Deal Insight
PETRONAS acquires Progress Energy for Cdn$5.5 billion
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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 ...
Table of contents
- 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
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Upsides and risks
- Canadian LNG: a new frontier
- Resource-play uncertainty
- Stacked-zone potential
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Strategic rationale
- PETRONAS
- Progress Energy
- Oil & gas pricing and assumptions
Tables and charts
This report includes 7 images and tables including:
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Play-wide Montney IP rates over time
- Progress Energy wells and Montney play
- Base valuations of development scenarios under 10% discount rate
- Deal analysis: Table 1
- Deal analysis: Table 2
What's included
This report contains:
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