Deal insight
Encana makes bold move into the Permian with US$7.1 billion Athlon Energy acquisition
Loading current market price
Report summary
We value the deal at US$4.9 billion, which is significantly short of the consideration. There are a number of levers that could materially increase our valuation, including: 1) further downspacing; 2) de-risking of multiple Wolfcamp benches; 3) de-risking of the Spraberry and Clearfork; and 4) higher average EURs across the acquired acreage. Success here could move our valuation above the consideration paid. But the operational and geological challenges should not be underestimated.
What's included
This report contains
Table of contents
- Executive summary
- Transaction details
- Upstream assets
-
Deal analysis
- Modelling assumptions
- Precedent transactions
-
Upsides and risks
- Continuous strong well results
- Multi-bench development and downspacing
- Cost reduction
- Production ramp-up
- Pricing differential risk
-
Strategic rationale
- Encana
- Athlon
- Oil & gas pricing and assumptions
Tables and charts
This report includes 11 images and tables including:
Images
- Acquired acreage from Athlon by Wolfcamp sub-play
- Upside to valuation - 500 mboe base case type curve
- Upside to valuation - 600 mboe high case type curve
Tables
- Executive summary: Table 1
- Upstream assets: Table 1
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- Deal analysis: Table 4
You may be interested in
Company report
Suncor Energy corporate - latest WM quarterly data
Company report
Statoil corporate - latest WM quarterly data
Company report
Sinopec Group corporate - latest WM quarterly data
Questions about this report?
-
Europe:+44 131 243 4699
-
Americas:+1 713 470 1900
-
Asia Pacific:+61 2 8224 8898