Deal insight
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7 Pages

CONSOL to buy Dominion's Appalachian Basin E&P business for US$3.48 billion


CONSOL to buy Dominion's Appalachian Basin E&P business for US$3.48 billion

Report summary

CONSOL Energy has announced the acquisition of Dominion's Appalachian Basin E&P business. This is the latest deal in a wave of M&A activity focused on US shale gas opportunities. The assets acquired comprise wells producing from conventional gas zones and a sizeable, albeit undeveloped, Marcellus Shale acreage position. CONSOL estimates the transaction provides a resource base of between 12.1 and 34 tcfe. The agreed consideration is US$3.475 billion, to be paid in cash at ...

What's included?

This report includes 1 file(s)

  • CONSOL to buy Dominion's Appalachian Basin E&P business for US$3.48 billion PDF - 359.96 KB 7 Pages, 8 Tables, 0 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
    • Marcellus Shale
    • Shallow producing conventional assets
  • Deal analysis
  • Upsides and risks
    • Development of the substantial resource lowers the deal implied gas price
    • Technology improvements could further reduce costs and enhance development returns
    • Improved water management could reduce unit costs
    • Fiscal uncertainty in Pennsylvania is a major risk
  • Strategic rationale
    • Dominion Resources
    • CONSOL Energy
  • 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
    • 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
    • Oil & gas pricing and assumptions: Table 3
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