Deal Insight
Encana makes decisive move into tight oil with US$3.1 bn Eagle Ford deal
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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).
Table of contents
- 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
Tables and charts
This report includes 10 images and tables including:
- Executive summary: Image 1
- Karnes Trough sub-play wells: average IP30 rates by operator
- 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
- FCX Eagle Ford acreage
What's included
This report contains:
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