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7 Pages

ConocoPhillips sells its San Juan assets to Hilcorp for up to US$3 bn


ConocoPhillips sells its San Juan assets to Hilcorp for up to US$3 bn

Report summary

ConocoPhillips announced the sale of its San Juan Basin properties to Hilcorp San Juan LP, a partnership between Hilcorp Energy and The Carlyle Group. This deal is one of largest in the Rocky Mountains region in recent years, and one of the few sizeable Lower 48 transactions outside of the Permian in 2017. The consideration consists of US$2.7bn in cash and a contingent payment of up to US$300m. ConocoPhillips held the leading position in the San Juan Basin with nearly 1.3m net acres targeting the Mesaverde, Dakota, and Fruitland formations. The area was known for its shallow production declines, with the properties producing approximately 124,000 boe/d (78% gas) at the time of sale. Hilcorp is known for its ability to re-work mature assets and thus is a natural fit as acquirer of these well-established, producing fields. Coming hot on the heels of the US$13.3bn sale of Canadian assets to Cenovus, ConocoPhillips has now hit its already upgraded US$16bn divestment target for 2017.

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  • ConocoPhillips sells its San Juan assets to Hilcorp for up to US$3 bn PDF - 489.38 KB 7 Pages, 7 Tables, 1 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
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

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

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Wells drilled in San Juan Basin
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • 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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