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6 Pages

Chevron acquires 228,000 net Marcellus Shale acres in southwest Pennsylvania from Chief Oil & Gas and Tug Hill


Chevron acquires 228,000 net Marcellus Shale acres in southwest Pennsylvania from Chief Oil & Gas and Tug Hill

Report summary

Chevron has announced the acquisition of 228,000 net acres in the Marcellus Shale from Chief Oil & Gas, and Tug Hill. For Chevron, the deal is all about building on the position it gained through the February 2010 acquisition of Atlas Energy. The Chief acreage, located in southwest Pennsylvania, is contiguous with the Atlas portfolio, and adds a further 5 tcf of gas to Chevron's long-term resource base.The parties did not disclose the consideration, but analysis of comparable ...

What's included?

This report includes 1 file(s)

  • Chevron acquires 228,000 net Marcellus Shale acres in southwest Pennsylvania from Chief Oil & Gas and Tug Hill PDF - 1.57 MB 6 Pages, 5 Tables, 3 Figures

Description

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
  • Upstream assets
  • Deal analysis
    • Wood Mackenzie valuation
    • Metric based implied transaction cost
  • Upsides and risks
  • Strategic rationale
    • Chevron
    • Chief
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
  • Upstream assets
    • Chief acreage in southwest PA
  • Deal analysis
    • 1) Wood Mackenzie NPV estimates and 2) Comparable transaction metric based implied cost
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
    • Wood Mackenzie NPV sensitivities under drilling upside scenarios of Plus 25% and Plus 50%
    • Upsides and risks: Table 1
  • 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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