Deal insight

Encana makes bold move into the Permian with US$7.1 billion Athlon Energy acquisition

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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

  • Document

    Encana makes bold move into the Permian with US$7.1 billion Athlon Energy acquisition

    PDF 406.99 KB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • 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

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