Deal insight
| |
7 Pages

Encana sells Bighorn gas asset to Jupiter Resources for US$1.8 billion


Encana sells Bighorn gas asset to Jupiter Resources for US$1.8 billion

Report summary

Encana is selling its Bighorn asset in Alberta's Deep Basin to Jupiter Resources (Apollo Global Management LLC affiliate) for US$1.8 billion (Cdn$2.0 billion). The asset includes 360,000 net acres of land and 1.1 bcfe (75% natural gas) of net proved reserves. We value Bighorn at US$1.7 billion (Cdn$1.8 billion), reflecting an implied long term Henry Hub gas price of US$4.69/mcf.

What's included?

This report includes 1 file(s)

  • Encana sells Bighorn gas asset to Jupiter Resources for US$1.8 billion PDF - 1001.39 KB 7 Pages, 8 Tables, 3 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
    • Encana
    • Jupiter
  • Oil & gas pricing and assumptions

In this report there are 11 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
    • Bighorn production profile - including upside
  • Strategic rationale
    • Upstream portfolio: strategic fit of regions
    • Gearing: Financial stretch (US$80/bbl low price)
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
    • Oil & gas pricing and assumptions: Table 3
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • 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...