Centrica and QP sell Canadian JV to MIE Holdings for Cdn$722 million Report

Deal Insight 15 June 2017

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Report summary

CQ Energy Canada Partnership (CQE) is to be sold to a consortium led by Hong Kong E&P MIE Holdings for Cdn$722 million (US$534 million). CQE is a joint venture between Centrica (60%) and Qatar Petroleum (40%). Assets include 2.2 million net acres of Crown, Fee and Royalty land across Western Canada and ownership in 11 major gas plant facilities. CQE is predominately a natural gas producer with reserves in some of Canada's prominent unconventional plays, including the Montney and Spirit River. It also owns mature, low-decline gas assets in southeast Alberta and the Alberta foothills. CQE was formed in April 2013 to acquire Suncor's Western Canada assets. In July 2015, Centrica announced that it considered its Canadian E&P operations to be non-core. An official sale process for CQE began in May 2016.

Executive summary
Transaction details
Upstream assets
- Alberta
- British Columbia
Deal analysis
Upsides and risks
Strategic rationale
- Centrica
- Qatar Petroleum
- MIE Holdings and partners
Oil & gas pricing and assumptions

Tables and charts

This report includes the following images and tables:

Executive summary: Table 1
Deal analysis: Table 1
Deal analysis: Table 2

Oil & gas pricing and assumptions: Table 1
Oil & gas pricing and assumptions: Table 2
Upstream assets: Table 1
Acquired commercial portfolio: forecast production (entitlement basis) and cash flow