Deal insight
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9 Pages

Woodside takes Wheatstone and Kitimat from Apache for US$2.75 bn

Woodside takes Wheatstone and Kitimat from Apache for US$2.75 bn

Report summary

The purchase price represents a 60% discount to our published base valuation of the portfolio. This highlights, first-and-foremost, the risk associated with project delivery: the Wheatstone development is around 50% complete, but at risk of cost overruns and delays; Kitimat remains some distance from FID, and despite making progress in technical areas, has fallen behind competing North American LNG projects on the commercial side.

What's included?

This report includes 1 file(s)

  • Woodside takes Wheatstone and Kitimat from Apache for US$2.75 bn PDF - 763.27 KB 9 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
    • Wheatstone
    • Kitimat
  • Deal analysis
    • Heavily discounted valuation highlights project risks
      • Cost overruns at Wheatstone are a major risk
      • Kitimat has been heavily discounted
      • Expansion of Wheatstone offers longer-term upside
  • Strategic rationale
    • Apache
    • Woodside
  • Oil & gas pricing and assumptions

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

  • Executive summary
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
  • Strategic rationale
    • Apache's net debt/cash evolution
    • Wheatstone project area
    • Kitimat project area
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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