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9 Pages

Devon acquires core Eagle Ford assets with US$6 billion acquisition from GeoSouthern Energy

Devon acquires core Eagle Ford assets with US$6 billion acquisition from GeoSouthern Energy

Report summary

Devon has made a bold move in buying a sizeable position in the core of the Eagle Ford from Blackstone-backed GeoSouthern Resources, for a cash consideration of US$6 billion. Globally, this is the largest deal of 2013, and it is the biggest ever deal involving only US tight oil assets, surpassing Statoil's US$4.7 billion acquisition of Bakken-focused Brigham Exploration in 2011. Devon will acquire 53,000 boe/d (76% liquids) and 82,000 net acres located in DeWitt and Lavaca counties. ...

What's included?

This report includes 1 file(s)

  • Devon acquires core Eagle Ford assets with US$6 billion acquisition from GeoSouthern Energy PDF - 1.47 MB 9 Pages, 7 Tables, 5 Figures


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
    • Modelling assumptions
  • Upsides & risks
    • Downspacing
    • Operational efficiency
    • Liquids price
  • Strategic rationale
    • Devon
    • GeoSouthern
  • Oil & gas pricing and assumptions

In this report there are 12 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Acquired assets and GeoSouthern and BHP Billiton-operated wells
    • Top 10 average IP rates by well operator: Karnes Trough (left), Edwards Condensate (right)
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides & risks
    • Lateral length versus drilling speed: wells since start-2012 in Karnes Trough and Edwards Condensate
    • Remaining value sensitivity to hydrocarbon price
  • Strategic rationale
    • Devon portfolio including Eagle Ford acquisition
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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