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8 Pages

PETRONAS acquires Progress Energy for Cdn$5.5 billion

PETRONAS acquires Progress Energy for Cdn$5.5 billion

Report summary

PETRONAS has agreed to acquire Progress Energy for US$5.3 billion - the largest ever acquisition of a North American company by an Asian NOC. The deal builds on the US$1.1 billion strategic partnership that the companies announced in 2011. Central to the deal is Progress' mammoth position in the Montney tight gas play of northeast British Columbia. With depressed domestic gas prices, the deal's success hinges on PETRONAS' ability to develop LNG export capacity on the west ...

What's included?

This report includes 1 file(s)

  • PETRONAS acquires Progress Energy for Cdn$5.5 billion PDF - 4.91 MB 8 Pages, 4 Tables, 3 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • North Montney properties
  • Deal analysis
    • Base scenario: no LNG
    • Scenario 2: one train LNG (3.7 mmtpa)
    • Scenario 3: two train LNG (7.4 mmtpa)
    • Deal competitive on a per-acre basis
  • Upsides and risks
    • Canadian LNG: a new frontier
    • Resource-play uncertainty
    • Stacked-zone potential
  • Strategic rationale
    • Progress Energy
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
    • Play-wide Montney IP rates over time
    • Progress Energy wells and Montney play
  • Deal analysis
    • Base valuations of development scenarios under 10% discount rate
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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