The deal involves 155,000 net acres in the western Eagle Ford, primarily in the Maverick and Hawkville condensate sub-plays, adjacent to the core of Sanchez's existing operations. Current production includes ca.67,000 net boe/d (70% liquids). The acquisition is split 50/50 between Sanchez and Blackstone. The US$2.3 billion price is below our upstream commercial valuation. The market reaction was very positive with Sanchez's stock rising 29% the day after the announcement. The deal holds significant upside for Sanchez through operational synergies, drilling efficiencies, enhanced completions and accelerated development. There is also potential for increased drilling locations. For Anadarko, the deal is an opportunity to reduce debt and/or increase activity in core growth areas such as the DJ and Delaware basins – the Eagle Ford has become increasingly peripheral to the company's plans.