional work,” Yeager said today in a phone
interview. “When you take these large amounts of acreage, you have to drill it up, or
you have to give it up. In some cases you may have three years to drill as much as you
can and you lose the rest of it, so there’s acreage that people cannot handle on the
market. There’s a lot of opportunity.” Yeager said a need for more technical expertise
will also drive companies to combine. (Bloomberg – November 7, 2013)

Demand to Export U.S. Crude Expected to Increase, Citigroup Report Predicts.
Demand to export U.S. crude is poised to soar as the nation’s surging supply of
hydrocarbons creates a glut of the feedstock, according to Citigroup Inc., the bank
that predicted a slump in the nation’s imports. “The current crude glut on the U.S.
Gulf Coast will continue to spark requests for crude oil export licenses and a positive
but restricted response is inevitable,” Edward Morse, Citigroup’s New-York based
head of commodities research said. “Applications for exports should start to soar.”
(Bloomberg – November 12, 2013
Sector Update | January 2014
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Suite 204
Irving, Texas 75062
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2. 2

New Data Shows ‘Meteoric’ Rise of Texas Oil. Oil production in Texas has hit its highest monthly rate on record, more
than doubling in less than three years, according to new federal data. The state pumped 2.7 million barrels of crude per
day during September, the highest average since monthly record-keeping began in January 1981. That marked a 30%
jump over September 2012, according the U.S. Energy Information Administration. For 25 straight months, the state’s oil
production rate has increased by more than 25% year-over-year. The E.I.A projects total U.S. oil production will rise to 8.2
million barrels per day in 2014. (Houston Chronicle – December 3, 2013

New Oil Boom Lurks in Denver – Julesburg Basin. Denver-based Whiting Petroleum sold its Texas holdings for $816
million in July and said it would use the cash to "accelerate" development of Colorado's Niobrara shale. "The one thing we
don't have to worry about in the Niobrara is oil in place," James Brown, the company COO, told analysts in November.
"There is a tremendous amount of oil in place." The discovery of an easy-to-drill and oil-rich stratum fueled nearly $4
billion in spending in 2013 by the top operators – who have plans to spend and drill even more in 2014. More than $1
billion is being spent on plants, pipelines and rail terminals to process and ship the oil. "We are still finding out how big
this is going to be," said Dan Kelly, vice president at Noble Energy, the basin's largest operator. “The opportunity is there."
Still, interviews with company executives and financial analysts and a review of corporate filings paint a picture of a
resource so promising and profitable that it will continue to lure big investments. (Denver Post – December 15, 2013)

$14.5 Billion Cline Shale Impact. A new study estimates that the oil and gas industry had a $14.5 billion impact last year
on the Cline Shale region, east of the traditionally busier drilling area of the Permian Basin. The University of Texas at San
Antonio’s Institute for Economic Development found the industry supported 21,450 jobs, with $1 billion in salaries and
benefits to workers last year. “We expect to see that continue,” said Thomas Tunstall, research director with the Institute
for Economic Development. (San Antonio Express – December 20, 2013)
Broader Middle Market M&A Trends
Historical M&A Volume
6,000
5,000
Transaction Valuations
(Completed Deals < $500 Million)
10.0x
10 Year Avg. = 3,771
8.0x
(EBITDA Multiple; Completed Deals<$500 Million)
9.4x
9.2x
8.5x
8.4x
8.4x
8.2x
7.9x
7.4x
7.4x
7.1x
7.0x
4,000
6.0x
3,000
4.0x
2,000
2.0x
1,000
0.0x
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 LTM
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 LTM
Sector Update | January 2014
phone 972.831.1300 | web WS-iBank.com

3. 3
Energy Stock Price Performance
U.S. Rig Count
2,250
90.0%
2,000
80.0%
1,750
70.0%
1,500
60.0%
1,250
50.0%
1,000
40.0%
750
30.0%
500
20.0%
250
10.0%
0
Jan-07Jul-07Jan-08Jul-08Jan-09Jul-09Jan-10Jul-10Jan-11Jul-11Jan-12Jul-12Jan-13Jul-13
Oil
Gas
% Oil
(As of January 6, 2014)
Red – New York Stock Exchange Composite
Blue – Oilfield Services Index
Green – Exploration & Production
Basin
Permian
Eagle Ford
Williston
Industrial Stock Price Performance
Rig
Count
468
228
185
YoY Rig
Change
-5
-5
-9
%
Change
-1%
-2%
-5%
U.S. Industrial Manufacturing (ISM)
75.0
70.0
65.0
60.0
55.0
PMI
50.0
45.0
40.0
35.0
30.0
25.0
Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13
(As of January 2, 2014)
Red – New York Stock Exchange Composite
Blue – Industrial and Infrastructure
Sector Update | January 2014
phone 972.831.1300 | web WS-iBank.com
Oct-13 Nov-13 Dec-13
PMI
56.4
57.3
57.0
0.0%

4. 4
Notable Energy & Industrial Transactions
Announcement Date
Acquiror
Target
Target/Transaction Description
Transaction
Value ($M)
Energy & Industrial Manufacturing and Services
1/3/14
Enterprise Group
Hart Oilfield Rentals
Provider of site services and equipment rentals, such as
wellsite trailers, medical facilities, fire suppression systems
and scaffolding
$21.2
$285.0
1/2/14
DXP Enterprises
B27/Champlain
Capital
Texas-based supplier of pump & integrated flow control
solutions to the oil & gas and power generation industry
1/2/14
Applied Industrial
Technologies
Texas Oilpatch
Services
Texas-based distributor of bearings, oil seals, power
transmission products and other replacement parts for use
in mud pumps, swivels, draw works and rotary tables
--
Berkshire Hathaway
Phillips Specialty
Products
Texas-based provider of chemicals that serve as drag
reduction agents to maximize the flow potential of
pipelines
--
--
12/30/13
12/26/13
Energy Capital
Partners
NESCO/Platinum
Equity
Indiana-based provider of fleet equipment rental, sales
and services
12/24/13
Aveda
Transportation and
Energy Services
M&K Hotshot &
Trucking/M&K Rig
Services
Provider of oilfield hauling services and equipment rentals
with a fleet of 79 trailers, 15 conventional tractors, 14
winch trucks, 3 cranes and 395 pieces of rental equipment
$40.0
Kohlberg Kravis
Roberts
Torq Energy Logistics
Capital commitment to fund an acquisition strategy that
augments Torq’s six transloading terminals and
transportation services
$240.0
First Reserve
Dixie Electric
12/24/13
12/19/13
12/9/13
Kentz Corp., Ltd.
Provider of electrical infrastructure and automation
services from initial development throughout the life of an
oilfield, including ongoing infrastructure upgrades and
maintenance
Valerus Field
Solutions
Acquisition of the field solutions portion of Valerus
including the processing and treating, production
equipment, compression and integrated service business
lines
--
$435.0
12/9/13
Arsenal Capital
Partners
Flowchem
Provider of specialty chemical solutions, such as drag
reducing additives to the pipeline industry
--
12/4/13
Windjammer Capital
Engineered Controls
International
Designer and manufacturer of flow control valves &
regulators used in transportation, delivery and storage of
LPG, LNG and industrial gases
--
Quality Connector
Systems, LLC
Texas-based manufacturer of proprietary deep and shallow
water pipeline connectors for subsea pipeline
construction, repair and expansion projects
--
12/3/13
Oil States
International
Sector Update | January 2014
phone 972.831.1300 | web WS-iBank.com

5. 5
Notable Energy & Industrial Transactions (Cont’d)
Announcement Date
Acquiror
Target
Target/Transaction Description
Transaction
Value ($M)
Energy & Industrial Manufacturing and Services (Cont’d)
11/21/13
11/20/13
SCF Partners
Oil Patch Group
Texas-based provider of accommodation & support, drill
pipe & tubular rental and production testing and flow back
services
--
Wyoming-based operator of 24 well service rigs and 1
plugging/cementing unit. Combined, the companies will
have 100+ well service rigs
--
Beckman Production
Services/SCF
Partners
Northern Production
Inspection Oilfield
Services/Calvert
Street Capital
Oilfield Tubular
Inspection
Oklahoma-based provider of mobile inspection, testing and
cleaning services of OCTG and drill tools
--
Aquilex HydroChem/
Centerbridge
Partners
Inland Industrial
Services Group/
Strength Capital
Texas-based provider of industrial cleaning solutions to the
refining, chemical, power and other industrial markets
--
Integral Oilfield
Services/OFS Energy
Fund
ODS International
Texas-based provider of engineered drilling equipment and
associated inspection & maintenance services to the
offshore industry
--
Hammond Kennedy
Whitney
TC Companies/
EnerSafe
Merger of TC Companies and EnerSafe which as a
combined company provides safety services and products,
including H2S safety packages, flaring technologies and
safety consulting services
--
11/5/13
BEC Acquisition/Mill
City Capital
Bonnett’s Energy
Corp.
Provides wireline services, production testing services and
rental, fishing & pipe recovery services
$110.0
11/4/13
Innospec
Bachman Services
Provider of chemical products and services used by the
drilling, fracturing and production segments
11/4/13
BE Aerospace
Blue Dot Energy
Services/LongueVue
Capital
Provider of rental equipment and fishing tools and related
services to the Marcellus and Utica Shale
Antelope Oil Tool &
Manufacturing/
Intervale Capital
WearSox
Manufacturer of thermal spray-on casing centralizers,
stabilizers and stop collars for cementation and casingwhile drilling applications for the offshore industry
--
Quanta Services
T.G. Mercer
Consulting Services/
Performance Energy
Services
Provider of pipe transportation, handling, storage and
logistics management services to the pipeline construction
industry; Performance Energy is a provider of steel
structure fabrication, mechanical installations, electrical &
instrumentation services and maintenance & repair for the
offshore industry
--
11/20/13
11/18/13
11/7/13
11/6/13
11/4/13
10/31/13
Sector Update | January 2014
phone 972.831.1300 | web WS-iBank.com
--
$75.0

6. 6
Notable Exploration & Production and Midstream/Downstream Transactions
Announcement Date
Acquiror
Target
Target/Transaction Description
Transaction
Value ($M)
Exploration & Production and Midstream/Downstream
12/31/13
BreitBurn Energy
Partners
CrownRock LP
Acquisition of assets located in the Permian Basin that
produce 2,900 Boep/d, 60% of which is oil
$302.0
12/30/13
SM Energy
EnerVest, Ltd.
Acquisition of assets located in the Anadarko Basin that
produce 8,500 Boep/d, 75% of which is natural gas
$329.0
12/30/13
Vanguard Natural
Resources
Undisclosed seller
Acquisition of assets located in Southwestern Wyoming
that consist of 87,000 gross acres, producing 113.4
MMcfe/d, 80% of which is natural gas
$580.0
Eagle Rock Energy
Partners
Regency Energy
Partners
Consideration from Eagle Rock for the MLP that specializes
in gathering and processing, contract compression,
contract treating, transportation, fractionation and storage
of natural gas and natural gas liquids
$1,325.0
Kinder Morgan
American Petroleum
Tankers/State Class
Tankers/Blackstone
Group/Cerberus
Capital Mgmt.
Providers of marine transportation of crude oil,
condensate and refined products with a fleet that consists
of five medium range product tankers each with 333,000
barrels of cargo capacity and the commission of five new
tankers of the same size
$962.0
12/23/13
12/23/13
12/20/13
Peregrine Petroleum
Primary Natural
Resources
Acquisition of 35 wells and non-operated interests in 31
wells located in the Anadarko Basin
--
12/20/13
Cabot Oil & Gas
Chaparral Energy
Acquisition of assets located in the Texas and Oklahoma
Panhandle
$160.1
12/20/13
Natural Resource
Partners
Sundance Energy
Acquisition of assets located in North Dakota that consists
of 100 wells either producing or in various stages of
development
$33.7
Chief Oil & Gas of
Dallas/Enerplus/Tug
Hill
Chesapeake Energy
Acquisition of assets located in the Marcellus Shale that
consist of 75,000 acres, 40 operated wells and production
of 130 MMcf/d
$500.0
12/19/13
Jones Energy
Sabine Oil & Gas
Acquisition of assets located in Texas Pandhandle and
western Oklahoma that consist of 26,000 net acres
$195.0
12/16/13
Black Ridge Oil & Gas
Undisclosed seller
Acquisition of assets located in the Williston Basin
consisting of an undisclosed amount of wells and acreage
$20.6
12/12/13
EnerVest, Ltd.
Bill Barrett Corp.
Acquisition of natural gas properties located in the Uinta
Basin in Utah
$369.0
12/11/13
QEP Resources
EnerVest, Ltd.
Acquisition of properties located in the Permian Basin that
consist of 6,700 Boep/d, 68% of which is crude, and 47
MMBoe of proved reserves
$950.0
12/19/13
12/9/13
Undisclosed buyer
Cabot Oil & Gas
Sale of non-core properties located in the Mid-Continent
that consist of production of 15 MMcfe/d
$123.0
12/8/13
Undisclosed buyer
Abraxas Petroleum
Sale of assets located in the Eagle Ford that consist of
1,200 net acres, 3.7 MMBoe of proved reserves and
production of 655 Boep/d
$73.0
Sector Update | January 2014
phone 972.831.1300 | web WS-iBank.com

7. 7
Notable Exploration & Production and Midstream/Downstream Transactions (Cont’d)
Announcement Date
Acquiror
Target
Target/Transaction Description
Transaction
Value ($M)
Exploration & Production and Midstream/Downstream (Cont’d)
11/26/13
Templar Energy/Le
Norman Operating
Forest Oil Corp.
11/26/13
Eagle Energy
11/25/13
11/21/13
11/20/13
11/20/13
With the acquisition of acres located in the Texas
Panhandle, Templar and Le Norman Operating will produce
in excess of 20,000 net Boep/d with an estimated proved
reserve base of net 145 MMBoe
$944.0
Undisclosed seller
Acquisition of petroleum producing properties located in
Hardeman County, TX
$26.3
Miller Energy
Resources
Undisclosed seller
Acquisition of the North Fork Unit and natural gas fields
located in Alaska
$65.0
Comstock Resources
Ursa Resources
Group/Denham
Capital
Acquisition of one well producing 433 Boep/d and 20,000
net acres located in the Eagle Ford
$66.5
Lakewood
Midstream/Energy
Spectrum
BS&W Solutions/
West OK Disposal/
West OK Trucking
BS&W Solutions purchases and processes oil with high
water or sediment content and sells recovered oil; West
OK Disposal provides oilfield waste fluid handling and
disposal; West OK Trucking provides transport services
Devon Energy
GeoSouthern
Acquisition of Eagle Ford assets that include 53,000 Boep/d
of current production, 82,000 net acres, 1,200 undrilled
locations and 400 MMBoe of risked recoverable reserves,
the majority of which are proved reserves
$6,000.0
$172.4
--
11/15/13
Gastar Exploration
Lime Rock Resources
Acquisition of Midcontinent assets that include a 80.5% net
revenue interest in 24,000 acres
11/8/13
Progress Energy
Talisman Energy
Acquisition of Canadian assets that include 127,000 net
acres and will add 11,000 Boep/d to its production
11/7/13
Carrizo Oil & Gas
Avista Capital
Acquisition of assets located in the Utica Shale that include
5,900 net acres
$73.0
11/7/13
Riverstone
Holdings/Oakmont
Corp.
Liberty Resources
Liberty Resources is a new energy platform focused on
undeveloped resources in the DJ Basin, Permian Basin and
Powder River Basin with private equity commitments from
both Riverstone and Oakmont Corp.
$350.0
NGL Energy Partners
Gavilon, LLC
Acquisition of the midstream company that operates
integrated crude oil storage, terminal and pipeline assets
located in Oklahoma, Texas and Louisiana
$890.0
11/6/13
Sector Update | January 2014
phone 972.831.1300 | web WS-iBank.com
$1,430.0

8. 8
Wilcox | Swartzwelder & Co.
Wilcox Swartzwelder & Co. is a boutique investment bank, specialized in delivering high quality
financial advice exclusively to owners of middle market companies and oil and gas properties in
the energy and industrial sector.
Advisory services include company sales, mergers and acquisitions, private placements of debt
and equity, oil and gas property acquisitions and divestitures, institutional capital raises, and
general corporate finance matters. Through its merchant funding activities, the Firm acts as
direct investor providing flexible capital to support small, entrepreneurial companies.
Principals have more than 40 years of combined investment banking experience, closing over 100
transactions with an aggregate value in excess of $3.9 billion. They have also acted as investors
with capital at risk, operators and board members in multiple companies, having navigated
through various business cycles and completed transactions in both up and down markets.
The Firm is fully licensed and registered. Securities are offered through PetroGrowth Energy
Advisors, LLC, a registered broker-dealer and member of FINRA/SIPC.
Notes:
The information and views contained in this report were prepared by Wilcox Swartzwelder & Co. LLC and should not be
construed as an offer to buy or sell or a solicitation to buy or sell any financial instruments or to participate in any trading
strategy. The information contained herein is believed to be reliable, but Wilcox Swartzwelder & Co. LLC makes no
representation as to its accuracy or completeness.
Indices: Dow Jones U.S. Select Oil Equipment and Services Index (DJSOES), Dow Jones U.S. Select Oil Exploration and Production
(DJSOEP), Industrial Select Sector SPDR (XLI), NYSE Composite Index (NYA)
Data Sources: Dealogic, Capital IQ, Stockcharts.com, Baker Hughes, RigData, Rig Zone, Energy Information Agency (EIA),
Association of Energy Service Companies (AESC), Institute of Supply Management (ISM), Wilcox Swartzwelder Proprietary Energy
and Industrial M&A Database
Copyright © 2014 Wilcox Swartzwelder & Co. LLC, all rights reserved.
Sector Update | January 2014
phone 972.831.1300 | web WS-iBank.com