Deal insight
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10 Pages

Devon Energy acquires STACK and Powder River Basin assets for US$2.5 billion


Devon Energy acquires STACK and Powder River Basin assets for US$2.5 billion

Report summary

Devon will acquire 80,000 net surface acres in the STACK tight-oil play of the Anadarko Basin from Felix Energy for US$1.9 billion, and 253,000 net acres in the Powder River Basin (PRB) from an undisclosed seller for US$600 million. Our valuation, which ignores exploration upside outside of the core commercial zones, suggests Devon paid a net 5% premium across the two deals.

What's included?

This report includes 1 file(s)

  • Devon Energy acquires STACK and Powder River Basin assets for US$2.5 billion PDF - 657.50 KB 10 Pages, 11 Tables, 4 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
    • Devon Energy
  • Oil & gas pricing and assumptions

In this report there are 15 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
    • Executive summary: Table 2
  • Transaction details
  • Upstream assets
    • Devon will expand its STACK footprint further north into the updip portion of the Meramec
    • Devon Energy expands its footprint south in the Powder River Basin
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
    • Deal analysis: Table 4
    • Deal analysis: Table 5
    • Deal analysis: Table 6
  • Upsides and risks
  • Strategic rationale
    • Benchmarking: WM new project returns vs. capital expenditures for Focused US peer group
    • WM net-debt outlook for Devon under various scenarios
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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