Deal insight
| |
8 Pages

Encana makes decisive move into tight oil with US$3.1 bn Eagle Ford deal

Encana makes decisive move into tight oil with US$3.1 bn Eagle Ford deal

Report summary

Encana is to acquire 45,500 net acres in the core of the Eagle Ford for US$3.1 billion. Freeport-McMoRan Copper & Gold (FCX) is the seller. The acreage lies primarily in the Karnes Trough sub-play, at the core of this leading tight oil play. Current production is 53,000 boe/d (75% oil, 11% NGL and 14% gas), and we model a further 300 drilling locations. We value the portfolio at US$3.9 billion (NPV10, discounted to April 2014).

What's included?

This report includes 1 file(s)

  • Encana makes decisive move into tight oil with US$3.1 bn Eagle Ford deal PDF - 938.43 KB 8 Pages, 7 Tables, 3 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
    • Precedent transactions
  • Upsides and risks
    • Operational efficiency
    • Downspacing
    • Additional potential horizons
    • Liquids price
  • Strategic rationale
    • Encana
    • Freeport-McMoRan Copper & Gold
  • Oil & gas pricing and assumptions

In this report there are 10 tables or charts, including:

  • Executive summary
    • Executive summary: Image 1
  • Transaction details
  • Upstream assets
    • Karnes Trough sub-play wells: average IP30 rates by operator
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
    • Deal analysis: Table 4
  • Upsides and risks
  • Strategic rationale
    • FCX Eagle Ford acreage
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...